SDSI vs. TAXF

Last updated Jun 5, 2026

SDSI (American Century Short Duration Strategic Income ETF) and TAXF (American Century Diversified Municipal Bond ETF) are both exchange-traded funds - SDSI is a Short-Term Bond fund tracking the Bloomberg U.S. 1-3 Year Government/Credit Bond Index, while TAXF is a Municipal Bonds fund actively managed by American Century. SDSI is passively managed, while TAXF is actively managed. Over the past 3 years, SDSI returned 5.66%/yr vs 4.13%/yr for TAXF. A 0.54 correlation means they provide meaningful diversification when combined. SDSI charges 0.33%/yr vs 0.29%/yr for TAXF.

Performance

SDSI vs. TAXF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Century Short Duration Strategic Income ETF (SDSI) and American Century Diversified Municipal Bond ETF (TAXF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SDSI achieves a 0.90% return, which is significantly lower than TAXF's 2.03% return.

SDSI

• 1D: -0.32%
• 1M: -0.03%
• YTD: 0.90%
• 6M: 1.36%
• 1Y: 4.64%
• 3Y*: 5.66%
• 5Y*: —
• 10Y*: —

TAXF

• 1D: 0.07%
• 1M: 0.81%
• YTD: 2.03%
• 6M: 2.38%
• 1Y: 8.10%
• 3Y*: 4.13%
• 5Y*: 1.09%
• 10Y*: —

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

SDSI vs. TAXF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SDSI American Century Short Duration Strategic Income ETF	0.90%	6.54%	5.63%	5.88%	2.05%
TAXF American Century Diversified Municipal Bond ETF	2.03%	4.30%	1.74%	7.33%	2.65%

Correlation

The correlation between SDSI and TAXF is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (All Time) Calculated using the full available price history since Oct 14, 2022	0.54

The correlation between SDSI and TAXF shifts across timeframes, from 0.38 (1 year) to 0.54 (all time), reflecting how their relationship changes across market environments.

Return for Risk

SDSI vs. TAXF — Risk / Return Rank

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

SDSI

SDSI Risk / Return Rank: 87
SDSI Sharpe Ratio Rank: 87
SDSI Sortino Ratio Rank: 91
SDSI Omega Ratio Rank: 89
SDSI Calmar Ratio Rank: 79
SDSI Martin Ratio Rank: 88

TAXF

TAXF Risk / Return Rank: 75
TAXF Sharpe Ratio Rank: 83
TAXF Sortino Ratio Rank: 87
TAXF Omega Ratio Rank: 90
TAXF Calmar Ratio Rank: 57
TAXF Martin Ratio Rank: 58

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.

SDSI vs. TAXF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Century Short Duration Strategic Income ETF (SDSI) and American Century Diversified Municipal Bond ETF (TAXF). 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.

	SDSI	TAXF	Difference
Sharpe ratio: Return per unit of total volatility	2.83	2.67	+0.16
Sortino ratio: Return per unit of downside risk	4.22	3.86	+0.35
Omega ratio: Gain probability vs. loss probability	1.56	1.58	-0.01
Calmar ratio: Return relative to maximum drawdown	3.98	2.78	+1.20
Martin ratio: Return relative to average drawdown	18.71	10.02	+8.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SDSI vs. TAXF - Sharpe Ratio Comparison

The current SDSI Sharpe Ratio is 2.83, which is comparable to the TAXF Sharpe Ratio of 2.67. The chart below compares the historical Sharpe Ratios of SDSI and TAXF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SDSI	TAXF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.83	2.67	+0.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.26	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.55	0.62	+1.92

Drawdowns

SDSI vs. TAXF - Drawdown Comparison

The maximum SDSI drawdown since its inception was -1.29%, smaller than the maximum TAXF drawdown of -13.93%. Use the drawdown chart below to compare losses from any high point for SDSI and TAXF.

Drawdown Indicators

	SDSI	TAXF	Difference
Max Drawdown Largest peak-to-trough decline	-1.29%	-13.93%	+12.64%
Max Drawdown (1Y) Largest decline over 1 year	-1.17%	-2.93%	+1.76%
Max Drawdown (3Y) Largest decline over 3 years	-1.29%	-5.53%	+4.24%
Max Drawdown (5Y) Largest decline over 5 years	—	-13.93%	—
Current Drawdown Current decline from peak	-0.39%	-0.41%	+0.02%
Average Drawdown Average peak-to-trough decline	-0.24%	-3.14%	+2.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.25%	0.81%	-0.56%

Volatility

SDSI vs. TAXF - Volatility Comparison

The current volatility for American Century Short Duration Strategic Income ETF (SDSI) is 0.52%, while American Century Diversified Municipal Bond ETF (TAXF) has a volatility of 0.99%. This indicates that SDSI experiences smaller price fluctuations and is considered to be less risky than TAXF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SDSI	TAXF	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.52%	0.99%	-0.47%
Volatility (6M) Calculated over the trailing 6-month period	1.18%	2.24%	-1.06%
Volatility (1Y) Calculated over the trailing 1-year period	1.67%	3.05%	-1.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.28%	4.20%	-1.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.28%	4.65%	-2.37%

SDSI vs. TAXF - Expense Ratio Comparison

SDSI has a 0.33% expense ratio, which is higher than TAXF's 0.29% expense ratio.

Dividends

SDSI vs. TAXF - Dividend Comparison

SDSI's dividend yield for the trailing twelve months is around 4.43%, more than TAXF's 3.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
SDSI American Century Short Duration Strategic Income ETF	4.43%	4.91%	5.49%	5.37%	0.98%	0.00%	0.00%	0.00%	0.00%
TAXF American Century Diversified Municipal Bond ETF	3.77%	3.68%	3.38%	2.93%	2.05%	1.58%	2.13%	2.64%	0.69%

Frequently Asked Questions

Can I hold both SDSI and TAXF in my portfolio?

SDSI and TAXF have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SDSI or TAXF?

TAXF has higher volatility (0.99%) compared to SDSI (0.52%). In terms of maximum drawdown, SDSI dropped -1.29% vs TAXF's -13.93%.

Which ETF is better, SDSI or TAXF?

On 3-year performance, SDSI leads with 5.66% vs 4.13% for TAXF. On fees, TAXF is cheaper at 0.29% per year. On volatility, SDSI has been the lower-risk option at 0.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SDSI or TAXF?

Over the 3-year period, SDSI has performed better with a 5.66% return vs 4.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SDSI or TAXF?

TAXF is cheaper with a 0.29% expense ratio, compared with 0.33% for SDSI.

Which ETF pays a higher dividend yield, SDSI or TAXF?

SDSI has the higher dividend yield at 4.43%, compared with 3.77% for TAXF.

What is the main difference between SDSI and TAXF?

SDSI is categorized as Short-Term Bond, while TAXF is Municipal Bonds. Their fees differ too: 0.33% for SDSI and 0.29% for TAXF.

Which has better risk-adjusted returns?

SDSI currently has the higher Sharpe Ratio (2.83 vs 2.67), 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.