HYFI vs. TAFM

Last updated Jun 5, 2026

HYFI (AB High Yield ETF) and TAFM (AB Tax-Aware Intermediate Municipal ETF) are both exchange-traded funds - HYFI is a High Yield Bonds fund actively managed by AllianceBernstein, while TAFM is a Municipal Bonds fund actively managed by AllianceBernstein. Both are actively managed. Over the past year, HYFI returned 7.65% vs 7.13% for TAFM. At a 0.37 correlation, their price movements are largely independent. HYFI charges 0.40%/yr vs 0.28%/yr for TAFM.

Performance

HYFI vs. TAFM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AB High Yield ETF (HYFI) and AB Tax-Aware Intermediate Municipal ETF (TAFM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with HYFI having a 1.98% return and TAFM slightly higher at 1.99%.

HYFI

• 1D: 0.03%
• 1M: 0.44%
• YTD: 1.98%
• 6M: 2.35%
• 1Y: 7.65%
• 3Y*: 9.21%
• 5Y*: —
• 10Y*: —

TAFM

• 1D: 0.08%
• 1M: 0.81%
• YTD: 1.99%
• 6M: 2.26%
• 1Y: 7.13%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

HYFI vs. TAFM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
HYFI AB High Yield ETF	1.98%	8.91%	7.98%	1.03%
TAFM AB Tax-Aware Intermediate Municipal ETF	1.99%	4.21%	2.54%	1.51%

Correlation

The correlation between HYFI and TAFM is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (All Time) Calculated using the full available price history since Dec 14, 2023	0.37

Return for Risk

HYFI vs. TAFM — Risk / Return Rank

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

HYFI

HYFI Risk / Return Rank: 65
HYFI Sharpe Ratio Rank: 59
HYFI Sortino Ratio Rank: 66
HYFI Omega Ratio Rank: 62
HYFI Calmar Ratio Rank: 63
HYFI Martin Ratio Rank: 74

TAFM

TAFM Risk / Return Rank: 66
TAFM Sharpe Ratio Rank: 69
TAFM Sortino Ratio Rank: 74
TAFM Omega Ratio Rank: 78
TAFM Calmar Ratio Rank: 54
TAFM Martin Ratio Rank: 56

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.

HYFI vs. TAFM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB High Yield ETF (HYFI) and AB Tax-Aware Intermediate Municipal ETF (TAFM). 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.

	HYFI	TAFM	Difference
Sharpe ratio: Return per unit of total volatility	1.95	2.24	-0.29
Sortino ratio: Return per unit of downside risk	3.02	3.27	-0.24
Omega ratio: Gain probability vs. loss probability	1.37	1.46	-0.08
Calmar ratio: Return relative to maximum drawdown	3.08	2.66	+0.42
Martin ratio: Return relative to average drawdown	13.91	9.49	+4.41
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HYFI vs. TAFM - Sharpe Ratio Comparison

The current HYFI Sharpe Ratio is 1.95, which is comparable to the TAFM Sharpe Ratio of 2.24. The chart below compares the historical Sharpe Ratios of HYFI and TAFM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HYFI	TAFM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.95	2.24	-0.29
Sharpe Ratio (All Time) Calculated using the full available price history	1.70	0.85	+0.85

Drawdowns

HYFI vs. TAFM - Drawdown Comparison

The maximum HYFI drawdown since its inception was -6.34%, which is greater than TAFM's maximum drawdown of -4.74%. Use the drawdown chart below to compare losses from any high point for HYFI and TAFM.

Drawdown Indicators

	HYFI	TAFM	Difference
Max Drawdown Largest peak-to-trough decline	-6.34%	-4.74%	-1.60%
Max Drawdown (1Y) Largest decline over 1 year	-2.49%	-2.69%	+0.20%
Max Drawdown (3Y) Largest decline over 3 years	-6.34%	—	—
Current Drawdown Current decline from peak	-0.21%	-0.28%	+0.07%
Average Drawdown Average peak-to-trough decline	-0.51%	-0.95%	+0.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	0.75%	-0.20%

Volatility

HYFI vs. TAFM - Volatility Comparison

AB High Yield ETF (HYFI) has a higher volatility of 1.08% compared to AB Tax-Aware Intermediate Municipal ETF (TAFM) at 1.00%. This indicates that HYFI's price experiences larger fluctuations and is considered to be riskier than TAFM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HYFI	TAFM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.08%	1.00%	+0.08%
Volatility (6M) Calculated over the trailing 6-month period	3.10%	2.03%	+1.07%
Volatility (1Y) Calculated over the trailing 1-year period	3.94%	3.22%	+0.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.36%	4.95%	+0.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.36%	4.95%	+0.41%

HYFI vs. TAFM - Expense Ratio Comparison

HYFI has a 0.40% expense ratio, which is higher than TAFM's 0.28% expense ratio.

Dividends

HYFI vs. TAFM - Dividend Comparison

HYFI's dividend yield for the trailing twelve months is around 6.64%, more than TAFM's 3.63% yield.

Position	TTM	2025	2024	2023
HYFI AB High Yield ETF	6.64%	6.66%	6.57%	4.17%
TAFM AB Tax-Aware Intermediate Municipal ETF	3.63%	3.51%	3.35%	0.18%

Frequently Asked Questions

Can I hold both HYFI and TAFM in my portfolio?

HYFI and TAFM have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HYFI or TAFM?

HYFI has higher volatility (1.08%) compared to TAFM (1.00%). In terms of maximum drawdown, HYFI dropped -6.34% vs TAFM's -4.74%.

Which ETF is better, HYFI or TAFM?

On 1-year performance, HYFI leads with 7.65% vs 7.13% for TAFM. On fees, TAFM is cheaper at 0.28% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HYFI or TAFM?

Over the 1-year period, HYFI has performed better with a 7.65% return vs 7.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HYFI or TAFM?

TAFM is cheaper with a 0.28% expense ratio, compared with 0.40% for HYFI.

Which ETF pays a higher dividend yield, HYFI or TAFM?

HYFI has the higher dividend yield at 6.64%, compared with 3.63% for TAFM.

What is the main difference between HYFI and TAFM?

HYFI is categorized as High Yield Bonds, while TAFM is Municipal Bonds. Their fees differ too: 0.40% for HYFI and 0.28% for TAFM.

Which has better risk-adjusted returns?

TAFM currently has the higher Sharpe Ratio (2.24 vs 1.95), 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.