IEF vs. MUB
IEF (iShares 7-10 Year Treasury Bond ETF) and MUB (iShares National AMT-Free Muni Bond ETF) are both exchange-traded funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond 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, IEF returned 0.59%/yr vs 1.92%/yr for MUB. A 0.56 correlation means they provide meaningful diversification when combined. IEF charges 0.15%/yr vs 0.07%/yr for MUB.
Performance
IEF vs. MUB - Performance Comparison
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Returns By Period
In the year-to-date period, IEF achieves a -0.47% return, which is significantly lower than MUB's 1.28% return. Over the past 10 years, IEF has underperformed MUB with an annualized return of 0.59%, while MUB has yielded a comparatively higher 1.92% annualized return.
IEF
- 1D
- -0.17%
- 1M
- 0.19%
- YTD
- -0.47%
- 6M
- -0.18%
- 1Y
- 3.39%
- 3Y*
- 2.86%
- 5Y*
- -1.24%
- 10Y*
- 0.59%
MUB
- 1D
- -0.01%
- 1M
- 0.65%
- YTD
- 1.28%
- 6M
- 1.80%
- 1Y
- 6.17%
- 3Y*
- 3.35%
- 5Y*
- 0.80%
- 10Y*
- 1.92%
IEF vs. MUB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | -0.47% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
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 IEF and MUB is 0.73, 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 | 0.73 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.82 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.76 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.72 |
Correlation (All Time) Calculated using the full available price history since Sep 10, 2007 | 0.56 |
The correlation between IEF and MUB shifts across timeframes, from 0.56 (all time) to 0.82 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
IEF vs. MUB — Risk / Return Rank
IEF
MUB
IEF vs. MUB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 7-10 Year Treasury Bond ETF (IEF) 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.
| IEF | MUB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.43 | ||
| Sortino ratioReturn per unit of downside risk | -2.02 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.44 | -0.32 |
| Calmar ratioReturn relative to maximum drawdown | 0.84 | 2.22 | -1.39 |
| Martin ratioReturn relative to average drawdown | 2.35 | 7.77 | -5.42 |
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Drawdowns
IEF vs. MUB - Drawdown Comparison
The maximum IEF drawdown since its inception was -23.93%, which is greater than MUB's maximum drawdown of -13.68%. Use the drawdown chart below to compare losses from any high point for IEF and MUB.
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Drawdown Indicators
| IEF | MUB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.93% | -13.68% | -10.25% |
Max Drawdown (1Y)Largest decline over 1 year | -4.07% | -2.79% | -1.28% |
Max Drawdown (3Y)Largest decline over 3 years | -7.74% | -5.34% | -2.40% |
Max Drawdown (5Y)Largest decline over 5 years | -21.40% | -11.88% | -9.52% |
Max Drawdown (10Y)Largest decline over 10 years | -23.93% | -13.68% | -10.25% |
Current DrawdownCurrent decline from peak | -11.18% | -0.66% | -10.52% |
Average DrawdownAverage peak-to-trough decline | -5.35% | -2.23% | -3.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.45% | 0.80% | +0.65% |
Volatility
IEF vs. MUB - Volatility Comparison
iShares 7-10 Year Treasury Bond ETF (IEF) has a higher volatility of 1.62% compared to iShares National AMT-Free Muni Bond ETF (MUB) at 1.01%. This indicates that IEF'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.
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Volatility by Period
| IEF | MUB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.62% | 1.01% | +0.61% |
Volatility (6M)Calculated over the trailing 6-month period | 3.42% | 2.25% | +1.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.72% | 2.90% | +1.82% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.71% | 4.06% | +3.65% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.63% | 4.92% | +1.71% |
IEF vs. MUB - Expense Ratio Comparison
IEF has a 0.15% 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
IEF vs. MUB - Dividend Comparison
IEF's dividend yield for the trailing twelve months is around 3.89%, more than MUB's 3.17% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.89% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
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
IEF and MUB have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEF has higher volatility (1.62%) compared to MUB (1.01%). In terms of maximum drawdown, IEF dropped -23.93% vs MUB's -13.68%.
On 10-year performance, MUB leads with 1.92% vs 0.59% for IEF. On fees, MUB is cheaper at 0.07% 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 0.59%. 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 0.15% for IEF.
IEF has the higher dividend yield at 3.89%, compared with 3.17% for MUB.
IEF is categorized as Government Bonds, while MUB is Municipal Bonds. IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while MUB tracks S&P National AMT-Free Municipal Bond Index. Their fees differ too: 0.15% for IEF and 0.07% for MUB.
MUB currently has the higher Sharpe Ratio (2.16 vs 0.72), 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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