ZTRE vs. TAXS

Last updated Jul 18, 2026

ZTRE (F/M 3-Year Investment Grade Corporate Bond ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both exchange-traded funds - ZTRE is a Short-Term Bond fund tracking the ICE 3-Year US Target Maturity Corporate Index - Benchmark TR Gross, while TAXS is a Municipal Bonds fund tracking the ICE Short Term Focused Municipal Bond Index. Both are passively managed. At a 0.49 correlation, their price movements are largely independent. ZTRE charges 0.15%/yr vs 0.05%/yr for TAXS.

Performance

ZTRE vs. TAXS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in F/M 3-Year Investment Grade Corporate Bond ETF (ZTRE) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZTRE achieves a 0.75% return, which is significantly lower than TAXS's 1.12% return.

ZTRE

• 1D: 0.02%
• 1M: 0.35%
• 6M: 0.70%
• YTD: 0.75%
• 1Y: 3.71%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAXS

• 1D: 0.04%
• 1M: 0.13%
• 6M: 0.73%
• YTD: 1.12%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ZTRE vs. TAXS - Yearly Performance Comparison

	2026 (YTD)	2025
ZTRE F/M 3-Year Investment Grade Corporate Bond ETF	0.75%	2.04%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.12%	1.22%

Correlation

The correlation between ZTRE and TAXS is 0.49, 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 Aug 19, 2025	0.49

Return for Risk

ZTRE vs. TAXS — Risk / Return Rank

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

ZTRE

ZTRE Risk / Return Rank: 77
ZTRE Sharpe Ratio Rank: 79
ZTRE Sortino Ratio Rank: 83
ZTRE Omega Ratio Rank: 83
ZTRE Calmar Ratio Rank: 68
ZTRE Martin Ratio Rank: 74

TAXS

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

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.

ZTRE vs. TAXS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for F/M 3-Year Investment Grade Corporate Bond ETF (ZTRE) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). 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.

	ZTRE	TAXS	Difference
Sharpe ratio: Return per unit of total volatility	1.94	—	—
Sortino ratio: Return per unit of downside risk	2.93	—	—
Omega ratio: Gain probability vs. loss probability	1.38	—	—
Calmar ratio: Return relative to maximum drawdown	2.56	—	—
Martin ratio: Return relative to average drawdown	10.21	—	—

Drawdowns

ZTRE vs. TAXS - Drawdown Comparison

The maximum ZTRE drawdown since its inception was -1.45%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for ZTRE and TAXS.

Drawdown Indicators

	ZTRE	TAXS	Difference
Max Drawdown Largest peak-to-trough decline	-1.45%	-0.84%	-0.61%
Max Drawdown (1Y) Largest decline over 1 year	-1.45%	—	—
Current Drawdown Current decline from peak	-0.14%	-0.11%	-0.03%
Average Drawdown Average peak-to-trough decline	-0.20%	-0.21%	+0.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.36%	—	—

Volatility

Volatility by Period

	ZTRE	TAXS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.68%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.56%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.92%	0.97%	+0.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.11%	0.97%	+1.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.11%	0.97%	+1.14%

ZTRE vs. TAXS - Expense Ratio Comparison

ZTRE has a 0.15% expense ratio, which is higher than TAXS's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ZTRE vs. TAXS - Dividend Comparison

ZTRE's dividend yield for the trailing twelve months is around 4.19%, more than TAXS's 2.03% yield.

Position	TTM	2025	2024
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	2.03%	0.74%	0.00%
ZTRE F/M 3-Year Investment Grade Corporate Bond ETF	4.19%	4.37%	0.39%

Frequently Asked Questions

Can I hold both ZTRE and TAXS in my portfolio?

ZTRE and TAXS have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZTRE or TAXS?

On fees, TAXS is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZTRE or TAXS?

TAXS is cheaper with a 0.05% expense ratio, compared with 0.15% for ZTRE.

Which ETF pays a higher dividend yield, ZTRE or TAXS?

ZTRE has the higher dividend yield at 4.19%, compared with 2.03% for TAXS.

What is the main difference between ZTRE and TAXS?

ZTRE is categorized as Short-Term Bond, while TAXS is Municipal Bonds. ZTRE tracks ICE 3-Year US Target Maturity Corporate Index - Benchmark TR Gross, while TAXS tracks ICE Short Term Focused Municipal Bond Index. They also come from different issuers: F/m and Northern Trust. Their fees differ too: 0.15% for ZTRE and 0.05% for TAXS.