TAFL vs. FXN

Last updated Jun 26, 2026

TAFL (AB Tax-Aware Long Municipal ETF) and FXN (First Trust Energy AlphaDEX Fund) are both exchange-traded funds - TAFL is a Municipal Bonds fund actively managed by AllianceBernstein, while FXN is a Energy Equities fund tracking the StrataQuant Energy Index. TAFL is actively managed, while FXN is passively managed. Over the past year, TAFL returned 8.33% vs 38.12% for FXN. At a correlation of -0.07, they often move in opposite directions. TAFL charges 0.28%/yr vs 0.64%/yr for FXN.

Performance

TAFL vs. FXN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AB Tax-Aware Long Municipal ETF (TAFL) and First Trust Energy AlphaDEX Fund (FXN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAFL achieves a 2.78% return, which is significantly lower than FXN's 24.83% return.

TAFL

• 1D: 0.14%
• 1M: 1.62%
• YTD: 2.78%
• 6M: 2.84%
• 1Y: 8.33%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FXN

• 1D: 1.00%
• 1M: -6.17%
• YTD: 24.83%
• 6M: 25.90%
• 1Y: 38.12%
• 3Y*: 13.24%
• 5Y*: 14.77%
• 10Y*: 6.31%

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

TAFL vs. FXN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
TAFL AB Tax-Aware Long Municipal ETF	2.78%	3.53%	2.00%	2.09%
FXN First Trust Energy AlphaDEX Fund	24.83%	3.39%	0.27%	5.58%

Correlation

The correlation between TAFL and FXN is -0.17, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.17
Correlation (All Time) Calculated using the full available price history since Dec 13, 2023	-0.07

Return for Risk

TAFL vs. FXN — Risk / Return Rank

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

TAFL

TAFL Risk / Return Rank: 71
TAFL Sharpe Ratio Rank: 69
TAFL Sortino Ratio Rank: 76
TAFL Omega Ratio Rank: 80
TAFL Calmar Ratio Rank: 68
TAFL Martin Ratio Rank: 60

FXN

FXN Risk / Return Rank: 54
FXN Sharpe Ratio Rank: 54
FXN Sortino Ratio Rank: 49
FXN Omega Ratio Rank: 45
FXN Calmar Ratio Rank: 68
FXN Martin Ratio Rank: 53

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. FXN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB Tax-Aware Long Municipal ETF (TAFL) and First Trust Energy AlphaDEX Fund (FXN). 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	FXN	Difference
Sharpe ratio: Return per unit of total volatility	1.97	1.62	+0.35
Sortino ratio: Return per unit of downside risk	2.98	2.16	+0.82
Omega ratio: Gain probability vs. loss probability	1.42	1.26	+0.16
Calmar ratio: Return relative to maximum drawdown	3.03	2.95	+0.08
Martin ratio: Return relative to average drawdown	9.47	8.14	+1.32

TAFL vs. FXN - Sharpe Ratio Comparison

The current TAFL Sharpe Ratio is 1.97, which is comparable to the FXN Sharpe Ratio of 1.62. The chart below compares the historical Sharpe Ratios of TAFL and FXN, 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. FXN - Drawdown Comparison

The maximum TAFL drawdown since its inception was -6.01%, smaller than the maximum FXN drawdown of -87.39%. Use the drawdown chart below to compare losses from any high point for TAFL and FXN.

Drawdown Indicators

	TAFL	FXN	Difference
Max Drawdown Largest peak-to-trough decline	-6.01%	-87.39%	+81.38%
Max Drawdown (1Y) Largest decline over 1 year	-2.76%	-12.99%	+10.23%
Max Drawdown (3Y) Largest decline over 3 years	—	-31.69%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-31.69%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-80.63%	—
Current Drawdown Current decline from peak	0.00%	-11.64%	+11.64%
Average Drawdown Average peak-to-trough decline	-1.40%	-37.89%	+36.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	4.69%	-3.81%

Volatility

TAFL vs. FXN - Volatility Comparison

The current volatility for AB Tax-Aware Long Municipal ETF (TAFL) is 0.90%, while First Trust Energy AlphaDEX Fund (FXN) has a volatility of 7.25%. This indicates that TAFL experiences smaller price fluctuations and is considered to be less risky than FXN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAFL	FXN	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.90%	7.25%	-6.35%
Volatility (6M) Calculated over the trailing 6-month period	2.75%	17.21%	-14.46%
Volatility (1Y) Calculated over the trailing 1-year period	4.24%	23.65%	-19.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.14%	28.95%	-23.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.14%	34.93%	-29.79%

TAFL vs. FXN - Expense Ratio Comparison

TAFL has a 0.28% expense ratio, which is lower than FXN's 0.64% expense ratio.

Dividends

TAFL vs. FXN - Dividend Comparison

TAFL's dividend yield for the trailing twelve months is around 4.06%, more than FXN's 2.23% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXN First Trust Energy AlphaDEX Fund	2.23%	2.53%	2.50%	3.09%	2.28%	0.87%	4.71%	1.47%	1.43%	1.17%	1.05%	2.36%
TAFL AB Tax-Aware Long Municipal ETF	4.06%	4.11%	3.88%	0.19%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TAFL and FXN in my portfolio?

TAFL and FXN have a correlation of -0.17, 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 FXN?

FXN has higher volatility (7.25%) compared to TAFL (0.90%). In terms of maximum drawdown, TAFL dropped -6.01% vs FXN's -87.39%.

Which ETF is better, TAFL or FXN?

On 1-year performance, FXN leads with 38.12% vs 8.33% for TAFL. On fees, TAFL is cheaper at 0.28% per year. On volatility, TAFL has been the lower-risk option at 0.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAFL or FXN?

Over the 1-year period, FXN has performed better with a 38.12% return vs 8.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAFL or FXN?

TAFL is cheaper with a 0.28% expense ratio, compared with 0.64% for FXN.

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

TAFL has the higher dividend yield at 4.06%, compared with 2.23% for FXN.

What is the main difference between TAFL and FXN?

TAFL is categorized as Municipal Bonds, while FXN is Energy Equities. They also come from different issuers: AllianceBernstein and First Trust. Their fees differ too: 0.28% for TAFL and 0.64% for FXN.

Which has better risk-adjusted returns?

TAFL currently has the higher Sharpe Ratio (1.97 vs 1.62), 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.