TAXT vs. PVI

Last updated Jun 4, 2026

TAXT (Northern Trust Tax-Exempt Bond ETF) and PVI (Invesco VRDO Tax-Free ETF) are both Municipal Bonds funds - TAXT tracks the ICE Focused Municipal Bond Index while PVI tracks the ICE US Municipal AMT-Free VRDO Constrained Index. Both are passively managed. At a correlation of -0.01, they often move in opposite directions. TAXT charges 0.05%/yr vs 0.25%/yr for PVI.

Performance

TAXT vs. PVI - Performance Comparison

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

Returns By Period

In the year-to-date period, TAXT achieves a 1.49% return, which is significantly higher than PVI's 0.74% return.

TAXT

• 1D: -0.06%
• 1M: 0.67%
• YTD: 1.49%
• 6M: 2.00%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

PVI

• 1D: 0.06%
• 1M: 0.68%
• YTD: 0.74%
• 6M: 1.28%
• 1Y: 2.32%
• 3Y*: 2.64%
• 5Y*: 1.96%
• 10Y*: 1.31%

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

TAXT vs. PVI - Yearly Performance Comparison

	2026 (YTD)	2025
TAXT Northern Trust Tax-Exempt Bond ETF	1.49%	3.96%
PVI Invesco VRDO Tax-Free ETF	0.74%	1.24%

Correlation

The correlation between TAXT and PVI is -0.01, 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 20, 2025	-0.01

Return for Risk

TAXT vs. PVI — Risk / Return Rank

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

PVI

PVI Risk / Return Rank: 34
PVI Sharpe Ratio Rank: 24
PVI Sortino Ratio Rank: 24
PVI Omega Ratio Rank: 26
PVI Calmar Ratio Rank: 48
PVI Martin Ratio Rank: 46

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. PVI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Northern Trust Tax-Exempt Bond ETF (TAXT) and Invesco VRDO Tax-Free ETF (PVI). 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

	TAXT	PVI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	0.88	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	1.00	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.75	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.80	0.53	+2.26

Drawdowns

TAXT vs. PVI - Drawdown Comparison

The maximum TAXT drawdown since its inception was -2.49%, smaller than the maximum PVI drawdown of -4.10%. Use the drawdown chart below to compare losses from any high point for TAXT and PVI.

Drawdown Indicators

	TAXT	PVI	Difference
Max Drawdown Largest peak-to-trough decline	-2.49%	-4.10%	+1.61%
Max Drawdown (1Y) Largest decline over 1 year	—	-0.99%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-1.17%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-1.17%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-1.17%	—
Current Drawdown Current decline from peak	-0.58%	0.00%	-0.58%
Average Drawdown Average peak-to-trough decline	-0.47%	-0.28%	-0.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.30%	—

Volatility

Volatility by Period

	TAXT	PVI	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.76%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.81%	—
Volatility (1Y) Calculated over the trailing 1-year period	2.53%	2.66%	-0.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.53%	1.97%	+0.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.53%	1.75%	+0.78%

TAXT vs. PVI - Expense Ratio Comparison

TAXT has a 0.05% expense ratio, which is lower than PVI'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. PVI - Dividend Comparison

TAXT's dividend yield for the trailing twelve months is around 2.55%, more than PVI's 2.14% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PVI Invesco VRDO Tax-Free ETF	2.14%	2.22%	2.72%	3.36%	0.56%	0.00%	0.36%	1.15%	1.14%	0.56%	0.13%	0.00%
TAXT Northern Trust Tax-Exempt Bond ETF	2.55%	1.23%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TAXT and PVI in my portfolio?

TAXT and PVI have a correlation of -0.01, 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 PVI?

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 PVI?

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

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

TAXT has the higher dividend yield at 2.55%, compared with 2.14% for PVI.

What is the main difference between TAXT and PVI?

TAXT tracks ICE Focused Municipal Bond Index, while PVI tracks ICE US Municipal AMT-Free VRDO Constrained Index. They also come from different issuers: Northern Trust and Invesco. Their fees differ too: 0.05% for TAXT and 0.25% for PVI.