TAXS ETF — Holdings & Analysis

The Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS) is a passively managed fixed-income ETF from FlexShares, with $0.08 billion in assets under management.

Launched in August 2025, TAXS seeks to replicate the ICE Short-term Focused Municipal Bond Index, offering investors exposure to investment-grade municipal bonds with short-term maturities, specifically those between 1 and 5 years. TAXS distinguishes itself with a low expense ratio of 0.05%, making it an attractive option for tax-exempt income seekers.

Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS) ETF — Price, Holdings & Analysis

The Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS) is a passively managed fixed-income ETF from FlexShares, with $0.08 billion in assets under management. Launched in August 2025, TAXS seeks to replicate the ICE Short-term Focused Municipal Bond Index, offering investors exposure to investment-grade municipal bonds with short-term maturities, specifically those between 1 and 5 years. TAXS distinguishes itself with a low expense ratio of 0.05%, making it an attractive option for tax-exempt income seekers.

ETF Overview

The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the ICE Short-term Focused Municipal Bond Index (Underlying Index).For investors seeking tax-exempt income from a passively managed investment-grade municipal bond ETF with short-term maturities (1-5 years).

TAXS aims to mirror the performance of the ICE Short-term Focused Municipal Bond Index, focusing on investment-grade municipal bonds with maturities ranging from 1 to 5 years. This strategy makes it suitable for investors seeking tax-exempt income with lower interest rate sensitivity due to the short-term nature of the holdings. The fund's portfolio comprises 990 holdings, providing diversification within the short-term municipal bond market. By focusing on short-term maturities, TAXS seeks to minimize the impact of interest rate fluctuations on the portfolio's value. The ETF is designed for investors who prioritize capital preservation and tax efficiency over higher yields typically associated with longer-term bonds. Its passive management approach ensures that the fund's performance closely tracks the underlying index, offering transparency and predictability. TAXS is particularly appealing to investors in high tax brackets seeking to reduce their tax burden through municipal bond investments.

Risk Metrics

TAXS, with $0.08 billion in AUM, faces some risks inherent to fixed-income investing. While the fund's focus on investment-grade municipal bonds mitigates credit risk, it is still subject to interest rate risk, although the short-term maturities of its holdings help to reduce this risk. The fund's beta of 0.00 indicates very low volatility relative to the broader market. The expense ratio of 0.05% can create a slight drag on performance, but it is relatively low. Concentration risk is moderate, given the fund's 990 holdings, which provides reasonable diversification. Investors should be aware that changes in tax laws could impact the attractiveness of municipal bonds. Past performance does not guarantee future results.

Expense Ratio

0.05%

Dividend Yield

0.00%

JPMorgan International Bond Opportunities ETF (JPIB) — 0.50% expense ratio
IDX Dynamic Fixed Income ETF (DYFI) — 1.12% expense ratio
Invesco Taxable Municipal Bond ETF (BAB) — 0.28% expense ratio
Bluemonte Long Term Bond ETF (BLTD) — 0.23% expense ratio
Academy Veteran Impact ETF (VETZ) — 0.35% expense ratio
Day Hagan / Ned Davis Research Smart Sector Fixed Income ETF (SSFI) — 0.76% expense ratio
Invesco Ultra Short Duration ETF (GSY) — 0.22% expense ratio
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) — 0.49% expense ratio

FlexShares STOXX US ESG Select Index Fund (ESG) (Equity) — 0.33% expense ratio
FlexShares Emerging Markets Quality Low Volatility Index Fund (QLVE) (Equity) — 0.19% expense ratio
FlexShares ESG & Climate High Yield Corporate Core Index Fund (FEHY) (Equity) — 0.23% expense ratio
Northern Trust 2035 Inflation-Linked Distributing Ladder ETF (TIPB) (Fixed Income) — 0.10% expense ratio
Northern Trust 2045 Tax-Exempt Distributing Ladder ETF (MUNC) (Fixed Income) — 0.18% expense ratio

Risk Metrics

Beta: 0.00

Questions & Answers

What is TAXS and what does it track?

The Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS) is a fund managed by FlexShares that aims to replicate the performance of the ICE Short-term Focused Municipal Bond Index.

This index comprises investment-grade municipal bonds with short-term maturities, specifically those between 1 and 5 years.

What is the expense ratio for TAXS?

The expense ratio for TAXS is 0.05%. This means that for every $10,000 invested in the fund, investors will pay $5 in annual expenses.

This expense ratio is relatively low compared to the average expense ratio for similar fixed-income ETFs, which is approximately 0.44%. The low expense ratio makes TAXS a cost-effective option for investors seeking exposure to short-term municipal bonds.

What are the top holdings in TAXS?

As a passively managed ETF, TAXS's holdings mirror those of the ICE Short-term Focused Municipal Bond Index. While specific top holdings can fluctuate, the fund generally invests in a diverse range of municipal bonds from various states and municipalities.

Due to the nature of the index it tracks, the top holdings will consist of short-term municipal bonds with investment-grade ratings.

Is TAXS a good long-term investment?

Whether TAXS is a suitable long-term investment depends on an investor's individual financial goals and risk tolerance. TAXS focuses on short-term municipal bonds, which offer lower yields but also lower interest rate risk compared to longer-term bonds.

The fund's low expense ratio of 0.05% is a positive factor for long-term investors.

How does TAXS compare to similar ETFs?

TAXS distinguishes itself from similar ETFs through its focus on short-term, tax-exempt municipal bonds and its low expense ratio of 0.05%. Many competing ETFs may have higher expense ratios, potentially impacting long-term returns.

While some ETFs may focus on broader municipal bond markets or have different maturity ranges, TAXS specifically targets the short-term segment.

Does TAXS pay dividends?

As of 2026-03-15, TAXS has a dividend yield of 0.00%. While the fund invests in municipal bonds that generate income, the current yield reflects the prevailing interest rate environment and the fund's focus on short-term maturities.

The income generated from the municipal bonds is distributed to shareholders, but the amount may vary over time depending on market conditions.