TAXT vs. CGSM

Last updated Jun 24, 2026

TAXT (Northern Trust Tax-Exempt Bond ETF) and CGSM (Capital Group Short Duration Municipal Income ETF) are both Municipal Bonds funds. TAXT is passively managed, while CGSM is actively managed. A 0.52 correlation means they provide meaningful diversification when combined. TAXT charges 0.05%/yr vs 0.25%/yr for CGSM.

Performance

TAXT vs. CGSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Northern Trust Tax-Exempt Bond ETF (TAXT) and Capital Group Short Duration Municipal Income ETF (CGSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with TAXT having a 1.45% return and CGSM slightly lower at 1.42%.

TAXT

• 1D: -0.13%
• 1M: 0.99%
• YTD: 1.45%
• 6M: 1.56%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

CGSM

• 1D: 0.05%
• 1M: 0.70%
• YTD: 1.42%
• 6M: 1.52%
• 1Y: 4.24%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TAXT vs. CGSM - Yearly Performance Comparison

	2026 (YTD)	2025
TAXT Northern Trust Tax-Exempt Bond ETF	1.45%	3.91%
CGSM Capital Group Short Duration Municipal Income ETF	1.42%	1.59%

Correlation

The correlation between TAXT and CGSM is 0.52, 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	0.52

Return for Risk

TAXT vs. CGSM — Risk / Return Rank

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

TAXT

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

CGSM

CGSM Risk / Return Rank: 86
CGSM Sharpe Ratio Rank: 93
CGSM Sortino Ratio Rank: 95
CGSM Omega Ratio Rank: 95
CGSM Calmar Ratio Rank: 76
CGSM Martin Ratio Rank: 68

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.

TAXT vs. CGSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Northern Trust Tax-Exempt Bond ETF (TAXT) and Capital Group Short Duration Municipal Income ETF (CGSM). 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.

	TAXT	CGSM	Difference
Sharpe ratio: Return per unit of total volatility	—	3.20	—
Sortino ratio: Return per unit of downside risk	—	4.87	—
Omega ratio: Gain probability vs. loss probability	—	1.72	—
Calmar ratio: Return relative to maximum drawdown	—	3.62	—
Martin ratio: Return relative to average drawdown	—	11.72	—

Drawdowns

TAXT vs. CGSM - Drawdown Comparison

The maximum TAXT drawdown since its inception was -2.49%, which is greater than CGSM's maximum drawdown of -1.42%. Use the drawdown chart below to compare losses from any high point for TAXT and CGSM.

Drawdown Indicators

	TAXT	CGSM	Difference
Max Drawdown Largest peak-to-trough decline	-2.49%	-1.42%	-1.07%
Max Drawdown (1Y) Largest decline over 1 year	—	-1.18%	—
Current Drawdown Current decline from peak	-0.62%	-0.10%	-0.52%
Average Drawdown Average peak-to-trough decline	-0.48%	-0.24%	-0.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.36%	—

Volatility

Volatility by Period

	TAXT	CGSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.32%	—
Volatility (6M) Calculated over the trailing 6-month period	—	0.98%	—
Volatility (1Y) Calculated over the trailing 1-year period	2.53%	1.33%	+1.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.53%	1.78%	+0.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.53%	1.78%	+0.75%

TAXT vs. CGSM - Expense Ratio Comparison

TAXT has a 0.05% expense ratio, which is lower than CGSM'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

TAXT vs. CGSM - Dividend Comparison

TAXT's dividend yield for the trailing twelve months is around 2.55%, less than CGSM's 2.99% yield.

Position	TTM	2025	2024	2023
CGSM Capital Group Short Duration Municipal Income ETF	2.99%	3.05%	3.11%	0.84%
TAXT Northern Trust Tax-Exempt Bond ETF	2.55%	1.23%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TAXT and CGSM in my portfolio?

TAXT and CGSM have a correlation of 0.52, 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 CGSM?

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 CGSM?

TAXT is cheaper with a 0.05% expense ratio, compared with 0.25% for CGSM.

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

CGSM has the higher dividend yield at 2.99%, compared with 2.55% for TAXT.

What is the main difference between TAXT and CGSM?

They also come from different issuers: Northern Trust and Capital Group. Their fees differ too: 0.05% for TAXT and 0.25% for CGSM.