TAXS vs. CATF

Last updated Jun 5, 2026

TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) and CATF (American Century California Municipal Bond ETF) are both Municipal Bonds funds. TAXS is passively managed, while CATF is actively managed. A 0.59 correlation means they provide meaningful diversification when combined. TAXS charges 0.05%/yr vs 0.27%/yr for CATF.

Performance

TAXS vs. CATF - 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 American Century California Municipal Bond ETF (CATF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXS achieves a 0.99% return, which is significantly lower than CATF's 2.03% return.

TAXS

• 1D: 0.06%
• 1M: 0.59%
• YTD: 0.99%
• 6M: 1.39%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

CATF

• 1D: 0.11%
• 1M: 0.73%
• YTD: 2.03%
• 6M: 2.16%
• 1Y: 7.81%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TAXS vs. CATF - Yearly Performance Comparison

	2026 (YTD)	2025
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	0.99%	1.22%
CATF American Century California Municipal Bond ETF	2.03%	4.49%

Correlation

The correlation between TAXS and CATF is 0.59, 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 20, 2025	0.59

Return for Risk

TAXS vs. CATF — Risk / Return Rank

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

CATF

CATF Risk / Return Rank: 73
CATF Sharpe Ratio Rank: 79
CATF Sortino Ratio Rank: 86
CATF Omega Ratio Rank: 87
CATF Calmar Ratio Rank: 58
CATF Martin Ratio Rank: 57

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.

TAXS vs. CATF - 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 American Century California Municipal Bond ETF (CATF). 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.

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

Sharpe Ratios by Period

	TAXS	CATF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.50	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.85	0.80	+2.04

Drawdowns

TAXS vs. CATF - Drawdown Comparison

The maximum TAXS drawdown since its inception was -0.84%, smaller than the maximum CATF drawdown of -4.83%. Use the drawdown chart below to compare losses from any high point for TAXS and CATF.

Drawdown Indicators

	TAXS	CATF	Difference
Max Drawdown Largest peak-to-trough decline	-0.84%	-4.83%	+3.99%
Max Drawdown (1Y) Largest decline over 1 year	—	-2.77%	—
Current Drawdown Current decline from peak	-0.03%	-0.47%	+0.44%
Average Drawdown Average peak-to-trough decline	-0.24%	-1.27%	+1.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.79%	—

Volatility

Volatility by Period

	TAXS	CATF	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.06%	—
Volatility (6M) Calculated over the trailing 6-month period	—	2.18%	—
Volatility (1Y) Calculated over the trailing 1-year period	1.00%	3.14%	-2.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.00%	4.32%	-3.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.00%	4.32%	-3.32%

TAXS vs. CATF - Expense Ratio Comparison

TAXS has a 0.05% expense ratio, which is lower than CATF's 0.27% 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. CATF - Dividend Comparison

TAXS's dividend yield for the trailing twelve months is around 1.82%, less than CATF's 3.50% yield.

Position	TTM	2025	2024
CATF American Century California Municipal Bond ETF	3.50%	3.40%	1.32%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.82%	0.74%	0.00%

Frequently Asked Questions

Can I hold both TAXS and CATF in my portfolio?

TAXS and CATF have a correlation of 0.59, 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 CATF?

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 CATF?

TAXS is cheaper with a 0.05% expense ratio, compared with 0.27% for CATF.

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

CATF has the higher dividend yield at 3.50%, compared with 1.82% for TAXS.

What is the main difference between TAXS and CATF?

They also come from different issuers: Northern Trust and American Century. Their fees differ too: 0.05% for TAXS and 0.27% for CATF.