ZTAX vs. ARMG

Last updated Jun 25, 2026

ZTAX (X-Square Municipal Income Tax Free ETF) and ARMG (Leverage Shares 2X Long ARM Daily ETF) are both exchange-traded funds - ZTAX is a Municipal Bonds fund actively managed by X-Square, while ARMG is a Leveraged Equities fund actively managed by Leverage Shares. Both are actively managed. Over the past year, ZTAX returned 6.26% vs 190.30% for ARMG. At a correlation of -0.12, they often move in opposite directions. ZTAX charges 1.14%/yr vs 0.75%/yr for ARMG.

Performance

ZTAX vs. ARMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in X-Square Municipal Income Tax Free ETF (ZTAX) and Leverage Shares 2X Long ARM Daily ETF (ARMG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZTAX achieves a 1.66% return, which is significantly lower than ARMG's 614.21% return.

ZTAX

• 1D: -1.45%
• 1M: 1.21%
• YTD: 1.66%
• 6M: 2.86%
• 1Y: 6.26%
• 3Y*: 4.27%
• 5Y*: —
• 10Y*: —

ARMG

• 1D: -4.39%
• 1M: 19.42%
• YTD: 614.21%
• 6M: 584.52%
• 1Y: 190.30%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ZTAX vs. ARMG - Yearly Performance Comparison

	2026 (YTD)	2025
ZTAX X-Square Municipal Income Tax Free ETF	1.66%	2.86%
ARMG Leverage Shares 2X Long ARM Daily ETF	614.21%	-62.65%

Correlation

The correlation between ZTAX and ARMG is -0.19, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.19
Correlation (All Time) Calculated using the full available price history since Jan 14, 2025	-0.12

Return for Risk

ZTAX vs. ARMG — Risk / Return Rank

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

ZTAX

ZTAX Risk / Return Rank: 14
ZTAX Sharpe Ratio Rank: 12
ZTAX Sortino Ratio Rank: 12
ZTAX Omega Ratio Rank: 15
ZTAX Calmar Ratio Rank: 16
ZTAX Martin Ratio Rank: 16

ARMG

ARMG Risk / Return Rank: 51
ARMG Sharpe Ratio Rank: 43
ARMG Sortino Ratio Rank: 58
ARMG Omega Ratio Rank: 55
ARMG Calmar Ratio Rank: 64
ARMG Martin Ratio Rank: 35

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.

ZTAX vs. ARMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for X-Square Municipal Income Tax Free ETF (ZTAX) and Leverage Shares 2X Long ARM Daily ETF (ARMG). 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.

	ZTAX	ARMG	Difference
Sharpe ratio: Return per unit of total volatility	0.19	1.36	-1.16
Sortino ratio: Return per unit of downside risk	0.52	2.44	-1.92
Omega ratio: Gain probability vs. loss probability	1.09	1.31	-0.22
Calmar ratio: Return relative to maximum drawdown	0.57	2.81	-2.24
Martin ratio: Return relative to average drawdown	1.37	4.89	-3.52

ZTAX vs. ARMG - Sharpe Ratio Comparison

The current ZTAX Sharpe Ratio is 0.19, which is lower than the ARMG Sharpe Ratio of 1.36. The chart below compares the historical Sharpe Ratios of ZTAX and ARMG, 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

ZTAX vs. ARMG - Drawdown Comparison

The maximum ZTAX drawdown since its inception was -15.33%, smaller than the maximum ARMG drawdown of -80.28%. Use the drawdown chart below to compare losses from any high point for ZTAX and ARMG.

Drawdown Indicators

	ZTAX	ARMG	Difference
Max Drawdown Largest peak-to-trough decline	-15.33%	-80.28%	+64.95%
Max Drawdown (1Y) Largest decline over 1 year	-10.99%	-68.13%	+57.14%
Max Drawdown (3Y) Largest decline over 3 years	-15.33%	—	—
Current Drawdown Current decline from peak	-10.74%	-34.85%	+24.11%
Average Drawdown Average peak-to-trough decline	-6.82%	-51.73%	+44.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.57%	39.06%	-34.49%

Volatility

ZTAX vs. ARMG - Volatility Comparison

The current volatility for X-Square Municipal Income Tax Free ETF (ZTAX) is 19.64%, while Leverage Shares 2X Long ARM Daily ETF (ARMG) has a volatility of 71.64%. This indicates that ZTAX experiences smaller price fluctuations and is considered to be less risky than ARMG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZTAX	ARMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	19.64%	71.64%	-52.00%
Volatility (6M) Calculated over the trailing 6-month period	28.28%	117.45%	-89.17%
Volatility (1Y) Calculated over the trailing 1-year period	32.32%	141.44%	-109.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.90%	143.63%	-114.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.90%	143.63%	-114.73%

ZTAX vs. ARMG - Expense Ratio Comparison

ZTAX has a 1.14% expense ratio, which is higher than ARMG's 0.75% expense ratio.

Dividends

ZTAX vs. ARMG - Dividend Comparison

ZTAX's dividend yield for the trailing twelve months is around 4.50%, more than ARMG's 0.68% yield.

Position	TTM	2025	2024	2023
ARMG Leverage Shares 2X Long ARM Daily ETF	0.68%	4.86%	0.00%	0.00%
ZTAX X-Square Municipal Income Tax Free ETF	4.50%	4.58%	4.55%	2.14%

Frequently Asked Questions

Can I hold both ZTAX and ARMG in my portfolio?

ZTAX and ARMG have a correlation of -0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ZTAX or ARMG?

ARMG has higher volatility (71.64%) compared to ZTAX (19.64%). In terms of maximum drawdown, ZTAX dropped -15.33% vs ARMG's -80.28%.

Which ETF is better, ZTAX or ARMG?

On 1-year performance, ARMG leads with 190.30% vs 6.26% for ZTAX. On fees, ARMG is cheaper at 0.75% per year. On volatility, ZTAX has been the lower-risk option at 19.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ZTAX or ARMG?

Over the 1-year period, ARMG has performed better with a 190.30% return vs 6.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ZTAX or ARMG?

ARMG is cheaper with a 0.75% expense ratio, compared with 1.14% for ZTAX.

Which ETF pays a higher dividend yield, ZTAX or ARMG?

ZTAX has the higher dividend yield at 4.50%, compared with 0.68% for ARMG.

What is the main difference between ZTAX and ARMG?

ZTAX is categorized as Municipal Bonds, while ARMG is Leveraged Equities. They also come from different issuers: X-Square and Leverage Shares. Their fees differ too: 1.14% for ZTAX and 0.75% for ARMG.

Which has better risk-adjusted returns?

ARMG currently has the higher Sharpe Ratio (1.36 vs 0.19), 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.