TAXS vs. PVI

Last updated Aug 2, 2026

TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) and PVI (Invesco VRDO Tax-Free ETF) are both Municipal Bonds funds - TAXS tracks the ICE Short Term Focused Municipal Bond Index while PVI tracks the ICE US Municipal AMT-Free VRDO Constrained Index. Both are passively managed. Their -0.01 correlation means they have often moved in opposite directions in the past. TAXS charges 0.05%/yr vs 0.25%/yr for PVI.

Performance

TAXS vs. PVI - 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 VRDO Tax-Free ETF (PVI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with TAXS having a 0.84% return and PVI slightly higher at 0.87%.

TAXS

• 1D: 0.00%
• 1M: -0.36%
• 6M: 0.30%
• YTD: 0.84%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

PVI

• 1D: -0.06%
• 1M: -0.06%
• 6M: 1.10%
• YTD: 0.87%
• 1Y: 2.11%
• 3Y*: 2.50%
• 5Y*: 1.99%
• 10Y*: 1.32%
• ALL TIME*: 1.00%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
PVI Invesco VRDO Tax-Free ETF	$79.04K	$194.74K	$227.72K
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	$619.80K	$883.25K	$948.95K

TAXS vs. PVI - Yearly Performance Comparison

	2026 (YTD)	2025
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	0.84%	1.22%
PVI Invesco VRDO Tax-Free ETF	0.87%	1.18%

Correlation

The correlation between TAXS and PVI is -0.01, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025	-0.01

Return for Risk

TAXS vs. PVI — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

TAXS

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

PVI

PVI Risk / Return Rank: 45
PVI Sharpe Ratio Rank: 34
PVI Sortino Ratio Rank: 33
PVI Omega Ratio Rank: 34
PVI Calmar Ratio Rank: 65
PVI Martin Ratio Rank: 61

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

TAXS vs. PVI - 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 VRDO Tax-Free ETF (PVI). 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.

	TAXS	PVI	Difference
Sharpe ratio: Return per unit of total volatility	—	0.82	—
Sortino ratio: Return per unit of downside risk	—	1.24	—
Omega ratio: Gain probability vs. loss probability	—	1.16	—
Calmar ratio: Return relative to maximum drawdown	—	2.26	—
Martin ratio: Return relative to average drawdown	—	7.22	—

Drawdowns

TAXS vs. PVI - Drawdown Comparison

The maximum TAXS drawdown since its inception was -0.84%, smaller than the maximum PVI drawdown of -4.10%. Use the drawdown chart below to compare losses from any high point for TAXS and PVI.

Drawdown Indicators

	TAXS	PVI	Difference
Max Drawdown Largest peak-to-trough decline	-0.84%	-4.10%	+3.26%
Max Drawdown (1Y) Largest decline over 1 year	—	-0.99%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-1.17%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-1.17%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-1.17%	—
Current Drawdown Current decline from peak	-0.39%	-0.10%	-0.29%
Average Drawdown Average peak-to-trough decline	-0.22%	-0.28%	+0.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.31%	—

Volatility

Volatility by Period

	TAXS	PVI	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.75%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.70%	—
Volatility (1Y) Calculated over the trailing 1-year period	1.03%	2.70%	-1.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.03%	2.02%	-0.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.03%	1.78%	-0.75%

TAXS vs. PVI - Expense Ratio Comparison

TAXS has a 0.05% expense ratio, which is lower than PVI's 0.25% 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. PVI - Dividend Comparison

TAXS's dividend yield for the trailing twelve months is around 2.04%, less than PVI's 2.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PVI Invesco VRDO Tax-Free ETF	2.17%	2.22%	2.72%	3.36%	0.56%	0.00%	0.36%	1.15%	1.14%	0.56%	0.13%	0.00%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	2.04%	0.74%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TAXS and PVI in my portfolio?

TAXS and PVI have a correlation of -0.01, 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 PVI?

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 PVI?

TAXS is cheaper with a 0.05% expense ratio, compared with 0.25% for PVI.

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

PVI has the higher dividend yield at 2.17%, compared with 2.04% for TAXS.

What is the main difference between TAXS and PVI?

TAXS tracks ICE Short Term Focused Municipal Bond Index, while PVI tracks ICE US Municipal AMT-Free VRDO Constrained Index. They also come from different issuers: Northern Trust and Invesco. Their fees differ too: 0.05% for TAXS and 0.25% for PVI.