XCHG vs. TAFI

Last updated Jun 6, 2026

XCHG (AB US Equity ETF) and TAFI (AB Tax-Aware Short Duration ETF) are both exchange-traded funds - XCHG is a Large Cap Blend Equities fund actively managed by AllianceBernstein, while TAFI is a Municipal Bonds fund actively managed by AllianceBernstein. Both are actively managed. At a 0.26 correlation, their price movements are largely independent. XCHG charges 0.50%/yr vs 0.27%/yr for TAFI.

Performance

XCHG vs. TAFI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AB US Equity ETF (XCHG) and AB Tax-Aware Short Duration ETF (TAFI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XCHG achieves a 5.48% return, which is significantly higher than TAFI's 1.19% return.

XCHG

• 1D: -2.14%
• 1M: -1.02%
• YTD: 5.48%
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAFI

• 1D: 0.04%
• 1M: 0.29%
• YTD: 1.19%
• 6M: 1.50%
• 1Y: 4.01%
• 3Y*: 3.69%
• 5Y*: —
• 10Y*: —

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

XCHG vs. TAFI - Yearly Performance Comparison

	2026 (YTD)	2025
XCHG AB US Equity ETF	5.48%	0.30%
TAFI AB Tax-Aware Short Duration ETF	1.19%	0.19%

Correlation

The correlation between XCHG and TAFI is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Dec 16, 2025	0.26

Return for Risk

XCHG vs. TAFI — Risk / Return Rank

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

TAFI

TAFI Risk / Return Rank: 82
TAFI Sharpe Ratio Rank: 88
TAFI Sortino Ratio Rank: 93
TAFI Omega Ratio Rank: 92
TAFI Calmar Ratio Rank: 70
TAFI Martin Ratio Rank: 68

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.

XCHG vs. TAFI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB US Equity ETF (XCHG) and AB Tax-Aware Short Duration ETF (TAFI). 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.

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

Sharpe Ratios by Period

	XCHG	TAFI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.77	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.96	1.72	-0.77

Drawdowns

XCHG vs. TAFI - Drawdown Comparison

The maximum XCHG drawdown since its inception was -9.66%, which is greater than TAFI's maximum drawdown of -2.00%. Use the drawdown chart below to compare losses from any high point for XCHG and TAFI.

Drawdown Indicators

	XCHG	TAFI	Difference
Max Drawdown Largest peak-to-trough decline	-9.66%	-2.00%	-7.66%
Max Drawdown (1Y) Largest decline over 1 year	—	-1.21%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-1.87%	—
Current Drawdown Current decline from peak	-2.14%	-0.13%	-2.01%
Average Drawdown Average peak-to-trough decline	-1.87%	-0.37%	-1.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.34%	—

Volatility

Volatility by Period

	XCHG	TAFI	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.44%	—
Volatility (6M) Calculated over the trailing 6-month period	—	0.93%	—
Volatility (1Y) Calculated over the trailing 1-year period	13.44%	1.46%	+11.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.44%	1.98%	+11.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.44%	1.98%	+11.46%

XCHG vs. TAFI - Expense Ratio Comparison

XCHG has a 0.50% expense ratio, which is higher than TAFI's 0.27% expense ratio.

Dividends

XCHG vs. TAFI - Dividend Comparison

XCHG's dividend yield for the trailing twelve months is around 0.22%, less than TAFI's 3.14% yield.

Position	TTM	2025	2024	2023	2022
TAFI AB Tax-Aware Short Duration ETF	3.14%	3.21%	3.34%	3.27%	0.79%
XCHG AB US Equity ETF	0.22%	0.05%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XCHG and TAFI in my portfolio?

XCHG and TAFI have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XCHG or TAFI?

On fees, TAFI is cheaper at 0.27% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XCHG or TAFI?

TAFI is cheaper with a 0.27% expense ratio, compared with 0.50% for XCHG.

Which ETF pays a higher dividend yield, XCHG or TAFI?

TAFI has the higher dividend yield at 3.14%, compared with 0.22% for XCHG.

What is the main difference between XCHG and TAFI?

XCHG is categorized as Large Cap Blend Equities, while TAFI is Municipal Bonds. Their fees differ too: 0.50% for XCHG and 0.27% for TAFI.