VALQ vs. TAXF

Last updated Jun 24, 2026

VALQ (American Century STOXX U.S. Quality Value ETF) and TAXF (American Century Diversified Municipal Bond ETF) are both exchange-traded funds - VALQ is a Large Cap Value Equities fund tracking the iSTOXX American Century USA Quality Value Index, while TAXF is a Municipal Bonds fund actively managed by American Century. VALQ is passively managed, while TAXF is actively managed. Over the past 5 years, VALQ returned 8.88%/yr vs 1.13%/yr for TAXF. At a 0.07 correlation, their price movements are largely independent. Both charge a 0.29% expense ratio.

Performance

VALQ vs. TAXF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Century STOXX U.S. Quality Value ETF (VALQ) and American Century Diversified Municipal Bond ETF (TAXF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VALQ achieves a 4.29% return, which is significantly higher than TAXF's 2.22% return.

VALQ

• 1D: -0.49%
• 1M: -0.37%
• YTD: 4.29%
• 6M: 3.54%
• 1Y: 14.31%
• 3Y*: 14.29%
• 5Y*: 8.88%
• 10Y*: —

TAXF

• 1D: 0.00%
• 1M: 1.52%
• YTD: 2.22%
• 6M: 2.18%
• 1Y: 7.39%
• 3Y*: 3.96%
• 5Y*: 1.13%
• 10Y*: —

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

VALQ vs. TAXF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VALQ American Century STOXX U.S. Quality Value ETF	4.29%	10.58%	16.71%	13.87%	-7.73%	27.05%	0.64%	24.52%	-13.11%
TAXF American Century Diversified Municipal Bond ETF	2.22%	4.30%	1.74%	7.33%	-9.64%	2.72%	5.55%	8.75%	0.60%

Correlation

The correlation between VALQ and TAXF is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (5Y) Calculated over the trailing 5-year period	0.15
Correlation (All Time) Calculated using the full available price history since Sep 12, 2018	0.07

The correlation between VALQ and TAXF shifts across timeframes, from 0.07 (all time) to 0.22 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VALQ vs. TAXF — Risk / Return Rank

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

VALQ

VALQ Risk / Return Rank: 38
VALQ Sharpe Ratio Rank: 38
VALQ Sortino Ratio Rank: 39
VALQ Omega Ratio Rank: 36
VALQ Calmar Ratio Rank: 39
VALQ Martin Ratio Rank: 36

TAXF

TAXF Risk / Return Rank: 74
TAXF Sharpe Ratio Rank: 83
TAXF Sortino Ratio Rank: 86
TAXF Omega Ratio Rank: 90
TAXF Calmar Ratio Rank: 55
TAXF Martin Ratio Rank: 56

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.

VALQ vs. TAXF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Century STOXX U.S. Quality Value ETF (VALQ) and American Century Diversified Municipal Bond ETF (TAXF). 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.

	VALQ	TAXF	Difference
Sharpe ratio: Return per unit of total volatility	1.28	2.48	-1.20
Sortino ratio: Return per unit of downside risk	1.90	3.59	-1.69
Omega ratio: Gain probability vs. loss probability	1.23	1.53	-0.31
Calmar ratio: Return relative to maximum drawdown	1.83	2.53	-0.70
Martin ratio: Return relative to average drawdown	5.18	9.09	-3.90

VALQ vs. TAXF - Sharpe Ratio Comparison

The current VALQ Sharpe Ratio is 1.28, which is lower than the TAXF Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of VALQ and TAXF, 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

VALQ vs. TAXF - Drawdown Comparison

The maximum VALQ drawdown since its inception was -38.19%, which is greater than TAXF's maximum drawdown of -13.93%. Use the drawdown chart below to compare losses from any high point for VALQ and TAXF.

Drawdown Indicators

	VALQ	TAXF	Difference
Max Drawdown Largest peak-to-trough decline	-38.19%	-13.93%	-24.26%
Max Drawdown (1Y) Largest decline over 1 year	-7.85%	-2.93%	-4.92%
Max Drawdown (3Y) Largest decline over 3 years	-15.62%	-5.53%	-10.09%
Max Drawdown (5Y) Largest decline over 5 years	-20.19%	-13.93%	-6.26%
Current Drawdown Current decline from peak	-2.05%	-0.22%	-1.83%
Average Drawdown Average peak-to-trough decline	-4.92%	-3.13%	-1.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.77%	0.81%	+1.96%

Volatility

VALQ vs. TAXF - Volatility Comparison

American Century STOXX U.S. Quality Value ETF (VALQ) has a higher volatility of 3.59% compared to American Century Diversified Municipal Bond ETF (TAXF) at 0.75%. This indicates that VALQ's price experiences larger fluctuations and is considered to be riskier than TAXF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VALQ	TAXF	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.59%	0.75%	+2.84%
Volatility (6M) Calculated over the trailing 6-month period	8.30%	2.28%	+6.02%
Volatility (1Y) Calculated over the trailing 1-year period	11.26%	3.00%	+8.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.50%	4.20%	+10.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.63%	4.64%	+12.99%

VALQ vs. TAXF - Expense Ratio Comparison

Both VALQ and TAXF have an expense ratio of 0.29%.

Dividends

VALQ vs. TAXF - Dividend Comparison

VALQ's dividend yield for the trailing twelve months is around 2.35%, less than TAXF's 3.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
TAXF American Century Diversified Municipal Bond ETF	3.76%	3.68%	3.38%	2.93%	2.05%	1.58%	2.13%	2.64%	0.69%
VALQ American Century STOXX U.S. Quality Value ETF	1.84%	1.88%	1.58%	1.76%	2.71%	1.58%	2.08%	2.31%	2.35%

Frequently Asked Questions

Can I hold both VALQ and TAXF in my portfolio?

VALQ and TAXF have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VALQ or TAXF?

VALQ has higher volatility (3.59%) compared to TAXF (0.75%). In terms of maximum drawdown, VALQ dropped -38.19% vs TAXF's -13.93%.

Which ETF is better, VALQ or TAXF?

On 5-year performance, VALQ leads with 8.88% vs 1.13% for TAXF. Both ETFs have the same 0.29% expense ratio. On volatility, TAXF has been the lower-risk option at 0.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VALQ or TAXF?

Over the 5-year period, VALQ has performed better with a 8.88% return vs 1.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VALQ or TAXF?

VALQ and TAXF have the same expense ratio: 0.29% per year.

Which ETF pays a higher dividend yield, VALQ or TAXF?

TAXF has the higher dividend yield at 3.76%, compared with 2.35% for VALQ.

What is the main difference between VALQ and TAXF?

VALQ is categorized as Large Cap Value Equities, while TAXF is Municipal Bonds.

Which has better risk-adjusted returns?

TAXF currently has the higher Sharpe Ratio (2.48 vs 1.28), 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.