TAXE vs. TBUX

Last updated Jun 5, 2026

TAXE (T. Rowe Price Intermediate Municipal Income ETF) and TBUX (T. Rowe Price Ultra Short-Term Bond ETF) are both exchange-traded funds - TAXE is a Municipal Bonds fund actively managed by T. Rowe Price, while TBUX is a Ultrashort Bond fund actively managed by T. Rowe Price. Both are actively managed. Over the past year, TAXE returned 7.37% vs 4.79% for TBUX. At a 0.31 correlation, their price movements are largely independent. TAXE charges 0.24%/yr vs 0.17%/yr for TBUX.

Performance

TAXE vs. TBUX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Intermediate Municipal Income ETF (TAXE) and T. Rowe Price Ultra Short-Term Bond ETF (TBUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXE achieves a 1.90% return, which is significantly higher than TBUX's 1.73% return.

TAXE

• 1D: 0.10%
• 1M: 0.69%
• YTD: 1.90%
• 6M: 2.21%
• 1Y: 7.37%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TBUX

• 1D: 0.08%
• 1M: 0.41%
• YTD: 1.73%
• 6M: 2.18%
• 1Y: 4.79%
• 3Y*: 5.88%
• 5Y*: —
• 10Y*: —

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

TAXE vs. TBUX - Yearly Performance Comparison

	2026 (YTD)	2025	2024
TAXE T. Rowe Price Intermediate Municipal Income ETF	1.90%	5.78%	1.55%
TBUX T. Rowe Price Ultra Short-Term Bond ETF	1.73%	5.37%	2.98%

Correlation

The correlation between TAXE and TBUX is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (All Time) Calculated using the full available price history since Jul 11, 2024	0.31

Return for Risk

TAXE vs. TBUX — Risk / Return Rank

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

TAXE

TAXE Risk / Return Rank: 80
TAXE Sharpe Ratio Rank: 93
TAXE Sortino Ratio Rank: 95
TAXE Omega Ratio Rank: 96
TAXE Calmar Ratio Rank: 60
TAXE Martin Ratio Rank: 57

TBUX

TBUX Risk / Return Rank: 99
TBUX Sharpe Ratio Rank: 99
TBUX Sortino Ratio Rank: 99
TBUX Omega Ratio Rank: 99
TBUX Calmar Ratio Rank: 99
TBUX Martin Ratio Rank: 99

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.

TAXE vs. TBUX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Intermediate Municipal Income ETF (TAXE) and T. Rowe Price Ultra Short-Term Bond ETF (TBUX). 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.

	TAXE	TBUX	Difference
Sharpe ratio: Return per unit of total volatility	3.31	7.14	-3.84
Sortino ratio: Return per unit of downside risk	5.03	14.42	-9.39
Omega ratio: Gain probability vs. loss probability	1.79	3.09	-1.30
Calmar ratio: Return relative to maximum drawdown	2.93	48.00	-45.07
Martin ratio: Return relative to average drawdown	9.99	188.18	-178.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TAXE vs. TBUX - Sharpe Ratio Comparison

The current TAXE Sharpe Ratio is 3.31, which is lower than the TBUX Sharpe Ratio of 7.14. The chart below compares the historical Sharpe Ratios of TAXE and TBUX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TAXE	TBUX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.31	7.14	-3.84
Sharpe Ratio (All Time) Calculated using the full available price history	1.55	3.90	-2.35

Drawdowns

TAXE vs. TBUX - Drawdown Comparison

The maximum TAXE drawdown since its inception was -3.72%, which is greater than TBUX's maximum drawdown of -1.79%. Use the drawdown chart below to compare losses from any high point for TAXE and TBUX.

Drawdown Indicators

	TAXE	TBUX	Difference
Max Drawdown Largest peak-to-trough decline	-3.72%	-1.79%	-1.93%
Max Drawdown (1Y) Largest decline over 1 year	-2.53%	-0.10%	-2.43%
Max Drawdown (3Y) Largest decline over 3 years	—	-0.33%	—
Current Drawdown Current decline from peak	-0.47%	0.00%	-0.47%
Average Drawdown Average peak-to-trough decline	-0.71%	-0.28%	-0.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.74%	0.03%	+0.71%

Volatility

TAXE vs. TBUX - Volatility Comparison

T. Rowe Price Intermediate Municipal Income ETF (TAXE) has a higher volatility of 0.77% compared to T. Rowe Price Ultra Short-Term Bond ETF (TBUX) at 0.19%. This indicates that TAXE's price experiences larger fluctuations and is considered to be riskier than TBUX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAXE	TBUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.77%	0.19%	+0.58%
Volatility (6M) Calculated over the trailing 6-month period	1.65%	0.44%	+1.21%
Volatility (1Y) Calculated over the trailing 1-year period	2.24%	0.67%	+1.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.15%	1.07%	+2.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.15%	1.07%	+2.08%

TAXE vs. TBUX - Expense Ratio Comparison

TAXE has a 0.24% expense ratio, which is higher than TBUX's 0.17% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

TAXE vs. TBUX - Dividend Comparison

TAXE's dividend yield for the trailing twelve months is around 3.56%, less than TBUX's 4.48% yield.

Position	TTM	2025	2024	2023	2022	2021
TAXE T. Rowe Price Intermediate Municipal Income ETF	3.56%	3.46%	1.74%	0.00%	0.00%	0.00%
TBUX T. Rowe Price Ultra Short-Term Bond ETF	4.48%	4.67%	5.39%	4.66%	2.58%	0.27%

Frequently Asked Questions

Can I hold both TAXE and TBUX in my portfolio?

TAXE and TBUX have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TAXE or TBUX?

TAXE has higher volatility (0.77%) compared to TBUX (0.19%). In terms of maximum drawdown, TAXE dropped -3.72% vs TBUX's -1.79%.

Which ETF is better, TAXE or TBUX?

On 1-year performance, TAXE leads with 7.37% vs 4.79% for TBUX. On fees, TBUX is cheaper at 0.17% per year. On volatility, TBUX has been the lower-risk option at 0.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAXE or TBUX?

Over the 1-year period, TAXE has performed better with a 7.37% return vs 4.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAXE or TBUX?

TBUX is cheaper with a 0.17% expense ratio, compared with 0.24% for TAXE.

Which ETF pays a higher dividend yield, TAXE or TBUX?

TBUX has the higher dividend yield at 4.48%, compared with 3.56% for TAXE.

What is the main difference between TAXE and TBUX?

TAXE is categorized as Municipal Bonds, while TBUX is Ultrashort Bond. Their fees differ too: 0.24% for TAXE and 0.17% for TBUX.

Which has better risk-adjusted returns?

TBUX currently has the higher Sharpe Ratio (7.14 vs 3.31), 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.