XTWO vs. TAXX

Last updated Jun 5, 2026

XTWO (BondBloxx Bloomberg Two Year Target Duration US Treasury ETF) and TAXX (Bondbloxx IR+M Tax-Aware Short Duration ETF) are both exchange-traded funds - XTWO is a Government Bonds fund tracking the Bloomberg US Treasury 2 Year Target Duration Index, while TAXX is a Municipal Bonds fund actively managed by BondBloxx. XTWO is passively managed, while TAXX is actively managed. Over the past year, XTWO returned 3.30% vs 3.92% for TAXX. At a 0.48 correlation, their price movements are largely independent. XTWO charges 0.05%/yr vs 0.35%/yr for TAXX.

Performance

XTWO vs. TAXX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) 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, XTWO achieves a 0.48% return, which is significantly lower than TAXX's 1.11% return.

XTWO

• 1D: 0.06%
• 1M: 0.12%
• YTD: 0.48%
• 6M: 0.85%
• 1Y: 3.30%
• 3Y*: 4.12%
• 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)

XTWO vs. TAXX - Yearly Performance Comparison

	2026 (YTD)	2025	2024
XTWO BondBloxx Bloomberg Two Year Target Duration US Treasury ETF	0.48%	5.17%	4.01%
TAXX Bondbloxx IR+M Tax-Aware Short Duration ETF	1.11%	4.52%	3.51%

Correlation

The correlation between XTWO and TAXX is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (All Time) Calculated using the full available price history since Mar 15, 2024	0.48

The correlation between XTWO and TAXX shifts across timeframes, from 0.36 (1 year) to 0.48 (all time), reflecting how their relationship changes across market environments.

Return for Risk

XTWO vs. TAXX — Risk / Return Rank

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

XTWO

XTWO Risk / Return Rank: 79
XTWO Sharpe Ratio Rank: 76
XTWO Sortino Ratio Rank: 89
XTWO Omega Ratio Rank: 84
XTWO Calmar Ratio Rank: 74
XTWO Martin Ratio Rank: 71

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.

XTWO vs. TAXX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) 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.

	XTWO	TAXX	Difference
Sharpe ratio: Return per unit of total volatility	2.44	2.33	+0.12
Sortino ratio: Return per unit of downside risk	4.01	3.44	+0.57
Omega ratio: Gain probability vs. loss probability	1.50	1.59	-0.10
Calmar ratio: Return relative to maximum drawdown	3.64	4.45	-0.82
Martin ratio: Return relative to average drawdown	13.10	13.54	-0.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XTWO vs. TAXX - Sharpe Ratio Comparison

The current XTWO Sharpe Ratio is 2.44, which is comparable to the TAXX Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of XTWO 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

	XTWO	TAXX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.44	2.33	+0.12
Sharpe Ratio (All Time) Calculated using the full available price history	1.75	2.60	-0.86

Drawdowns

XTWO vs. TAXX - Drawdown Comparison

The maximum XTWO drawdown since its inception was -1.73%, which is greater than TAXX's maximum drawdown of -0.91%. Use the drawdown chart below to compare losses from any high point for XTWO and TAXX.

Drawdown Indicators

	XTWO	TAXX	Difference
Max Drawdown Largest peak-to-trough decline	-1.73%	-0.91%	-0.82%
Max Drawdown (1Y) Largest decline over 1 year	-0.91%	-0.88%	-0.03%
Max Drawdown (3Y) Largest decline over 3 years	-1.18%	—	—
Current Drawdown Current decline from peak	-0.31%	0.00%	-0.31%
Average Drawdown Average peak-to-trough decline	-0.40%	-0.17%	-0.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.25%	0.29%	-0.04%

Volatility

XTWO vs. TAXX - Volatility Comparison

BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) has a higher volatility of 0.37% compared to Bondbloxx IR+M Tax-Aware Short Duration ETF (TAXX) at 0.34%. This indicates that XTWO'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

	XTWO	TAXX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.37%	0.34%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	0.95%	0.84%	+0.11%
Volatility (1Y) Calculated over the trailing 1-year period	1.37%	1.69%	-0.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.16%	1.59%	+0.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.16%	1.59%	+0.57%

XTWO vs. TAXX - Expense Ratio Comparison

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

Dividends

XTWO vs. TAXX - Dividend Comparison

XTWO's dividend yield for the trailing twelve months is around 4.05%, 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%
XTWO BondBloxx Bloomberg Two Year Target Duration US Treasury ETF	4.05%	4.24%	4.54%	4.07%	1.13%

Frequently Asked Questions

Can I hold both XTWO and TAXX in my portfolio?

XTWO and TAXX have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XTWO or TAXX?

XTWO has higher volatility (0.37%) compared to TAXX (0.34%). In terms of maximum drawdown, XTWO dropped -1.73% vs TAXX's -0.91%.

Which ETF is better, XTWO or TAXX?

On 1-year performance, TAXX leads with 3.92% vs 3.30% for XTWO. On fees, XTWO is cheaper at 0.05% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XTWO or TAXX?

Over the 1-year period, TAXX has performed better with a 3.92% return vs 3.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XTWO or TAXX?

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

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

XTWO has the higher dividend yield at 4.05%, compared with 3.50% for TAXX.

What is the main difference between XTWO and TAXX?

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

Which has better risk-adjusted returns?

XTWO currently has the higher Sharpe Ratio (2.44 vs 2.33), 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.