BND vs. MUB
BND (Vanguard Total Bond Market ETF) and MUB (iShares National AMT-Free Muni Bond ETF) are both exchange-traded funds - BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index, while MUB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 10 years, BND returned 1.58%/yr vs 1.92%/yr for MUB. A 0.57 correlation means they provide meaningful diversification when combined. BND charges 0.03%/yr vs 0.07%/yr for MUB.
Performance
BND vs. MUB - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, BND achieves a 0.52% return, which is significantly lower than MUB's 1.28% return. Over the past 10 years, BND has underperformed MUB with an annualized return of 1.58%, while MUB has yielded a comparatively higher 1.92% annualized return.
BND
- 1D
- -0.12%
- 1M
- 0.45%
- YTD
- 0.52%
- 6M
- 0.91%
- 1Y
- 4.77%
- 3Y*
- 4.17%
- 5Y*
- 0.03%
- 10Y*
- 1.58%
MUB
- 1D
- -0.01%
- 1M
- 0.63%
- YTD
- 1.28%
- 6M
- 1.80%
- 1Y
- 6.40%
- 3Y*
- 3.35%
- 5Y*
- 0.80%
- 10Y*
- 1.92%
BND vs. MUB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 0.52% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
MUB iShares National AMT-Free Muni Bond ETF | 1.28% | 3.78% | 1.26% | 5.56% | -7.34% | 1.02% | 5.12% | 7.06% | 0.93% | 4.72% |
Correlation
The correlation between BND and MUB is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.75 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.83 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.79 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.73 |
Correlation (All Time) Calculated using the full available price history since Sep 10, 2007 | 0.57 |
The correlation between BND and MUB shifts across timeframes, from 0.57 (all time) to 0.83 (3 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
BND vs. MUB — Risk / Return Rank
BND
MUB
BND vs. MUB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) and iShares National AMT-Free Muni Bond ETF (MUB). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| BND | MUB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.97 | ||
| Sortino ratioReturn per unit of downside risk | -1.35 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.44 | -0.24 |
| Calmar ratioReturn relative to maximum drawdown | 1.65 | 2.22 | -0.57 |
| Martin ratioReturn relative to average drawdown | 4.81 | 7.77 | -2.96 |
Loading charts...
Drawdowns
BND vs. MUB - Drawdown Comparison
The maximum BND drawdown since its inception was -18.58%, which is greater than MUB's maximum drawdown of -13.68%. Use the drawdown chart below to compare losses from any high point for BND and MUB.
Loading charts...
Drawdown Indicators
| BND | MUB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.58% | -13.68% | -4.90% |
Max Drawdown (1Y)Largest decline over 1 year | -2.68% | -2.79% | +0.11% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -5.34% | -0.58% |
Max Drawdown (5Y)Largest decline over 5 years | -17.91% | -11.88% | -6.03% |
Max Drawdown (10Y)Largest decline over 10 years | -18.58% | -13.68% | -4.90% |
Current DrawdownCurrent decline from peak | -2.12% | -0.66% | -1.46% |
Average DrawdownAverage peak-to-trough decline | -3.06% | -2.23% | -0.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.80% | +0.12% |
Volatility
BND vs. MUB - Volatility Comparison
Vanguard Total Bond Market ETF (BND) has a higher volatility of 1.28% compared to iShares National AMT-Free Muni Bond ETF (MUB) at 1.01%. This indicates that BND's price experiences larger fluctuations and is considered to be riskier than MUB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| BND | MUB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.28% | 1.01% | +0.27% |
Volatility (6M)Calculated over the trailing 6-month period | 2.74% | 2.25% | +0.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.75% | 2.90% | +0.85% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.03% | 4.06% | +1.97% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.53% | 4.92% | +0.61% |
BND vs. MUB - Expense Ratio Comparison
BND has a 0.03% expense ratio, which is lower than MUB's 0.07% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
BND vs. MUB - Dividend Comparison
BND's dividend yield for the trailing twelve months is around 3.96%, more than MUB's 3.17% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.96% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
MUB iShares National AMT-Free Muni Bond ETF | 3.17% | 3.14% | 3.01% | 2.65% | 2.11% | 1.81% | 2.11% | 2.42% | 2.46% | 2.26% | 2.21% | 2.51% |
Frequently Asked Questions
BND and MUB have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BND has higher volatility (1.28%) compared to MUB (1.01%). In terms of maximum drawdown, BND dropped -18.58% vs MUB's -13.68%.
On 10-year performance, MUB leads with 1.92% vs 1.58% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, MUB has been the lower-risk option at 1.01%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, MUB has performed better with a 1.92% return vs 1.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BND is cheaper with a 0.03% expense ratio, compared with 0.07% for MUB.
BND has the higher dividend yield at 3.96%, compared with 3.17% for MUB.
BND is categorized as Total Bond Market, while MUB is Municipal Bonds. BND tracks Bloomberg U.S. Aggregate Float Adjusted Index, while MUB tracks S&P National AMT-Free Municipal Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for BND and 0.07% for MUB.
MUB currently has the higher Sharpe Ratio (2.16 vs 1.18), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
Find the right allocation for BND and MUB
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer