NKX vs. LSMSX

Last updated Jun 4, 2026

NKX (Nuveen California AMT-Free Quality Municipal Income Fund) and LSMSX (Western Asset SMASh Series TF Fund) are both Municipal Bonds funds. Over the past 5 years, NKX returned 0.82%/yr vs 1.20%/yr for LSMSX. At a 0.35 correlation, their price movements are largely independent. NKX charges 0.04%/yr vs 0.01%/yr for LSMSX.

Performance

NKX vs. LSMSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nuveen California AMT-Free Quality Municipal Income Fund (NKX) and Western Asset SMASh Series TF Fund (LSMSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NKX achieves a 4.20% return, which is significantly higher than LSMSX's 2.18% return.

NKX

• 1D: -0.32%
• 1M: 2.23%
• YTD: 4.20%
• 6M: 2.03%
• 1Y: 15.60%
• 3Y*: 11.21%
• 5Y*: 0.82%
• 10Y*: 2.60%

LSMSX

• 1D: 0.31%
• 1M: 1.07%
• YTD: 2.18%
• 6M: 2.48%
• 1Y: 8.53%
• 3Y*: 4.03%
• 5Y*: 1.20%
• 10Y*: —

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

NKX vs. LSMSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NKX Nuveen California AMT-Free Quality Municipal Income Fund	4.20%	5.99%	16.48%	-1.91%	-18.45%	4.70%	8.08%	25.20%	-13.35%	9.76%
LSMSX Western Asset SMASh Series TF Fund	2.18%	3.22%	2.22%	7.96%	-10.03%	4.11%	4.48%	8.16%	0.46%	4.92%

Correlation

The correlation between NKX and LSMSX is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.39
Correlation (5Y) Calculated over the trailing 5-year period	0.39
Correlation (All Time) Calculated using the full available price history since Feb 2, 2017	0.35

Return for Risk

NKX vs. LSMSX — Risk / Return Rank

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

NKX

NKX Risk / Return Rank: 31
NKX Sharpe Ratio Rank: 37
NKX Sortino Ratio Rank: 33
NKX Omega Ratio Rank: 42
NKX Calmar Ratio Rank: 19
NKX Martin Ratio Rank: 22

LSMSX

LSMSX Risk / Return Rank: 77
LSMSX Sharpe Ratio Rank: 89
LSMSX Sortino Ratio Rank: 92
LSMSX Omega Ratio Rank: 94
LSMSX Calmar Ratio Rank: 61
LSMSX Martin Ratio Rank: 49

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.

NKX vs. LSMSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nuveen California AMT-Free Quality Municipal Income Fund (NKX) and Western Asset SMASh Series TF Fund (LSMSX). 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.

	NKX	LSMSX	Difference
Sharpe ratio: Return per unit of total volatility	1.76	2.95	-1.19
Sortino ratio: Return per unit of downside risk	2.40	4.61	-2.21
Omega ratio: Gain probability vs. loss probability	1.35	1.72	-0.37
Calmar ratio: Return relative to maximum drawdown	1.61	2.99	-1.39
Martin ratio: Return relative to average drawdown	5.70	10.07	-4.38
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NKX vs. LSMSX - Sharpe Ratio Comparison

The current NKX Sharpe Ratio is 1.76, which is lower than the LSMSX Sharpe Ratio of 2.95. The chart below compares the historical Sharpe Ratios of NKX and LSMSX, 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

	NKX	LSMSX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.76	2.95	-1.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.07	0.27	-0.20
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.20	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.63	-0.30

Drawdowns

NKX vs. LSMSX - Drawdown Comparison

The maximum NKX drawdown since its inception was -43.89%, which is greater than LSMSX's maximum drawdown of -15.00%. Use the drawdown chart below to compare losses from any high point for NKX and LSMSX.

Drawdown Indicators

	NKX	LSMSX	Difference
Max Drawdown Largest peak-to-trough decline	-43.89%	-15.00%	-28.89%
Max Drawdown (1Y) Largest decline over 1 year	-9.74%	-2.82%	-6.92%
Max Drawdown (3Y) Largest decline over 3 years	-14.53%	-7.49%	-7.04%
Max Drawdown (5Y) Largest decline over 5 years	-35.64%	-15.00%	-20.64%
Max Drawdown (10Y) Largest decline over 10 years	-35.64%	—	—
Current Drawdown Current decline from peak	-2.00%	-0.23%	-1.77%
Average Drawdown Average peak-to-trough decline	-8.35%	-2.85%	-5.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.75%	0.84%	+1.91%

Volatility

NKX vs. LSMSX - Volatility Comparison

Nuveen California AMT-Free Quality Municipal Income Fund (NKX) has a higher volatility of 2.33% compared to Western Asset SMASh Series TF Fund (LSMSX) at 1.22%. This indicates that NKX's price experiences larger fluctuations and is considered to be riskier than LSMSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NKX	LSMSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.33%	1.22%	+1.11%
Volatility (6M) Calculated over the trailing 6-month period	7.00%	2.07%	+4.93%
Volatility (1Y) Calculated over the trailing 1-year period	8.91%	2.88%	+6.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.34%	4.49%	+7.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.84%	4.51%	+8.33%

NKX vs. LSMSX - Expense Ratio Comparison

NKX has a 0.04% expense ratio, which is higher than LSMSX's 0.01% 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

NKX vs. LSMSX - Dividend Comparison

NKX's dividend yield for the trailing twelve months is around 7.25%, more than LSMSX's 3.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LSMSX Western Asset SMASh Series TF Fund	3.86%	3.83%	4.30%	3.37%	2.38%	2.73%	2.33%	2.55%	2.34%	0.90%	0.00%	0.00%
NKX Nuveen California AMT-Free Quality Municipal Income Fund	7.25%	7.33%	6.14%	4.38%	5.17%	4.21%	4.05%	4.06%	5.25%	5.06%	6.18%	5.66%

Frequently Asked Questions

Can I hold both NKX and LSMSX in my portfolio?

NKX and LSMSX have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NKX or LSMSX?

NKX has higher volatility (2.33%) compared to LSMSX (1.22%). In terms of maximum drawdown, NKX dropped -43.89% vs LSMSX's -15.00%.

Which has better risk-adjusted returns?

LSMSX currently has the higher Sharpe Ratio (2.95 vs 1.76), 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.