TAXM vs. VTEB

Last updated Jun 4, 2026

TAXM (BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds. TAXM is actively managed, while VTEB is passively managed. Over the past year, TAXM returned 6.62% vs 7.14% for VTEB. Their correlation of 0.84 suggests significant overlap in exposure. TAXM charges 0.35%/yr vs 0.03%/yr for VTEB.

Performance

TAXM vs. VTEB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) and Vanguard Tax-Exempt Bond ETF (VTEB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXM achieves a 1.18% return, which is significantly lower than VTEB's 1.46% return.

TAXM

• 1D: -0.06%
• 1M: 0.51%
• YTD: 1.18%
• 6M: 1.54%
• 1Y: 6.62%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTEB

• 1D: -0.06%
• 1M: 0.66%
• YTD: 1.46%
• 6M: 1.89%
• 1Y: 7.14%
• 3Y*: 3.57%
• 5Y*: 0.88%
• 10Y*: 2.09%

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

TAXM vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025
TAXM BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents	1.18%	3.71%
VTEB Vanguard Tax-Exempt Bond ETF	1.46%	4.00%

Correlation

The correlation between TAXM and VTEB is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (All Time) Calculated using the full available price history since Mar 14, 2025	0.84

The correlation between TAXM and VTEB has been stable across timeframes, ranging from 0.81 to 0.84 - a consistent structural relationship.

Return for Risk

TAXM vs. VTEB — Risk / Return Rank

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

TAXM

TAXM Risk / Return Rank: 70
TAXM Sharpe Ratio Rank: 78
TAXM Sortino Ratio Rank: 83
TAXM Omega Ratio Rank: 86
TAXM Calmar Ratio Rank: 51
TAXM Martin Ratio Rank: 52

VTEB

VTEB Risk / Return Rank: 72
VTEB Sharpe Ratio Rank: 80
VTEB Sortino Ratio Rank: 85
VTEB Omega Ratio Rank: 89
VTEB Calmar Ratio Rank: 52
VTEB Martin Ratio Rank: 54

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.

TAXM vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) and Vanguard Tax-Exempt Bond ETF (VTEB). 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.

	TAXM	VTEB	Difference
Sharpe ratio: Return per unit of total volatility	2.49	2.64	-0.15
Sortino ratio: Return per unit of downside risk	3.67	3.92	-0.25
Omega ratio: Gain probability vs. loss probability	1.53	1.58	-0.05
Calmar ratio: Return relative to maximum drawdown	2.46	2.65	-0.19
Martin ratio: Return relative to average drawdown	8.62	9.41	-0.79
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TAXM vs. VTEB - Sharpe Ratio Comparison

The current TAXM Sharpe Ratio is 2.49, which is comparable to the VTEB Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of TAXM and VTEB, 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

	TAXM	VTEB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.49	2.64	-0.15
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.23	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.40	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.14	0.47	+0.66

Drawdowns

TAXM vs. VTEB - Drawdown Comparison

The maximum TAXM drawdown since its inception was -3.10%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for TAXM and VTEB.

Drawdown Indicators

	TAXM	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-3.10%	-17.00%	+13.90%
Max Drawdown (1Y) Largest decline over 1 year	-2.70%	-2.71%	+0.01%
Max Drawdown (3Y) Largest decline over 3 years	—	-5.53%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-12.64%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-17.00%	—
Current Drawdown Current decline from peak	-0.80%	-0.52%	-0.28%
Average Drawdown Average peak-to-trough decline	-0.71%	-2.33%	+1.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.77%	0.76%	+0.01%

Volatility

TAXM vs. VTEB - Volatility Comparison

BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) has a higher volatility of 0.94% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.89%. This indicates that TAXM's price experiences larger fluctuations and is considered to be riskier than VTEB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAXM	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.94%	0.89%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	2.04%	2.01%	+0.03%
Volatility (1Y) Calculated over the trailing 1-year period	2.67%	2.72%	-0.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.56%	3.90%	-0.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.56%	5.26%	-1.70%

TAXM vs. VTEB - Expense Ratio Comparison

TAXM has a 0.35% expense ratio, which is higher than VTEB's 0.03% expense ratio.

Dividends

TAXM vs. VTEB - Dividend Comparison

TAXM's dividend yield for the trailing twelve months is around 3.29%, less than VTEB's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TAXM BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents	3.29%	2.75%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTEB Vanguard Tax-Exempt Bond ETF	3.35%	3.29%	3.14%	2.79%	2.09%	1.64%	1.99%	2.30%	2.25%	1.96%	1.66%	0.58%

Frequently Asked Questions

Can I hold both TAXM and VTEB in my portfolio?

TAXM and VTEB have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TAXM or VTEB?

TAXM has higher volatility (0.94%) compared to VTEB (0.89%). In terms of maximum drawdown, TAXM dropped -3.10% vs VTEB's -17.00%.

Which ETF is better, TAXM or VTEB?

On 1-year performance, VTEB leads with 7.14% vs 6.62% for TAXM. On fees, VTEB is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAXM or VTEB?

Over the 1-year period, VTEB has performed better with a 7.14% return vs 6.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAXM or VTEB?

VTEB is cheaper with a 0.03% expense ratio, compared with 0.35% for TAXM.

Which ETF pays a higher dividend yield, TAXM or VTEB?

VTEB has the higher dividend yield at 3.35%, compared with 3.29% for TAXM.

What is the main difference between TAXM and VTEB?

They also come from different issuers: BondBloxx and Vanguard. Their fees differ too: 0.35% for TAXM and 0.03% for VTEB.

Which has better risk-adjusted returns?

VTEB currently has the higher Sharpe Ratio (2.64 vs 2.49), 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.