TAFL vs. BSMR

Last updated Jun 24, 2026

TAFL (AB Tax-Aware Long Municipal ETF) and BSMR (Invesco BulletShares 2027 Municipal Bond ETF) are both Municipal Bonds funds. TAFL is actively managed, while BSMR is passively managed. Over the past year, TAFL returned 7.86% vs 3.82% for BSMR. A 0.59 correlation means they provide meaningful diversification when combined. TAFL charges 0.28%/yr vs 0.18%/yr for BSMR.

Performance

TAFL vs. BSMR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AB Tax-Aware Long Municipal ETF (TAFL) and Invesco BulletShares 2027 Municipal Bond ETF (BSMR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAFL achieves a 2.33% return, which is significantly higher than BSMR's 1.25% return.

TAFL

• 1D: -0.14%
• 1M: 1.64%
• YTD: 2.33%
• 6M: 2.65%
• 1Y: 7.86%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BSMR

• 1D: -0.06%
• 1M: 0.50%
• YTD: 1.25%
• 6M: 1.38%
• 1Y: 3.82%
• 3Y*: 2.84%
• 5Y*: 0.51%
• 10Y*: —

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

TAFL vs. BSMR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
TAFL AB Tax-Aware Long Municipal ETF	2.33%	3.53%	2.00%	2.09%
BSMR Invesco BulletShares 2027 Municipal Bond ETF	1.25%	3.10%	1.51%	1.16%

Correlation

The correlation between TAFL and BSMR 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 (All Time) Calculated using the full available price history since Dec 13, 2023	0.59

Over the past year, the correlation between TAFL and BSMR has dropped to 0.38 - well below their long-term average of 0.59, suggesting their price drivers have been diverging.

Return for Risk

TAFL vs. BSMR — Risk / Return Rank

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

TAFL

TAFL Risk / Return Rank: 65
TAFL Sharpe Ratio Rank: 62
TAFL Sortino Ratio Rank: 68
TAFL Omega Ratio Rank: 74
TAFL Calmar Ratio Rank: 63
TAFL Martin Ratio Rank: 56

BSMR

BSMR Risk / Return Rank: 94
BSMR Sharpe Ratio Rank: 92
BSMR Sortino Ratio Rank: 96
BSMR Omega Ratio Rank: 94
BSMR Calmar Ratio Rank: 94
BSMR Martin Ratio Rank: 92

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.

TAFL vs. BSMR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB Tax-Aware Long Municipal ETF (TAFL) and Invesco BulletShares 2027 Municipal Bond ETF (BSMR). 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.

	TAFL	BSMR	Difference
Sharpe ratio: Return per unit of total volatility	1.86	3.01	-1.15
Sortino ratio: Return per unit of downside risk	2.81	5.01	-2.19
Omega ratio: Gain probability vs. loss probability	1.40	1.65	-0.25
Calmar ratio: Return relative to maximum drawdown	2.86	6.78	-3.92
Martin ratio: Return relative to average drawdown	8.93	21.35	-12.42

TAFL vs. BSMR - Sharpe Ratio Comparison

The current TAFL Sharpe Ratio is 1.86, which is lower than the BSMR Sharpe Ratio of 3.01. The chart below compares the historical Sharpe Ratios of TAFL and BSMR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TAFL vs. BSMR - Drawdown Comparison

The maximum TAFL drawdown since its inception was -6.01%, smaller than the maximum BSMR drawdown of -13.49%. Use the drawdown chart below to compare losses from any high point for TAFL and BSMR.

Drawdown Indicators

	TAFL	BSMR	Difference
Max Drawdown Largest peak-to-trough decline	-6.01%	-13.49%	+7.48%
Max Drawdown (1Y) Largest decline over 1 year	-2.76%	-0.57%	-2.19%
Max Drawdown (3Y) Largest decline over 3 years	—	-3.50%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-12.02%	—
Current Drawdown Current decline from peak	-0.14%	-0.06%	-0.08%
Average Drawdown Average peak-to-trough decline	-1.41%	-3.46%	+2.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	0.18%	+0.70%

Volatility

TAFL vs. BSMR - Volatility Comparison

AB Tax-Aware Long Municipal ETF (TAFL) has a higher volatility of 0.96% compared to Invesco BulletShares 2027 Municipal Bond ETF (BSMR) at 0.42%. This indicates that TAFL's price experiences larger fluctuations and is considered to be riskier than BSMR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAFL	BSMR	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.96%	0.42%	+0.54%
Volatility (6M) Calculated over the trailing 6-month period	2.74%	0.97%	+1.77%
Volatility (1Y) Calculated over the trailing 1-year period	4.24%	1.28%	+2.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.14%	3.02%	+2.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.14%	5.70%	-0.56%

TAFL vs. BSMR - Expense Ratio Comparison

TAFL has a 0.28% expense ratio, which is higher than BSMR's 0.18% expense ratio.

Dividends

TAFL vs. BSMR - Dividend Comparison

TAFL's dividend yield for the trailing twelve months is around 4.08%, more than BSMR's 2.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
BSMR Invesco BulletShares 2027 Municipal Bond ETF	2.71%	2.77%	2.78%	2.72%	1.40%	1.00%	1.49%	0.45%
TAFL AB Tax-Aware Long Municipal ETF	4.08%	4.11%	3.88%	0.19%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TAFL and BSMR in my portfolio?

TAFL and BSMR 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, TAFL or BSMR?

TAFL has higher volatility (0.96%) compared to BSMR (0.42%). In terms of maximum drawdown, TAFL dropped -6.01% vs BSMR's -13.49%.

Which ETF is better, TAFL or BSMR?

On 1-year performance, TAFL leads with 7.86% vs 3.82% for BSMR. On fees, BSMR is cheaper at 0.18% per year. On volatility, BSMR has been the lower-risk option at 0.42%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAFL or BSMR?

Over the 1-year period, TAFL has performed better with a 7.86% return vs 3.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAFL or BSMR?

BSMR is cheaper with a 0.18% expense ratio, compared with 0.28% for TAFL.

Which ETF pays a higher dividend yield, TAFL or BSMR?

TAFL has the higher dividend yield at 4.08%, compared with 2.71% for BSMR.

What is the main difference between TAFL and BSMR?

They also come from different issuers: AllianceBernstein and Invesco. Their fees differ too: 0.28% for TAFL and 0.18% for BSMR.

Which has better risk-adjusted returns?

BSMR currently has the higher Sharpe Ratio (3.01 vs 1.86), 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.