ISTB vs. TAXS
ISTB (iShares Core 1-5 Year USD Bond ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both exchange-traded funds - ISTB is a Short-Term Bond fund tracking the BBG US Universal 1-5 Year Index (USD), while TAXS is a Municipal Bonds fund tracking the ICE Short Term Focused Municipal Bond Index. Both are passively managed. A 0.52 correlation means they provide meaningful diversification when combined. ISTB charges 0.06%/yr vs 0.05%/yr for TAXS.
Performance
ISTB vs. TAXS - Performance Comparison
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Returns By Period
In the year-to-date period, ISTB achieves a 0.49% return, which is significantly lower than TAXS's 0.93% return.
ISTB
- 1D
- -0.08%
- 1M
- 0.15%
- YTD
- 0.49%
- 6M
- 0.71%
- 1Y
- 4.19%
- 3Y*
- 4.95%
- 5Y*
- 1.85%
- 10Y*
- 2.27%
TAXS
- 1D
- 0.06%
- 1M
- 0.38%
- YTD
- 0.93%
- 6M
- 1.33%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
ISTB vs. TAXS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 0.49% | 1.95% |
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF | 0.93% | 1.22% |
Correlation
The correlation between ISTB and TAXS is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (All Time) Calculated using the full available price history since Aug 20, 2025 | 0.52 |
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Return for Risk
ISTB vs. TAXS — Risk / Return Rank
ISTB
TAXS
ISTB vs. TAXS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core 1-5 Year USD Bond ETF (ISTB) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). 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.
| ISTB | TAXS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | — | — | |
| Sortino ratioReturn per unit of downside risk | — | — | |
| Omega ratioGain probability vs. loss probability | 1.46 | — | — |
| Calmar ratioReturn relative to maximum drawdown | 3.34 | — | — |
| Martin ratioReturn relative to average drawdown | 12.72 | — | — |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ISTB | TAXS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.37 | — | — |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.67 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.91 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.84 | 2.78 | -1.94 |
Drawdowns
ISTB vs. TAXS - Drawdown Comparison
The maximum ISTB drawdown since its inception was -9.34%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for ISTB and TAXS.
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Drawdown Indicators
| ISTB | TAXS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.34% | -0.84% | -8.50% |
Max Drawdown (1Y)Largest decline over 1 year | -1.26% | — | — |
Max Drawdown (3Y)Largest decline over 3 years | -1.36% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -9.34% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -9.34% | — | — |
Current DrawdownCurrent decline from peak | -0.42% | -0.09% | -0.33% |
Average DrawdownAverage peak-to-trough decline | -1.22% | -0.24% | -0.98% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.33% | — | — |
Volatility
ISTB vs. TAXS - Volatility Comparison
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Volatility by Period
| ISTB | TAXS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.54% | — | — |
Volatility (6M)Calculated over the trailing 6-month period | 1.28% | — | — |
Volatility (1Y)Calculated over the trailing 1-year period | 1.77% | 1.00% | +0.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.79% | 1.00% | +1.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.51% | 1.00% | +1.51% |
ISTB vs. TAXS - Expense Ratio Comparison
ISTB has a 0.06% expense ratio, which is higher than TAXS's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
ISTB vs. TAXS - Dividend Comparison
ISTB's dividend yield for the trailing twelve months is around 4.25%, more than TAXS's 1.83% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 4.25% | 4.12% | 3.83% | 2.97% | 2.01% | 1.69% | 2.20% | 2.75% | 2.57% | 2.06% | 1.90% | 1.58% |
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF | 1.83% | 0.74% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
ISTB and TAXS have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, TAXS is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.
TAXS is cheaper with a 0.05% expense ratio, compared with 0.06% for ISTB.
ISTB has the higher dividend yield at 4.25%, compared with 1.83% for TAXS.
ISTB is categorized as Short-Term Bond, while TAXS is Municipal Bonds. ISTB tracks BBG US Universal 1-5 Year Index (USD), while TAXS tracks ICE Short Term Focused Municipal Bond Index. They also come from different issuers: iShares and Northern Trust. Their fees differ too: 0.06% for ISTB and 0.05% for TAXS.
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