TAXM vs. XHLF

Last updated Jun 4, 2026

TAXM (BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents) and XHLF (BondBloxx Bloomberg Six Month Target Duration US Treasury ETF) are both exchange-traded funds - TAXM is a Municipal Bonds fund actively managed by BondBloxx, while XHLF is a Government Bonds fund tracking the Bloomberg US Treasury 6 Month Duration Index. TAXM is actively managed, while XHLF is passively managed. Over the past year, TAXM returned 6.62% vs 3.92% for XHLF. At a correlation of -0.00, they often move in opposite directions. TAXM charges 0.35%/yr vs 0.03%/yr for XHLF.

Performance

TAXM vs. XHLF - 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 Bloomberg Six Month Target Duration US Treasury ETF (XHLF). 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 XHLF's 1.39% return.

TAXM

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

XHLF

• 1D: 0.00%
• 1M: 0.27%
• YTD: 1.39%
• 6M: 1.71%
• 1Y: 3.92%
• 3Y*: 4.62%
• 5Y*: —
• 10Y*: —

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

TAXM vs. XHLF - Yearly Performance Comparison

	2026 (YTD)	2025
TAXM BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents	1.18%	3.71%
XHLF BondBloxx Bloomberg Six Month Target Duration US Treasury ETF	1.39%	3.35%

Correlation

The correlation between TAXM and XHLF is -0.00, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.00
Correlation (All Time) Calculated using the full available price history since Mar 14, 2025	-0.00

Return for Risk

TAXM vs. XHLF — 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

XHLF

XHLF Risk / Return Rank: 100
XHLF Sharpe Ratio Rank: 100
XHLF Sortino Ratio Rank: 100
XHLF Omega Ratio Rank: 100
XHLF Calmar Ratio Rank: 100
XHLF Martin Ratio Rank: 100

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. XHLF - 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 Bloomberg Six Month Target Duration US Treasury ETF (XHLF). 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	XHLF	Difference
Sharpe ratio: Return per unit of total volatility	2.49	12.43	-9.94
Sortino ratio: Return per unit of downside risk	3.67	45.85	-42.17
Omega ratio: Gain probability vs. loss probability	1.53	11.75	-10.22
Calmar ratio: Return relative to maximum drawdown	2.46	98.81	-96.35
Martin ratio: Return relative to average drawdown	8.62	670.31	-661.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TAXM vs. XHLF - Sharpe Ratio Comparison

The current TAXM Sharpe Ratio is 2.49, which is lower than the XHLF Sharpe Ratio of 12.43. The chart below compares the historical Sharpe Ratios of TAXM and XHLF, 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	XHLF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.49	12.43	-9.94
Sharpe Ratio (All Time) Calculated using the full available price history	1.14	10.75	-9.61

Drawdowns

TAXM vs. XHLF - Drawdown Comparison

The maximum TAXM drawdown since its inception was -3.10%, which is greater than XHLF's maximum drawdown of -0.11%. Use the drawdown chart below to compare losses from any high point for TAXM and XHLF.

Drawdown Indicators

	TAXM	XHLF	Difference
Max Drawdown Largest peak-to-trough decline	-3.10%	-0.11%	-2.99%
Max Drawdown (1Y) Largest decline over 1 year	-2.70%	-0.04%	-2.66%
Max Drawdown (3Y) Largest decline over 3 years	—	-0.06%	—
Current Drawdown Current decline from peak	-0.80%	0.00%	-0.80%
Average Drawdown Average peak-to-trough decline	-0.71%	-0.00%	-0.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.77%	0.01%	+0.76%

Volatility

TAXM vs. XHLF - Volatility Comparison

BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) has a higher volatility of 0.94% compared to BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF) at 0.08%. This indicates that TAXM's price experiences larger fluctuations and is considered to be riskier than XHLF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAXM	XHLF	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.94%	0.08%	+0.86%
Volatility (6M) Calculated over the trailing 6-month period	2.04%	0.22%	+1.82%
Volatility (1Y) Calculated over the trailing 1-year period	2.67%	0.32%	+2.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.56%	0.42%	+3.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.56%	0.42%	+3.14%

TAXM vs. XHLF - Expense Ratio Comparison

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

Dividends

TAXM vs. XHLF - Dividend Comparison

TAXM's dividend yield for the trailing twelve months is around 3.29%, less than XHLF's 3.85% 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%
XHLF BondBloxx Bloomberg Six Month Target Duration US Treasury ETF	3.85%	3.98%	4.96%	4.50%	0.86%

Frequently Asked Questions

Can I hold both TAXM and XHLF in my portfolio?

TAXM and XHLF have a correlation of -0.00, 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 XHLF?

TAXM has higher volatility (0.94%) compared to XHLF (0.08%). In terms of maximum drawdown, TAXM dropped -3.10% vs XHLF's -0.11%.

Which ETF is better, TAXM or XHLF?

On 1-year performance, TAXM leads with 6.62% vs 3.92% for XHLF. On fees, XHLF is cheaper at 0.03% per year. On volatility, XHLF has been the lower-risk option at 0.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAXM or XHLF?

Over the 1-year period, TAXM has performed better with a 6.62% return vs 3.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAXM or XHLF?

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

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

XHLF has the higher dividend yield at 3.85%, compared with 3.29% for TAXM.

What is the main difference between TAXM and XHLF?

TAXM is categorized as Municipal Bonds, while XHLF is Government Bonds. Their fees differ too: 0.35% for TAXM and 0.03% for XHLF.

Which has better risk-adjusted returns?

XHLF currently has the higher Sharpe Ratio (12.43 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.