FCAL vs. ZTAX

Last updated Jun 25, 2026

FCAL (First Trust California Municipal High Income ETF) and ZTAX (X-Square Municipal Income Tax Free ETF) are both Municipal Bonds funds. Both are actively managed. Over the past 3 years, FCAL returned 3.50%/yr vs 4.27%/yr for ZTAX. At a 0.04 correlation, their price movements are largely independent. FCAL charges 0.50%/yr vs 1.14%/yr for ZTAX.

Performance

FCAL vs. ZTAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust California Municipal High Income ETF (FCAL) and X-Square Municipal Income Tax Free ETF (ZTAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FCAL achieves a 2.15% return, which is significantly higher than ZTAX's 1.66% return.

FCAL

• 1D: 0.12%
• 1M: 1.53%
• YTD: 2.15%
• 6M: 2.27%
• 1Y: 6.97%
• 3Y*: 3.50%
• 5Y*: 0.73%
• 10Y*: —

ZTAX

• 1D: -1.45%
• 1M: 1.21%
• YTD: 1.66%
• 6M: 2.86%
• 1Y: 6.26%
• 3Y*: 4.27%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FCAL vs. ZTAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FCAL First Trust California Municipal High Income ETF	2.15%	3.19%	1.90%	3.89%
ZTAX X-Square Municipal Income Tax Free ETF	1.66%	-1.02%	7.98%	3.74%

Correlation

The correlation between FCAL and ZTAX is -0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.06
Correlation (3Y) Calculated over the trailing 3-year period	0.03
Correlation (All Time) Calculated using the full available price history since May 19, 2023	0.04

The correlation between FCAL and ZTAX shifts across timeframes, from -0.06 (1 year) to 0.04 (all time), reflecting how their relationship changes across market environments.

Return for Risk

FCAL vs. ZTAX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FCAL

FCAL Risk / Return Rank: 80
FCAL Sharpe Ratio Rank: 89
FCAL Sortino Ratio Rank: 92
FCAL Omega Ratio Rank: 94
FCAL Calmar Ratio Rank: 62
FCAL Martin Ratio Rank: 64

ZTAX

ZTAX Risk / Return Rank: 14
ZTAX Sharpe Ratio Rank: 12
ZTAX Sortino Ratio Rank: 12
ZTAX Omega Ratio Rank: 15
ZTAX Calmar Ratio Rank: 16
ZTAX Martin Ratio Rank: 16

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FCAL vs. ZTAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust California Municipal High Income ETF (FCAL) and X-Square Municipal Income Tax Free ETF (ZTAX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FCAL	ZTAX	Difference
Sharpe ratio: Return per unit of total volatility	2.62	0.19	+2.43
Sortino ratio: Return per unit of downside risk	3.88	0.52	+3.36
Omega ratio: Gain probability vs. loss probability	1.60	1.09	+0.51
Calmar ratio: Return relative to maximum drawdown	2.72	0.57	+2.15
Martin ratio: Return relative to average drawdown	10.17	1.37	+8.79

FCAL vs. ZTAX - Sharpe Ratio Comparison

The current FCAL Sharpe Ratio is 2.62, which is higher than the ZTAX Sharpe Ratio of 0.19. The chart below compares the historical Sharpe Ratios of FCAL and ZTAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FCAL vs. ZTAX - Drawdown Comparison

The maximum FCAL drawdown since its inception was -14.81%, roughly equal to the maximum ZTAX drawdown of -15.33%. Use the drawdown chart below to compare losses from any high point for FCAL and ZTAX.

Drawdown Indicators

	FCAL	ZTAX	Difference
Max Drawdown Largest peak-to-trough decline	-14.81%	-15.33%	+0.52%
Max Drawdown (1Y) Largest decline over 1 year	-2.57%	-10.99%	+8.42%
Max Drawdown (3Y) Largest decline over 3 years	-5.46%	-15.33%	+9.87%
Max Drawdown (5Y) Largest decline over 5 years	-14.44%	—	—
Current Drawdown Current decline from peak	0.00%	-10.74%	+10.74%
Average Drawdown Average peak-to-trough decline	-3.33%	-6.82%	+3.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.69%	4.57%	-3.88%

Volatility

FCAL vs. ZTAX - Volatility Comparison

The current volatility for First Trust California Municipal High Income ETF (FCAL) is 0.61%, while X-Square Municipal Income Tax Free ETF (ZTAX) has a volatility of 19.64%. This indicates that FCAL experiences smaller price fluctuations and is considered to be less risky than ZTAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FCAL	ZTAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.61%	19.64%	-19.03%
Volatility (6M) Calculated over the trailing 6-month period	2.10%	28.28%	-26.18%
Volatility (1Y) Calculated over the trailing 1-year period	2.67%	32.32%	-29.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.24%	28.90%	-24.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.23%	28.90%	-23.67%

FCAL vs. ZTAX - Expense Ratio Comparison

FCAL has a 0.50% expense ratio, which is lower than ZTAX's 1.14% expense ratio.

Dividends

FCAL vs. ZTAX - Dividend Comparison

FCAL's dividend yield for the trailing twelve months is around 3.32%, less than ZTAX's 4.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FCAL First Trust California Municipal High Income ETF	3.32%	3.22%	2.99%	2.74%	2.38%	2.03%	2.11%	2.68%	2.99%	1.30%
ZTAX X-Square Municipal Income Tax Free ETF	4.50%	4.58%	4.55%	2.14%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FCAL and ZTAX in my portfolio?

FCAL and ZTAX have a correlation of -0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FCAL or ZTAX?

ZTAX has higher volatility (19.64%) compared to FCAL (0.61%). In terms of maximum drawdown, FCAL dropped -14.81% vs ZTAX's -15.33%.

Which ETF is better, FCAL or ZTAX?

On 3-year performance, ZTAX leads with 4.27% vs 3.50% for FCAL. On fees, FCAL is cheaper at 0.50% per year. On volatility, FCAL has been the lower-risk option at 0.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FCAL or ZTAX?

Over the 3-year period, ZTAX has performed better with a 4.27% return vs 3.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FCAL or ZTAX?

FCAL is cheaper with a 0.50% expense ratio, compared with 1.14% for ZTAX.

Which ETF pays a higher dividend yield, FCAL or ZTAX?

ZTAX has the higher dividend yield at 4.50%, compared with 3.32% for FCAL.

What is the main difference between FCAL and ZTAX?

They also come from different issuers: First Trust and X-Square. Their fees differ too: 0.50% for FCAL and 1.14% for ZTAX.

Which has better risk-adjusted returns?

FCAL currently has the higher Sharpe Ratio (2.62 vs 0.19), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.