TAFL vs. TAXS

Last updated Jun 24, 2026

TAFL (AB Tax-Aware Long Municipal ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds. TAFL is actively managed, while TAXS is passively managed. A 0.61 correlation means they provide meaningful diversification when combined. TAFL charges 0.28%/yr vs 0.05%/yr for TAXS.

Performance

TAFL vs. TAXS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AB Tax-Aware Long Municipal ETF (TAFL) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). 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 TAXS's 1.03% return.

TAFL

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

TAXS

• 1D: -0.02%
• 1M: 0.62%
• YTD: 1.03%
• 6M: 1.18%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TAFL vs. TAXS - Yearly Performance Comparison

	2026 (YTD)	2025
TAFL AB Tax-Aware Long Municipal ETF	2.33%	5.44%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.03%	1.22%

Correlation

The correlation between TAFL and TAXS is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025	0.61

Return for Risk

TAFL vs. TAXS — 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

TAXS

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. TAXS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB Tax-Aware Long Municipal ETF (TAFL) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). 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	TAXS	Difference
Sharpe ratio: Return per unit of total volatility	1.86	—	—
Sortino ratio: Return per unit of downside risk	2.81	—	—
Omega ratio: Gain probability vs. loss probability	1.40	—	—
Calmar ratio: Return relative to maximum drawdown	2.86	—	—
Martin ratio: Return relative to average drawdown	8.93	—	—

Drawdowns

TAFL vs. TAXS - Drawdown Comparison

The maximum TAFL drawdown since its inception was -6.01%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for TAFL and TAXS.

Drawdown Indicators

	TAFL	TAXS	Difference
Max Drawdown Largest peak-to-trough decline	-6.01%	-0.84%	-5.17%
Max Drawdown (1Y) Largest decline over 1 year	-2.76%	—	—
Current Drawdown Current decline from peak	-0.14%	-0.04%	-0.10%
Average Drawdown Average peak-to-trough decline	-1.41%	-0.22%	-1.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	—	—

Volatility

Volatility by Period

	TAFL	TAXS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.96%	—	—
Volatility (6M) Calculated over the trailing 6-month period	2.74%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	4.24%	0.99%	+3.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.14%	0.99%	+4.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.14%	0.99%	+4.15%

TAFL vs. TAXS - Expense Ratio Comparison

TAFL has a 0.28% expense ratio, which is higher than TAXS's 0.05% expense ratio.

Dividends

TAFL vs. TAXS - Dividend Comparison

TAFL's dividend yield for the trailing twelve months is around 4.08%, more than TAXS's 1.82% yield.

Position	TTM	2025	2024	2023
TAFL AB Tax-Aware Long Municipal ETF	4.08%	4.11%	3.88%	0.19%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.82%	0.74%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TAFL and TAXS in my portfolio?

TAFL and TAXS have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, TAFL or TAXS?

On fees, TAXS is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, TAFL or TAXS?

TAXS is cheaper with a 0.05% expense ratio, compared with 0.28% for TAFL.

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

TAFL has the higher dividend yield at 4.08%, compared with 1.82% for TAXS.

What is the main difference between TAFL and TAXS?

They also come from different issuers: AllianceBernstein and Northern Trust. Their fees differ too: 0.28% for TAFL and 0.05% for TAXS.