SCMB vs. TAXS
SCMB (Schwab Municipal Bond ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds - SCMB tracks the ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross while TAXS tracks the ICE Short Term Focused Municipal Bond Index. Both are passively managed. A 0.62 correlation means they provide meaningful diversification when combined. SCMB charges 0.03%/yr vs 0.05%/yr for TAXS.
Performance
SCMB vs. TAXS - Performance Comparison
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Returns By Period
In the year-to-date period, SCMB achieves a 1.07% return, which is significantly higher than TAXS's 0.93% return.
SCMB
- 1D
- -0.12%
- 1M
- 0.60%
- YTD
- 1.07%
- 6M
- 1.55%
- 1Y
- 6.86%
- 3Y*
- 3.37%
- 5Y*
- —
- 10Y*
- —
TAXS
- 1D
- 0.06%
- 1M
- 0.38%
- YTD
- 0.93%
- 6M
- 1.33%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
SCMB vs. TAXS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
SCMB Schwab Municipal Bond ETF | 1.07% | 4.14% |
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF | 0.93% | 1.22% |
Correlation
The correlation between SCMB and TAXS is 0.62, 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 20, 2025 | 0.62 |
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Return for Risk
SCMB vs. TAXS — Risk / Return Rank
SCMB
TAXS
SCMB vs. TAXS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Municipal Bond ETF (SCMB) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). 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.
| SCMB | TAXS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | — | — | |
| Sortino ratioReturn per unit of downside risk | — | — | |
| Omega ratioGain probability vs. loss probability | 1.50 | — | — |
| Calmar ratioReturn relative to maximum drawdown | 2.36 | — | — |
| Martin ratioReturn relative to average drawdown | 7.89 | — | — |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SCMB | TAXS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.34 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.97 | 2.78 | -1.80 |
Drawdowns
SCMB vs. TAXS - Drawdown Comparison
The maximum SCMB drawdown since its inception was -6.13%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for SCMB and TAXS.
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Drawdown Indicators
| SCMB | TAXS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.13% | -0.84% | -5.29% |
Max Drawdown (1Y)Largest decline over 1 year | -2.92% | — | — |
Max Drawdown (3Y)Largest decline over 3 years | -5.57% | — | — |
Current DrawdownCurrent decline from peak | -0.87% | -0.09% | -0.78% |
Average DrawdownAverage peak-to-trough decline | -1.32% | -0.24% | -1.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.87% | — | — |
Volatility
SCMB vs. TAXS - Volatility Comparison
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Volatility by Period
| SCMB | TAXS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.04% | — | — |
Volatility (6M)Calculated over the trailing 6-month period | 2.17% | — | — |
Volatility (1Y)Calculated over the trailing 1-year period | 2.94% | 1.00% | +1.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.16% | 1.00% | +3.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.16% | 1.00% | +3.16% |
SCMB vs. TAXS - Expense Ratio Comparison
SCMB has a 0.03% expense ratio, which is lower than TAXS'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. TAXS - Dividend Comparison
SCMB's dividend yield for the trailing twelve months is around 3.54%, more than TAXS's 1.83% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
SCMB Schwab Municipal Bond ETF | 3.54% | 3.36% | 3.34% | 3.10% | 0.59% |
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF | 1.83% | 0.74% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
SCMB and TAXS have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
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.
SCMB is cheaper with a 0.03% expense ratio, compared with 0.05% for TAXS.
SCMB has the higher dividend yield at 3.54%, compared with 1.83% for TAXS.
SCMB tracks ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross, while TAXS tracks ICE Short 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 TAXS.
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