LTAX vs. TAXT

Last updated Jun 23, 2026

LTAX (Nomura Tax-Free USA ETF) and TAXT (Northern Trust Tax-Exempt Bond ETF) are both Municipal Bonds funds. LTAX is actively managed, while TAXT is passively managed. Their correlation of 0.80 suggests significant overlap in exposure. LTAX charges 0.39%/yr vs 0.05%/yr for TAXT.

Performance

LTAX vs. TAXT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nomura Tax-Free USA ETF (LTAX) and Northern Trust Tax-Exempt Bond ETF (TAXT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

LTAX

• 1D: -0.01%
• 1M: 2.01%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAXT

• 1D: -0.04%
• 1M: 1.12%
• YTD: 1.58%
• 6M: 1.81%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

LTAX vs. TAXT - Yearly Performance Comparison

	2026 (YTD)
LTAX Nomura Tax-Free USA ETF	2.07%
TAXT Northern Trust Tax-Exempt Bond ETF	0.98%

Correlation

The correlation between LTAX and TAXT is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jan 13, 2026	0.80

Return for Risk

LTAX vs. TAXT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nomura Tax-Free USA ETF (LTAX) and Northern Trust Tax-Exempt Bond ETF (TAXT). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Drawdowns

LTAX vs. TAXT - Drawdown Comparison

The maximum LTAX drawdown since its inception was -3.18%, which is greater than TAXT's maximum drawdown of -2.49%. Use the drawdown chart below to compare losses from any high point for LTAX and TAXT.

Drawdown Indicators

	LTAX	TAXT	Difference
Max Drawdown Largest peak-to-trough decline	-3.18%	-2.49%	-0.69%
Current Drawdown Current decline from peak	-0.01%	-0.49%	+0.48%
Average Drawdown Average peak-to-trough decline	-0.65%	-0.48%	-0.17%

Volatility

Volatility by Period

	LTAX	TAXT	Difference
Volatility (1Y) Calculated over the trailing 1-year period	5.76%	2.53%	+3.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.76%	2.53%	+3.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.76%	2.53%	+3.23%

LTAX vs. TAXT - Expense Ratio Comparison

LTAX has a 0.39% expense ratio, which is higher than TAXT's 0.05% expense ratio.

Dividends

LTAX vs. TAXT - Dividend Comparison

LTAX's dividend yield for the trailing twelve months is around 1.33%, less than TAXT's 2.54% yield.

Position	TTM	2025
LTAX Nomura Tax-Free USA ETF	1.33%	0.00%
TAXT Northern Trust Tax-Exempt Bond ETF	2.54%	1.23%

Frequently Asked Questions

Can I hold both LTAX and TAXT in my portfolio?

LTAX and TAXT have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, LTAX or TAXT?

On fees, TAXT 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, LTAX or TAXT?

TAXT is cheaper with a 0.05% expense ratio, compared with 0.39% for LTAX.

Which ETF pays a higher dividend yield, LTAX or TAXT?

TAXT has the higher dividend yield at 2.54%, compared with 1.33% for LTAX.

What is the main difference between LTAX and TAXT?

They also come from different issuers: Nomura and Northern Trust. Their fees differ too: 0.39% for LTAX and 0.05% for TAXT.