DFNM vs. MUB
DFNM (Dimensional National Municipal Bond ETF) and MUB (iShares National AMT-Free Muni Bond ETF) are both Municipal Bonds funds. DFNM is actively managed, while MUB is passively managed. Over the past 3 years, DFNM returned 3.20%/yr vs 3.21%/yr for MUB. A 0.79 correlation means they provide meaningful diversification when combined. DFNM charges 0.17%/yr vs 0.07%/yr for MUB.
Performance
DFNM vs. MUB - Performance Comparison
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Returns By Period
In the year-to-date period, DFNM achieves a 1.44% return, which is significantly lower than MUB's 1.53% return.
DFNM
- 1D
- -0.01%
- 1M
- 0.92%
- YTD
- 1.44%
- 6M
- 1.52%
- 1Y
- 5.19%
- 3Y*
- 3.20%
- 5Y*
- —
- 10Y*
- —
MUB
- 1D
- -0.01%
- 1M
- 1.35%
- YTD
- 1.53%
- 6M
- 1.89%
- 1Y
- 6.58%
- 3Y*
- 3.21%
- 5Y*
- 0.96%
- 10Y*
- 1.90%
DFNM vs. MUB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
DFNM Dimensional National Municipal Bond ETF | 1.44% | 3.87% | 1.19% | 3.97% | -4.02% | 0.40% |
MUB iShares National AMT-Free Muni Bond ETF | 1.53% | 3.78% | 1.26% | 5.56% | -7.34% | 0.51% |
Correlation
The correlation between DFNM 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 | 0.80 |
Correlation (All Time) Calculated using the full available price history since Nov 16, 2021 | 0.79 |
The correlation between DFNM and MUB has been stable across timeframes, ranging from 0.75 to 0.80 - a consistent structural relationship.
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Return for Risk
DFNM vs. MUB — Risk / Return Rank
DFNM
MUB
DFNM vs. MUB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Dimensional National Municipal Bond ETF (DFNM) 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.
| DFNM | MUB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.74 | ||
| Sortino ratioReturn per unit of downside risk | +1.05 | ||
| Omega ratioGain probability vs. loss probability | 1.70 | 1.48 | +0.23 |
| Calmar ratioReturn relative to maximum drawdown | 2.84 | 2.37 | +0.47 |
| Martin ratioReturn relative to average drawdown | 10.19 | 8.25 | +1.94 |
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Drawdowns
DFNM vs. MUB - Drawdown Comparison
The maximum DFNM drawdown since its inception was -6.99%, smaller than the maximum MUB drawdown of -13.68%. Use the drawdown chart below to compare losses from any high point for DFNM and MUB.
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Drawdown Indicators
| DFNM | MUB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.99% | -13.68% | +6.69% |
Max Drawdown (1Y)Largest decline over 1 year | -1.84% | -2.79% | +0.95% |
Max Drawdown (3Y)Largest decline over 3 years | -2.82% | -5.34% | +2.52% |
Max Drawdown (5Y)Largest decline over 5 years | — | -11.88% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -13.68% | — |
Current DrawdownCurrent decline from peak | -0.22% | -0.41% | +0.19% |
Average DrawdownAverage peak-to-trough decline | -1.94% | -2.23% | +0.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.51% | 0.80% | -0.29% |
Volatility
DFNM vs. MUB - Volatility Comparison
The current volatility for Dimensional National Municipal Bond ETF (DFNM) is 0.38%, while iShares National AMT-Free Muni Bond ETF (MUB) has a volatility of 0.76%. This indicates that DFNM experiences smaller price fluctuations and is considered to be less risky than MUB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| DFNM | MUB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.38% | 0.76% | -0.38% |
Volatility (6M)Calculated over the trailing 6-month period | 1.29% | 2.27% | -0.98% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.72% | 2.89% | -1.17% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.53% | 4.07% | -1.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.53% | 4.93% | -2.40% |
DFNM vs. MUB - Expense Ratio Comparison
DFNM has a 0.17% expense ratio, which is higher than MUB's 0.07% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
DFNM vs. MUB - Dividend Comparison
DFNM's dividend yield for the trailing twelve months is around 2.89%, less than MUB's 3.17% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFNM Dimensional National Municipal Bond ETF | 2.89% | 2.94% | 2.74% | 2.39% | 1.16% | 0.05% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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
DFNM 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.
MUB has higher volatility (0.76%) compared to DFNM (0.38%). In terms of maximum drawdown, DFNM dropped -6.99% vs MUB's -13.68%.
On 3-year performance, MUB leads with 3.21% vs 3.20% for DFNM. On fees, MUB is cheaper at 0.07% per year. On volatility, DFNM has been the lower-risk option at 0.38%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, MUB has performed better with a 3.21% return vs 3.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MUB is cheaper with a 0.07% expense ratio, compared with 0.17% for DFNM.
MUB has the higher dividend yield at 3.17%, compared with 2.89% for DFNM.
They also come from different issuers: Dimensional and iShares. Their fees differ too: 0.17% for DFNM and 0.07% for MUB.
DFNM currently has the higher Sharpe Ratio (3.04 vs 2.29), 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.
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