TAFM vs. TAFL

Last updated Jul 15, 2026

TAFM (AB Tax-Aware Intermediate Municipal ETF) and TAFL (AB Tax-Aware Long Municipal ETF) are both Municipal Bonds funds from AllianceBernstein. Both are actively managed. Over the past year, TAFM returned 6.98% vs 7.97% for TAFL. A 0.74 correlation means they provide meaningful diversification when combined. Both charge a 0.28% expense ratio.

Performance

TAFM vs. TAFL - Performance Comparison

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

Returns By Period

In the year-to-date period, TAFM achieves a 2.21% return, which is significantly lower than TAFL's 2.70% return.

TAFM

• 1D: 0.08%
• 1M: 0.29%
• 6M: 1.59%
• YTD: 2.21%
• 1Y: 6.98%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAFL

• 1D: 0.14%
• 1M: 0.70%
• 6M: 2.11%
• YTD: 2.70%
• 1Y: 7.97%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TAFM vs. TAFL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
TAFM AB Tax-Aware Intermediate Municipal ETF	2.21%	4.21%	2.54%	1.51%
TAFL AB Tax-Aware Long Municipal ETF	2.70%	3.53%	2.00%	2.09%

Correlation

The correlation between TAFM and TAFL is 0.68, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.68
Correlation (All Time) Calculated using the full available price history since Dec 13, 2023	0.74

The correlation between TAFM and TAFL has been stable across timeframes, ranging from 0.68 to 0.74 - a consistent structural relationship.

Return for Risk

TAFM vs. TAFL — Risk / Return Rank

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

TAFM

TAFM Risk / Return Rank: 80
TAFM Sharpe Ratio Rank: 89
TAFM Sortino Ratio Rank: 89
TAFM Omega Ratio Rank: 91
TAFM Calmar Ratio Rank: 65
TAFM Martin Ratio Rank: 67

TAFL

TAFL Risk / Return Rank: 78
TAFL Sharpe Ratio Rank: 77
TAFL Sortino Ratio Rank: 82
TAFL Omega Ratio Rank: 86
TAFL Calmar Ratio Rank: 72
TAFL Martin Ratio Rank: 73

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.

TAFM vs. TAFL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB Tax-Aware Intermediate Municipal ETF (TAFM) and AB Tax-Aware Long Municipal ETF (TAFL). 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.

	TAFM	TAFL	Difference
Sharpe ratio: Return per unit of total volatility	2.29	1.95	+0.34
Sortino ratio: Return per unit of downside risk	3.30	2.91	+0.39
Omega ratio: Gain probability vs. loss probability	1.46	1.41	+0.05
Calmar ratio: Return relative to maximum drawdown	2.61	2.90	-0.29
Martin ratio: Return relative to average drawdown	9.60	10.67	-1.07

TAFM vs. TAFL - Sharpe Ratio Comparison

The current TAFM Sharpe Ratio is 2.29, which is comparable to the TAFL Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of TAFM and TAFL, 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

TAFM vs. TAFL - Drawdown Comparison

The maximum TAFM drawdown since its inception was -4.74%, smaller than the maximum TAFL drawdown of -6.01%. Use the drawdown chart below to compare losses from any high point for TAFM and TAFL.

Drawdown Indicators

	TAFM	TAFL	Difference
Max Drawdown Largest peak-to-trough decline	-4.74%	-6.01%	+1.27%
Max Drawdown (1Y) Largest decline over 1 year	-2.69%	-2.76%	+0.07%
Current Drawdown Current decline from peak	-0.37%	-0.44%	+0.07%
Average Drawdown Average peak-to-trough decline	-0.92%	-1.38%	+0.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.73%	0.80%	-0.07%

Volatility

TAFM vs. TAFL - Volatility Comparison

The current volatility for AB Tax-Aware Intermediate Municipal ETF (TAFM) is 0.63%, while AB Tax-Aware Long Municipal ETF (TAFL) has a volatility of 0.83%. This indicates that TAFM experiences smaller price fluctuations and is considered to be less risky than TAFL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAFM	TAFL	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.63%	0.83%	-0.20%
Volatility (6M) Calculated over the trailing 6-month period	2.08%	2.77%	-0.69%
Volatility (1Y) Calculated over the trailing 1-year period	3.06%	4.13%	-1.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.86%	5.10%	-0.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.86%	5.10%	-0.24%

TAFM vs. TAFL - Expense Ratio Comparison

Both TAFM and TAFL have an expense ratio of 0.28%.

Dividends

TAFM vs. TAFL - Dividend Comparison

TAFM's dividend yield for the trailing twelve months is around 3.63%, less than TAFL's 4.09% yield.

Position	TTM	2025	2024	2023
TAFL AB Tax-Aware Long Municipal ETF	4.09%	4.11%	3.88%	0.19%
TAFM AB Tax-Aware Intermediate Municipal ETF	3.63%	3.51%	3.35%	0.18%

Frequently Asked Questions

Can I hold both TAFM and TAFL in my portfolio?

TAFM and TAFL have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TAFM or TAFL?

TAFL has higher volatility (0.83%) compared to TAFM (0.63%). In terms of maximum drawdown, TAFM dropped -4.74% vs TAFL's -6.01%.

Which ETF is better, TAFM or TAFL?

On 1-year performance, TAFL leads with 7.97% vs 6.98% for TAFM. Both ETFs have the same 0.28% expense ratio. On volatility, TAFM has been the lower-risk option at 0.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAFM or TAFL?

Over the 1-year period, TAFL has performed better with a 7.97% return vs 6.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAFM or TAFL?

TAFM and TAFL have the same expense ratio: 0.28% per year.

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

TAFL has the higher dividend yield at 4.09%, compared with 3.63% for TAFM.

Which has better risk-adjusted returns?

TAFM currently has the higher Sharpe Ratio (2.29 vs 1.95), 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.