SDSI vs. TAXS

Last updated Jun 26, 2026

SDSI (American Century Short Duration Strategic Income ETF) and TAXS (Northern Trust Short-Term Tax-Exempt 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 TAXS is a Municipal Bonds fund tracking the ICE Short Term Focused Municipal Bond Index. Both are passively managed. At a 0.49 correlation, their price movements are largely independent. SDSI charges 0.33%/yr vs 0.05%/yr for TAXS.

Performance

SDSI vs. TAXS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Century Short Duration Strategic Income ETF (SDSI) 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, SDSI achieves a 1.41% return, which is significantly higher than TAXS's 1.10% return.

SDSI

• 1D: 0.02%
• 1M: 0.29%
• YTD: 1.41%
• 6M: 1.49%
• 1Y: 4.74%
• 3Y*: 5.85%
• 5Y*: —
• 10Y*: —

TAXS

• 1D: 0.04%
• 1M: 0.51%
• YTD: 1.10%
• 6M: 1.19%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SDSI vs. TAXS - Yearly Performance Comparison

	2026 (YTD)	2025
SDSI American Century Short Duration Strategic Income ETF	1.41%	2.24%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.10%	1.22%

Correlation

The correlation between SDSI and TAXS is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025	0.49

Return for Risk

SDSI vs. TAXS — Risk / Return Rank

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

SDSI

SDSI Risk / Return Rank: 92
SDSI Sharpe Ratio Rank: 94
SDSI Sortino Ratio Rank: 95
SDSI Omega Ratio Rank: 94
SDSI Calmar Ratio Rank: 85
SDSI Martin Ratio Rank: 92

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.

SDSI vs. TAXS - Risk-Adjusted Trends Comparison

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

	SDSI	TAXS	Difference
Sharpe ratio: Return per unit of total volatility	2.97	—	—
Sortino ratio: Return per unit of downside risk	4.49	—	—
Omega ratio: Gain probability vs. loss probability	1.60	—	—
Calmar ratio: Return relative to maximum drawdown	4.07	—	—
Martin ratio: Return relative to average drawdown	19.15	—	—

Drawdowns

SDSI vs. TAXS - Drawdown Comparison

The maximum SDSI drawdown since its inception was -1.29%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for SDSI and TAXS.

Drawdown Indicators

	SDSI	TAXS	Difference
Max Drawdown Largest peak-to-trough decline	-1.29%	-0.84%	-0.45%
Max Drawdown (1Y) Largest decline over 1 year	-1.17%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-1.29%	—	—
Current Drawdown Current decline from peak	-0.01%	0.00%	-0.01%
Average Drawdown Average peak-to-trough decline	-0.24%	-0.22%	-0.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.25%	—	—

Volatility

Volatility by Period

	SDSI	TAXS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.48%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.18%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.60%	0.99%	+0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.27%	0.99%	+1.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.27%	0.99%	+1.28%

SDSI vs. TAXS - Expense Ratio Comparison

SDSI has a 0.33% expense ratio, which is higher than TAXS's 0.05% expense ratio.

Dividends

SDSI vs. TAXS - Dividend Comparison

SDSI's dividend yield for the trailing twelve months is around 4.78%, more than TAXS's 1.82% yield.

Position	TTM	2025	2024	2023	2022
SDSI American Century Short Duration Strategic Income ETF	4.78%	4.91%	5.49%	5.37%	0.98%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.82%	0.74%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SDSI and TAXS in my portfolio?

SDSI and TAXS have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, SDSI 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, SDSI or TAXS?

TAXS is cheaper with a 0.05% expense ratio, compared with 0.33% for SDSI.

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

SDSI has the higher dividend yield at 4.78%, compared with 1.82% for TAXS.

What is the main difference between SDSI and TAXS?

SDSI is categorized as Short-Term Bond, while TAXS is Municipal Bonds. SDSI tracks Bloomberg U.S. 1-3 Year Government/Credit Bond Index, while TAXS tracks ICE Short Term Focused Municipal Bond Index. They also come from different issuers: American Century and Northern Trust. Their fees differ too: 0.33% for SDSI and 0.05% for TAXS.