Category Review
Municipal bond funds are down for the year after a third-quarter selloff erased the first-half gain
American Century Diversified Municipal Bond ETF
$47.47+0.12 (+0.25%)
- 0.25%
- $695M
- −1.9%
- 4.06%
- 0.1M sh
- $47.28
- low $46.89high $51.42
The ETF.net TAXF Grade
A
Score 73 out of 100
- 12 of 63
Score 73 of 100 falls in the A band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.A71 out of 100Rank 17 of 63Mission
Whether the fund did what it promised, tested against its stated mandate.A95 out of 100Rank 18 of 59Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.C53 out of 100Rank 26 of 63Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.B59 out of 100Rank 22 of 63Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.A82 out of 100Rank 13 of 63Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.B61 out of 100Rank 29 of 63
Our read on TAXF
AMost muni ETFs track an index and call it a day. TAXF is actively run and roams the full muni credit ladder, from investment grade into high yield, hunting income that's exempt from federal tax.
Seeks current income exempt from federal income tax through an actively managed portfolio of municipal bonds spanning investment-grade and high-yield quality levels.
Why people hold it
- Managers can move across quality levels, investment grade through high yield, rather than holding whatever an index dictates.americancentury.com
- 0.29% a year puts it near the middle of the muni ETF pack, a modest toll for a fund with humans picking the bonds.
- Income is structured to land monthly and is exempt from federal income tax.res.americancentury.com
- Roughly 800 bonds behind a 2018 launch, and it stands in the upper tier of the muni ETF field on our review.
Worth knowing
- Index giants like VTEB and MUB charge a few basis points. Active management here costs meaningfully more, and that gap compounds.
- The high-yield sleeve brings credit risk that pure investment-grade muni funds don't carry.americancentury.com
- Trading is thin next to the category's biggest names, so bid-ask spreads can run wider, especially on large or fast orders.
TAXF Holdings
- Bonds
- 785
- 9%
- BlackRock Cash Sweep BlackRock Liq Fd Municash In
Geography
- United States100.00%
TAXF Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
Not enough history yet.
TAXF$9,807
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | TAXF |
|---|---|
| Year to date | −3.2% |
| 1 month | −2.3% |
| 3 months | −5.4% |
| 1 year | −1.9% |
| 3 years | +3.2% |
| 5 years | +0.1% |
| 10 years | — |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | TAXF |
|---|---|---|
| 2026 YTD | −3.2% | |
| 2025 | +4.3% | |
| 2024 | +1.7% | |
| 2023 | +7.3% | |
| 2022 | −9.6% | |
| 2021 | +2.7% | |
| 2020 | +5.6% |
TAXF in the news
TAXF Dividends
- 4.06%
- $1.92
- $0.17 per share
- Monthly
Distribution history
TAXF Risk
- 5.8%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- −0.20
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −13.6%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 0.96
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
TAXF Cost
0.25%
TAXF0.25%
- The middle half of Other Municipal Bond funds
- Median 0.30%
16 of the 63 Other Municipal Bond funds charge less.
Other funds in Other Municipal Bond
- ADFNMDimensional - National Municipal Bond ETFExpense ratio 0.18%1 year return −1.1%
- AGMUBGoldman Sachs Municipal Income ETFExpense ratio 0.18%1 year return −0.5%
- ACGMUCapital Group Municipal Income ETFExpense ratio 0.27%1 year return −1.2%
- AFLMIFranklin Dynamic Municipal Bond ETFExpense ratio 0.30%1 year return −1.9%
- AFMUNFidelity Systematic Municipal Bond Index ETFExpense ratio 0.05%1 year return −2.6%