TAXF vs. SDSI
TAXF (American Century Diversified Municipal Bond ETF) and SDSI (American Century Short Duration Strategic Income ETF) are both exchange-traded funds - TAXF is a Municipal Bonds fund actively managed by American Century, while SDSI is a Short-Term Bond fund tracking the Bloomberg U.S. 1-3 Year Government/Credit Bond Index. TAXF is actively managed, while SDSI is passively managed. Over the past 3 years, TAXF returned 4.13%/yr vs 5.66%/yr for SDSI. A 0.54 correlation means they provide meaningful diversification when combined. TAXF charges 0.29%/yr vs 0.33%/yr for SDSI.
Performance
TAXF vs. SDSI - Performance Comparison
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Returns By Period
In the year-to-date period, TAXF achieves a 2.03% return, which is significantly higher than SDSI's 0.90% return.
TAXF
- 1D
- 0.07%
- 1M
- 0.81%
- YTD
- 2.03%
- 6M
- 2.38%
- 1Y
- 8.10%
- 3Y*
- 4.13%
- 5Y*
- 1.09%
- 10Y*
- —
SDSI
- 1D
- -0.32%
- 1M
- -0.03%
- YTD
- 0.90%
- 6M
- 1.36%
- 1Y
- 4.64%
- 3Y*
- 5.66%
- 5Y*
- —
- 10Y*
- —
TAXF vs. SDSI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
TAXF American Century Diversified Municipal Bond ETF | 2.03% | 4.30% | 1.74% | 7.33% | 2.65% |
SDSI American Century Short Duration Strategic Income ETF | 0.90% | 6.54% | 5.63% | 5.88% | 2.05% |
Correlation
The correlation between TAXF and SDSI is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.51 |
Correlation (All Time) Calculated using the full available price history since Oct 14, 2022 | 0.54 |
The correlation between TAXF and SDSI shifts across timeframes, from 0.38 (1 year) to 0.54 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
TAXF vs. SDSI — Risk / Return Rank
TAXF
SDSI
TAXF vs. SDSI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Century Diversified Municipal Bond ETF (TAXF) and American Century Short Duration Strategic Income ETF (SDSI). 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 | SDSI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.16 | ||
| Sortino ratioReturn per unit of downside risk | -0.35 | ||
| Omega ratioGain probability vs. loss probability | 1.58 | 1.56 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.78 | 3.98 | -1.20 |
| Martin ratioReturn relative to average drawdown | 10.02 | 18.71 | -8.69 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TAXF | SDSI | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.67 | 2.83 | -0.16 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.26 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.62 | 2.55 | -1.92 |
Drawdowns
TAXF vs. SDSI - Drawdown Comparison
The maximum TAXF drawdown since its inception was -13.93%, which is greater than SDSI's maximum drawdown of -1.29%. Use the drawdown chart below to compare losses from any high point for TAXF and SDSI.
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Drawdown Indicators
| TAXF | SDSI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.93% | -1.29% | -12.64% |
Max Drawdown (1Y)Largest decline over 1 year | -2.93% | -1.17% | -1.76% |
Max Drawdown (3Y)Largest decline over 3 years | -5.53% | -1.29% | -4.24% |
Max Drawdown (5Y)Largest decline over 5 years | -13.93% | — | — |
Current DrawdownCurrent decline from peak | -0.41% | -0.39% | -0.02% |
Average DrawdownAverage peak-to-trough decline | -3.14% | -0.24% | -2.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.81% | 0.25% | +0.56% |
Volatility
TAXF vs. SDSI - Volatility Comparison
American Century Diversified Municipal Bond ETF (TAXF) has a higher volatility of 0.99% compared to American Century Short Duration Strategic Income ETF (SDSI) at 0.52%. This indicates that TAXF's price experiences larger fluctuations and is considered to be riskier than SDSI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TAXF | SDSI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.99% | 0.52% | +0.47% |
Volatility (6M)Calculated over the trailing 6-month period | 2.24% | 1.18% | +1.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.05% | 1.67% | +1.38% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.20% | 2.28% | +1.92% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.65% | 2.28% | +2.37% |
TAXF vs. SDSI - Expense Ratio Comparison
TAXF has a 0.29% expense ratio, which is lower than SDSI's 0.33% expense ratio.
Dividends
TAXF vs. SDSI - Dividend Comparison
TAXF's dividend yield for the trailing twelve months is around 3.77%, less than SDSI's 4.43% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
SDSI American Century Short Duration Strategic Income ETF | 4.43% | 4.91% | 5.49% | 5.37% | 0.98% | 0.00% | 0.00% | 0.00% | 0.00% |
TAXF American Century Diversified Municipal Bond ETF | 3.77% | 3.68% | 3.38% | 2.93% | 2.05% | 1.58% | 2.13% | 2.64% | 0.69% |
Frequently Asked Questions
TAXF and SDSI have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TAXF has higher volatility (0.99%) compared to SDSI (0.52%). In terms of maximum drawdown, TAXF dropped -13.93% vs SDSI's -1.29%.
On 3-year performance, SDSI leads with 5.66% vs 4.13% for TAXF. On fees, TAXF is cheaper at 0.29% per year. On volatility, SDSI has been the lower-risk option at 0.52%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, SDSI has performed better with a 5.66% return vs 4.13%. 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 0.33% for SDSI.
SDSI has the higher dividend yield at 4.43%, compared with 3.77% for TAXF.
TAXF is categorized as Municipal Bonds, while SDSI is Short-Term Bond. Their fees differ too: 0.29% for TAXF and 0.33% for SDSI.
SDSI currently has the higher Sharpe Ratio (2.83 vs 2.67), 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.
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