TAXT vs. TAXS

Last updated Jun 23, 2026

TAXT (Northern Trust Tax-Exempt Bond ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds from Northern Trust - TAXT tracks the ICE Focused Municipal Bond Index while TAXS tracks the ICE Short Term Focused Municipal Bond Index. Both are passively managed. A 0.75 correlation means they provide meaningful diversification when combined. Both charge a 0.05% expense ratio.

Performance

TAXT vs. TAXS - Performance Comparison

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

Returns By Period

In the year-to-date period, TAXT achieves a 1.58% return, which is significantly higher than TAXS's 1.05% return.

TAXT

• 1D: -0.04%
• 1M: 1.12%
• YTD: 1.58%
• 6M: 1.81%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAXS

• 1D: -0.01%
• 1M: 0.64%
• YTD: 1.05%
• 6M: 1.28%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TAXT vs. TAXS - Yearly Performance Comparison

	2026 (YTD)	2025
TAXT Northern Trust Tax-Exempt Bond ETF	1.58%	3.91%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.05%	1.22%

Correlation

The correlation between TAXT and TAXS is 0.75, 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	0.75

Return for Risk

TAXT vs. TAXS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Northern Trust Tax-Exempt Bond ETF (TAXT) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). 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. TAXS - Drawdown Comparison

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

Drawdown Indicators

	TAXT	TAXS	Difference
Max Drawdown Largest peak-to-trough decline	-2.49%	-0.84%	-1.65%
Current Drawdown Current decline from peak	-0.49%	-0.02%	-0.47%
Average Drawdown Average peak-to-trough decline	-0.48%	-0.22%	-0.26%

Volatility

Volatility by Period

	TAXT	TAXS	Difference
Volatility (1Y) Calculated over the trailing 1-year period	2.53%	0.99%	+1.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.53%	0.99%	+1.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.53%	0.99%	+1.54%

TAXT vs. TAXS - Expense Ratio Comparison

Both TAXT and TAXS 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

TAXT vs. TAXS - Dividend Comparison

TAXT's dividend yield for the trailing twelve months is around 2.54%, more than TAXS's 1.82% yield.

Position	TTM	2025
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.82%	0.74%
TAXT Northern Trust Tax-Exempt Bond ETF	2.54%	1.23%

Frequently Asked Questions

Can I hold both TAXT and TAXS in my portfolio?

TAXT and TAXS have a correlation of 0.75, 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 TAXS?

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, TAXT or TAXS?

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

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

TAXT has the higher dividend yield at 2.54%, compared with 1.82% for TAXS.

What is the main difference between TAXT and TAXS?

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