TAXS vs. BSMZ

Last updated Jun 24, 2026

TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) and BSMZ (Invesco BulletShares 2035 Municipal Bond ETF) are both Municipal Bonds funds - TAXS tracks the ICE Short Term Focused Municipal Bond Index while BSMZ tracks the Invesco BulletShares USD Municipal Bond 2035 Index. Both are passively managed. A 0.63 correlation means they provide meaningful diversification when combined. TAXS charges 0.05%/yr vs 0.18%/yr for BSMZ.

Performance

TAXS vs. BSMZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS) and Invesco BulletShares 2035 Municipal Bond ETF (BSMZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXS achieves a 1.03% return, which is significantly lower than BSMZ's 1.99% return.

TAXS

• 1D: -0.02%
• 1M: 0.62%
• YTD: 1.03%
• 6M: 1.18%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

BSMZ

• 1D: -0.14%
• 1M: 1.92%
• YTD: 1.99%
• 6M: 2.05%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TAXS vs. BSMZ - Yearly Performance Comparison

	2026 (YTD)	2025
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.03%	0.52%
BSMZ Invesco BulletShares 2035 Municipal Bond ETF	1.99%	1.66%

Correlation

The correlation between TAXS and BSMZ is 0.63, 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 Sep 17, 2025	0.63

Return for Risk

TAXS vs. BSMZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS) and Invesco BulletShares 2035 Municipal Bond ETF (BSMZ). 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.

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

Drawdowns

TAXS vs. BSMZ - Drawdown Comparison

The maximum TAXS drawdown since its inception was -0.84%, smaller than the maximum BSMZ drawdown of -3.26%. Use the drawdown chart below to compare losses from any high point for TAXS and BSMZ.

Drawdown Indicators

	TAXS	BSMZ	Difference
Max Drawdown Largest peak-to-trough decline	-0.84%	-3.26%	+2.42%
Current Drawdown Current decline from peak	-0.04%	-0.19%	+0.15%
Average Drawdown Average peak-to-trough decline	-0.22%	-0.69%	+0.47%

Volatility

Volatility by Period

	TAXS	BSMZ	Difference
Volatility (1Y) Calculated over the trailing 1-year period	0.99%	3.77%	-2.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.99%	3.77%	-2.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.99%	3.77%	-2.78%

TAXS vs. BSMZ - Expense Ratio Comparison

TAXS has a 0.05% expense ratio, which is lower than BSMZ's 0.18% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

TAXS vs. BSMZ - Dividend Comparison

TAXS's dividend yield for the trailing twelve months is around 1.82%, less than BSMZ's 2.35% yield.

Position	TTM	2025
BSMZ Invesco BulletShares 2035 Municipal Bond ETF	2.35%	0.68%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.82%	0.74%

Frequently Asked Questions

Can I hold both TAXS and BSMZ in my portfolio?

TAXS and BSMZ have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, TAXS or BSMZ?

On fees, TAXS 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, TAXS or BSMZ?

TAXS is cheaper with a 0.05% expense ratio, compared with 0.18% for BSMZ.

Which ETF pays a higher dividend yield, TAXS or BSMZ?

BSMZ has the higher dividend yield at 2.35%, compared with 1.82% for TAXS.

What is the main difference between TAXS and BSMZ?

TAXS tracks ICE Short Term Focused Municipal Bond Index, while BSMZ tracks Invesco BulletShares USD Municipal Bond 2035 Index. They also come from different issuers: Northern Trust and Invesco. Their fees differ too: 0.05% for TAXS and 0.18% for BSMZ.