TAXF vs. FMUN

Last updated Aug 2, 2026

TAXF (American Century Diversified Municipal Bond ETF) and FMUN (Fidelity Systematic Municipal Bond Index ETF) are both Municipal Bonds funds. Both are actively managed. Over the past year, TAXF returned 5.48% vs 4.46% for FMUN. Their 0.68 correlation means they have sometimes moved together and sometimes differently. TAXF charges 0.29%/yr vs 0.05%/yr for FMUN.

Performance

TAXF vs. FMUN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Century Diversified Municipal Bond ETF (TAXF) and Fidelity Systematic Municipal Bond Index ETF (FMUN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXF achieves a 0.84% return, which is significantly higher than FMUN's -0.03% return.

TAXF

• 1D: -0.12%
• 1M: -1.76%
• 6M: -0.01%
• YTD: 0.84%
• 1Y: 5.48%
• 3Y*: 3.54%
• 5Y*: 0.68%
• 10Y*: —
• ALL TIME*: 2.67%

FMUN

• 1D: -0.24%
• 1M: -2.19%
• 6M: -0.88%
• YTD: -0.03%
• 1Y: 4.46%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 2.46%

*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)
FMUN Fidelity Systematic Municipal Bond Index ETF	$530.62K	$503.69K	$533.19K
TAXF American Century Diversified Municipal Bond ETF	$2.10M	$2.57M	$2.35M

TAXF vs. FMUN - Yearly Performance Comparison

	2026 (YTD)	2025
TAXF American Century Diversified Municipal Bond ETF	0.84%	4.52%
FMUN Fidelity Systematic Municipal Bond Index ETF	-0.03%	3.28%

Correlation

The correlation between TAXF and FMUN is 0.64, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.64
Correlation (All Time) Calculated using the full available price history since Apr 7, 2025	0.68

The correlation between TAXF and FMUN has been stable across timeframes, ranging from 0.64 to 0.68 - a consistent structural relationship.

Return for Risk

TAXF vs. FMUN — Risk / Return Rank

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

TAXF

TAXF Risk / Return Rank: 76
TAXF Sharpe Ratio Rank: 85
TAXF Sortino Ratio Rank: 84
TAXF Omega Ratio Rank: 91
TAXF Calmar Ratio Rank: 61
TAXF Martin Ratio Rank: 60

FMUN

FMUN Risk / Return Rank: 64
FMUN Sharpe Ratio Rank: 74
FMUN Sortino Ratio Rank: 74
FMUN Omega Ratio Rank: 81
FMUN Calmar Ratio Rank: 46
FMUN Martin Ratio Rank: 44

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.

TAXF vs. FMUN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Century Diversified Municipal Bond ETF (TAXF) and Fidelity Systematic Municipal Bond Index ETF (FMUN). 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	FMUN	Difference
Sharpe ratio: Return per unit of total volatility	2.01	1.67	+0.34
Sortino ratio: Return per unit of downside risk	2.78	2.36	+0.41
Omega ratio: Gain probability vs. loss probability	1.43	1.34	+0.09
Calmar ratio: Return relative to maximum drawdown	2.15	1.61	+0.54
Martin ratio: Return relative to average drawdown	7.30	4.97	+2.32

TAXF vs. FMUN - Sharpe Ratio Comparison

The current TAXF Sharpe Ratio is 2.01, which is comparable to the FMUN Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of TAXF and FMUN, 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

TAXF vs. FMUN - Drawdown Comparison

The maximum TAXF drawdown since its inception was -13.93%, which is greater than FMUN's maximum drawdown of -3.83%. Use the drawdown chart below to compare losses from any high point for TAXF and FMUN.

Drawdown Indicators

	TAXF	FMUN	Difference
Max Drawdown Largest peak-to-trough decline	-13.93%	-3.83%	-10.10%
Max Drawdown (1Y) Largest decline over 1 year	-2.93%	-3.21%	+0.28%
Max Drawdown (3Y) Largest decline over 3 years	-5.53%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-13.83%	—	—
Current Drawdown Current decline from peak	-1.80%	-2.35%	+0.55%
Average Drawdown Average peak-to-trough decline	-3.09%	-1.11%	-1.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.86%	1.04%	-0.18%

Volatility

TAXF vs. FMUN - Volatility Comparison

American Century Diversified Municipal Bond ETF (TAXF) has a higher volatility of 1.22% compared to Fidelity Systematic Municipal Bond Index ETF (FMUN) at 0.75%. This indicates that TAXF's price experiences larger fluctuations and is considered to be riskier than FMUN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAXF	FMUN	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.22%	0.75%	+0.47%
Volatility (6M) Calculated over the trailing 6-month period	2.53%	2.49%	+0.04%
Volatility (1Y) Calculated over the trailing 1-year period	3.14%	3.11%	+0.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.24%	4.03%	+0.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.63%	4.03%	+0.60%

TAXF vs. FMUN - Expense Ratio Comparison

TAXF has a 0.29% expense ratio, which is higher than FMUN's 0.05% expense ratio.

Dividends

TAXF vs. FMUN - Dividend Comparison

TAXF's dividend yield for the trailing twelve months is around 3.84%, more than FMUN's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
FMUN Fidelity Systematic Municipal Bond Index ETF	3.35%	2.41%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TAXF American Century Diversified Municipal Bond ETF	3.51%	3.68%	3.38%	2.93%	2.05%	1.58%	2.13%	2.64%	0.69%

Frequently Asked Questions

Can I hold both TAXF and FMUN in my portfolio?

TAXF and FMUN have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TAXF or FMUN?

TAXF has higher volatility (1.22%) compared to FMUN (0.75%). In terms of maximum drawdown, TAXF dropped -13.93% vs FMUN's -3.83%.

Which ETF is better, TAXF or FMUN?

On 1-year performance, TAXF leads with 5.48% vs 4.46% for FMUN. On fees, FMUN is cheaper at 0.05% per year. On volatility, FMUN has been the lower-risk option at 0.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAXF or FMUN?

Over the 1-year period, TAXF has performed better with a 5.48% return vs 4.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAXF or FMUN?

FMUN is cheaper with a 0.05% expense ratio, compared with 0.29% for TAXF.

Which ETF pays a higher dividend yield, TAXF or FMUN?

TAXF has the higher dividend yield at 3.51%, compared with 3.35% for FMUN.

What is the main difference between TAXF and FMUN?

They also come from different issuers: American Century and Fidelity. Their fees differ too: 0.29% for TAXF and 0.05% for FMUN.

Which has better risk-adjusted returns?

TAXF currently has the higher Sharpe Ratio (2.01 vs 1.67), 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.