TAFL vs. HYFI

Last updated Aug 2, 2026

TAFL (AB Tax-Aware Long Municipal ETF) and HYFI (AB High Yield ETF) are both exchange-traded funds - TAFL is a Municipal Bonds fund actively managed by AllianceBernstein, while HYFI is a High Yield Bonds fund actively managed by AllianceBernstein. Both are actively managed. Over the past year, TAFL returned 6.43% vs 5.40% for HYFI. Their 0.42 correlation means their historical movements had little consistent relationship. TAFL charges 0.28%/yr vs 0.40%/yr for HYFI.

Performance

TAFL vs. HYFI - Performance Comparison

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

Returns By Period

In the year-to-date period, TAFL achieves a 0.99% return, which is significantly lower than HYFI's 1.96% return.

TAFL

• 1D: -0.10%
• 1M: -1.96%
• 6M: 0.62%
• YTD: 0.99%
• 1Y: 6.43%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.28%

HYFI

• 1D: -0.03%
• 1M: -0.13%
• 6M: 1.08%
• YTD: 1.96%
• 1Y: 5.40%
• 3Y*: 8.55%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 8.59%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
HYFI AB High Yield ETF	$1.00M	$1.67M	$1.77M
TAFL AB Tax-Aware Long Municipal ETF	$87.64K	$86.63K	$299.38K

TAFL vs. HYFI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
TAFL AB Tax-Aware Long Municipal ETF	0.99%	3.53%	2.00%	2.09%
HYFI AB High Yield ETF	1.96%	8.91%	7.98%	2.37%

Correlation

The correlation between TAFL and HYFI is 0.46, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.46
Correlation (All Time) Calculated using the full available price history since Dec 13, 2023	0.42

Return for Risk

TAFL vs. HYFI — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

TAFL

TAFL Risk / Return Rank: 80
TAFL Sharpe Ratio Rank: 79
TAFL Sortino Ratio Rank: 82
TAFL Omega Ratio Rank: 87
TAFL Calmar Ratio Rank: 76
TAFL Martin Ratio Rank: 74

HYFI

HYFI Risk / Return Rank: 66
HYFI Sharpe Ratio Rank: 60
HYFI Sortino Ratio Rank: 67
HYFI Omega Ratio Rank: 62
HYFI Calmar Ratio Rank: 63
HYFI Martin Ratio Rank: 77

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

TAFL vs. HYFI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB Tax-Aware Long Municipal ETF (TAFL) and AB High Yield ETF (HYFI). 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	HYFI	Difference
Sharpe ratio: Return per unit of total volatility	1.84	1.43	+0.42
Sortino ratio: Return per unit of downside risk	2.72	2.20	+0.52
Omega ratio: Gain probability vs. loss probability	1.39	1.27	+0.13
Calmar ratio: Return relative to maximum drawdown	2.72	2.23	+0.49
Martin ratio: Return relative to average drawdown	9.21	9.76	-0.55

TAFL vs. HYFI - Sharpe Ratio Comparison

The current TAFL Sharpe Ratio is 1.84, which is comparable to the HYFI Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of TAFL and HYFI, 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. HYFI - Drawdown Comparison

The maximum TAFL drawdown since its inception was -6.01%, smaller than the maximum HYFI drawdown of -6.34%. Use the drawdown chart below to compare losses from any high point for TAFL and HYFI.

Drawdown Indicators

	TAFL	HYFI	Difference
Max Drawdown Largest peak-to-trough decline	-6.01%	-6.34%	+0.33%
Max Drawdown (1Y) Largest decline over 1 year	-2.76%	-2.49%	-0.27%
Max Drawdown (3Y) Largest decline over 3 years	—	-6.34%	—
Current Drawdown Current decline from peak	-2.09%	-0.48%	-1.61%
Average Drawdown Average peak-to-trough decline	-1.38%	-0.50%	-0.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.81%	0.57%	+0.24%

Volatility

TAFL vs. HYFI - Volatility Comparison

AB Tax-Aware Long Municipal ETF (TAFL) has a higher volatility of 1.35% compared to AB High Yield ETF (HYFI) at 0.79%. This indicates that TAFL's price experiences larger fluctuations and is considered to be riskier than HYFI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAFL	HYFI	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.35%	0.79%	+0.56%
Volatility (6M) Calculated over the trailing 6-month period	3.01%	3.15%	-0.14%
Volatility (1Y) Calculated over the trailing 1-year period	4.08%	3.89%	+0.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.12%	5.26%	-0.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.12%	5.26%	-0.14%

TAFL vs. HYFI - Expense Ratio Comparison

TAFL has a 0.28% expense ratio, which is lower than HYFI's 0.40% expense ratio.

Dividends

TAFL vs. HYFI - Dividend Comparison

TAFL's dividend yield for the trailing twelve months is around 4.15%, less than HYFI's 6.65% yield.

Position	TTM	2025	2024	2023
HYFI AB High Yield ETF	6.14%	6.66%	6.57%	4.17%
TAFL AB Tax-Aware Long Municipal ETF	3.80%	4.11%	3.88%	0.19%

Frequently Asked Questions

Can I hold both TAFL and HYFI in my portfolio?

TAFL and HYFI have a correlation of 0.46, 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 HYFI?

TAFL has higher volatility (1.35%) compared to HYFI (0.79%). In terms of maximum drawdown, TAFL dropped -6.01% vs HYFI's -6.34%.

Which ETF is better, TAFL or HYFI?

On 1-year performance, TAFL leads with 6.43% vs 5.40% for HYFI. On fees, TAFL is cheaper at 0.28% per year. On volatility, HYFI has been the lower-risk option at 0.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAFL or HYFI?

Over the 1-year period, TAFL has performed better with a 6.43% return vs 5.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAFL or HYFI?

TAFL is cheaper with a 0.28% expense ratio, compared with 0.40% for HYFI.

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

HYFI has the higher dividend yield at 6.14%, compared with 3.80% for TAFL.

What is the main difference between TAFL and HYFI?

TAFL is categorized as Municipal Bonds, while HYFI is High Yield Bonds. Their fees differ too: 0.28% for TAFL and 0.40% for HYFI.

Which has better risk-adjusted returns?

TAFL currently has the higher Sharpe Ratio (1.84 vs 1.43), 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.