Fixed Income

Municipal Bonds ETFs

Interest is exempt from federal income tax, so the headline yield understates what you keep. Compare taxable-equivalent yield, not stated yield, and only in a taxable account. Credit quality and duration separate the investment-grade core funds from the high-yield muni ones.

Theme performance

Equal-weighted across every fund in this objective

1Y: +4.5%
5Y ann.: +1.6%
10Y ann.: —
All-time ann.: —

Sort5 funds

MUB

iShares National Muni Bond ETF

iShares

The benchmark investment-grade muni fund: broad, liquid, intermediate duration.

Fee: 0.05%
AUM: $40.1B
Yield: 3.3%

1Y: +4.1%
5Y ann.: +1.6%
10Y ann.: —
Max ann.: —

VTEB

Vanguard Tax-Exempt Bond ETF

Vanguard

Nearly identical exposure to MUB at the lowest fee in the category.

Fee: 0.03%
AUM: $39.4B
Yield: 3.4%

1Y: +4.2%
5Y ann.: +1.7%
10Y ann.: —
Max ann.: —

SUB

iShares Short-Term National Muni Bond ETF

iShares

One to five year munis: much less rate sensitivity, lower tax-free yield.

Fee: 0.07%
AUM: $9.6B
Yield: 2.9%

1Y: +3.6%
5Y ann.: +1.9%
10Y ann.: —
Max ann.: —

HYD

VanEck High Yield Muni ETF

VanEck

Below-investment-grade munis: tobacco settlements, hospitals and project revenue debt.

Fee: 0.32%
AUM: $3.4B
Yield: 4.9%

1Y: +6.1%
5Y ann.: +2.4%
10Y ann.: —
Max ann.: —

PZA

Invesco National AMT-Free Municipal Bond ETF

Invesco

Longer-dated investment-grade munis, so more yield and more rate risk than MUB.

Fee: 0.28%
AUM: $2.7B
Yield: 3.9%

1Y: +4.4%
5Y ann.: +0.6%
10Y ann.: —
Max ann.: —