TAXS vs. TAXT

Last updated Jul 14, 2026

TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) and TAXT (Northern Trust Tax-Exempt Bond ETF) are both Municipal Bonds funds from Northern Trust - TAXS tracks the ICE Short Term Focused Municipal Bond Index while TAXT tracks the ICE 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. TAXT - 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 Tax-Exempt Bond ETF (TAXT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXS achieves a 1.13% return, which is significantly lower than TAXT's 1.50% return.

TAXS

• 1D: -0.04%
• 1M: 0.12%
• 6M: 0.84%
• YTD: 1.13%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAXT

• 1D: -0.15%
• 1M: 0.17%
• 6M: 0.90%
• YTD: 1.50%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TAXS vs. TAXT - Yearly Performance Comparison

	2026 (YTD)	2025
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.13%	1.22%
TAXT Northern Trust Tax-Exempt Bond ETF	1.50%	3.91%

Correlation

The correlation between TAXS and TAXT 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 19, 2025	0.73

Return for Risk

TAXS vs. TAXT - 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 Tax-Exempt Bond ETF (TAXT). 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. TAXT - Drawdown Comparison

The maximum TAXS drawdown since its inception was -0.84%, smaller than the maximum TAXT drawdown of -2.49%. Use the drawdown chart below to compare losses from any high point for TAXS and TAXT.

Drawdown Indicators

	TAXS	TAXT	Difference
Max Drawdown Largest peak-to-trough decline	-0.84%	-2.49%	+1.65%
Current Drawdown Current decline from peak	-0.10%	-0.57%	+0.47%
Average Drawdown Average peak-to-trough decline	-0.21%	-0.47%	+0.26%

Volatility

Volatility by Period

	TAXS	TAXT	Difference
Volatility (1Y) Calculated over the trailing 1-year period	0.98%	2.50%	-1.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.98%	2.50%	-1.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.98%	2.50%	-1.52%

TAXS vs. TAXT - Expense Ratio Comparison

Both TAXS and TAXT 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. TAXT - Dividend Comparison

TAXS's dividend yield for the trailing twelve months is around 2.03%, less than TAXT's 2.83% yield.

Position	TTM	2025
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	2.03%	0.74%
TAXT Northern Trust Tax-Exempt Bond ETF	2.83%	1.23%

Frequently Asked Questions

Can I hold both TAXS and TAXT in my portfolio?

TAXS and TAXT 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 TAXT?

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 TAXT?

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

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

TAXT has the higher dividend yield at 2.83%, compared with 2.03% for TAXS.

What is the main difference between TAXS and TAXT?

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