TAXS vs. ZTAX

Last updated Jul 5, 2026

TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) and ZTAX (X-Square Municipal Income Tax Free ETF) are both Municipal Bonds funds. TAXS is passively managed, while ZTAX is actively managed. At a correlation of -0.09, they often move in opposite directions. TAXS charges 0.05%/yr vs 1.14%/yr for ZTAX.

Performance

TAXS vs. ZTAX - 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 X-Square Municipal Income Tax Free ETF (ZTAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXS achieves a 1.20% return, which is significantly lower than ZTAX's 4.53% return.

TAXS

• 1D: 0.07%
• 1M: 0.20%
• 6M: 1.12%
• YTD: 1.20%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

ZTAX

• 1D: 0.19%
• 1M: 4.32%
• 6M: 2.14%
• YTD: 4.53%
• 1Y: 8.18%
• 3Y*: 5.48%
• 5Y*: —
• 10Y*: —

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

TAXS vs. ZTAX - Yearly Performance Comparison

	2026 (YTD)	2025
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.20%	1.22%
ZTAX X-Square Municipal Income Tax Free ETF	4.53%	3.60%

Correlation

The correlation between TAXS and ZTAX is -0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025	-0.09

Return for Risk

TAXS vs. ZTAX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments 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.

ZTAX

ZTAX Risk / Return Rank: 16
ZTAX Sharpe Ratio Rank: 13
ZTAX Sortino Ratio Rank: 13
ZTAX Omega Ratio Rank: 17
ZTAX Calmar Ratio Rank: 19
ZTAX Martin Ratio Rank: 18

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. ZTAX - 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 X-Square Municipal Income Tax Free ETF (ZTAX). 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	ZTAX	Difference
Sharpe ratio: Return per unit of total volatility	—	0.25	—
Sortino ratio: Return per unit of downside risk	—	0.60	—
Omega ratio: Gain probability vs. loss probability	—	1.10	—
Calmar ratio: Return relative to maximum drawdown	—	0.74	—
Martin ratio: Return relative to average drawdown	—	1.70	—

Drawdowns

TAXS vs. ZTAX - Drawdown Comparison

The maximum TAXS drawdown since its inception was -0.84%, smaller than the maximum ZTAX drawdown of -15.33%. Use the drawdown chart below to compare losses from any high point for TAXS and ZTAX.

Drawdown Indicators

	TAXS	ZTAX	Difference
Max Drawdown Largest peak-to-trough decline	-0.84%	-15.33%	+14.49%
Max Drawdown (1Y) Largest decline over 1 year	—	-10.99%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-15.33%	—
Current Drawdown Current decline from peak	0.00%	-8.22%	+8.22%
Average Drawdown Average peak-to-trough decline	-0.22%	-6.84%	+6.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	4.77%	—

Volatility

Volatility by Period

	TAXS	ZTAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	19.80%	—
Volatility (6M) Calculated over the trailing 6-month period	—	26.69%	—
Volatility (1Y) Calculated over the trailing 1-year period	0.98%	32.42%	-31.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.98%	28.83%	-27.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.98%	28.83%	-27.85%

TAXS vs. ZTAX - Expense Ratio Comparison

TAXS has a 0.05% expense ratio, which is lower than ZTAX's 1.14% expense ratio.

Dividends

TAXS vs. ZTAX - Dividend Comparison

TAXS's dividend yield for the trailing twelve months is around 2.03%, less than ZTAX's 4.58% yield.

Position	TTM	2025	2024	2023
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	2.03%	0.74%	0.00%	0.00%
ZTAX X-Square Municipal Income Tax Free ETF	4.58%	4.58%	4.55%	2.14%

Frequently Asked Questions

Can I hold both TAXS and ZTAX in my portfolio?

TAXS and ZTAX have a correlation of -0.09, 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 ZTAX?

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 ZTAX?

TAXS is cheaper with a 0.05% expense ratio, compared with 1.14% for ZTAX.

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

ZTAX has the higher dividend yield at 4.58%, compared with 2.03% for TAXS.

What is the main difference between TAXS and ZTAX?

They also come from different issuers: Northern Trust and X-Square. Their fees differ too: 0.05% for TAXS and 1.14% for ZTAX.