DSM vs TAFM
BNY Mellon Strategic Municipal Bond Fund Inc vs AB Tax-Aware Intermediate Municipal ETF
Which is better, DSM or TAFM?
TAFM has been ahead.
TAFM has a lower expense ratio. TAFM led over 1Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DSM | TAFM |
|---|---|---|
| Expense Ratio | 1.09% | 0.28%Best |
| AUM | $335M | $1.0B |
| Dividend Yield | 5.50% | 3.85% |
| Holdings | 233 | 1,404 |
| YTD Return | -13.99% | -3.22%Best |
| 1Y Return | -10.44% | -2.29%Best |
| 3Y Return (annualized) | +5.32% | - |
| 5Y Return (annualized) | -4.62% | - |
| Volatility (annualized) | 11.1% | 4.5%Best |
| Max Drawdown | -19.8% | -6.6%Best |
| $10,000 over 2.8 years | $10,311 | $10,504Best |
| Fund Family | BNY Mellon Investment Management | AllianceBernstein L.P. |
| Category | Tax Preferred | Tax Preferred |
| Style | Municipal Bond | Municipal Bond |
| Inception | Nov 22, 1989 | Dec 13, 2023 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.8 years row, are measured over the window both funds cover: Dec 13, 2023 to Oct 14, 2026 (2.8 years).
DSM vs TAFM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.8 years both funds cover.
DSM vs TAFM Performance
BNY Mellon Strategic Municipal Bond Fund Inc (DSM) is an ETF from BNY Mellon Investment Management and AB Tax-Aware Intermediate Municipal ETF (TAFM) is an ETF from AllianceBernstein L.P.. Over the past year DSM returned -10.44% while TAFM returned -2.29%. Year to date, DSM is down 13.99% versus a loss of 3.22% for TAFM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DSM has been the more volatile fund, with annualized monthly volatility of 11.1% compared with 4.5% for TAFM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -19.8% for DSM and -6.6% for TAFM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DSM charges 1.09% per year while TAFM charges 0.28%. On a $10,000 position that is $109 vs $28 annually, a gap of $81 per year that compounds over a long holding period. On income, DSM currently yields 5.50% against 3.85% for TAFM.
Holdings Overlap
We hold position weights for 101 holdings in DSM and 234 in TAFM, totalling 41.1% and 28.8% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 18 positions appear in both.
The two holdings books were reported 66 days apart, DSM as of Jul 31, 2026 and TAFM as of Oct 5, 2026, so some of the difference between them is the time between the two reports rather than the funds.
18 positions in common, counted across the 101 positions we hold weights for in DSM and 234 in TAFM, against full books of 233 and 1,404.
Top Shared Holdings
| Stock | Weight in DSM | Weight in TAFM | Difference |
|---|---|---|---|
| OH BUCGEN 5 06/01/20Buckeye Tobacco Settlement Financing Auth Oh Ref-Senior-Class 2-Ser B-2 5.000 Jun 01 55 | 1.69% | 0.26% | 1.43% |
| NY NYTTRN 5 12/01/20New York St Transprtn Dev Corp Regd B/E Amt 5.00000000 | 0.87% | 0.12% | 0.75% |
| TX HOUAPT 5.5 07/15/City Of Houston, Series 2024 B 5.5 07/15/2038 | 0.74% | 0.12% | 0.62% |
| TX GPTTRN 4 10/01/20Grand Parkway Transprtn Corp T Gpttrn 10/49 Fixed 4 | 0.49% | 0.26% | 0.23% |
| WV WVSMED 5.5 06/01/West Virginia 5.5% 06/50 | 0.51% | 0.21% | 0.30% |
| AL BBEUTL 03/01/2055Black Belt Energy Gas Dist Ala 5% Nov 01, 2034 | 0.43% | 0.28% | 0.15% |
| SC SCSUTL 4 12/01/20South Carolina St Public Svc A 4 12/01/2055 | 0.43% | 0.12% | 0.31% |
| IN INPGEN 5.25 03/01Indianapolis In Local Public I Inpgen 03/67 Fixed Oid 5.25 | 0.36% | 0.19% | 0.17% |
| TX TMGUTL 01/01/2054Texas St Muni Gas Acquisition & Sply Corp Iv Variable Rate, Due 01/01/2054 | 0.44% | 0.03% | 0.41% |
| AL ESDPWR 07/01/2054Energy S E Al A Cooperative 07/54 1 | 0.29% | 0.18% | 0.11% |
You are not choosing between two funds in isolation.
Whichever of DSM and TAFM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DSM or TAFM?
DSM has an expense ratio of 1.09% while TAFM charges 0.28%. TAFM is the cheaper option, by $81 a year on a $10,000 investment.
Which performed better, DSM or TAFM?
Over the past year DSM returned -10.44% vs -2.29% for TAFM, so TAFM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DSM or TAFM?
DSM has been the more volatile fund at 11.1% annualized versus 4.5% for TAFM. Worst drawdown: DSM -19.8% vs TAFM -6.6%.
Should I hold both DSM and TAFM?
DSM and TAFM have a monthly-return correlation of 0.85, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, DSM or TAFM?
DSM yields 5.50% while TAFM yields 3.85%, so DSM currently pays the higher dividend yield.
Is TAFM better than DSM?
TAFM has a lower expense ratio. TAFM led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.