TSEC vs. TAXS

Last updated Aug 2, 2026

TSEC (Touchstone Securitized Income ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both exchange-traded funds - TSEC is a Short-Term Bond fund actively managed by Touchstone, while TAXS is a Municipal Bonds fund tracking the ICE Short Term Focused Municipal Bond Index. TSEC is actively managed, while TAXS is passively managed. Their 0.40 correlation means their historical movements had little consistent relationship. TSEC charges 0.40%/yr vs 0.05%/yr for TAXS.

Performance

TSEC vs. TAXS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Touchstone Securitized Income ETF (TSEC) 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, TSEC achieves a 1.38% return, which is significantly higher than TAXS's 0.84% return.

TSEC

• 1D: -0.04%
• 1M: -0.18%
• 6M: 0.86%
• YTD: 1.38%
• 1Y: 4.86%
• 3Y*: 7.06%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 7.09%

TAXS

• 1D: 0.00%
• 1M: -0.36%
• 6M: 0.30%
• YTD: 0.84%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	$619.80K	$883.25K	$948.95K
TSEC Touchstone Securitized Income ETF	$475.01K	$791.85K	$793.35K

TSEC vs. TAXS - Yearly Performance Comparison

	2026 (YTD)	2025
TSEC Touchstone Securitized Income ETF	1.38%	3.00%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	0.84%	1.22%

Correlation

The correlation between TSEC and TAXS is 0.40, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025	0.40

Return for Risk

TSEC vs. TAXS — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

TSEC

TSEC Risk / Return Rank: 85
TSEC Sharpe Ratio Rank: 85
TSEC Sortino Ratio Rank: 85
TSEC Omega Ratio Rank: 93
TSEC Calmar Ratio Rank: 84
TSEC Martin Ratio Rank: 79

TAXS

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

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

TSEC vs. TAXS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Touchstone Securitized Income ETF (TSEC) 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.

	TSEC	TAXS	Difference
Sharpe ratio: Return per unit of total volatility	2.02	—	—
Sortino ratio: Return per unit of downside risk	2.82	—	—
Omega ratio: Gain probability vs. loss probability	1.47	—	—
Calmar ratio: Return relative to maximum drawdown	3.20	—	—
Martin ratio: Return relative to average drawdown	10.21	—	—

Drawdowns

TSEC vs. TAXS - Drawdown Comparison

The maximum TSEC drawdown since its inception was -1.78%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for TSEC and TAXS.

Drawdown Indicators

	TSEC	TAXS	Difference
Max Drawdown Largest peak-to-trough decline	-1.78%	-0.84%	-0.94%
Max Drawdown (1Y) Largest decline over 1 year	-1.67%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-1.78%	—	—
Current Drawdown Current decline from peak	-0.66%	-0.39%	-0.27%
Average Drawdown Average peak-to-trough decline	-0.33%	-0.22%	-0.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.52%	—	—

Volatility

Volatility by Period

	TSEC	TAXS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.55%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.79%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	2.67%	1.03%	+1.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.88%	1.03%	+1.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.88%	1.03%	+1.85%

TSEC vs. TAXS - Expense Ratio Comparison

TSEC has a 0.40% expense ratio, which is higher than TAXS's 0.05% expense ratio.

Dividends

TSEC vs. TAXS - Dividend Comparison

TSEC's dividend yield for the trailing twelve months is around 7.66%, more than TAXS's 2.04% yield.

Position	TTM	2025	2024	2023
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	2.04%	0.74%	0.00%	0.00%
TSEC Touchstone Securitized Income ETF	7.66%	6.47%	5.83%	2.86%

Frequently Asked Questions

Can I hold both TSEC and TAXS in my portfolio?

TSEC and TAXS have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, TSEC or TAXS?

On fees, TAXS 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, TSEC or TAXS?

TAXS is cheaper with a 0.05% expense ratio, compared with 0.40% for TSEC.

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

TSEC has the higher dividend yield at 7.66%, compared with 2.04% for TAXS.

What is the main difference between TSEC and TAXS?

TSEC is categorized as Short-Term Bond, while TAXS is Municipal Bonds. They also come from different issuers: Touchstone and Northern Trust. Their fees differ too: 0.40% for TSEC and 0.05% for TAXS.