TAFM vs TAXM
AB Tax-Aware Intermediate Municipal ETF vs BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents
Which is better, TAFM or TAXM?
Nearly the same fund. TAFM costs less.
TAFM has a lower expense ratio. TAFM led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.99.
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 | TAFM | TAXM |
|---|---|---|
| Expense Ratio | 0.28%Best | 0.35% |
| AUM | $1.0B | $40M |
| Dividend Yield | 3.85% | 3.43% |
| Holdings | 1,404 | 162 |
| YTD Return | -3.22%Tie | -3.22%Tie |
| 1Y Return | -2.29%Best | -2.42% |
| Volatility (annualized) | 5.1% | 4.7%Best |
| Max Drawdown | -6.6% | -6.2%Best |
| $10,000 over 1.6 years | $10,043Best | $10,040 |
| 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).
TAFM 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.
TAFM vs TAXM Performance
AB Tax-Aware Intermediate Municipal ETF (TAFM) 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 TAFM returned -2.29% while TAXM returned -2.42%. Year to date, TAFM is down 3.22% versus a loss of 3.22% for TAXM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TAFM has been the more volatile fund, with annualized monthly volatility of 5.1% 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 -6.6% for TAFM 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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
TAFM 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, TAFM currently yields 3.85% against 3.43% for TAXM.
Holdings Overlap
We hold position weights for 234 holdings in TAFM and 69 in TAXM, totalling 28.8% 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, 11 positions appear in both.
11 positions in common, counted across the 234 positions we hold weights for in TAFM and 69 in TAXM, against full books of 1,404 and 162.
Top Shared Holdings
| Stock | Weight in TAFM | Weight in TAXM | Difference |
|---|---|---|---|
| NY MTATRN 5 11/15/20Ny Met Transprtn Auth Rev 5.00% 2050-11-15 | 0.04% | 1.32% | 1.28% |
| TX TXSTRN 5 08/15/20Texas Transn Commn Cent Tex Tp 5% Aug 15, 2040 | 0.02% | 1.27% | 1.25% |
| MA MASTRN 5 07/01/20Massachusetts Bay Transportation Authority, 5% 1jul2052, USD | 0.18% | 1.09% | 0.91% |
| MA MASDEV 5.25 06/01Massachusetts Development Finance Agency 0.0525 06/01/2055 | 0.12% | 0.89% | 0.77% |
| NY NYC 5 09/01/2048New York City, New York, General Obligation Bonds, Fiscal 2025 Series C-1 | 0.12% | 0.80% | 0.68% |
| NY NYCFAC 5 07/15/20New York City Transitional Fin Auth 5 07/15/2034 | 0.02% | 0.82% | 0.80% |
| IL ILSTRN 5 01/01/20Illinois St Toll Hwy Auth Toll 5% Jan 01, 2045 | 0.36% | 0.41% | 0.05% |
| MA MASDEV 5 07/01/20Massachusetts St D 5 7/55 5 | 0.12% | 0.59% | 0.47% |
| CA CCEDEV 02/01/2055Ca Cmnyy Choice-F 5 2/1/2055 | 0.09% | 0.52% | 0.43% |
| GA MAIUTL 12/01/2055Main Street Natural Gas Inc Ga 5.00 2055-12-01 | 0.24% | 0.24% | 0.00% |
You are not choosing between two funds in isolation.
Whichever of TAFM 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, TAFM or TAXM?
TAFM has an expense ratio of 0.28% while TAXM charges 0.35%. TAFM is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, TAFM or TAXM?
Over the past year TAFM returned -2.29% vs -2.42% for TAXM, so TAFM leads on 1-year performance. Over the longest common window we track (2 years), TAFM annualized +0.27% vs +0.25% for TAXM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TAFM or TAXM?
TAFM has been the more volatile fund at 5.1% annualized versus 4.7% for TAXM. Worst drawdown: TAFM -6.6% vs TAXM -6.2%.
Should I hold both TAFM and TAXM?
TAFM and TAXM have a monthly-return correlation of 0.99, 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, TAFM or TAXM?
TAFM yields 3.85% while TAXM yields 3.43%, so TAFM currently pays the higher dividend yield.
Is TAXM better than TAFM?
TAFM has a lower expense ratio. TAFM led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.99. Which one suits a particular account depends on what it is for. This is information, not a recommendation.