TAFI vs. IBMO
TAFI (AB Tax-Aware Short Duration ETF) and IBMO (iShares iBonds Dec 2026 Term Muni Bond ETF) are both Municipal Bonds funds. TAFI is actively managed, while IBMO is passively managed. Over the past 3 years, TAFI returned 3.60%/yr vs 2.80%/yr for IBMO. At a 0.43 correlation, their price movements are largely independent. TAFI charges 0.27%/yr vs 0.18%/yr for IBMO.
Performance
TAFI vs. IBMO - Performance Comparison
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Returns By Period
In the year-to-date period, TAFI achieves a 1.19% return, which is significantly higher than IBMO's 1.03% return.
TAFI
- 1D
- 0.00%
- 1M
- 0.61%
- YTD
- 1.19%
- 6M
- 1.26%
- 1Y
- 3.60%
- 3Y*
- 3.60%
- 5Y*
- —
- 10Y*
- —
IBMO
- 1D
- 0.02%
- 1M
- 0.19%
- YTD
- 1.03%
- 6M
- 1.02%
- 1Y
- 2.62%
- 3Y*
- 2.80%
- 5Y*
- 0.72%
- 10Y*
- —
TAFI vs. IBMO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
TAFI AB Tax-Aware Short Duration ETF | 1.19% | 4.35% | 2.48% | 4.10% | 0.56% |
IBMO iShares iBonds Dec 2026 Term Muni Bond ETF | 1.03% | 3.11% | 1.97% | 2.90% | 0.49% |
Correlation
The correlation between TAFI and IBMO is 0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.06 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.35 |
Correlation (All Time) Calculated using the full available price history since Sep 14, 2022 | 0.43 |
Over the past year, the correlation between TAFI and IBMO has dropped to 0.06 - well below their long-term average of 0.43, suggesting their price drivers have been diverging.
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Return for Risk
TAFI vs. IBMO — Risk / Return Rank
TAFI
IBMO
TAFI vs. IBMO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for AB Tax-Aware Short Duration ETF (TAFI) and iShares iBonds Dec 2026 Term Muni Bond ETF (IBMO). 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.
| TAFI | IBMO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.13 | ||
| Sortino ratioReturn per unit of downside risk | +0.16 | ||
| Omega ratioGain probability vs. loss probability | 1.53 | 1.49 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.99 | 6.95 | -3.96 |
| Martin ratioReturn relative to average drawdown | 10.71 | 20.64 | -9.93 |
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Drawdowns
TAFI vs. IBMO - Drawdown Comparison
The maximum TAFI drawdown since its inception was -2.00%, smaller than the maximum IBMO drawdown of -14.77%. Use the drawdown chart below to compare losses from any high point for TAFI and IBMO.
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Drawdown Indicators
| TAFI | IBMO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -2.00% | -14.77% | +12.77% |
Max Drawdown (1Y)Largest decline over 1 year | -1.21% | -0.38% | -0.83% |
Max Drawdown (3Y)Largest decline over 3 years | -1.87% | -1.76% | -0.11% |
Max Drawdown (5Y)Largest decline over 5 years | — | -8.86% | — |
Current DrawdownCurrent decline from peak | -0.13% | 0.00% | -0.13% |
Average DrawdownAverage peak-to-trough decline | -0.37% | -2.31% | +1.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.34% | 0.13% | +0.21% |
Volatility
TAFI vs. IBMO - Volatility Comparison
AB Tax-Aware Short Duration ETF (TAFI) has a higher volatility of 0.32% compared to iShares iBonds Dec 2026 Term Muni Bond ETF (IBMO) at 0.22%. This indicates that TAFI's price experiences larger fluctuations and is considered to be riskier than IBMO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TAFI | IBMO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.32% | 0.22% | +0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 0.93% | 0.79% | +0.14% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.44% | 1.10% | +0.34% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.97% | 2.14% | -0.17% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.97% | 4.50% | -2.53% |
TAFI vs. IBMO - Expense Ratio Comparison
TAFI has a 0.27% expense ratio, which is higher than IBMO's 0.18% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
TAFI vs. IBMO - Dividend Comparison
TAFI's dividend yield for the trailing twelve months is around 3.14%, more than IBMO's 2.39% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|---|---|
IBMO iShares iBonds Dec 2026 Term Muni Bond ETF | 2.39% | 2.37% | 2.15% | 1.65% | 0.89% | 0.62% | 1.03% | 1.01% |
TAFI AB Tax-Aware Short Duration ETF | 3.14% | 3.21% | 3.34% | 3.27% | 0.79% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
TAFI and IBMO have a correlation of 0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TAFI has higher volatility (0.32%) compared to IBMO (0.22%). In terms of maximum drawdown, TAFI dropped -2.00% vs IBMO's -14.77%.
On 3-year performance, TAFI leads with 3.60% vs 2.80% for IBMO. On fees, IBMO is cheaper at 0.18% per year. On volatility, IBMO has been the lower-risk option at 0.22%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, TAFI has performed better with a 3.60% return vs 2.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IBMO is cheaper with a 0.18% expense ratio, compared with 0.27% for TAFI.
TAFI has the higher dividend yield at 3.14%, compared with 2.39% for IBMO.
They also come from different issuers: AllianceBernstein and iShares. Their fees differ too: 0.27% for TAFI and 0.18% for IBMO.
TAFI currently has the higher Sharpe Ratio (2.52 vs 2.39), 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.
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