SCMB vs. TAXI

Last updated Jul 17, 2026

SCMB (Schwab Municipal Bond ETF) and TAXI (Northern Trust Intermediate Tax-Exempt Bond ETF) are both Municipal Bonds funds - SCMB tracks the ICE AMT-Free Core U.S. National Municipal Index while TAXI tracks the ICE Intermediate Term Focused Municipal Bond Index. Both are passively managed. A 0.78 correlation means they provide meaningful diversification when combined. SCMB charges 0.03%/yr vs 0.05%/yr for TAXI.

Performance

SCMB vs. TAXI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Municipal Bond ETF (SCMB) and Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCMB achieves a 1.13% return, which is significantly higher than TAXI's 0.81% return.

SCMB

• 1D: -0.16%
• 1M: -0.14%
• 6M: 0.39%
• YTD: 1.13%
• 1Y: 6.56%
• 3Y*: 3.03%
• 5Y*: —
• 10Y*: —

TAXI

• 1D: -0.10%
• 1M: -0.17%
• 6M: 0.18%
• YTD: 0.81%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SCMB vs. TAXI - Yearly Performance Comparison

	2026 (YTD)	2025
SCMB Schwab Municipal Bond ETF	1.13%	4.23%
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF	0.81%	3.35%

Correlation

The correlation between SCMB and TAXI is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025	0.78

Return for Risk

SCMB vs. TAXI — Risk / Return Rank

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

SCMB

SCMB Risk / Return Rank: 76
SCMB Sharpe Ratio Rank: 88
SCMB Sortino Ratio Rank: 90
SCMB Omega Ratio Rank: 92
SCMB Calmar Ratio Rank: 56
SCMB Martin Ratio Rank: 55

TAXI

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

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.

SCMB vs. TAXI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Municipal Bond ETF (SCMB) and Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI). 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.

	SCMB	TAXI	Difference
Sharpe ratio: Return per unit of total volatility	2.30	—	—
Sortino ratio: Return per unit of downside risk	3.35	—	—
Omega ratio: Gain probability vs. loss probability	1.49	—	—
Calmar ratio: Return relative to maximum drawdown	2.26	—	—
Martin ratio: Return relative to average drawdown	7.54	—	—

Drawdowns

SCMB vs. TAXI - Drawdown Comparison

The maximum SCMB drawdown since its inception was -6.13%, which is greater than TAXI's maximum drawdown of -2.23%. Use the drawdown chart below to compare losses from any high point for SCMB and TAXI.

Drawdown Indicators

	SCMB	TAXI	Difference
Max Drawdown Largest peak-to-trough decline	-6.13%	-2.23%	-3.90%
Max Drawdown (1Y) Largest decline over 1 year	-2.92%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-5.57%	—	—
Current Drawdown Current decline from peak	-0.81%	-0.92%	+0.11%
Average Drawdown Average peak-to-trough decline	-1.30%	-0.49%	-0.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.87%	—	—

Volatility

Volatility by Period

	SCMB	TAXI	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.62%	—	—
Volatility (6M) Calculated over the trailing 6-month period	2.19%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	2.88%	1.86%	+1.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.11%	1.86%	+2.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.11%	1.86%	+2.25%

SCMB vs. TAXI - Expense Ratio Comparison

SCMB has a 0.03% expense ratio, which is lower than TAXI's 0.05% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCMB vs. TAXI - Dividend Comparison

SCMB's dividend yield for the trailing twelve months is around 3.55%, more than TAXI's 2.23% yield.

Position	TTM	2025	2024	2023	2022
SCMB Schwab Municipal Bond ETF	3.55%	3.36%	3.34%	3.10%	0.59%
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF	2.23%	0.85%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SCMB and TAXI in my portfolio?

SCMB and TAXI have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, SCMB or TAXI?

On fees, SCMB is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, SCMB or TAXI?

SCMB is cheaper with a 0.03% expense ratio, compared with 0.05% for TAXI.

Which ETF pays a higher dividend yield, SCMB or TAXI?

SCMB has the higher dividend yield at 3.55%, compared with 2.23% for TAXI.

What is the main difference between SCMB and TAXI?

SCMB tracks ICE AMT-Free Core U.S. National Municipal Index, while TAXI tracks ICE Intermediate Term Focused Municipal Bond Index. They also come from different issuers: Charles Schwab and Northern Trust. Their fees differ too: 0.03% for SCMB and 0.05% for TAXI.