XFIV vs. TAXX

Last updated Jun 5, 2026

XFIV (BondBloxx Bloomberg Five Year Target Duration US Treasury ETF) and TAXX (Bondbloxx IR+M Tax-Aware Short Duration ETF) are both exchange-traded funds - XFIV is a Government Bonds fund tracking the Bloomberg US Treasury 5 Year Target Duration Index, while TAXX is a Municipal Bonds fund actively managed by BondBloxx. XFIV is passively managed, while TAXX is actively managed. Over the past year, XFIV returned 3.12% vs 3.92% for TAXX. A 0.52 correlation means they provide meaningful diversification when combined. XFIV charges 0.05%/yr vs 0.35%/yr for TAXX.

Performance

XFIV vs. TAXX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BondBloxx Bloomberg Five Year Target Duration US Treasury ETF (XFIV) and Bondbloxx IR+M Tax-Aware Short Duration ETF (TAXX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XFIV achieves a -0.36% return, which is significantly lower than TAXX's 1.11% return.

XFIV

• 1D: 0.11%
• 1M: -0.10%
• YTD: -0.36%
• 6M: -0.31%
• 1Y: 3.12%
• 3Y*: 3.53%
• 5Y*: —
• 10Y*: —

TAXX

• 1D: 0.07%
• 1M: 0.37%
• YTD: 1.11%
• 6M: 1.41%
• 1Y: 3.92%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

XFIV vs. TAXX - Yearly Performance Comparison

	2026 (YTD)	2025	2024
XFIV BondBloxx Bloomberg Five Year Target Duration US Treasury ETF	-0.36%	7.43%	2.85%
TAXX Bondbloxx IR+M Tax-Aware Short Duration ETF	1.11%	4.52%	3.51%

Correlation

The correlation between XFIV and TAXX is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.32
Correlation (All Time) Calculated using the full available price history since Mar 15, 2024	0.52

Over the past year, the correlation between XFIV and TAXX has dropped to 0.32 - well below their long-term average of 0.52, suggesting their price drivers have been diverging.

Return for Risk

XFIV vs. TAXX — Risk / Return Rank

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

XFIV

XFIV Risk / Return Rank: 25
XFIV Sharpe Ratio Rank: 26
XFIV Sortino Ratio Rank: 25
XFIV Omega Ratio Rank: 23
XFIV Calmar Ratio Rank: 24
XFIV Martin Ratio Rank: 25

TAXX

TAXX Risk / Return Rank: 80
TAXX Sharpe Ratio Rank: 72
TAXX Sortino Ratio Rank: 78
TAXX Omega Ratio Rank: 91
TAXX Calmar Ratio Rank: 84
TAXX Martin Ratio Rank: 73

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.

XFIV vs. TAXX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BondBloxx Bloomberg Five Year Target Duration US Treasury ETF (XFIV) and Bondbloxx IR+M Tax-Aware Short Duration ETF (TAXX). 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.

	XFIV	TAXX	Difference
Sharpe ratio: Return per unit of total volatility	0.91	2.33	-1.42
Sortino ratio: Return per unit of downside risk	1.37	3.44	-2.07
Omega ratio: Gain probability vs. loss probability	1.16	1.59	-0.44
Calmar ratio: Return relative to maximum drawdown	1.08	4.45	-3.37
Martin ratio: Return relative to average drawdown	3.19	13.54	-10.35
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XFIV vs. TAXX - Sharpe Ratio Comparison

The current XFIV Sharpe Ratio is 0.91, which is lower than the TAXX Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of XFIV and TAXX, 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

	XFIV	TAXX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.91	2.33	-1.42
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	2.60	-1.99

Drawdowns

XFIV vs. TAXX - Drawdown Comparison

The maximum XFIV drawdown since its inception was -6.38%, which is greater than TAXX's maximum drawdown of -0.91%. Use the drawdown chart below to compare losses from any high point for XFIV and TAXX.

Drawdown Indicators

	XFIV	TAXX	Difference
Max Drawdown Largest peak-to-trough decline	-6.38%	-0.91%	-5.47%
Max Drawdown (1Y) Largest decline over 1 year	-2.91%	-0.88%	-2.03%
Max Drawdown (3Y) Largest decline over 3 years	-4.47%	—	—
Current Drawdown Current decline from peak	-2.03%	0.00%	-2.03%
Average Drawdown Average peak-to-trough decline	-1.66%	-0.17%	-1.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.98%	0.29%	+0.69%

Volatility

XFIV vs. TAXX - Volatility Comparison

BondBloxx Bloomberg Five Year Target Duration US Treasury ETF (XFIV) has a higher volatility of 1.10% compared to Bondbloxx IR+M Tax-Aware Short Duration ETF (TAXX) at 0.34%. This indicates that XFIV's price experiences larger fluctuations and is considered to be riskier than TAXX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XFIV	TAXX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.10%	0.34%	+0.76%
Volatility (6M) Calculated over the trailing 6-month period	2.41%	0.84%	+1.57%
Volatility (1Y) Calculated over the trailing 1-year period	3.48%	1.69%	+1.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.42%	1.59%	+3.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.42%	1.59%	+3.83%

XFIV vs. TAXX - Expense Ratio Comparison

XFIV has a 0.05% expense ratio, which is lower than TAXX's 0.35% expense ratio.

Dividends

XFIV vs. TAXX - Dividend Comparison

XFIV's dividend yield for the trailing twelve months is around 3.82%, more than TAXX's 3.50% yield.

Position	TTM	2025	2024	2023	2022
TAXX Bondbloxx IR+M Tax-Aware Short Duration ETF	3.50%	3.72%	2.70%	0.00%	0.00%
XFIV BondBloxx Bloomberg Five Year Target Duration US Treasury ETF	3.82%	4.05%	3.92%	3.63%	1.06%

Frequently Asked Questions

Can I hold both XFIV and TAXX in my portfolio?

XFIV and TAXX have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XFIV or TAXX?

XFIV has higher volatility (1.10%) compared to TAXX (0.34%). In terms of maximum drawdown, XFIV dropped -6.38% vs TAXX's -0.91%.

Which ETF is better, XFIV or TAXX?

On 1-year performance, TAXX leads with 3.92% vs 3.12% for XFIV. On fees, XFIV is cheaper at 0.05% per year. On volatility, TAXX has been the lower-risk option at 0.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XFIV or TAXX?

Over the 1-year period, TAXX has performed better with a 3.92% return vs 3.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XFIV or TAXX?

XFIV is cheaper with a 0.05% expense ratio, compared with 0.35% for TAXX.

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

XFIV has the higher dividend yield at 3.82%, compared with 3.50% for TAXX.

What is the main difference between XFIV and TAXX?

XFIV is categorized as Government Bonds, while TAXX is Municipal Bonds. Their fees differ too: 0.05% for XFIV and 0.35% for TAXX.

Which has better risk-adjusted returns?

TAXX currently has the higher Sharpe Ratio (2.33 vs 0.91), 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.