TAXM vs. XEMD

Last updated Jun 4, 2026

TAXM (BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents) and XEMD (BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF) are both exchange-traded funds - TAXM is a Municipal Bonds fund actively managed by BondBloxx, while XEMD is a Emerging Markets Bonds fund tracking the JP Morgan EMBI Global Diversified Liquid 1-10 Y Maturity Index - Benchmark TR Gross. TAXM is actively managed, while XEMD is passively managed. Over the past year, TAXM returned 6.62% vs 11.88% for XEMD. At a 0.50 correlation, their price movements are largely independent. TAXM charges 0.35%/yr vs 0.29%/yr for XEMD.

Performance

TAXM vs. XEMD - 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 BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF (XEMD). 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 XEMD's 2.75% return.

TAXM

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

XEMD

• 1D: -0.37%
• 1M: 1.21%
• YTD: 2.75%
• 6M: 3.27%
• 1Y: 11.88%
• 3Y*: 11.23%
• 5Y*: —
• 10Y*: —

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

TAXM vs. XEMD - Yearly Performance Comparison

	2026 (YTD)	2025
TAXM BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents	1.18%	3.71%
XEMD BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF	2.75%	11.21%

Correlation

The correlation between TAXM and XEMD is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (All Time) Calculated using the full available price history since Mar 14, 2025	0.50

Return for Risk

TAXM vs. XEMD — 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

XEMD

XEMD Risk / Return Rank: 79
XEMD Sharpe Ratio Rank: 79
XEMD Sortino Ratio Rank: 86
XEMD Omega Ratio Rank: 83
XEMD Calmar Ratio Rank: 68
XEMD Martin Ratio Rank: 78

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. XEMD - 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 BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF (XEMD). 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	XEMD	Difference
Sharpe ratio: Return per unit of total volatility	2.49	2.57	-0.07
Sortino ratio: Return per unit of downside risk	3.67	3.88	-0.21
Omega ratio: Gain probability vs. loss probability	1.53	1.51	+0.02
Calmar ratio: Return relative to maximum drawdown	2.46	3.39	-0.93
Martin ratio: Return relative to average drawdown	8.62	15.27	-6.65
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. XEMD - Sharpe Ratio Comparison

The current TAXM Sharpe Ratio is 2.49, which is comparable to the XEMD Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of TAXM and XEMD, 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	XEMD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.49	2.57	-0.07
Sharpe Ratio (All Time) Calculated using the full available price history	1.14	1.39	-0.26

Drawdowns

TAXM vs. XEMD - Drawdown Comparison

The maximum TAXM drawdown since its inception was -3.10%, smaller than the maximum XEMD drawdown of -10.01%. Use the drawdown chart below to compare losses from any high point for TAXM and XEMD.

Drawdown Indicators

	TAXM	XEMD	Difference
Max Drawdown Largest peak-to-trough decline	-3.10%	-10.01%	+6.91%
Max Drawdown (1Y) Largest decline over 1 year	-2.70%	-3.52%	+0.82%
Max Drawdown (3Y) Largest decline over 3 years	—	-4.31%	—
Current Drawdown Current decline from peak	-0.80%	-0.37%	-0.43%
Average Drawdown Average peak-to-trough decline	-0.71%	-1.26%	+0.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.77%	0.78%	-0.01%

Volatility

TAXM vs. XEMD - Volatility Comparison

The current volatility for BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) is 0.94%, while BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF (XEMD) has a volatility of 1.43%. This indicates that TAXM experiences smaller price fluctuations and is considered to be less risky than XEMD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAXM	XEMD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.94%	1.43%	-0.49%
Volatility (6M) Calculated over the trailing 6-month period	2.04%	3.70%	-1.66%
Volatility (1Y) Calculated over the trailing 1-year period	2.67%	4.66%	-1.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.56%	6.88%	-3.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.56%	6.88%	-3.32%

TAXM vs. XEMD - Expense Ratio Comparison

TAXM has a 0.35% expense ratio, which is higher than XEMD's 0.29% expense ratio.

Dividends

TAXM vs. XEMD - Dividend Comparison

TAXM's dividend yield for the trailing twelve months is around 3.29%, less than XEMD's 5.82% yield.

Position	TTM	2025	2024	2023	2022
TAXM BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents	3.29%	2.75%	0.00%	0.00%	0.00%
XEMD BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF	5.82%	6.15%	6.30%	6.19%	3.08%

Frequently Asked Questions

Can I hold both TAXM and XEMD in my portfolio?

TAXM and XEMD have a correlation of 0.50, 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 XEMD?

XEMD has higher volatility (1.43%) compared to TAXM (0.94%). In terms of maximum drawdown, TAXM dropped -3.10% vs XEMD's -10.01%.

Which ETF is better, TAXM or XEMD?

On 1-year performance, XEMD leads with 11.88% vs 6.62% for TAXM. On fees, XEMD is cheaper at 0.29% per year. On volatility, TAXM has been the lower-risk option at 0.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAXM or XEMD?

Over the 1-year period, XEMD has performed better with a 11.88% 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 XEMD?

XEMD is cheaper with a 0.29% expense ratio, compared with 0.35% for TAXM.

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

XEMD has the higher dividend yield at 5.82%, compared with 3.29% for TAXM.

What is the main difference between TAXM and XEMD?

TAXM is categorized as Municipal Bonds, while XEMD is Emerging Markets Bonds. Their fees differ too: 0.35% for TAXM and 0.29% for XEMD.

Which has better risk-adjusted returns?

XEMD currently has the higher Sharpe Ratio (2.57 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.