ETF Evaluator:
AB Tax-Aware Short Dur Municipal ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Muni National Short Over the Last Year
| 5.4% | abrdn Ultra Short Municipal Inc Act ETF (AMUN) |
| 3.2% | Vanguard Short Duration Tax-Exm Bd ETF (VSDM) |
| 3.2% | Capital Group Short Dur Muncpl Inc ETF (CGSM) |
| 3.2% | NYLI MacKay Muni Short Duration ETF (MMSD) |
| 3.2% | PGIM Ultra Short Municipal Bond ETF (PUSH) |
Risk
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ETF Details
AB Tax-Aware Short Dur Municipal ETF Overview
AB Tax-Aware Short Dur Municipal ETF (TAFI) is an actively managed Municipal Bond Muni National Short exchange-traded fund (ETF). AllianceBernstein launched the ETF in 2022.
The investment seeks to provide relative stability of principal and a moderate rate of after-tax return and income.
The fund is an actively-managed exchange-traded fund (“ETF”). It pursues its objective by investing principally in a national portfolio of both municipal and taxable fixed-income securities. The fund invests, under normal circumstances, at least 80% of its total assets in municipal securities that pay interest that is exempt from federal income tax. These securities may pay interest that is subject to the federal alternative minimum tax for certain taxpayers.
About AB Tax-Aware Short Dur Municipal ETF (TAFI)
There are 3 members of the management team with an average tenure of 3.70 years: Daryl Clements (2023), Matthew Norton (2022) and Andrew Potter (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and Bloomberg Municipal 1-5 Yr MV USD index with a weighting of 100%. AB Tax-Aware Short Dur Municipal ETF has 710 securities in its portfolio. The top 10 holdings constitute 9.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
AB Tax-Aware Short Dur Municipal ETF is part of the Fixed Income global asset class and is within the Municipal Bond ETF group. AB Tax-Aware Short Dur Municipal ETF has 2.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 94.3% (92.2% domestic bond, 2.1% foreign bond and 0.0% convertible bond). AB Tax-Aware Short Dur Municipal ETF has 5.7% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is above the $1 billion average for the Muni National Short category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
TAFI Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The AB Tax-Aware Short Dur Municipal ETF expense ratio is below average compared to funds in the Muni National Short category. AB Tax-Aware Short Dur Municipal ETF has an expense ratio of 0.27%, which is 28% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. AB Tax-Aware Short Dur Municipal ETF has a portfolio turnover rate of 35%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 56% for the Muni National Short category.
Recently, in the month of July 2026, AB Tax-Aware Short Dur Municipal ETF returned -0.4%, which earned it a grade of D, as the Muni National Short category had an average return of -0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
AB Tax-Aware Short Dur Municipal ETF has a trailing yield of 3.13%, which is above the 2.91% category average.
The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
AB Tax-Aware Short Dur Municipal ETF Grades
Year to date, the ETF has returned 1.0%, 0.2 percentage points worse than the category, which translates into a grade of D. The fund has returned 2.8% over the past year (grade of C) and 3.4% over the past three years (grade of A).
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TAFI Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| TAFI Return (NAV) | -0.4% | 0.2% | 2.8% | 3.4% | na | na |
| TAFI Return (Price) | -0.4% | 0.2% | 2.7% | 3.4% | na | na |
| NAV +/- Price Return | -0.054% | 0.026% | 0.021% | 0.017% | na | na |
| Muni National Short Avg | -0.2% | 0.4% | 2.8% | 3.2% | 1.7% | 1.5% |
| TAFI Grade (NAV) | D | D | C | A | na | na |
| +/- Category (NAV) | -0.2% | -0.1% | 0.0% | 0.3% | na | na |
| TAFI Tax-Cost Ratio | na | na | 0.0% | 0.0% | na | na |
TAFI Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| TAFI Return (NAV) | 1.0% | 4.2% | 2.6% | 4.2% | na | na | na | na | na | na | na |
| TAFI Return (Price) | 0.9% | 4.4% | 2.5% | 4.1% | na | na | na | na | na | na | na |
| NAV +/- Price Ret | -0.055% | 0.036% | -0.063% | -0.025% | na | na | na | na | na | na | na |
| Muni National Short Avg | 1.1% | 3.8% | 2.7% | 3.8% | -2.1% | 0.4% | 2.1% | 3.0% | 1.3% | 1.5% | -0.1% |
| TAFI Grade (NAV) | D | B | C | B | na | na | na | na | na | na | na |
| +/- Category | -0.2% | 0.4% | -0.1% | 0.4% | na | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | 0.35 |
| R-Squared: | 90% |
| Standard Deviation: | 2.1% |
| Category Risk Index: | 1.18 |
| Category Risk Rating: | High |
| Total Risk Index: | 0.17 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 3.1% |
| Total Assets: | $ 1,367 Mil |
| Share Class Assets: | $ 1,367 Mil |
| Turnover: | 35.0% |
| Expense Ratio: | 0.27% |
| Index Fund: | No |
| Index Tracked: | Bloomberg Municipal TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 3.9 years | |||
| Average Tenure: 3.7 years | |||
| Managers (Year): Norton Matthew (2022), Potter Andrew (2022), Clements Daryl (2023) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 710 |
| % in Top 10 Holdings: | 9.6% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 2.1% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 92.2% |
| Foreign Bond: | 2.1% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 5.7% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | AllianceBernstein |
| Phone Number: | 800-243-5994 |
| Website: | |
| Inception Date: | September 13, 2022 |
Expenses and Fees
| Expense Ratio (%): | 0.27% (Rating: Below Avg) |
| Category Average Expense Ratio (%): | 0.21% |
