XB vs. TAXM

Last updated Jun 5, 2026

XB (BondBloxx B Rated USD High Yield Corporate Bond ETF) and TAXM (BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents) are both exchange-traded funds - XB is a High Yield Bonds fund tracking the ICE BofA Single-B US Cash Pay High Yield Constrained Index, while TAXM is a Municipal Bonds fund actively managed by BondBloxx. XB is passively managed, while TAXM is actively managed. Over the past year, XB returned 7.31% vs 6.44% for TAXM. At a 0.39 correlation, their price movements are largely independent. XB charges 0.30%/yr vs 0.35%/yr for TAXM.

Performance

XB vs. TAXM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BondBloxx B Rated USD High Yield Corporate Bond ETF (XB) and BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XB achieves a 1.99% return, which is significantly higher than TAXM's 1.26% return.

XB

• 1D: 0.17%
• 1M: 0.64%
• YTD: 1.99%
• 6M: 2.60%
• 1Y: 7.31%
• 3Y*: 8.50%
• 5Y*: —
• 10Y*: —

TAXM

• 1D: 0.07%
• 1M: 0.56%
• YTD: 1.26%
• 6M: 1.58%
• 1Y: 6.44%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

XB vs. TAXM - Yearly Performance Comparison

	2026 (YTD)	2025
XB BondBloxx B Rated USD High Yield Corporate Bond ETF	1.99%	7.44%
TAXM BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents	1.26%	3.71%

Correlation

The correlation between XB and TAXM is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (All Time) Calculated using the full available price history since Mar 14, 2025	0.39

Return for Risk

XB vs. TAXM — Risk / Return Rank

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

XB

XB Risk / Return Rank: 68
XB Sharpe Ratio Rank: 59
XB Sortino Ratio Rank: 67
XB Omega Ratio Rank: 66
XB Calmar Ratio Rank: 69
XB Martin Ratio Rank: 79

TAXM

TAXM Risk / Return Rank: 69
TAXM Sharpe Ratio Rank: 76
TAXM Sortino Ratio Rank: 81
TAXM Omega Ratio Rank: 86
TAXM Calmar Ratio Rank: 49
TAXM Martin Ratio Rank: 50

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.

XB vs. TAXM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BondBloxx B Rated USD High Yield Corporate Bond ETF (XB) and BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM). 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.

	XB	TAXM	Difference
Sharpe ratio: Return per unit of total volatility	1.97	2.43	-0.46
Sortino ratio: Return per unit of downside risk	3.03	3.57	-0.54
Omega ratio: Gain probability vs. loss probability	1.39	1.51	-0.12
Calmar ratio: Return relative to maximum drawdown	3.40	2.39	+1.01
Martin ratio: Return relative to average drawdown	14.93	8.37	+6.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XB vs. TAXM - Sharpe Ratio Comparison

The current XB Sharpe Ratio is 1.97, which is comparable to the TAXM Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of XB and TAXM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XB	TAXM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.97	2.43	-0.46
Sharpe Ratio (All Time) Calculated using the full available price history	0.85	1.15	-0.30

Drawdowns

XB vs. TAXM - Drawdown Comparison

The maximum XB drawdown since its inception was -9.25%, which is greater than TAXM's maximum drawdown of -3.10%. Use the drawdown chart below to compare losses from any high point for XB and TAXM.

Drawdown Indicators

	XB	TAXM	Difference
Max Drawdown Largest peak-to-trough decline	-9.25%	-3.10%	-6.15%
Max Drawdown (1Y) Largest decline over 1 year	-2.16%	-2.70%	+0.54%
Max Drawdown (3Y) Largest decline over 3 years	-5.36%	—	—
Current Drawdown Current decline from peak	-0.29%	-0.73%	+0.44%
Average Drawdown Average peak-to-trough decline	-1.32%	-0.71%	-0.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.49%	0.77%	-0.28%

Volatility

XB vs. TAXM - Volatility Comparison

BondBloxx B Rated USD High Yield Corporate Bond ETF (XB) has a higher volatility of 1.37% compared to BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) at 0.94%. This indicates that XB's price experiences larger fluctuations and is considered to be riskier than TAXM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XB	TAXM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.37%	0.94%	+0.43%
Volatility (6M) Calculated over the trailing 6-month period	2.97%	2.04%	+0.93%
Volatility (1Y) Calculated over the trailing 1-year period	3.74%	2.67%	+1.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.44%	3.55%	+3.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.44%	3.55%	+3.89%

XB vs. TAXM - Expense Ratio Comparison

XB has a 0.30% expense ratio, which is lower than TAXM's 0.35% expense ratio.

Dividends

XB vs. TAXM - Dividend Comparison

XB's dividend yield for the trailing twelve months is around 7.07%, more than TAXM's 3.29% yield.

Position	TTM	2025	2024	2023	2022
TAXM BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents	3.29%	2.75%	0.00%	0.00%	0.00%
XB BondBloxx B Rated USD High Yield Corporate Bond ETF	7.07%	6.96%	7.74%	7.87%	5.01%

Frequently Asked Questions

Can I hold both XB and TAXM in my portfolio?

XB and TAXM have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XB or TAXM?

XB has higher volatility (1.37%) compared to TAXM (0.94%). In terms of maximum drawdown, XB dropped -9.25% vs TAXM's -3.10%.

Which ETF is better, XB or TAXM?

On 1-year performance, XB leads with 7.31% vs 6.44% for TAXM. On fees, XB is cheaper at 0.30% per year. On volatility, TAXM has been the lower-risk option at 0.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XB or TAXM?

Over the 1-year period, XB has performed better with a 7.31% return vs 6.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XB or TAXM?

XB is cheaper with a 0.30% expense ratio, compared with 0.35% for TAXM.

Which ETF pays a higher dividend yield, XB or TAXM?

XB has the higher dividend yield at 7.07%, compared with 3.29% for TAXM.

What is the main difference between XB and TAXM?

XB is categorized as High Yield Bonds, while TAXM is Municipal Bonds. Their fees differ too: 0.30% for XB and 0.35% for TAXM.

Which has better risk-adjusted returns?

TAXM currently has the higher Sharpe Ratio (2.43 vs 1.97), 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.