MUB vs. VTEB
MUB (iShares National AMT-Free Muni Bond ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds tracking the S&P National AMT-Free Municipal Bond Index, from iShares and Vanguard respectively. Both are passively managed. Over the past 10 years, MUB returned 1.90%/yr vs 1.97%/yr for VTEB. Their correlation of 0.85 suggests significant overlap in exposure. MUB charges 0.07%/yr vs 0.03%/yr for VTEB.
Performance
MUB vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, MUB achieves a 1.48% return, which is significantly lower than VTEB's 1.70% return. Both investments have delivered pretty close results over the past 10 years, with MUB having a 1.90% annualized return and VTEB not far ahead at 1.97%.
MUB
- 1D
- -0.06%
- 1M
- 1.29%
- YTD
- 1.48%
- 6M
- 1.78%
- 1Y
- 6.40%
- 3Y*
- 3.19%
- 5Y*
- 0.93%
- 10Y*
- 1.90%
VTEB
- 1D
- -0.02%
- 1M
- 1.38%
- YTD
- 1.70%
- 6M
- 1.88%
- 1Y
- 6.65%
- 3Y*
- 3.38%
- 5Y*
- 0.95%
- 10Y*
- 1.97%
MUB vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MUB iShares National AMT-Free Muni Bond ETF | 1.48% | 3.78% | 1.26% | 5.56% | -7.34% | 1.02% | 5.12% | 7.06% | 0.93% | 4.72% |
VTEB Vanguard Tax-Exempt Bond ETF | 1.70% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
Correlation
The correlation between MUB and VTEB is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.92 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.94 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.92 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.87 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.85 |
The correlation between MUB and VTEB has been stable across timeframes, ranging from 0.85 to 0.94 - a consistent structural relationship.
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Return for Risk
MUB vs. VTEB — Risk / Return Rank
MUB
VTEB
MUB vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares National AMT-Free Muni Bond ETF (MUB) and Vanguard Tax-Exempt Bond ETF (VTEB). 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.
| MUB | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.26 | ||
| Sortino ratioReturn per unit of downside risk | -0.45 | ||
| Omega ratioGain probability vs. loss probability | 1.46 | 1.54 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 2.31 | 2.47 | -0.16 |
| Martin ratioReturn relative to average drawdown | 8.02 | 8.69 | -0.68 |
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Drawdowns
MUB vs. VTEB - Drawdown Comparison
The maximum MUB drawdown since its inception was -13.68%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for MUB and VTEB.
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Drawdown Indicators
| MUB | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.68% | -17.00% | +3.32% |
Max Drawdown (1Y)Largest decline over 1 year | -2.79% | -2.71% | -0.08% |
Max Drawdown (3Y)Largest decline over 3 years | -5.34% | -5.53% | +0.19% |
Max Drawdown (5Y)Largest decline over 5 years | -11.88% | -12.64% | +0.76% |
Max Drawdown (10Y)Largest decline over 10 years | -13.68% | -17.00% | +3.32% |
Current DrawdownCurrent decline from peak | -0.47% | -0.28% | -0.19% |
Average DrawdownAverage peak-to-trough decline | -2.23% | -2.32% | +0.09% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.80% | 0.77% | +0.03% |
Volatility
MUB vs. VTEB - Volatility Comparison
iShares National AMT-Free Muni Bond ETF (MUB) has a higher volatility of 0.77% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.72%. This indicates that MUB's price experiences larger fluctuations and is considered to be riskier than VTEB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MUB | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.77% | 0.72% | +0.05% |
Volatility (6M)Calculated over the trailing 6-month period | 2.27% | 2.06% | +0.21% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.88% | 2.68% | +0.20% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.07% | 3.90% | +0.17% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.92% | 5.25% | -0.33% |
MUB vs. VTEB - Expense Ratio Comparison
MUB has a 0.07% expense ratio, which is higher than VTEB's 0.03% 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
MUB vs. VTEB - Dividend Comparison
MUB's dividend yield for the trailing twelve months is around 3.17%, less than VTEB's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.35% | 3.29% | 3.14% | 2.79% | 2.09% | 1.64% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% |
Frequently Asked Questions
With a correlation of 0.92, MUB and VTEB move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
MUB has higher volatility (0.77%) compared to VTEB (0.72%). In terms of maximum drawdown, MUB dropped -13.68% vs VTEB's -17.00%.
On 10-year performance, VTEB leads with 1.97% vs 1.90% for MUB. On fees, VTEB is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VTEB has performed better with a 1.97% return vs 1.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTEB is cheaper with a 0.03% expense ratio, compared with 0.07% for MUB.
VTEB has the higher dividend yield at 3.35%, compared with 3.17% for MUB.
Both ETFs track S&P National AMT-Free Municipal Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.07% for MUB and 0.03% for VTEB.
VTEB currently has the higher Sharpe Ratio (2.49 vs 2.23), 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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