TAXT vs. BSMZ

Last updated Jun 25, 2026

TAXT (Northern Trust Tax-Exempt Bond ETF) and BSMZ (Invesco BulletShares 2035 Municipal Bond ETF) are both Municipal Bonds funds - TAXT tracks the ICE Focused Municipal Bond Index while BSMZ tracks the Invesco BulletShares USD Municipal Bond 2035 Index. Both are passively managed. Their correlation of 0.80 suggests significant overlap in exposure. TAXT charges 0.05%/yr vs 0.18%/yr for BSMZ.

Performance

TAXT vs. BSMZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Northern Trust Tax-Exempt Bond ETF (TAXT) and Invesco BulletShares 2035 Municipal Bond ETF (BSMZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXT achieves a 1.66% return, which is significantly lower than BSMZ's 2.20% return.

TAXT

• 1D: 0.21%
• 1M: 1.21%
• YTD: 1.66%
• 6M: 1.67%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

BSMZ

• 1D: 0.21%
• 1M: 2.13%
• YTD: 2.20%
• 6M: 2.20%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TAXT vs. BSMZ - Yearly Performance Comparison

	2026 (YTD)	2025
TAXT Northern Trust Tax-Exempt Bond ETF	1.66%	1.55%
BSMZ Invesco BulletShares 2035 Municipal Bond ETF	2.20%	1.66%

Correlation

The correlation between TAXT and BSMZ is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Sep 17, 2025	0.80

Return for Risk

TAXT vs. BSMZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Northern Trust Tax-Exempt Bond ETF (TAXT) and Invesco BulletShares 2035 Municipal Bond ETF (BSMZ). 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

TAXT vs. BSMZ - Drawdown Comparison

The maximum TAXT drawdown since its inception was -2.49%, smaller than the maximum BSMZ drawdown of -3.26%. Use the drawdown chart below to compare losses from any high point for TAXT and BSMZ.

Drawdown Indicators

	TAXT	BSMZ	Difference
Max Drawdown Largest peak-to-trough decline	-2.49%	-3.26%	+0.77%
Current Drawdown Current decline from peak	-0.40%	0.00%	-0.40%
Average Drawdown Average peak-to-trough decline	-0.48%	-0.69%	+0.21%

Volatility

Volatility by Period

	TAXT	BSMZ	Difference
Volatility (1Y) Calculated over the trailing 1-year period	2.54%	3.77%	-1.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.54%	3.77%	-1.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.54%	3.77%	-1.23%

TAXT vs. BSMZ - Expense Ratio Comparison

TAXT has a 0.05% expense ratio, which is lower than BSMZ's 0.18% 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

TAXT vs. BSMZ - Dividend Comparison

TAXT's dividend yield for the trailing twelve months is around 2.54%, more than BSMZ's 2.35% yield.

Position	TTM	2025
BSMZ Invesco BulletShares 2035 Municipal Bond ETF	2.35%	0.68%
TAXT Northern Trust Tax-Exempt Bond ETF	2.54%	1.23%

Frequently Asked Questions

Can I hold both TAXT and BSMZ in my portfolio?

TAXT and BSMZ have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, TAXT or BSMZ?

On fees, TAXT 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, TAXT or BSMZ?

TAXT is cheaper with a 0.05% expense ratio, compared with 0.18% for BSMZ.

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

TAXT has the higher dividend yield at 2.54%, compared with 2.35% for BSMZ.

What is the main difference between TAXT and BSMZ?

TAXT tracks ICE Focused Municipal Bond Index, while BSMZ tracks Invesco BulletShares USD Municipal Bond 2035 Index. They also come from different issuers: Northern Trust and Invesco. Their fees differ too: 0.05% for TAXT and 0.18% for BSMZ.