TAFI vs. SGOV

Last updated Jun 3, 2026

TAFI (AB Tax-Aware Short Duration ETF) and SGOV (iShares 0-3 Month Treasury Bond ETF) are both exchange-traded funds - TAFI is a Municipal Bonds fund actively managed by AllianceBernstein, while SGOV is a Ultrashort Bond fund tracking the ICE 0-3 Month US Treasury Securities Index. TAFI is actively managed, while SGOV is passively managed. Over the past 3 years, TAFI returned 3.68%/yr vs 4.72%/yr for SGOV. At a 0.03 correlation, their price movements are largely independent. TAFI charges 0.27%/yr vs 0.09%/yr for SGOV.

Performance

TAFI vs. SGOV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AB Tax-Aware Short Duration ETF (TAFI) and iShares 0-3 Month Treasury Bond ETF (SGOV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAFI achieves a 1.11% return, which is significantly lower than SGOV's 1.50% return.

TAFI

• 1D: 0.08%
• 1M: 0.35%
• YTD: 1.11%
• 6M: 1.46%
• 1Y: 4.14%
• 3Y*: 3.68%
• 5Y*: —
• 10Y*: —

SGOV

• 1D: 0.00%
• 1M: 0.29%
• YTD: 1.50%
• 6M: 1.80%
• 1Y: 3.95%
• 3Y*: 4.72%
• 5Y*: 3.53%
• 10Y*: —

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

TAFI vs. SGOV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
TAFI AB Tax-Aware Short Duration ETF	1.11%	4.35%	2.48%	4.10%	0.54%
SGOV iShares 0-3 Month Treasury Bond ETF	1.50%	4.24%	5.27%	5.12%	1.03%

Correlation

The correlation between TAFI and SGOV is -0.04, 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	-0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.02
Correlation (All Time) Calculated using the full available price history since Sep 15, 2022	0.03

Return for Risk

TAFI vs. SGOV — Risk / Return Rank

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

TAFI

TAFI Risk / Return Rank: 80
TAFI Sharpe Ratio Rank: 85
TAFI Sortino Ratio Rank: 92
TAFI Omega Ratio Rank: 91
TAFI Calmar Ratio Rank: 66
TAFI Martin Ratio Rank: 65

SGOV

SGOV Risk / Return Rank: 100
SGOV Sharpe Ratio Rank: 100
SGOV Sortino Ratio Rank: 100
SGOV Omega Ratio Rank: 100
SGOV Calmar Ratio Rank: 100
SGOV Martin Ratio Rank: 100

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.

TAFI vs. SGOV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB Tax-Aware Short Duration ETF (TAFI) and iShares 0-3 Month Treasury Bond ETF (SGOV). 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.

	TAFI	SGOV	Difference
Sharpe ratio Return per unit of total volatility	2.84	20.28	-17.44
Sortino ratio Return per unit of downside risk	4.57	275.69	-271.12
Omega ratio Gain probability vs. loss probability	1.60	195.55	-193.95
Calmar ratio Return relative to maximum drawdown	3.32	399.50	-396.18
Martin ratio Return relative to average drawdown	11.99	4,485.48	-4,473.49
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TAFI vs. SGOV - Sharpe Ratio Comparison

The current TAFI Sharpe Ratio is 2.84, which is lower than the SGOV Sharpe Ratio of 20.28. The chart below compares the historical Sharpe Ratios of TAFI and SGOV, 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

	TAFI	SGOV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.84	20.28	-17.44
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	14.72	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.72	12.48	-10.76

Drawdowns

TAFI vs. SGOV - Drawdown Comparison

The maximum TAFI drawdown since its inception was -2.00%, which is greater than SGOV's maximum drawdown of -0.03%. Use the drawdown chart below to compare losses from any high point for TAFI and SGOV.

Drawdown Indicators

	TAFI	SGOV	Difference
Max Drawdown Largest peak-to-trough decline	-2.00%	-0.03%	-1.97%
Max Drawdown (1Y) Largest decline over 1 year	-1.21%	-0.01%	-1.20%
Max Drawdown (3Y) Largest decline over 3 years	-1.87%	-0.01%	-1.86%
Max Drawdown (5Y) Largest decline over 5 years	—	-0.03%	—
Current Drawdown Current decline from peak	-0.21%	0.00%	-0.21%
Average Drawdown Average peak-to-trough decline	-0.38%	-0.00%	-0.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.34%	0.00%	+0.34%

Volatility

TAFI vs. SGOV - Volatility Comparison

AB Tax-Aware Short Duration ETF (TAFI) has a higher volatility of 0.46% compared to iShares 0-3 Month Treasury Bond ETF (SGOV) at 0.05%. This indicates that TAFI's price experiences larger fluctuations and is considered to be riskier than SGOV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAFI	SGOV	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.46%	0.05%	+0.41%
Volatility (6M) Calculated over the trailing 6-month period	0.95%	0.13%	+0.82%
Volatility (1Y) Calculated over the trailing 1-year period	1.47%	0.20%	+1.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.98%	0.24%	+1.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.98%	0.24%	+1.74%

TAFI vs. SGOV - Expense Ratio Comparison

TAFI has a 0.27% expense ratio, which is higher than SGOV's 0.09% 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. SGOV - Dividend Comparison

TAFI's dividend yield for the trailing twelve months is around 3.15%, less than SGOV's 3.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
SGOV iShares 0-3 Month Treasury Bond ETF	3.86%	4.10%	5.10%	4.87%	1.45%	0.03%	0.05%
TAFI AB Tax-Aware Short Duration ETF	3.15%	3.21%	3.34%	3.27%	0.79%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TAFI and SGOV in my portfolio?

TAFI and SGOV have a correlation of -0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TAFI or SGOV?

TAFI has higher volatility (0.46%) compared to SGOV (0.05%). In terms of maximum drawdown, TAFI dropped -2.00% vs SGOV's -0.03%.

Which ETF is better, TAFI or SGOV?

On 3-year performance, SGOV leads with 4.72% vs 3.68% for TAFI. On fees, SGOV is cheaper at 0.09% per year. On volatility, SGOV has been the lower-risk option at 0.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAFI or SGOV?

Over the 3-year period, SGOV has performed better with a 4.72% return vs 3.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAFI or SGOV?

SGOV is cheaper with a 0.09% expense ratio, compared with 0.27% for TAFI.

Which ETF pays a higher dividend yield, TAFI or SGOV?

SGOV has the higher dividend yield at 3.86%, compared with 3.15% for TAFI.

What is the main difference between TAFI and SGOV?

TAFI is categorized as Municipal Bonds, while SGOV is Ultrashort Bond. They also come from different issuers: AllianceBernstein and iShares. Their fees differ too: 0.27% for TAFI and 0.09% for SGOV.

Which has better risk-adjusted returns?

SGOV currently has the higher Sharpe Ratio (20.28 vs 2.84), 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.