TAFL vs TAXM
AB Tax-Aware Long Municipal ETF vs BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents
Which is better, TAFL or TAXM?
Nearly the same fund. TAFL costs less.
TAFL has a lower expense ratio. TAXM led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95.
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 | TAFL | TAXM |
|---|---|---|
| Expense Ratio | 0.28%Best | 0.35% |
| AUM | $60M | $40M |
| Dividend Yield | 4.37% | 3.43% |
| Holdings | 326 | 162 |
| YTD Return | -4.38% | -3.22%Best |
| 1Y Return | -3.64% | -2.42%Best |
| Volatility (annualized) | 6.3% | 4.7%Best |
| Max Drawdown | -8.1% | -6.2%Best |
| $10,000 over 1.6 years | $9,955 | $10,040Best |
| Fund Family | AllianceBernstein L.P. | BondBloxx |
| Category | Tax Preferred | Tax Preferred |
| Style | Municipal Bond | Municipal Bond |
| Inception | Dec 13, 2023 | Mar 13, 2025 |
Not shown on this pair: 3Y Return (annualized), 5Y Return (annualized), 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).
TAFL 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.
TAFL vs TAXM Performance
AB Tax-Aware Long Municipal ETF (TAFL) is an ETF from AllianceBernstein L.P. and BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) is an ETF from BondBloxx. Over the past year TAFL returned -3.64% while TAXM returned -2.42%. Year to date, TAFL is down 4.38% versus a loss of 3.22% for TAXM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TAFL has been the more volatile fund, with annualized monthly volatility of 6.3% 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 -8.1% for TAFL 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
TAFL charges 0.28% per year while TAXM charges 0.35%. On a $10,000 position that is $28 vs $35 annually, a gap of $7 per year that compounds over a long holding period. On income, TAFL currently yields 4.37% against 3.43% for TAXM.
Holdings Overlap
We hold position weights for 68 holdings in TAFL and 69 in TAXM, totalling 50.6% 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, 1 positions appear in both.
1 positions in common, counted across the 68 positions we hold weights for in TAFL and 69 in TAXM, against full books of 326 and 162.
Top Shared Holdings
| Stock | Weight in TAFL | Weight in TAXM | Difference |
|---|---|---|---|
| NY NYC 5 09/01/2048New York City, New York, General Obligation Bonds, Fiscal 2025 Series C-1 | 1.50% | 0.80% | 0.70% |
You are not choosing between two funds in isolation.
Whichever of TAFL 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, TAFL or TAXM?
TAFL has an expense ratio of 0.28% while TAXM charges 0.35%. TAFL is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, TAFL or TAXM?
Over the past year TAFL returned -3.64% vs -2.42% for TAXM, so TAXM leads on 1-year performance. Over the longest common window we track (2 years), TAFL annualized -0.28% vs +0.25% for TAXM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TAFL or TAXM?
TAFL has been the more volatile fund at 6.3% annualized versus 4.7% for TAXM. Worst drawdown: TAFL -8.1% vs TAXM -6.2%.
Should I hold both TAFL and TAXM?
TAFL and TAXM have a monthly-return correlation of 0.95, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, TAFL or TAXM?
TAFL yields 4.37% while TAXM yields 3.43%, so TAFL currently pays the higher dividend yield.
Is TAXM better than TAFL?
TAFL has a lower expense ratio. TAXM led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95. Which one suits a particular account depends on what it is for. This is information, not a recommendation.