TAXS vs. TAXI

Last updated Jun 4, 2026

TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) and TAXI (Northern Trust Intermediate Tax-Exempt Bond ETF) are both Municipal Bonds funds from Northern Trust - TAXS tracks the ICE Short Term Focused Municipal Bond Index while TAXI tracks the ICE Intermediate Term Focused Municipal Bond Index. Both are passively managed. A 0.73 correlation means they provide meaningful diversification when combined. Both charge a 0.05% expense ratio.

Performance

TAXS vs. TAXI - 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 Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI). 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 0.93% return and TAXI slightly higher at 0.94%.

TAXS

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

TAXI

• 1D: -0.03%
• 1M: 0.46%
• YTD: 0.94%
• 6M: 1.55%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TAXS vs. TAXI - Yearly Performance Comparison

	2026 (YTD)	2025
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	0.93%	1.22%
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF	0.94%	3.35%

Correlation

The correlation between TAXS and TAXI is 0.73, 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	0.73

Return for Risk

TAXS vs. TAXI - 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 Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI). 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	TAXI	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	2.78	2.92	-0.14

Drawdowns

TAXS vs. TAXI - Drawdown Comparison

The maximum TAXS drawdown since its inception was -0.84%, smaller than the maximum TAXI drawdown of -2.23%. Use the drawdown chart below to compare losses from any high point for TAXS and TAXI.

Drawdown Indicators

	TAXS	TAXI	Difference
Max Drawdown Largest peak-to-trough decline	-0.84%	-2.23%	+1.39%
Current Drawdown Current decline from peak	-0.09%	-0.79%	+0.70%
Average Drawdown Average peak-to-trough decline	-0.24%	-0.46%	+0.22%

Volatility

Volatility by Period

	TAXS	TAXI	Difference
Volatility (1Y) Calculated over the trailing 1-year period	1.00%	1.90%	-0.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.00%	1.90%	-0.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.00%	1.90%	-0.90%

TAXS vs. TAXI - Expense Ratio Comparison

Both TAXS and TAXI have an expense ratio of 0.05%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

TAXS vs. TAXI - Dividend Comparison

TAXS's dividend yield for the trailing twelve months is around 1.83%, less than TAXI's 2.00% yield.

Position	TTM	2025
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF	2.00%	0.85%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.83%	0.74%

Frequently Asked Questions

Can I hold both TAXS and TAXI in my portfolio?

TAXS and TAXI have a correlation of 0.73, 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 TAXI?

Both ETFs have the same 0.05% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, TAXS or TAXI?

TAXS and TAXI have the same expense ratio: 0.05% per year.

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

TAXI has the higher dividend yield at 2.00%, compared with 1.83% for TAXS.

What is the main difference between TAXS and TAXI?

TAXS tracks ICE Short Term Focused Municipal Bond Index, while TAXI tracks ICE Intermediate Term Focused Municipal Bond Index.