TAXF vs. FTABX

Last updated Jun 3, 2026

TAXF (American Century Diversified Municipal Bond ETF) and FTABX (Fidelity Tax-Free Bond Fund) are both Municipal Bonds funds. Over the past 5 years, TAXF returned 1.11%/yr vs 1.01%/yr for FTABX. A 0.64 correlation means they provide meaningful diversification when combined. TAXF charges 0.29%/yr vs 0.25%/yr for FTABX.

Performance

TAXF vs. FTABX - Performance Comparison

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

Returns By Period

In the year-to-date period, TAXF achieves a 1.97% return, which is significantly higher than FTABX's 1.43% return.

TAXF

• 1D: 0.19%
• 1M: 0.78%
• YTD: 1.97%
• 6M: 2.33%
• 1Y: 8.33%
• 3Y*: 4.23%
• 5Y*: 1.11%
• 10Y*: —

FTABX

• 1D: 0.00%
• 1M: 0.55%
• YTD: 1.43%
• 6M: 1.90%
• 1Y: 7.47%
• 3Y*: 4.40%
• 5Y*: 1.01%
• 10Y*: 2.36%

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

TAXF vs. FTABX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
TAXF American Century Diversified Municipal Bond ETF	1.97%	4.30%	1.74%	7.33%	-9.64%	2.72%	5.55%	8.75%	0.64%
FTABX Fidelity Tax-Free Bond Fund	1.43%	5.60%	1.54%	7.51%	-10.74%	2.20%	4.80%	8.58%	1.65%

Correlation

The correlation between TAXF and FTABX is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (All Time) Calculated using the full available price history since Sep 13, 2018	0.64

The correlation between TAXF and FTABX has been stable across timeframes, ranging from 0.60 to 0.66 - a consistent structural relationship.

Return for Risk

TAXF vs. FTABX — Risk / Return Rank

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

TAXF

TAXF Risk / Return Rank: 74
TAXF Sharpe Ratio Rank: 83
TAXF Sortino Ratio Rank: 87
TAXF Omega Ratio Rank: 90
TAXF Calmar Ratio Rank: 55
TAXF Martin Ratio Rank: 56

FTABX

FTABX Risk / Return Rank: 67
FTABX Sharpe Ratio Rank: 82
FTABX Sortino Ratio Rank: 87
FTABX Omega Ratio Rank: 90
FTABX Calmar Ratio Rank: 39
FTABX Martin Ratio Rank: 38

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.

TAXF vs. FTABX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Century Diversified Municipal Bond ETF (TAXF) and Fidelity Tax-Free Bond Fund (FTABX). 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.

	TAXF	FTABX	Difference
Sharpe ratio Return per unit of total volatility	2.74	2.65	+0.09
Sortino ratio Return per unit of downside risk	3.97	4.16	-0.19
Omega ratio Gain probability vs. loss probability	1.59	1.65	-0.05
Calmar ratio Return relative to maximum drawdown	2.77	2.43	+0.33
Martin ratio Return relative to average drawdown	10.00	8.40	+1.60
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TAXF vs. FTABX - Sharpe Ratio Comparison

The current TAXF Sharpe Ratio is 2.74, which is comparable to the FTABX Sharpe Ratio of 2.65. The chart below compares the historical Sharpe Ratios of TAXF and FTABX, 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

	TAXF	FTABX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.74	2.65	+0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.24	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.55	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.62	1.05	-0.43

Drawdowns

TAXF vs. FTABX - Drawdown Comparison

The maximum TAXF drawdown since its inception was -13.93%, smaller than the maximum FTABX drawdown of -16.14%. Use the drawdown chart below to compare losses from any high point for TAXF and FTABX.

Drawdown Indicators

	TAXF	FTABX	Difference
Max Drawdown Largest peak-to-trough decline	-13.93%	-16.14%	+2.21%
Max Drawdown (1Y) Largest decline over 1 year	-2.93%	-3.11%	+0.18%
Max Drawdown (3Y) Largest decline over 3 years	-5.53%	-5.99%	+0.46%
Max Drawdown (5Y) Largest decline over 5 years	-13.93%	-16.14%	+2.21%
Max Drawdown (10Y) Largest decline over 10 years	—	-16.14%	—
Current Drawdown Current decline from peak	-0.47%	-0.78%	+0.31%
Average Drawdown Average peak-to-trough decline	-3.15%	-2.12%	-1.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.81%	0.90%	-0.09%

Volatility

TAXF vs. FTABX - Volatility Comparison

The current volatility for American Century Diversified Municipal Bond ETF (TAXF) is 1.00%, while Fidelity Tax-Free Bond Fund (FTABX) has a volatility of 1.08%. This indicates that TAXF experiences smaller price fluctuations and is considered to be less risky than FTABX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAXF	FTABX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.00%	1.08%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	2.26%	2.16%	+0.10%
Volatility (1Y) Calculated over the trailing 1-year period	3.06%	2.76%	+0.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.20%	4.16%	+0.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.66%	4.29%	+0.37%

TAXF vs. FTABX - Expense Ratio Comparison

TAXF has a 0.29% expense ratio, which is higher than FTABX's 0.25% expense ratio.

Dividends

TAXF vs. FTABX - Dividend Comparison

TAXF's dividend yield for the trailing twelve months is around 3.47%, more than FTABX's 3.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTABX Fidelity Tax-Free Bond Fund	3.21%	4.18%	2.81%	2.90%	2.16%	2.27%	2.64%	2.94%	3.01%	3.49%	4.22%	3.29%
TAXF American Century Diversified Municipal Bond ETF	3.47%	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

Can I hold both TAXF and FTABX in my portfolio?

TAXF and FTABX have a correlation of 0.60, 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 FTABX?

FTABX has higher volatility (1.08%) compared to TAXF (1.00%). In terms of maximum drawdown, TAXF dropped -13.93% vs FTABX's -16.14%.

Which has better risk-adjusted returns?

TAXF currently has the higher Sharpe Ratio (2.74 vs 2.65), 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.