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MUB
iShares National Muni Bond ETF · Bond ETF
$106.91
+0.24% this month
VERSUS
⟷
COMPARE
VTEB
Vanguard Tax-Exempt Bond ETF · Bond ETF
$50.26
+0.22% this month
Scoreboard verdict
Across expense ratio, momentum, yield, fund size, risk
MUB
1
VTEB
4
Comparison scoreboard
VTEB LEADS 4/5Exp. Ratio
MUB 0.05%
VTEB ✓0.03%
1Y Return
MUB +5.72%
VTEB ✓+6.01%
Div. Yield
MUB 3.16%
VTEB ✓3.34%
AUM
MUB $45.82B
VTEB ✓$48.79B
Beta
MUB ✓0.24
VTEB 0.25
Metrics last refreshed: 7/9/2026
Quick take
MUB vs VTEB ETF Comparison: AI Score, Valuation, Performance and Upside
MUB and VTEB are the two premier national municipal bond ETFs — both holding investment-grade, federally tax-exempt bonds with minimal practical differences. VTEB is slightly cheaper (0.05% vs 0.07%); MUB is more liquid ($35B+ vs $30B+ AUM). For high-income investors in taxable accounts (32%+ federal bracket), either ETF is an excellent tool for generating tax-advantaged income. The choice between them is genuinely minor.
MUB vs VTEB — both are national muni bond ETFs for high-income taxpayers seeking federal-tax-exempt interest income — the primary differentiators are expense ratio (VTEB 0.05% vs MUB 0.07%) and liquidity (MUB larger AUM for institutional trading) rather than meaningful investment thesis differences.
Live analysis · updated 7/9/2026
VTEB holds the edge across 4 of 5 key metrics in this comparison. VTEB has delivered stronger 1-year price return (+6.01% vs +5.72% for MUB).
Normalized 1Y performance
MUB
VTEB
Recent returns
MUB
VTEB
Who should consider this stock?
MUB may suit investors who:
- →execute large muni bond allocations at institutional scale where MUB's superior liquidity and tighter bid-ask spreads reduce trading friction for rebalancing and tax-loss harvesting
- →prefer iShares/BlackRock platform integration for portfolio construction tools that use MUB as the muni bond benchmark
- →want the most widely recognized and largest muni bond ETF for performance comparison against peer municipal bond funds
- →make large muni bond trades where MUB's $200M+ daily volume is materially better than VTEB's lower volume for institutional position management
VTEB may suit investors who:
- →prefer Vanguard's cost leadership — VTEB's 0.05% expense ratio vs MUB's 0.07% saves $20/year per $100,000 invested, compounding over multi-decade muni bond holdings in taxable accounts
- →are high-income individual investors with no need for institutional trading liquidity where VTEB's slightly lower volume is irrelevant for typical portfolio sizes
- →hold accounts at Vanguard where VTEB is naturally integrated with Vanguard's portfolio tools and has no transaction costs
- →value Vanguard's broader 8,000+ bond count providing marginally greater individual muni issuer diversification vs MUB's universe
Performance & AI score
| Metric | MUB | VTEB |
|---|---|---|
| ETF score | 62.0 | 56.0 |
| Latest close | $106.91 | $50.26 |
| 1M return | +0.24% | +0.22% |
| 6M return | +0.86% | +1.03% |
| 1Y return | +5.72% | +6.01% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | MUB | VTEB |
|---|---|---|
| 1Y ago | $10.89K (+8.9%) started 2025-07-08 | $10.94K (+9.4%) started 2025-07-08 |
| 5Y ago | $11.92K (+19.2%) started 2021-07-08 | $12K (+20.0%) started 2021-07-08 |
| 10Y ago | $15.81K (+58.1%) started 2016-07-08 | $15.77K (+57.7%) started 2016-07-08 |
Hypothetical — past performance does not guarantee future results.
