TAXF vs. VALQ

Last updated Jun 5, 2026

TAXF (American Century Diversified Municipal Bond ETF) and VALQ (American Century STOXX U.S. Quality Value ETF) are both exchange-traded funds - TAXF is a Municipal Bonds fund actively managed by American Century, while VALQ is a Large Cap Value Equities fund tracking the iSTOXX American Century USA Quality Value Index. TAXF is actively managed, while VALQ is passively managed. Over the past 5 years, TAXF returned 1.09%/yr vs 8.74%/yr for VALQ. At a 0.07 correlation, their price movements are largely independent. Both charge a 0.29% expense ratio.

Performance

TAXF vs. VALQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Century Diversified Municipal Bond ETF (TAXF) and American Century STOXX U.S. Quality Value ETF (VALQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXF achieves a 2.03% return, which is significantly lower than VALQ's 5.74% return.

TAXF

• 1D: 0.07%
• 1M: 0.81%
• YTD: 2.03%
• 6M: 2.38%
• 1Y: 8.10%
• 3Y*: 4.13%
• 5Y*: 1.09%
• 10Y*: —

VALQ

• 1D: 0.23%
• 1M: 4.94%
• YTD: 5.74%
• 6M: 6.48%
• 1Y: 16.54%
• 3Y*: 15.62%
• 5Y*: 8.74%
• 10Y*: —

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

TAXF vs. VALQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
TAXF American Century Diversified Municipal Bond ETF	2.03%	4.30%	1.74%	7.33%	-9.64%	2.72%	5.55%	8.75%	0.64%
VALQ American Century STOXX U.S. Quality Value ETF	5.74%	10.58%	16.71%	13.87%	-7.73%	27.05%	0.64%	24.52%	-13.11%

Correlation

The correlation between TAXF and VALQ is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (5Y) Calculated over the trailing 5-year period	0.14
Correlation (All Time) Calculated using the full available price history since Sep 13, 2018	0.07

The correlation between TAXF and VALQ shifts across timeframes, from 0.07 (all time) to 0.19 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

TAXF vs. VALQ — Risk / Return Rank

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

TAXF

TAXF Risk / Return Rank: 75
TAXF Sharpe Ratio Rank: 83
TAXF Sortino Ratio Rank: 87
TAXF Omega Ratio Rank: 90
TAXF Calmar Ratio Rank: 57
TAXF Martin Ratio Rank: 58

VALQ

VALQ Risk / Return Rank: 42
VALQ Sharpe Ratio Rank: 43
VALQ Sortino Ratio Rank: 45
VALQ Omega Ratio Rank: 41
VALQ Calmar Ratio Rank: 44
VALQ Martin Ratio Rank: 39

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. VALQ - 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 STOXX U.S. Quality Value ETF (VALQ). 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	VALQ	Difference
Sharpe ratio: Return per unit of total volatility	2.67	1.49	+1.18
Sortino ratio: Return per unit of downside risk	3.86	2.21	+1.65
Omega ratio: Gain probability vs. loss probability	1.58	1.26	+0.31
Calmar ratio: Return relative to maximum drawdown	2.78	2.12	+0.66
Martin ratio: Return relative to average drawdown	10.02	6.00	+4.01
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. VALQ - Sharpe Ratio Comparison

The current TAXF Sharpe Ratio is 2.67, which is higher than the VALQ Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of TAXF and VALQ, 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	VALQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.67	1.49	+1.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.26	0.61	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.62	0.51	+0.12

Drawdowns

TAXF vs. VALQ - Drawdown Comparison

The maximum TAXF drawdown since its inception was -13.93%, smaller than the maximum VALQ drawdown of -38.19%. Use the drawdown chart below to compare losses from any high point for TAXF and VALQ.

Drawdown Indicators

	TAXF	VALQ	Difference
Max Drawdown Largest peak-to-trough decline	-13.93%	-38.19%	+24.26%
Max Drawdown (1Y) Largest decline over 1 year	-2.93%	-7.85%	+4.92%
Max Drawdown (3Y) Largest decline over 3 years	-5.53%	-15.62%	+10.09%
Max Drawdown (5Y) Largest decline over 5 years	-13.93%	-20.19%	+6.26%
Current Drawdown Current decline from peak	-0.41%	-0.14%	-0.27%
Average Drawdown Average peak-to-trough decline	-3.14%	-4.95%	+1.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.81%	2.76%	-1.95%

Volatility

TAXF vs. VALQ - Volatility Comparison

The current volatility for American Century Diversified Municipal Bond ETF (TAXF) is 0.99%, while American Century STOXX U.S. Quality Value ETF (VALQ) has a volatility of 2.36%. This indicates that TAXF experiences smaller price fluctuations and is considered to be less risky than VALQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAXF	VALQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.99%	2.36%	-1.37%
Volatility (6M) Calculated over the trailing 6-month period	2.24%	7.97%	-5.73%
Volatility (1Y) Calculated over the trailing 1-year period	3.05%	11.11%	-8.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.20%	14.48%	-10.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.65%	17.66%	-13.01%

TAXF vs. VALQ - Expense Ratio Comparison

Both TAXF and VALQ have an expense ratio of 0.29%.

Dividends

TAXF vs. VALQ - Dividend Comparison

TAXF's dividend yield for the trailing twelve months is around 3.77%, more than VALQ's 1.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
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%
VALQ American Century STOXX U.S. Quality Value ETF	1.72%	1.88%	1.58%	1.76%	2.71%	1.58%	2.08%	2.31%	2.35%

Frequently Asked Questions

Can I hold both TAXF and VALQ in my portfolio?

TAXF and VALQ have a correlation of 0.19, 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 VALQ?

VALQ has higher volatility (2.36%) compared to TAXF (0.99%). In terms of maximum drawdown, TAXF dropped -13.93% vs VALQ's -38.19%.

Which ETF is better, TAXF or VALQ?

On 5-year performance, VALQ leads with 8.74% vs 1.09% for TAXF. Both ETFs have the same 0.29% expense ratio. On volatility, TAXF has been the lower-risk option at 0.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAXF or VALQ?

Over the 5-year period, VALQ has performed better with a 8.74% return vs 1.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAXF or VALQ?

TAXF and VALQ have the same expense ratio: 0.29% per year.

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

TAXF has the higher dividend yield at 3.77%, compared with 1.72% for VALQ.

What is the main difference between TAXF and VALQ?

TAXF is categorized as Municipal Bonds, while VALQ is Large Cap Value Equities.

Which has better risk-adjusted returns?

TAXF currently has the higher Sharpe Ratio (2.67 vs 1.49), 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.