ETF Versus

MUB vs VTEB

iShares National Muni Bond ETF vs Vanguard Tax-Exempt Bond Index Fund ETF Shares

Last updated: 2026-04-02

MUB

iShares National Muni Bond ETF (MUB) is an exchange-traded fund that provides exposure to us municipal bond securities. It charges a very low expense ratio of 0.05%. The fund offers an attractive dividend yield of 3.18%. Launched in 2007, the fund has a 19-year track record.

AUM: $42.4B ER: 0.05% Yield: 3.18% Since: Sep 7, 2007
VTEB

Vanguard Tax-Exempt Bond Index Fund ETF Shares (VTEB) is an exchange-traded fund that provides exposure to us municipal bond securities. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.37%. Launched in 2015, the fund has a 11-year track record.

AUM: $41.2B ER: 0.03% Yield: 3.37% Since: Aug 21, 2015

Quick Verdict

VTEB has a slightly lower expense ratio (0.03% vs 0.05%), saving about $40 per $10,000 over 10 years. Both funds have delivered similar 1-year returns (0.8% vs 0.5%), tracking closely.

Key Metrics

Metric MUB VTEB
Expense Ratio 0.05% 0.03%
Dividend Yield 3.2% 3.4%
Fund Family N/A N/A
Category US Municipal Bond US Municipal Bond

Performance Chart

Indexed to 100 at start (5-year comparison)

85 89 93 97 101 105 2021-04 2022-06 2023-09 2024-12 2026-04
MUB -8.3%
VTEB -8.6%

Performance Comparison

Period MUB VTEB Difference
1 Month -1.81% -1.89% +0.08%
3 Months -0.87% -0.91% +0.04%
6 Months -0.07% -0.14% +0.07%
YTD -0.87% -0.91% +0.04%
1 Year +0.76% +0.46% +0.30%
3 Years -1.21% -1.32% +0.11%
5 Years -8.28% -8.56% +0.28%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period MUB Fees VTEB Fees You Save
$10.000 10 years $100 $60 $40
$10.000 20 years $430 $258 $171
$10.000 30 years $1.388 $835 $553
$50.000 10 years $499 $299 $199
$50.000 30 years $6.941 $4.176 $2.765
$100.000 30 years $13.882 $8.352 $5.531

Risk Metrics

Based on 5 years of daily returns

Metric MUB VTEB
Annualized Volatility 4.1% 3.9%
Max Drawdown -14.4% -14.8%
Sharpe Ratio -1.51 -1.59

Dividend Comparison

Metric MUB VTEB
Annual Dividend (per share) $3.38 $1.68
Dividend Yield 3.18% 3.36%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose VTEB if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Either works if...

you just need broad us municipal bond exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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