RPLCX vs. BAB

Last updated Jun 4, 2026

RPLCX (T. Rowe Price Institutional Long Duration Credit Fund) and BAB (Invesco Taxable Municipal Bond ETF) are both funds - RPLCX is a Long-Term Bond fund managed by T. Rowe Price, while BAB is a Municipal Bonds fund tracking the BofA Merrill Lynch Build America Bond Index. Over the past 10 years, RPLCX returned 2.24%/yr vs 2.24%/yr for BAB. Their correlation of 0.82 suggests significant overlap in exposure. RPLCX charges 0.45%/yr vs 0.28%/yr for BAB.

Performance

RPLCX vs. BAB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Institutional Long Duration Credit Fund (RPLCX) and Invesco Taxable Municipal Bond ETF (BAB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RPLCX achieves a 0.91% return, which is significantly higher than BAB's 0.12% return. Over a longer period, both investments have demonstrated similar performance, with their 10-year annualized returns being quite close: RPLCX at 2.24% and BAB at 2.24%.

RPLCX

• 1D: 0.13%
• 1M: 1.82%
• YTD: 0.91%
• 6M: 0.58%
• 1Y: 8.66%
• 3Y*: 4.00%
• 5Y*: -2.14%
• 10Y*: 2.24%

BAB

• 1D: 0.00%
• 1M: 0.33%
• YTD: 0.12%
• 6M: -0.01%
• 1Y: 7.16%
• 3Y*: 4.42%
• 5Y*: -0.38%
• 10Y*: 2.24%

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

RPLCX vs. BAB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RPLCX T. Rowe Price Institutional Long Duration Credit Fund	0.91%	7.65%	-1.84%	9.05%	-27.00%	-0.19%	16.73%	23.72%	-6.27%	11.03%
BAB Invesco Taxable Municipal Bond ETF	0.12%	8.30%	1.03%	8.67%	-19.50%	1.00%	9.11%	10.85%	0.93%	9.87%

Correlation

The correlation between RPLCX and BAB is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Jan 3, 2014	0.82

The correlation between RPLCX and BAB has been stable across timeframes, ranging from 0.77 to 0.86 - a consistent structural relationship.

Return for Risk

RPLCX vs. BAB — Risk / Return Rank

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

RPLCX

RPLCX Risk / Return Rank: 18
RPLCX Sharpe Ratio Rank: 16
RPLCX Sortino Ratio Rank: 17
RPLCX Omega Ratio Rank: 16
RPLCX Calmar Ratio Rank: 22
RPLCX Martin Ratio Rank: 18

BAB

BAB Risk / Return Rank: 34
BAB Sharpe Ratio Rank: 34
BAB Sortino Ratio Rank: 37
BAB Omega Ratio Rank: 32
BAB Calmar Ratio Rank: 35
BAB Martin Ratio Rank: 33

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.

RPLCX vs. BAB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Institutional Long Duration Credit Fund (RPLCX) and Invesco Taxable Municipal Bond ETF (BAB). 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.

	RPLCX	BAB	Difference
Sharpe ratio Return per unit of total volatility	1.15	1.24	-0.09
Sortino ratio Return per unit of downside risk	1.73	1.92	-0.18
Omega ratio Gain probability vs. loss probability	1.21	1.22	-0.02
Calmar ratio Return relative to maximum drawdown	1.73	1.73	0.00
Martin ratio Return relative to average drawdown	4.80	4.93	-0.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RPLCX vs. BAB - Sharpe Ratio Comparison

The current RPLCX Sharpe Ratio is 1.15, which is comparable to the BAB Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of RPLCX and BAB, 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

	RPLCX	BAB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.15	1.24	-0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.18	-0.05	-0.14
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.21	0.23	-0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.52	-0.16

Drawdowns

RPLCX vs. BAB - Drawdown Comparison

The maximum RPLCX drawdown since its inception was -35.21%, which is greater than BAB's maximum drawdown of -27.80%. Use the drawdown chart below to compare losses from any high point for RPLCX and BAB.

Drawdown Indicators

	RPLCX	BAB	Difference
Max Drawdown Largest peak-to-trough decline	-35.21%	-27.80%	-7.41%
Max Drawdown (1Y) Largest decline over 1 year	-5.19%	-4.15%	-1.04%
Max Drawdown (3Y) Largest decline over 3 years	-13.32%	-7.57%	-5.75%
Max Drawdown (5Y) Largest decline over 5 years	-35.21%	-24.95%	-10.26%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-27.80%	-7.41%
Current Drawdown Current decline from peak	-16.76%	-5.64%	-11.12%
Average Drawdown Average peak-to-trough decline	-10.12%	-5.31%	-4.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.87%	1.46%	+0.41%

Volatility

RPLCX vs. BAB - Volatility Comparison

T. Rowe Price Institutional Long Duration Credit Fund (RPLCX) has a higher volatility of 2.65% compared to Invesco Taxable Municipal Bond ETF (BAB) at 1.72%. This indicates that RPLCX's price experiences larger fluctuations and is considered to be riskier than BAB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RPLCX	BAB	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.65%	1.72%	+0.93%
Volatility (6M) Calculated over the trailing 6-month period	5.63%	3.78%	+1.85%
Volatility (1Y) Calculated over the trailing 1-year period	7.82%	5.80%	+2.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.65%	8.33%	+3.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.60%	9.69%	+0.91%

RPLCX vs. BAB - Expense Ratio Comparison

RPLCX has a 0.45% expense ratio, which is higher than BAB's 0.28% expense ratio.

Dividends

RPLCX vs. BAB - Dividend Comparison

RPLCX's dividend yield for the trailing twelve months is around 5.35%, more than BAB's 4.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BAB Invesco Taxable Municipal Bond ETF	4.10%	3.96%	3.97%	3.65%	3.40%	2.63%	2.96%	3.77%	4.20%	3.96%	4.26%	4.71%
RPLCX T. Rowe Price Institutional Long Duration Credit Fund	5.35%	5.32%	5.17%	4.15%	3.54%	6.09%	7.16%	13.58%	4.33%	4.07%	3.79%	4.70%

Frequently Asked Questions

Can I hold both RPLCX and BAB in my portfolio?

RPLCX and BAB have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RPLCX or BAB?

RPLCX has higher volatility (2.65%) compared to BAB (1.72%). In terms of maximum drawdown, RPLCX dropped -35.21% vs BAB's -27.80%.

Which has better risk-adjusted returns?

BAB currently has the higher Sharpe Ratio (1.24 vs 1.15), 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.