NOTEX vs. DFSMX

Last updated Jun 23, 2026

NOTEX (Northern Tax Exempt Fund) and DFSMX (DFA Short Term Municipal Bond Portfolio) are both Municipal Bonds funds. Over the past 10 years, NOTEX returned 1.52%/yr vs 1.26%/yr for DFSMX. At a 0.39 correlation, their price movements are largely independent. NOTEX charges 0.45%/yr vs 0.20%/yr for DFSMX.

Performance

NOTEX vs. DFSMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Northern Tax Exempt Fund (NOTEX) and DFA Short Term Municipal Bond Portfolio (DFSMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NOTEX achieves a 1.62% return, which is significantly higher than DFSMX's 1.15% return. Over the past 10 years, NOTEX has outperformed DFSMX with an annualized return of 1.52%, while DFSMX has yielded a comparatively lower 1.26% annualized return.

NOTEX

• 1D: 0.10%
• 1M: 1.70%
• YTD: 1.62%
• 6M: 1.72%
• 1Y: 6.70%
• 3Y*: 3.45%
• 5Y*: -0.12%
• 10Y*: 1.52%

DFSMX

• 1D: 0.10%
• 1M: 0.40%
• YTD: 1.15%
• 6M: 1.15%
• 1Y: 2.48%
• 3Y*: 2.71%
• 5Y*: 1.74%
• 10Y*: 1.26%

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

NOTEX vs. DFSMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NOTEX Northern Tax Exempt Fund	1.62%	3.59%	2.21%	5.25%	-12.23%	0.84%	4.99%	7.88%	0.64%	5.13%
DFSMX DFA Short Term Municipal Bond Portfolio	1.15%	2.30%	2.84%	2.98%	-0.36%	-0.11%	0.83%	1.62%	1.22%	1.15%

Correlation

The correlation between NOTEX and DFSMX is 0.12, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.12
Correlation (3Y) Calculated over the trailing 3-year period	0.22
Correlation (5Y) Calculated over the trailing 5-year period	0.33
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since Aug 22, 2002	0.39

Over the past year, the correlation between NOTEX and DFSMX has dropped to 0.12 - well below their long-term average of 0.39, suggesting their price drivers have been diverging.

Return for Risk

NOTEX vs. DFSMX — Risk / Return Rank

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

NOTEX

NOTEX Risk / Return Rank: 71
NOTEX Sharpe Ratio Rank: 85
NOTEX Sortino Ratio Rank: 90
NOTEX Omega Ratio Rank: 92
NOTEX Calmar Ratio Rank: 48
NOTEX Martin Ratio Rank: 39

DFSMX

DFSMX Risk / Return Rank: 99
DFSMX Sharpe Ratio Rank: 99
DFSMX Sortino Ratio Rank: 99
DFSMX Omega Ratio Rank: 99
DFSMX Calmar Ratio Rank: 99
DFSMX Martin Ratio Rank: 100

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.

NOTEX vs. DFSMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Northern Tax Exempt Fund (NOTEX) and DFA Short Term Municipal Bond Portfolio (DFSMX). 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.

	NOTEX	DFSMX	Difference
Sharpe ratio: Return per unit of total volatility	2.57	4.16	-1.59
Sortino ratio: Return per unit of downside risk	4.05	8.56	-4.50
Omega ratio: Gain probability vs. loss probability	1.65	4.46	-2.81
Calmar ratio: Return relative to maximum drawdown	2.53	12.85	-10.32
Martin ratio: Return relative to average drawdown	8.05	76.73	-68.68

NOTEX vs. DFSMX - Sharpe Ratio Comparison

The current NOTEX Sharpe Ratio is 2.57, which is lower than the DFSMX Sharpe Ratio of 4.16. The chart below compares the historical Sharpe Ratios of NOTEX and DFSMX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

NOTEX vs. DFSMX - Drawdown Comparison

The maximum NOTEX drawdown since its inception was -17.48%, which is greater than DFSMX's maximum drawdown of -2.66%. Use the drawdown chart below to compare losses from any high point for NOTEX and DFSMX.

Drawdown Indicators

	NOTEX	DFSMX	Difference
Max Drawdown Largest peak-to-trough decline	-17.48%	-2.66%	-14.82%
Max Drawdown (1Y) Largest decline over 1 year	-2.68%	-0.20%	-2.48%
Max Drawdown (3Y) Largest decline over 3 years	-6.00%	-0.49%	-5.51%
Max Drawdown (5Y) Largest decline over 5 years	-17.48%	-1.66%	-15.82%
Max Drawdown (10Y) Largest decline over 10 years	-17.48%	-1.69%	-15.79%
Current Drawdown Current decline from peak	-1.29%	0.00%	-1.29%
Average Drawdown Average peak-to-trough decline	-2.39%	-0.23%	-2.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.84%	0.03%	+0.81%

Volatility

NOTEX vs. DFSMX - Volatility Comparison

Northern Tax Exempt Fund (NOTEX) has a higher volatility of 0.95% compared to DFA Short Term Municipal Bond Portfolio (DFSMX) at 0.18%. This indicates that NOTEX's price experiences larger fluctuations and is considered to be riskier than DFSMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NOTEX	DFSMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.95%	0.18%	+0.77%
Volatility (6M) Calculated over the trailing 6-month period	2.12%	0.38%	+1.74%
Volatility (1Y) Calculated over the trailing 1-year period	2.64%	0.61%	+2.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.33%	0.79%	+3.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.29%	0.77%	+3.52%

NOTEX vs. DFSMX - Expense Ratio Comparison

NOTEX has a 0.45% expense ratio, which is higher than DFSMX's 0.20% expense ratio.

Dividends

NOTEX vs. DFSMX - Dividend Comparison

NOTEX's dividend yield for the trailing twelve months is around 3.37%, more than DFSMX's 2.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFSMX DFA Short Term Municipal Bond Portfolio	2.35%	2.08%	2.80%	1.94%	0.63%	0.19%	0.83%	1.22%	1.11%	0.95%	0.94%	0.95%
NOTEX Northern Tax Exempt Fund	3.37%	3.25%	3.76%	2.88%	1.76%	1.93%	2.54%	3.40%	3.28%	3.37%	2.78%	3.24%

Frequently Asked Questions

Can I hold both NOTEX and DFSMX in my portfolio?

NOTEX and DFSMX have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NOTEX or DFSMX?

NOTEX has higher volatility (0.95%) compared to DFSMX (0.18%). In terms of maximum drawdown, NOTEX dropped -17.48% vs DFSMX's -2.66%.

Which has better risk-adjusted returns?

DFSMX currently has the higher Sharpe Ratio (4.16 vs 2.57), 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.