TAXX vs. BSMQ

Last updated Jun 26, 2026

TAXX (Bondbloxx IR+M Tax-Aware Short Duration ETF) and BSMQ (Invesco BulletShares 2026 Municipal Bond ETF) are both Municipal Bonds funds. TAXX is actively managed, while BSMQ is passively managed. Over the past year, TAXX returned 3.67% vs 2.85% for BSMQ. At a 0.30 correlation, their price movements are largely independent. TAXX charges 0.35%/yr vs 0.18%/yr for BSMQ.

Performance

TAXX vs. BSMQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Bondbloxx IR+M Tax-Aware Short Duration ETF (TAXX) and Invesco BulletShares 2026 Municipal Bond ETF (BSMQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXX achieves a 1.28% return, which is significantly higher than BSMQ's 0.96% return.

TAXX

• 1D: -0.10%
• 1M: 0.43%
• YTD: 1.28%
• 6M: 1.52%
• 1Y: 3.67%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BSMQ

• 1D: -0.04%
• 1M: 0.27%
• YTD: 0.96%
• 6M: 1.05%
• 1Y: 2.85%
• 3Y*: 2.84%
• 5Y*: 0.37%
• 10Y*: —

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

TAXX vs. BSMQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
TAXX Bondbloxx IR+M Tax-Aware Short Duration ETF	1.28%	4.52%	3.36%
BSMQ Invesco BulletShares 2026 Municipal Bond ETF	0.96%	3.12%	1.89%

Correlation

The correlation between TAXX and BSMQ is 0.08, 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 (1Y) Calculated over the trailing 1-year period	0.08
Correlation (All Time) Calculated using the full available price history since Mar 14, 2024	0.30

Over the past year, the correlation between TAXX and BSMQ has dropped to 0.08 - well below their long-term average of 0.30, suggesting their price drivers have been diverging.

Return for Risk

TAXX vs. BSMQ — Risk / Return Rank

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

TAXX

TAXX Risk / Return Rank: 83
TAXX Sharpe Ratio Rank: 78
TAXX Sortino Ratio Rank: 83
TAXX Omega Ratio Rank: 92
TAXX Calmar Ratio Rank: 86
TAXX Martin Ratio Rank: 76

BSMQ

BSMQ Risk / Return Rank: 88
BSMQ Sharpe Ratio Rank: 78
BSMQ Sortino Ratio Rank: 88
BSMQ Omega Ratio Rank: 84
BSMQ Calmar Ratio Rank: 97
BSMQ Martin Ratio Rank: 94

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.

TAXX vs. BSMQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Bondbloxx IR+M Tax-Aware Short Duration ETF (TAXX) and Invesco BulletShares 2026 Municipal Bond ETF (BSMQ). 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.

	TAXX	BSMQ	Difference
Sharpe ratio: Return per unit of total volatility	2.17	2.17	0.00
Sortino ratio: Return per unit of downside risk	3.20	3.46	-0.27
Omega ratio: Gain probability vs. loss probability	1.54	1.44	+0.09
Calmar ratio: Return relative to maximum drawdown	4.17	8.73	-4.56
Martin ratio: Return relative to average drawdown	12.67	23.02	-10.35

TAXX vs. BSMQ - Sharpe Ratio Comparison

The current TAXX Sharpe Ratio is 2.17, which is comparable to the BSMQ Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of TAXX and BSMQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TAXX vs. BSMQ - Drawdown Comparison

The maximum TAXX drawdown since its inception was -0.91%, smaller than the maximum BSMQ drawdown of -13.18%. Use the drawdown chart below to compare losses from any high point for TAXX and BSMQ.

Drawdown Indicators

	TAXX	BSMQ	Difference
Max Drawdown Largest peak-to-trough decline	-0.91%	-13.18%	+12.27%
Max Drawdown (1Y) Largest decline over 1 year	-0.88%	-0.33%	-0.55%
Max Drawdown (3Y) Largest decline over 3 years	—	-2.53%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-11.50%	—
Current Drawdown Current decline from peak	-0.10%	-0.13%	+0.03%
Average Drawdown Average peak-to-trough decline	-0.16%	-3.44%	+3.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.29%	0.12%	+0.17%

Volatility

TAXX vs. BSMQ - Volatility Comparison

The current volatility for Bondbloxx IR+M Tax-Aware Short Duration ETF (TAXX) is 0.34%, while Invesco BulletShares 2026 Municipal Bond ETF (BSMQ) has a volatility of 0.41%. This indicates that TAXX experiences smaller price fluctuations and is considered to be less risky than BSMQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAXX	BSMQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.34%	0.41%	-0.07%
Volatility (6M) Calculated over the trailing 6-month period	0.84%	0.93%	-0.09%
Volatility (1Y) Calculated over the trailing 1-year period	1.70%	1.32%	+0.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.59%	2.66%	-1.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.59%	4.77%	-3.18%

TAXX vs. BSMQ - Expense Ratio Comparison

TAXX has a 0.35% expense ratio, which is higher than BSMQ's 0.18% expense ratio.

Dividends

TAXX vs. BSMQ - Dividend Comparison

TAXX's dividend yield for the trailing twelve months is around 3.49%, more than BSMQ's 2.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
BSMQ Invesco BulletShares 2026 Municipal Bond ETF	2.75%	2.74%	2.75%	2.47%	1.60%	1.14%	1.57%	0.44%
TAXX Bondbloxx IR+M Tax-Aware Short Duration ETF	3.49%	3.72%	2.70%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TAXX and BSMQ in my portfolio?

TAXX and BSMQ have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TAXX or BSMQ?

BSMQ has higher volatility (0.41%) compared to TAXX (0.34%). In terms of maximum drawdown, TAXX dropped -0.91% vs BSMQ's -13.18%.

Which ETF is better, TAXX or BSMQ?

On 1-year performance, TAXX leads with 3.67% vs 2.85% for BSMQ. On fees, BSMQ is cheaper at 0.18% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAXX or BSMQ?

Over the 1-year period, TAXX has performed better with a 3.67% return vs 2.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAXX or BSMQ?

BSMQ is cheaper with a 0.18% expense ratio, compared with 0.35% for TAXX.

Which ETF pays a higher dividend yield, TAXX or BSMQ?

TAXX has the higher dividend yield at 3.49%, compared with 2.75% for BSMQ.

What is the main difference between TAXX and BSMQ?

They also come from different issuers: BondBloxx and Invesco. Their fees differ too: 0.35% for TAXX and 0.18% for BSMQ.

Which has better risk-adjusted returns?

BSMQ currently has the higher Sharpe Ratio (2.17 vs 2.17), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.