DSM vs TAXM
BNY Mellon Strategic Municipal Bond Fund Inc vs BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents
Which is better, DSM or TAXM?
TAXM has been ahead.
TAXM has a lower expense ratio. TAXM 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 | TAXM |
|---|---|---|
| Expense Ratio | 1.09% | 0.35%Best |
| AUM | $335M | $40M |
| Dividend Yield | 5.50% | 3.43% |
| Holdings | 233 | 162 |
| YTD Return | -13.99% | -3.22%Best |
| 1Y Return | -10.44% | -2.42%Best |
| 3Y Return (annualized) | +5.32% | - |
| 5Y Return (annualized) | -4.62% | - |
| Volatility (annualized) | 11.8% | 4.7%Best |
| Max Drawdown | -19.8% | -6.2%Best |
| $10,000 over 1.6 years | $9,441 | $10,040Best |
| Fund Family | BNY Mellon Investment Management | BondBloxx |
| Category | Tax Preferred | Tax Preferred |
| Style | Municipal Bond | Municipal Bond |
| Inception | Nov 22, 1989 | Mar 13, 2025 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 1.6 years row, are measured over the window both funds cover: Mar 13, 2025 to Oct 14, 2026 (1.6 years).
DSM vs TAXM 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 1.6 years both funds cover.
DSM vs TAXM Performance
BNY Mellon Strategic Municipal Bond Fund Inc (DSM) is an ETF from BNY Mellon Investment Management and BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) is an ETF from BondBloxx. Over the past year DSM returned -10.44% while TAXM returned -2.42%. Year to date, DSM is down 13.99% versus a loss of 3.22% for TAXM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DSM has been the more volatile fund, with annualized monthly volatility of 11.8% compared with 4.7% for TAXM. 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 -6.2% for TAXM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DSM charges 1.09% per year while TAXM charges 0.35%. On a $10,000 position that is $109 vs $35 annually, a gap of $74 per year that compounds over a long holding period. On income, DSM currently yields 5.50% against 3.43% for TAXM.
Holdings Overlap
We hold position weights for 101 holdings in DSM and 69 in TAXM, totalling 41.1% and 32.5% 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, 3 positions appear in both.
The two holdings books were reported 63 days apart, DSM as of Jul 31, 2026 and TAXM as of Oct 2, 2026, so some of the difference between them is the time between the two reports rather than the funds.
3 positions in common, counted across the 101 positions we hold weights for in DSM and 69 in TAXM, against full books of 233 and 162.
Top Shared Holdings
| Stock | Weight in DSM | Weight in TAXM | Difference |
|---|---|---|---|
| AL SEEPWR 05/01/2055Southeast Energy Authority A Cooperative District 5 05/01/2055 | 1.33% | 0.49% | 0.84% |
| AL BBEUTL 06/01/2049Black Belt Energy Gas Dist Ala 5.5% Feb 01, 2029 | 1.34% | 0.28% | 1.06% |
| CA CCEDEV 02/01/2055Ca Cmnyy Choice-F 5 2/1/2055 | 0.30% | 0.52% | 0.22% |
You are not choosing between two funds in isolation.
Whichever of DSM and TAXM 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 TAXM?
DSM has an expense ratio of 1.09% while TAXM charges 0.35%. TAXM is the cheaper option, by $74 a year on a $10,000 investment.
Which performed better, DSM or TAXM?
Over the past year DSM returned -10.44% vs -2.42% for TAXM, so TAXM leads on 1-year performance. Over the longest common window we track (2 years), DSM annualized -3.53% vs +0.25% for TAXM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DSM or TAXM?
DSM has been the more volatile fund at 11.8% annualized versus 4.7% for TAXM. Worst drawdown: DSM -19.8% vs TAXM -6.2%.
Should I hold both DSM and TAXM?
DSM and TAXM have a monthly-return correlation of 0.84, 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 TAXM?
DSM yields 5.50% while TAXM yields 3.43%, so DSM currently pays the higher dividend yield.
Is TAXM better than DSM?
TAXM has a lower expense ratio. TAXM 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.