ETF Versus

MUB vs VTEB

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

Last updated: 2026-04-10

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
VTEB Vanguard

Vanguard Tax-Exempt Bond Index Fund ETF Shares (VTEB) is an exchange-traded fund issued by Vanguard 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 3.35%. Launched in 2015, the fund has a 11-year track record.

AUM: $42.2B ER: 0.03% Yield: 3.35% 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 (3.9% vs 3.6%), tracking closely.

Key Metrics

Metric MUB VTEB
Expense Ratio 0.05% 0.03%
Dividend Yield 3.2% 3.4%
Fund Family iShares Vanguard
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 2022-07 2023-10 2025-01 2026-04
MUB -8.1%
VTEB -8.4%

Performance Comparison

Period MUB VTEB Difference
1 Month -0.29% -0.18% -0.11%
3 Months -0.58% -0.63% +0.05%
6 Months -0.07% -0.14% +0.07%
YTD -0.29% -0.26% -0.03%
1 Year +3.86% +3.59% +0.27%
3 Years -1.27% -1.34% +0.07%
5 Years -8.14% -8.37% +0.23%

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 -1.50 -1.58

Dividend Comparison

Metric MUB VTEB
Annual Dividend (per share) $3.39 $1.68
Dividend Yield 3.17% 3.35%
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.

Related Comparisons

BND vs MUB