TAXI vs. HYD

Last updated Jul 5, 2026

TAXI (Northern Trust Intermediate Tax-Exempt Bond ETF) and HYD (VanEck Vectors High-Yield Municipal Index ETF) are both Municipal Bonds funds - TAXI tracks the ICE Intermediate Term Focused Municipal Bond Index while HYD tracks the Bloomberg Barclays Municipal Custom High Yield Composite Index. Both are passively managed. A 0.72 correlation means they provide meaningful diversification when combined. TAXI charges 0.05%/yr vs 0.35%/yr for HYD.

Performance

TAXI vs. HYD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI) and VanEck Vectors High-Yield Municipal Index ETF (HYD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXI achieves a 1.25% return, which is significantly lower than HYD's 3.15% return.

TAXI

• 1D: 0.05%
• 1M: 0.25%
• 6M: 1.12%
• YTD: 1.25%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

HYD

• 1D: 0.19%
• 1M: 0.86%
• 6M: 3.07%
• YTD: 3.15%
• 1Y: 7.43%
• 3Y*: 4.71%
• 5Y*: -0.06%
• 10Y*: 1.94%

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

TAXI vs. HYD - Yearly Performance Comparison

	2026 (YTD)	2025
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF	1.25%	3.35%
HYD VanEck Vectors High-Yield Municipal Index ETF	3.15%	5.64%

Correlation

The correlation between TAXI and HYD is 0.72, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025	0.72

Return for Risk

TAXI vs. HYD — Risk / Return Rank

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

TAXI

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

HYD

HYD Risk / Return Rank: 68
HYD Sharpe Ratio Rank: 71
HYD Sortino Ratio Rank: 75
HYD Omega Ratio Rank: 80
HYD Calmar Ratio Rank: 57
HYD Martin Ratio Rank: 56

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.

TAXI vs. HYD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI) and VanEck Vectors High-Yield Municipal Index ETF (HYD). 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.

	TAXI	HYD	Difference
Sharpe ratio: Return per unit of total volatility	—	1.87	—
Sortino ratio: Return per unit of downside risk	—	2.75	—
Omega ratio: Gain probability vs. loss probability	—	1.39	—
Calmar ratio: Return relative to maximum drawdown	—	2.35	—
Martin ratio: Return relative to average drawdown	—	8.07	—

Drawdowns

TAXI vs. HYD - Drawdown Comparison

The maximum TAXI drawdown since its inception was -2.23%, smaller than the maximum HYD drawdown of -35.61%. Use the drawdown chart below to compare losses from any high point for TAXI and HYD.

Drawdown Indicators

	TAXI	HYD	Difference
Max Drawdown Largest peak-to-trough decline	-2.23%	-35.61%	+33.38%
Max Drawdown (1Y) Largest decline over 1 year	—	-3.21%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-7.23%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-20.72%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.61%	—
Current Drawdown Current decline from peak	-0.49%	-1.05%	+0.56%
Average Drawdown Average peak-to-trough decline	-0.48%	-4.31%	+3.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.93%	—

Volatility

Volatility by Period

	TAXI	HYD	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.05%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.12%	—
Volatility (1Y) Calculated over the trailing 1-year period	1.86%	4.02%	-2.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.86%	6.47%	-4.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.86%	12.61%	-10.75%

TAXI vs. HYD - Expense Ratio Comparison

TAXI has a 0.05% expense ratio, which is lower than HYD's 0.35% expense ratio.

Dividends

TAXI vs. HYD - Dividend Comparison

TAXI's dividend yield for the trailing twelve months is around 2.22%, less than HYD's 4.28% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HYD VanEck Vectors High-Yield Municipal Index ETF	4.28%	4.29%	4.29%	4.13%	3.96%	3.50%	4.01%	4.08%	4.43%	4.29%	4.58%	4.82%
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF	2.22%	0.85%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TAXI and HYD in my portfolio?

TAXI and HYD have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, TAXI or HYD?

On fees, TAXI is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, TAXI or HYD?

TAXI is cheaper with a 0.05% expense ratio, compared with 0.35% for HYD.

Which ETF pays a higher dividend yield, TAXI or HYD?

HYD has the higher dividend yield at 4.28%, compared with 2.22% for TAXI.

What is the main difference between TAXI and HYD?

TAXI tracks ICE Intermediate Term Focused Municipal Bond Index, while HYD tracks Bloomberg Barclays Municipal Custom High Yield Composite Index. They also come from different issuers: Northern Trust and VanEck. Their fees differ too: 0.05% for TAXI and 0.35% for HYD.