LDRC vs. TAXS

Last updated Jun 6, 2026

LDRC (iShares iBonds 1-5 Year Corporate Ladder ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both exchange-traded funds - LDRC is a Short-Term Bond fund tracking the BlackRock iBonds 1-5 Year Corporate Ladder Index, while TAXS is a Municipal Bonds fund tracking the ICE Short Term Focused Municipal Bond Index. Both are passively managed. At a 0.42 correlation, their price movements are largely independent. LDRC charges 0.10%/yr vs 0.05%/yr for TAXS.

Performance

LDRC vs. TAXS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds 1-5 Year Corporate Ladder ETF (LDRC) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LDRC achieves a 0.80% return, which is significantly lower than TAXS's 0.95% return.

LDRC

• 1D: -0.02%
• 1M: 0.05%
• YTD: 0.80%
• 6M: 1.31%
• 1Y: 4.49%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAXS

• 1D: -0.04%
• 1M: 0.39%
• YTD: 0.95%
• 6M: 1.33%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

LDRC vs. TAXS - Yearly Performance Comparison

	2026 (YTD)	2025
LDRC iShares iBonds 1-5 Year Corporate Ladder ETF	0.80%	2.16%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	0.95%	1.22%

Correlation

The correlation between LDRC and TAXS is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 20, 2025	0.42

Return for Risk

LDRC vs. TAXS — Risk / Return Rank

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

LDRC

LDRC Risk / Return Rank: 75
LDRC Sharpe Ratio Rank: 66
LDRC Sortino Ratio Rank: 71
LDRC Omega Ratio Rank: 79
LDRC Calmar Ratio Rank: 86
LDRC Martin Ratio Rank: 73

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.

LDRC vs. TAXS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds 1-5 Year Corporate Ladder ETF (LDRC) 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.

	LDRC	TAXS	Difference
Sharpe ratio: Return per unit of total volatility	2.02	—	—
Sortino ratio: Return per unit of downside risk	3.00	—	—
Omega ratio: Gain probability vs. loss probability	1.44	—	—
Calmar ratio: Return relative to maximum drawdown	4.52	—	—
Martin ratio: Return relative to average drawdown	12.70	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	LDRC	TAXS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.02	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.92	2.78	-0.86

Drawdowns

LDRC vs. TAXS - Drawdown Comparison

The maximum LDRC drawdown since its inception was -1.00%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for LDRC and TAXS.

Drawdown Indicators

	LDRC	TAXS	Difference
Max Drawdown Largest peak-to-trough decline	-1.00%	-0.84%	-0.16%
Max Drawdown (1Y) Largest decline over 1 year	-1.00%	—	—
Current Drawdown Current decline from peak	-0.08%	-0.07%	-0.01%
Average Drawdown Average peak-to-trough decline	-0.26%	-0.23%	-0.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.35%	—	—

Volatility

Volatility by Period

	LDRC	TAXS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.44%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.49%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	2.24%	1.00%	+1.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.51%	1.00%	+1.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.51%	1.00%	+1.51%

LDRC vs. TAXS - Expense Ratio Comparison

LDRC has a 0.10% 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

LDRC vs. TAXS - Dividend Comparison

LDRC's dividend yield for the trailing twelve months is around 4.22%, more than TAXS's 1.82% yield.

Position	TTM	2025	2024
LDRC iShares iBonds 1-5 Year Corporate Ladder ETF	4.22%	4.22%	0.75%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.82%	0.74%	0.00%

Frequently Asked Questions

Can I hold both LDRC and TAXS in my portfolio?

LDRC and TAXS have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, LDRC or TAXS?

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.

Which ETF is cheaper, LDRC or TAXS?

TAXS is cheaper with a 0.05% expense ratio, compared with 0.10% for LDRC.

Which ETF pays a higher dividend yield, LDRC or TAXS?

LDRC has the higher dividend yield at 4.22%, compared with 1.82% for TAXS.

What is the main difference between LDRC and TAXS?

LDRC is categorized as Short-Term Bond, while TAXS is Municipal Bonds. LDRC tracks BlackRock iBonds 1-5 Year Corporate Ladder Index, while TAXS tracks ICE Short Term Focused Municipal Bond Index. They also come from different issuers: iShares and Northern Trust. Their fees differ too: 0.10% for LDRC and 0.05% for TAXS.