ETF Versus

BND vs MUB

Vanguard Total Bond Market Index Fund vs iShares National Muni Bond ETF

Last updated: 2026-04-10

BND Vanguard

Vanguard Total Bond Market Index Fund (BND) is an exchange-traded fund issued by Vanguard that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.92%. Launched in 2007, the fund has a 19-year track record.

AUM: $152.0B ER: 0.03% Yield: 3.92% Since: Apr 3, 2007
MUB iShares

iShares National Muni Bond ETF (MUB) is an exchange-traded fund issued by iShares 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 3.17%. Launched in 2007, the fund has a 19-year track record.

AUM: $43.4B ER: 0.05% Yield: 3.17% Since: Sep 7, 2007

Quick Verdict

BND has a slightly lower expense ratio (0.03% vs 0.05%), saving about $40 per $10,000 over 10 years. MUB has edged ahead over the past year (3.9% vs 2.2%). Income investors may prefer BND for its higher yield (3.9% vs 3.2%).

Key Metrics

Metric BND MUB
Expense Ratio 0.03% 0.05%
Dividend Yield 3.9% 3.2%
Fund Family Vanguard iShares
Category US Aggregate Bond US Municipal Bond

Performance Chart

Indexed to 100 at start (5-year comparison)

80 85 90 95 100 105 2021-04 2022-07 2023-10 2025-01 2026-04
BND -13.3%
MUB -8.1%

Performance Comparison

Period BND MUB Difference
1 Month -0.29% -0.29% +0.00%
3 Months -0.73% -0.58% -0.15%
6 Months -1.29% -0.07% -1.22%
YTD -0.49% -0.29% -0.20%
1 Year +2.18% +3.86% -1.68%
3 Years -0.40% -1.27% +0.87%
5 Years -13.25% -8.14% -5.11%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period BND Fees MUB Fees You Save
$10,000 10 years $60 $100 $40
$10,000 20 years $258 $430 $171
$10,000 30 years $835 $1,388 $553
$50,000 10 years $299 $499 $199
$50,000 30 years $4,176 $6,941 $2,765
$100,000 30 years $8,352 $13,882 $5,531

Risk Metrics

Based on 5 years of daily returns

Metric BND MUB
Annualized Volatility 6.0% 4.1%
Max Drawdown -21.7% -14.4%
Sharpe Ratio -1.19 -1.50

Dividend Comparison

Metric BND MUB
Annual Dividend (per share) $2.89 $3.39
Dividend Yield 3.92% 3.17%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose BND if...

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

Choose BND if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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