SDFI vs. TAFM

Last updated Jun 24, 2026

SDFI (AB Short Duration Income ETF) and TAFM (AB Tax-Aware Intermediate Municipal ETF) are both exchange-traded funds - SDFI is a Short-Term Bond fund tracking the Actively Managed, while TAFM is a Municipal Bonds fund actively managed by AllianceBernstein. SDFI is passively managed, while TAFM is actively managed. Over the past year, SDFI returned 3.91% vs 6.85% for TAFM. At a 0.45 correlation, their price movements are largely independent. SDFI charges 0.30%/yr vs 0.28%/yr for TAFM.

Performance

SDFI vs. TAFM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AB Short Duration Income ETF (SDFI) and AB Tax-Aware Intermediate Municipal ETF (TAFM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SDFI achieves a 0.89% return, which is significantly lower than TAFM's 2.03% return.

SDFI

• 1D: 0.03%
• 1M: 0.20%
• YTD: 0.89%
• 6M: 1.13%
• 1Y: 3.91%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAFM

• 1D: -0.16%
• 1M: 1.36%
• YTD: 2.03%
• 6M: 2.06%
• 1Y: 6.85%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SDFI vs. TAFM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SDFI AB Short Duration Income ETF	0.89%	6.39%	3.73%
TAFM AB Tax-Aware Intermediate Municipal ETF	2.03%	4.21%	2.25%

Correlation

The correlation between SDFI and TAFM is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (All Time) Calculated using the full available price history since Jun 10, 2024	0.45

Return for Risk

SDFI vs. TAFM — Risk / Return Rank

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

SDFI

SDFI Risk / Return Rank: 71
SDFI Sharpe Ratio Rank: 65
SDFI Sortino Ratio Rank: 69
SDFI Omega Ratio Rank: 71
SDFI Calmar Ratio Rank: 72
SDFI Martin Ratio Rank: 77

TAFM

TAFM Risk / Return Rank: 71
TAFM Sharpe Ratio Rank: 77
TAFM Sortino Ratio Rank: 80
TAFM Omega Ratio Rank: 83
TAFM Calmar Ratio Rank: 57
TAFM Martin Ratio Rank: 56

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.

SDFI vs. TAFM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB Short Duration Income ETF (SDFI) and AB Tax-Aware Intermediate Municipal ETF (TAFM). 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.

	SDFI	TAFM	Difference
Sharpe ratio: Return per unit of total volatility	1.92	2.24	-0.33
Sortino ratio: Return per unit of downside risk	2.82	3.25	-0.42
Omega ratio: Gain probability vs. loss probability	1.38	1.45	-0.07
Calmar ratio: Return relative to maximum drawdown	3.27	2.56	+0.71
Martin ratio: Return relative to average drawdown	13.25	9.09	+4.16

SDFI vs. TAFM - Sharpe Ratio Comparison

The current SDFI Sharpe Ratio is 1.92, which is comparable to the TAFM Sharpe Ratio of 2.24. The chart below compares the historical Sharpe Ratios of SDFI and TAFM, 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

SDFI vs. TAFM - Drawdown Comparison

The maximum SDFI drawdown since its inception was -1.21%, smaller than the maximum TAFM drawdown of -4.74%. Use the drawdown chart below to compare losses from any high point for SDFI and TAFM.

Drawdown Indicators

	SDFI	TAFM	Difference
Max Drawdown Largest peak-to-trough decline	-1.21%	-4.74%	+3.53%
Max Drawdown (1Y) Largest decline over 1 year	-1.20%	-2.69%	+1.49%
Current Drawdown Current decline from peak	-0.20%	-0.24%	+0.04%
Average Drawdown Average peak-to-trough decline	-0.22%	-0.93%	+0.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.30%	0.76%	-0.46%

Volatility

SDFI vs. TAFM - Volatility Comparison

The current volatility for AB Short Duration Income ETF (SDFI) is 0.61%, while AB Tax-Aware Intermediate Municipal ETF (TAFM) has a volatility of 0.73%. This indicates that SDFI experiences smaller price fluctuations and is considered to be less risky than TAFM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SDFI	TAFM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.61%	0.73%	-0.12%
Volatility (6M) Calculated over the trailing 6-month period	1.39%	2.05%	-0.66%
Volatility (1Y) Calculated over the trailing 1-year period	2.05%	3.07%	-1.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.48%	4.90%	-2.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.48%	4.90%	-2.42%

SDFI vs. TAFM - Expense Ratio Comparison

SDFI has a 0.30% expense ratio, which is higher than TAFM's 0.28% expense ratio.

Dividends

SDFI vs. TAFM - Dividend Comparison

SDFI's dividend yield for the trailing twelve months is around 4.61%, more than TAFM's 3.63% yield.

Position	TTM	2025	2024	2023
SDFI AB Short Duration Income ETF	4.61%	4.66%	3.11%	0.00%
TAFM AB Tax-Aware Intermediate Municipal ETF	3.63%	3.51%	3.35%	0.18%

Frequently Asked Questions

Can I hold both SDFI and TAFM in my portfolio?

SDFI and TAFM have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SDFI or TAFM?

TAFM has higher volatility (0.73%) compared to SDFI (0.61%). In terms of maximum drawdown, SDFI dropped -1.21% vs TAFM's -4.74%.

Which ETF is better, SDFI or TAFM?

On 1-year performance, TAFM leads with 6.85% vs 3.91% for SDFI. On fees, TAFM is cheaper at 0.28% per year. On volatility, SDFI has been the lower-risk option at 0.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SDFI or TAFM?

Over the 1-year period, TAFM has performed better with a 6.85% return vs 3.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SDFI or TAFM?

TAFM is cheaper with a 0.28% expense ratio, compared with 0.30% for SDFI.

Which ETF pays a higher dividend yield, SDFI or TAFM?

SDFI has the higher dividend yield at 4.61%, compared with 3.63% for TAFM.

What is the main difference between SDFI and TAFM?

SDFI is categorized as Short-Term Bond, while TAFM is Municipal Bonds. Their fees differ too: 0.30% for SDFI and 0.28% for TAFM.

Which has better risk-adjusted returns?

TAFM currently has the higher Sharpe Ratio (2.24 vs 1.92), 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.