Fund characteristics
| Metric | MUB | VTEB |
|---|---|---|
| Expense ratio | 0.05% | 0.03% |
| Total assets (AUM) | $45.82B | $48.79B |
| Dividend yield | 3.16% | 3.34% |
| Trailing P/E | N/A | N/A |
| Beta | 0.24 | 0.25 |
| 52-week change | 5.72% | 6.01% |
Risk & fund metrics
| Metric | MUB | VTEB |
|---|---|---|
| 1Y return | +5.72% | +6.01% |
| 6M return | +0.86% | +1.03% |
| 1M return | +0.24% | +0.22% |
| 1Y Sharpe ratio | 0.39 | 0.51 |
| Beta | 0.24 | 0.25 |
| Dividend yield | 3.16% | 3.34% |
| 5Y CAGR | +0.71% | +0.75% |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
MUB max drawdown2.79%
VTEB max drawdown2.71%
MUB max wkly drop1.45%
VTEB max wkly drop1.43%
5Y risk snapshot
MUB max drawdown11.89%
VTEB max drawdown12.64%
MUB max wkly drop3.24%
VTEB max wkly drop3.45%
10Y risk snapshot
MUB max drawdown13.68%
VTEB max drawdown17.00%
MUB max wkly drop9.33%
VTEB max wkly drop10.60%
Performance metrics by period
| Period | Metric | MUB | VTEB |
|---|---|---|---|
| 1Y | Growth | +5.72% | +6.01% |
| CAGR | +5.73% | +6.01% | |
| Sharpe ratio | 0.39 | 0.51 | |
| Max drawdown | 2.79% | 2.71% | |
| Max daily drop | 0.88% | 0.86% | |
| Max wkly drop | 1.45% | 1.43% | |
| 5Y | Growth | +3.60% | +3.78% |
| CAGR | +0.71% | +0.75% | |
| Sharpe ratio | -0.91 | -0.94 | |
| Max drawdown | 11.89% | 12.64% | |
| Max daily drop | 1.82% | 2.01% | |
| Max wkly drop | 3.24% | 3.45% | |
| 10Y | Growth | +19.83% | +20.73% |
| CAGR | +1.83% | +1.90% | |
| Sharpe ratio | -0.52 | -0.47 | |
| Max drawdown | 13.68% | 17.00% | |
| Max daily drop | 6.15% | 5.85% | |
| Max wkly drop | 9.33% | 10.60% |
Fund overview
| Category | MUB | VTEB |
|---|---|---|
| Fund name | iShares National Muni Bond ETF | Vanguard Tax-Exempt Bond Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratio | 0.05% | 0.03% |
| Total assets (AUM) | $45.82B | $48.79B |
| Dividend yield | 3.16% | 3.34% |
MUB strengths
- →Federal tax-exempt income: MUB's interest is exempt from federal income taxes — for high-income investors in 37% brackets, a 3% muni yield equals a 4.8% taxable equivalent yield
- →Highest muni ETF liquidity: $35B+ AUM and $200M+ daily trading volume make MUB the most liquid muni bond ETF — institutional depth for large tax-loss harvesting and rebalancing trades
- →High credit quality: MUB's municipal bonds are predominantly investment-grade (A/AA) — municipal default rates are historically very low vs corporate bonds at equivalent ratings
VTEB strengths
- →0.05% expense ratio vs MUB's 0.07%: Vanguard's characteristic cost leadership — 0.02% lower expense on a large muni bond allocation compounds meaningfully over time
- →8,000+ bond diversification: VTEB's broader bond count vs MUB provides greater individual municipal issuer diversification — reducing single-issuer concentration risk
- →S&P muni index methodology: VTEB's index may include bonds excluded from MUB's ICE index — slight universe difference creating portfolio diversification vs MUB
Risks to watch — MUB
- →0.07% expense ratio vs VTEB's 0.05%: small but meaningful cost difference on a bond fund where yield matters more than in equity ETFs
- →AMT exposure exclusion: 'AMT-free' in the index name means MUB excludes bonds subject to the Alternative Minimum Tax — limiting its universe slightly
- →Interest rate duration risk: MUB's 5-7 year effective duration creates mark-to-market losses when interest rates rise — not capital-preservation in rising rate environments
Risks to watch — VTEB
- →Lower AUM and trading volume than MUB: VTEB has smaller AUM than MUB — slightly wider bid-ask spreads for institutional-scale muni bond trading
- →Near-identical to MUB for most purposes: the 0.02% expense difference and index methodology differences create minimal practical performance divergence — the choice is negligible for most investors
- →Same duration and credit risk as MUB: VTEB's interest rate and credit risk profile is essentially identical to MUB — lower cost is the only meaningful differentiation
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