TAXS vs. QLC

Last updated Jun 4, 2026

TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) and QLC (FlexShares US Quality Large Cap Index Fund) are both exchange-traded funds - TAXS is a Municipal Bonds fund tracking the ICE Short Term Focused Municipal Bond Index, while QLC is a Large Cap Blend Equities fund tracking the Northern Trust Quality Large Cap Index. Both are passively managed. At a 0.23 correlation, their price movements are largely independent. TAXS charges 0.05%/yr vs 0.25%/yr for QLC.

Performance

TAXS vs. QLC - 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 FlexShares US Quality Large Cap Index Fund (QLC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXS achieves a 0.93% return, which is significantly lower than QLC's 11.39% return.

TAXS

• 1D: 0.06%
• 1M: 0.38%
• YTD: 0.93%
• 6M: 1.33%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

QLC

• 1D: -0.74%
• 1M: 5.38%
• YTD: 11.39%
• 6M: 11.88%
• 1Y: 33.09%
• 3Y*: 25.39%
• 5Y*: 15.29%
• 10Y*: 14.83%

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

TAXS vs. QLC - Yearly Performance Comparison

	2026 (YTD)	2025
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	0.93%	1.22%
QLC FlexShares US Quality Large Cap Index Fund	11.39%	10.50%

Correlation

The correlation between TAXS and QLC is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 20, 2025	0.23

Return for Risk

TAXS vs. QLC — Risk / Return Rank

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

QLC

QLC Risk / Return Rank: 81
QLC Sharpe Ratio Rank: 82
QLC Sortino Ratio Rank: 82
QLC Omega Ratio Rank: 80
QLC Calmar Ratio Rank: 75
QLC Martin Ratio Rank: 85

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. QLC - 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 FlexShares US Quality Large Cap Index Fund (QLC). 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	QLC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.69	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.91	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.81	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.78	0.80	+1.98

Drawdowns

TAXS vs. QLC - Drawdown Comparison

The maximum TAXS drawdown since its inception was -0.84%, smaller than the maximum QLC drawdown of -35.86%. Use the drawdown chart below to compare losses from any high point for TAXS and QLC.

Drawdown Indicators

	TAXS	QLC	Difference
Max Drawdown Largest peak-to-trough decline	-0.84%	-35.86%	+35.02%
Max Drawdown (1Y) Largest decline over 1 year	—	-8.84%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-18.49%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-23.81%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.86%	—
Current Drawdown Current decline from peak	-0.09%	-0.74%	+0.65%
Average Drawdown Average peak-to-trough decline	-0.24%	-4.54%	+4.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.89%	—

Volatility

Volatility by Period

	TAXS	QLC	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	2.94%	—
Volatility (6M) Calculated over the trailing 6-month period	—	9.51%	—
Volatility (1Y) Calculated over the trailing 1-year period	1.00%	12.38%	-11.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.00%	16.82%	-15.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.00%	18.42%	-17.42%

TAXS vs. QLC - Expense Ratio Comparison

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

TAXS's dividend yield for the trailing twelve months is around 1.83%, more than QLC's 0.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QLC FlexShares US Quality Large Cap Index Fund	0.88%	0.94%	1.03%	1.26%	1.46%	0.96%	1.40%	1.91%	1.82%	1.29%	1.80%	0.64%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.83%	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 QLC in my portfolio?

TAXS and QLC have a correlation of 0.23, 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 QLC?

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 QLC?

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

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

TAXS has the higher dividend yield at 1.83%, compared with 0.88% for QLC.

What is the main difference between TAXS and QLC?

TAXS is categorized as Municipal Bonds, while QLC is Large Cap Blend Equities. TAXS tracks ICE Short Term Focused Municipal Bond Index, while QLC tracks Northern Trust Quality Large Cap Index. Their fees differ too: 0.05% for TAXS and 0.25% for QLC.