SDFI vs. TAXS

Last updated Jun 24, 2026

SDFI (AB Short Duration Income ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both exchange-traded funds - SDFI is a Short-Term Bond fund tracking the Actively Managed, while TAXS is a Municipal Bonds fund tracking the ICE Short Term Focused Municipal Bond Index. Both are passively managed. A 0.53 correlation means they provide meaningful diversification when combined. SDFI charges 0.30%/yr vs 0.05%/yr for TAXS.

Performance

SDFI vs. TAXS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AB Short Duration Income ETF (SDFI) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). 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 TAXS's 1.03% return.

SDFI

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

TAXS

• 1D: -0.02%
• 1M: 0.62%
• YTD: 1.03%
• 6M: 1.18%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SDFI vs. TAXS - Yearly Performance Comparison

	2026 (YTD)	2025
SDFI AB Short Duration Income ETF	0.89%	2.03%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.03%	1.22%

Correlation

The correlation between SDFI and TAXS is 0.53, 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	0.53

Return for Risk

SDFI vs. TAXS — 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

TAXS

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.

SDFI vs. TAXS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB Short Duration Income ETF (SDFI) 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.

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	TAXS	Difference
Sharpe ratio: Return per unit of total volatility	1.92	—	—
Sortino ratio: Return per unit of downside risk	2.82	—	—
Omega ratio: Gain probability vs. loss probability	1.38	—	—
Calmar ratio: Return relative to maximum drawdown	3.27	—	—
Martin ratio: Return relative to average drawdown	13.25	—	—

Drawdowns

SDFI vs. TAXS - Drawdown Comparison

The maximum SDFI drawdown since its inception was -1.21%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for SDFI and TAXS.

Drawdown Indicators

	SDFI	TAXS	Difference
Max Drawdown Largest peak-to-trough decline	-1.21%	-0.84%	-0.37%
Max Drawdown (1Y) Largest decline over 1 year	-1.20%	—	—
Current Drawdown Current decline from peak	-0.20%	-0.04%	-0.16%
Average Drawdown Average peak-to-trough decline	-0.22%	-0.22%	0.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.30%	—	—

Volatility

Volatility by Period

	SDFI	TAXS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.61%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.39%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	2.05%	0.99%	+1.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.48%	0.99%	+1.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.48%	0.99%	+1.49%

SDFI vs. TAXS - Expense Ratio Comparison

SDFI has a 0.30% expense ratio, which is higher than TAXS's 0.05% expense ratio.

Dividends

SDFI vs. TAXS - Dividend Comparison

SDFI's dividend yield for the trailing twelve months is around 4.61%, more than TAXS's 1.82% yield.

Position	TTM	2025	2024
SDFI AB Short Duration Income ETF	4.61%	4.66%	3.11%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.82%	0.74%	0.00%

Frequently Asked Questions

Can I hold both SDFI and TAXS in my portfolio?

SDFI and TAXS have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, SDFI or TAXS?

On fees, TAXS is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, SDFI or TAXS?

TAXS is cheaper with a 0.05% expense ratio, compared with 0.30% for SDFI.

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

SDFI has the higher dividend yield at 4.61%, compared with 1.82% for TAXS.

What is the main difference between SDFI and TAXS?

SDFI is categorized as Short-Term Bond, while TAXS is Municipal Bonds. SDFI tracks Actively Managed, while TAXS tracks ICE Short Term Focused Municipal Bond Index. They also come from different issuers: AllianceBernstein and Northern Trust. Their fees differ too: 0.30% for SDFI and 0.05% for TAXS.