SCMB vs. TAXT

Last updated Jun 4, 2026

SCMB (Schwab Municipal Bond ETF) and TAXT (Northern Trust 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 TAXT tracks the ICE Focused Municipal Bond Index. Both are passively managed. Their correlation of 0.80 suggests significant overlap in exposure. SCMB charges 0.03%/yr vs 0.05%/yr for TAXT.

Performance

SCMB vs. TAXT - Performance Comparison

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

Returns By Period

In the year-to-date period, SCMB achieves a 1.07% return, which is significantly lower than TAXT's 1.49% return.

SCMB

• 1D: -0.12%
• 1M: 0.60%
• YTD: 1.07%
• 6M: 1.55%
• 1Y: 6.86%
• 3Y*: 3.37%
• 5Y*: —
• 10Y*: —

TAXT

• 1D: -0.06%
• 1M: 0.67%
• YTD: 1.49%
• 6M: 2.00%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SCMB vs. TAXT - Yearly Performance Comparison

	2026 (YTD)	2025
SCMB Schwab Municipal Bond ETF	1.07%	4.14%
TAXT Northern Trust Tax-Exempt Bond ETF	1.49%	3.96%

Correlation

The correlation between SCMB and TAXT is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 20, 2025	0.80

Return for Risk

SCMB vs. TAXT — Risk / Return Rank

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

SCMB

SCMB Risk / Return Rank: 64
SCMB Sharpe Ratio Rank: 70
SCMB Sortino Ratio Rank: 75
SCMB Omega Ratio Rank: 81
SCMB Calmar Ratio Rank: 47
SCMB Martin Ratio Rank: 47

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. TAXT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Municipal Bond ETF (SCMB) and Northern Trust Tax-Exempt Bond ETF (TAXT). 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	TAXT	Difference
Sharpe ratio: Return per unit of total volatility	2.34	—	—
Sortino ratio: Return per unit of downside risk	3.45	—	—
Omega ratio: Gain probability vs. loss probability	1.50	—	—
Calmar ratio: Return relative to maximum drawdown	2.36	—	—
Martin ratio: Return 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.

Sharpe Ratios by Period

	SCMB	TAXT	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	2.80	-1.82

Drawdowns

SCMB vs. TAXT - Drawdown Comparison

The maximum SCMB drawdown since its inception was -6.13%, which is greater than TAXT's maximum drawdown of -2.49%. Use the drawdown chart below to compare losses from any high point for SCMB and TAXT.

Drawdown Indicators

	SCMB	TAXT	Difference
Max Drawdown Largest peak-to-trough decline	-6.13%	-2.49%	-3.64%
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	-0.87%	-0.58%	-0.29%
Average Drawdown Average peak-to-trough decline	-1.32%	-0.47%	-0.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.87%	—	—

Volatility

Volatility by Period

	SCMB	TAXT	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%	2.53%	+0.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.16%	2.53%	+1.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.16%	2.53%	+1.63%

SCMB vs. TAXT - Expense Ratio Comparison

SCMB has a 0.03% expense ratio, which is lower than TAXT'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. TAXT - Dividend Comparison

SCMB's dividend yield for the trailing twelve months is around 3.54%, more than TAXT's 2.55% yield.

Position	TTM	2025	2024	2023	2022
SCMB Schwab Municipal Bond ETF	3.54%	3.36%	3.34%	3.10%	0.59%
TAXT Northern Trust Tax-Exempt Bond ETF	2.55%	1.23%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SCMB and TAXT in my portfolio?

SCMB and TAXT have a correlation of 0.80, 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 TAXT?

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 TAXT?

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

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

SCMB has the higher dividend yield at 3.54%, compared with 2.55% for TAXT.

What is the main difference between SCMB and TAXT?

SCMB tracks ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross, while TAXT tracks ICE 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 TAXT.