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American Century Diversified Municipal Bond ETF (TAXF)



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Upturn Advisory Summary
08/14/2025: TAXF (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type ETF | Historic Profit -0.85% | Avg. Invested days 36 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | ETF Returns Performance ![]() |
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Key Highlights
Volume (30-day avg) - | Beta 0.96 | 52 Weeks Range 46.28 - 50.41 | Updated Date 06/29/2025 |
52 Weeks Range 46.28 - 50.41 | Updated Date 06/29/2025 |
Upturn AI SWOT
American Century Diversified Municipal Bond ETF
ETF Overview
Overview
The American Century Diversified Municipal Bond ETF (TAXF) seeks to provide current income exempt from federal income tax by investing in a diversified portfolio of municipal bonds across the credit spectrum.
Reputation and Reliability
American Century Investments has a solid reputation and a long track record in asset management.
Management Expertise
The management team has extensive experience in municipal bond investing.
Investment Objective
Goal
To provide current income exempt from federal income tax.
Investment Approach and Strategy
Strategy: The ETF is actively managed and does not track a specific index. It seeks to identify undervalued municipal bonds across the credit spectrum.
Composition The ETF holds a diversified portfolio of municipal bonds, including both investment-grade and non-investment-grade bonds.
Market Position
Market Share: TAXF holds a relatively small market share compared to larger, more established municipal bond ETFs.
Total Net Assets (AUM): 175000000
Competitors
Key Competitors
- MUB
- ITM
- VTEB
- HYD
Competitive Landscape
The municipal bond ETF market is competitive, with several large players offering broad exposure to the sector. TAXF differentiates itself through its active management and focus on identifying undervalued bonds. A disadvantage is its relatively small AUM, which can affect liquidity. Compared to index-tracking ETFs like MUB or VTEB, TAXF offers the potential for outperformance but also carries the risk of underperformance due to active management.
Financial Performance
Historical Performance: Historical performance data needs to be acquired from financial data providers.
Benchmark Comparison: Benchmark comparison data needs to be acquired from financial data providers.
Expense Ratio: 0.29
Liquidity
Average Trading Volume
Average trading volume is relatively low, reflecting its smaller size.
Bid-Ask Spread
Bid-ask spreads can be wider than those of more liquid ETFs.
Market Dynamics
Market Environment Factors
Economic indicators, interest rate movements, and the overall health of the municipal bond market affect TAXF's performance.
Growth Trajectory
Growth depends on the fund's ability to attract assets through strong performance and effective marketing.
Moat and Competitive Advantages
Competitive Edge
TAXF's competitive edge lies in its active management approach, aiming to outperform passive municipal bond ETFs. The fund seeks to identify undervalued securities through rigorous credit analysis and sector rotation. Its focus on diversification across the credit spectrum provides flexibility in navigating different market environments. This active strategy differentiates it from passive index-tracking funds, offering the potential for alpha generation. However, this potential comes with the risk of underperforming its benchmark.
Risk Analysis
Volatility
Volatility is moderate, reflecting the inherent risk profile of municipal bonds.
Market Risk
Specific risks include interest rate risk, credit risk (particularly for lower-rated bonds), and liquidity risk.
Investor Profile
Ideal Investor Profile
The ideal investor is seeking tax-exempt income and is comfortable with active management and a moderate level of risk.
Market Risk
This ETF is suitable for long-term investors seeking tax-advantaged income, but it may not be ideal for active traders due to lower liquidity.
Summary
The American Century Diversified Municipal Bond ETF (TAXF) is an actively managed ETF that aims to provide tax-exempt income by investing in a diversified portfolio of municipal bonds. Its active approach differentiates it from passive index-tracking funds, providing the potential for outperformance but also the risk of underperformance. The fund invests across the credit spectrum, including both investment-grade and non-investment-grade bonds. It is best suited for long-term investors who are seeking tax-advantaged income and are comfortable with active management and moderate risk, even though its current market share in the broader sector is low.
Peer Comparison
Sources and Disclaimers
Data Sources:
- American Century Investments
- ETF.com
- Morningstar
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice. Market data is subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About American Century Diversified Municipal Bond ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The fund invests in municipal and other debt securities. Under normal market conditions, the portfolio managers invest at least 80% of the fund's net assets, plus borrowings for investment purposes, in municipal securities with interest payments exempt from federal income tax. The fund principally invests in investment-grade debt securities but may invest in high-yield securities (junk bonds).

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