ZTAX vs. CEMB
ZTAX (X-Square Municipal Income Tax Free ETF) and CEMB (iShares J.P. Morgan EM Corporate Bond ETF) are both exchange-traded funds - ZTAX is a Municipal Bonds fund actively managed by X-Square, while CEMB is a Corporate Bonds fund tracking the JP Morgan CEMBI Broad Diversified. ZTAX is actively managed, while CEMB is passively managed. Over the past 3 years, ZTAX returned 5.64%/yr vs 6.97%/yr for CEMB. At a correlation of -0.06, they often move in opposite directions. ZTAX charges 1.14%/yr vs 0.50%/yr for CEMB.
Performance
ZTAX vs. CEMB - Performance Comparison
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Returns By Period
In the year-to-date period, ZTAX achieves a 2.45% return, which is significantly higher than CEMB's 1.65% return.
ZTAX
- 1D
- 0.08%
- 1M
- -10.04%
- 6M
- 1.37%
- YTD
- 2.45%
- 1Y
- 7.65%
- 3Y*
- 5.64%
- 5Y*
- —
- 10Y*
- —
CEMB
- 1D
- 0.01%
- 1M
- -0.07%
- 6M
- 1.28%
- YTD
- 1.65%
- 1Y
- 5.89%
- 3Y*
- 6.97%
- 5Y*
- 1.89%
- 10Y*
- 3.40%
ZTAX vs. CEMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
ZTAX X-Square Municipal Income Tax Free ETF | 2.45% | -1.02% | 7.98% | 3.74% |
CEMB iShares J.P. Morgan EM Corporate Bond ETF | 1.65% | 8.86% | 5.81% | 6.02% |
Correlation
The correlation between ZTAX and CEMB is -0.21, 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 | -0.21 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.07 |
Correlation (All Time) Calculated using the full available price history since May 19, 2023 | -0.06 |
The correlation between ZTAX and CEMB shifts across timeframes, from -0.21 (1 year) to -0.06 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
ZTAX vs. CEMB — Risk / Return Rank
ZTAX
CEMB
ZTAX vs. CEMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for X-Square Municipal Income Tax Free ETF (ZTAX) and iShares J.P. Morgan EM Corporate Bond ETF (CEMB). 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 | CEMB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.68 | ||
| Sortino ratioReturn per unit of downside risk | -2.27 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 1.37 | -0.27 |
| Calmar ratioReturn relative to maximum drawdown | 0.68 | 2.06 | -1.37 |
| Martin ratioReturn relative to average drawdown | 1.52 | 8.82 | -7.30 |
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Drawdowns
ZTAX vs. CEMB - Drawdown Comparison
The maximum ZTAX drawdown since its inception was -15.33%, smaller than the maximum CEMB drawdown of -20.84%. Use the drawdown chart below to compare losses from any high point for ZTAX and CEMB.
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Drawdown Indicators
| ZTAX | CEMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.33% | -20.84% | +5.51% |
Max Drawdown (1Y)Largest decline over 1 year | -11.26% | -2.88% | -8.38% |
Max Drawdown (3Y)Largest decline over 3 years | -15.33% | -3.85% | -11.48% |
Max Drawdown (5Y)Largest decline over 5 years | — | -20.48% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -20.84% | — |
Current DrawdownCurrent decline from peak | -10.04% | -0.20% | -9.84% |
Average DrawdownAverage peak-to-trough decline | -6.86% | -3.63% | -3.23% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.06% | 0.67% | +4.39% |
Volatility
ZTAX vs. CEMB - Volatility Comparison
X-Square Municipal Income Tax Free ETF (ZTAX) has a higher volatility of 13.49% compared to iShares J.P. Morgan EM Corporate Bond ETF (CEMB) at 0.83%. This indicates that ZTAX's price experiences larger fluctuations and is considered to be riskier than CEMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZTAX | CEMB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 13.49% | 0.83% | +12.66% |
Volatility (6M)Calculated over the trailing 6-month period | 26.54% | 2.53% | +24.01% |
Volatility (1Y)Calculated over the trailing 1-year period | 32.73% | 3.10% | +29.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 28.80% | 5.63% | +23.17% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 28.80% | 6.27% | +22.53% |
ZTAX vs. CEMB - Expense Ratio Comparison
ZTAX has a 1.14% expense ratio, which is higher than CEMB's 0.50% expense ratio.
Dividends
ZTAX vs. CEMB - Dividend Comparison
ZTAX's dividend yield for the trailing twelve months is around 4.67%, less than CEMB's 5.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CEMB iShares J.P. Morgan EM Corporate Bond ETF | 5.20% | 5.14% | 5.11% | 4.77% | 4.29% | 3.51% | 3.86% | 4.19% | 4.66% | 4.06% | 4.26% | 4.76% |
ZTAX X-Square Municipal Income Tax Free ETF | 4.67% | 4.58% | 4.55% | 2.14% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
ZTAX and CEMB have a correlation of -0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ZTAX has higher volatility (13.49%) compared to CEMB (0.83%). In terms of maximum drawdown, ZTAX dropped -15.33% vs CEMB's -20.84%.
On 3-year performance, CEMB leads with 6.97% vs 5.64% for ZTAX. On fees, CEMB is cheaper at 0.50% per year. On volatility, CEMB has been the lower-risk option at 0.83%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, CEMB has performed better with a 6.97% return vs 5.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
CEMB is cheaper with a 0.50% expense ratio, compared with 1.14% for ZTAX.
CEMB has the higher dividend yield at 5.20%, compared with 4.67% for ZTAX.
ZTAX is categorized as Municipal Bonds, while CEMB is Corporate Bonds. They also come from different issuers: X-Square and iShares. Their fees differ too: 1.14% for ZTAX and 0.50% for CEMB.
CEMB currently has the higher Sharpe Ratio (1.91 vs 0.23), 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.
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