TAXF vs. FDL
TAXF (American Century Diversified Municipal Bond ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - TAXF is a Municipal Bonds fund actively managed by American Century, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. TAXF is actively managed, while FDL is passively managed. Over the past 5 years, TAXF returned 1.13%/yr vs 12.95%/yr for FDL. At a 0.01 correlation, their price movements are largely independent. TAXF charges 0.29%/yr vs 0.43%/yr for FDL.
Performance
TAXF vs. FDL - Performance Comparison
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Returns By Period
In the year-to-date period, TAXF achieves a 2.22% return, which is significantly lower than FDL's 11.33% return.
TAXF
- 1D
- 0.00%
- 1M
- 1.52%
- YTD
- 2.22%
- 6M
- 2.30%
- 1Y
- 7.55%
- 3Y*
- 3.96%
- 5Y*
- 1.13%
- 10Y*
- —
FDL
- 1D
- -0.16%
- 1M
- -3.91%
- YTD
- 11.33%
- 6M
- 11.38%
- 1Y
- 21.02%
- 3Y*
- 18.63%
- 5Y*
- 12.95%
- 10Y*
- 10.99%
TAXF vs. FDL - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
TAXF American Century Diversified Municipal Bond ETF | 2.22% | 4.30% | 1.74% | 7.33% | -9.64% | 2.72% | 5.55% | 8.75% | 0.60% |
FDL First Trust Morningstar Dividend Leaders Index Fund | 11.33% | 14.79% | 17.98% | 2.94% | 6.66% | 26.10% | -4.30% | 24.41% | -6.28% |
Correlation
The correlation between TAXF and FDL is 0.00, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.00 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.09 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.07 |
Correlation (All Time) Calculated using the full available price history since Sep 12, 2018 | 0.01 |
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Return for Risk
TAXF vs. FDL — Risk / Return Rank
TAXF
FDL
TAXF vs. FDL - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Century Diversified Municipal Bond ETF (TAXF) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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.
| TAXF | FDL | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.69 | ||
| Sortino ratioReturn per unit of downside risk | +0.87 | ||
| Omega ratioGain probability vs. loss probability | 1.54 | 1.32 | +0.22 |
| Calmar ratioReturn relative to maximum drawdown | 2.59 | 4.94 | -2.35 |
| Martin ratioReturn relative to average drawdown | 9.29 | 11.71 | -2.42 |
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Drawdowns
TAXF vs. FDL - Drawdown Comparison
The maximum TAXF drawdown since its inception was -13.93%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for TAXF and FDL.
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Drawdown Indicators
| TAXF | FDL | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.93% | -65.93% | +52.00% |
Max Drawdown (1Y)Largest decline over 1 year | -2.93% | -4.27% | +1.34% |
Max Drawdown (3Y)Largest decline over 3 years | -5.53% | -12.24% | +6.71% |
Max Drawdown (5Y)Largest decline over 5 years | -13.93% | -16.46% | +2.53% |
Max Drawdown (10Y)Largest decline over 10 years | — | -41.40% | — |
Current DrawdownCurrent decline from peak | -0.22% | -4.24% | +4.02% |
Average DrawdownAverage peak-to-trough decline | -3.13% | -9.64% | +6.51% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.81% | 1.80% | -0.99% |
Volatility
TAXF vs. FDL - Volatility Comparison
The current volatility for American Century Diversified Municipal Bond ETF (TAXF) is 0.75%, while First Trust Morningstar Dividend Leaders Index Fund (FDL) has a volatility of 3.52%. This indicates that TAXF experiences smaller price fluctuations and is considered to be less risky than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TAXF | FDL | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.75% | 3.52% | -2.77% |
Volatility (6M)Calculated over the trailing 6-month period | 2.28% | 8.03% | -5.75% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.00% | 11.51% | -8.51% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.20% | 14.30% | -10.10% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.64% | 17.13% | -12.49% |
TAXF vs. FDL - Expense Ratio Comparison
TAXF has a 0.29% expense ratio, which is lower than FDL's 0.43% expense ratio.
Dividends
TAXF vs. FDL - Dividend Comparison
TAXF's dividend yield for the trailing twelve months is around 3.76%, which matches FDL's 3.74% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FDL First Trust Morningstar Dividend Leaders Index Fund | 3.74% | 4.04% | 4.96% | 4.58% | 3.58% | 4.59% | 4.48% | 3.75% | 3.97% | 3.18% | 2.93% | 3.65% |
TAXF American Century Diversified Municipal Bond ETF | 3.76% | 3.68% | 3.38% | 2.93% | 2.05% | 1.58% | 2.13% | 2.64% | 0.69% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
TAXF and FDL have a correlation of 0.00, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FDL has higher volatility (3.52%) compared to TAXF (0.75%). In terms of maximum drawdown, TAXF dropped -13.93% vs FDL's -65.93%.
On 5-year performance, FDL leads with 12.95% vs 1.13% for TAXF. On fees, TAXF is cheaper at 0.29% per year. On volatility, TAXF has been the lower-risk option at 0.75%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FDL has performed better with a 12.95% return vs 1.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TAXF is cheaper with a 0.29% expense ratio, compared with 0.43% for FDL.
TAXF has the higher dividend yield at 3.76%, compared with 3.74% for FDL.
TAXF is categorized as Municipal Bonds, while FDL is Large Cap Value Equities. They also come from different issuers: American Century and First Trust. Their fees differ too: 0.29% for TAXF and 0.43% for FDL.
TAXF currently has the higher Sharpe Ratio (2.53 vs 1.84), 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.
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