MUNY vs. SUB

Last updated Jun 25, 2026

MUNY (Vanguard New York Tax-Exempt Bond ETF) and SUB (iShares Short-Term National Muni Bond ETF) are both Municipal Bonds funds - MUNY tracks the S&P New York AMT-Free Municipal USD10 Million Par Bond Index while SUB tracks the ICE Short Maturity AMT-Free US National Municipal Index - Benchmark TR Gross. Both are passively managed. Over the past year, MUNY returned 6.50% vs 2.73% for SUB. A 0.56 correlation means they provide meaningful diversification when combined. MUNY charges 0.09%/yr vs 0.07%/yr for SUB.

Performance

MUNY vs. SUB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard New York Tax-Exempt Bond ETF (MUNY) and iShares Short-Term National Muni Bond ETF (SUB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MUNY achieves a 1.79% return, which is significantly higher than SUB's 0.78% return.

MUNY

• 1D: 0.09%
• 1M: 1.50%
• YTD: 1.79%
• 6M: 1.75%
• 1Y: 6.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SUB

• 1D: -0.02%
• 1M: 0.37%
• YTD: 0.78%
• 6M: 0.88%
• 1Y: 2.73%
• 3Y*: 3.03%
• 5Y*: 1.47%
• 10Y*: 1.44%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MUNY vs. SUB - Yearly Performance Comparison

	2026 (YTD)	2025
MUNY Vanguard New York Tax-Exempt Bond ETF	1.79%	5.60%
SUB iShares Short-Term National Muni Bond ETF	0.78%	2.71%

Correlation

The correlation between MUNY and SUB is 0.55, 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	0.55
Correlation (All Time) Calculated using the full available price history since May 22, 2025	0.56

The correlation between MUNY and SUB has been stable across timeframes, ranging from 0.55 to 0.56 - a consistent structural relationship.

Return for Risk

MUNY vs. SUB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MUNY

MUNY Risk / Return Rank: 72
MUNY Sharpe Ratio Rank: 81
MUNY Sortino Ratio Rank: 83
MUNY Omega Ratio Rank: 90
MUNY Calmar Ratio Rank: 56
MUNY Martin Ratio Rank: 53

SUB

SUB Risk / Return Rank: 82
SUB Sharpe Ratio Rank: 90
SUB Sortino Ratio Rank: 91
SUB Omega Ratio Rank: 93
SUB Calmar Ratio Rank: 74
SUB Martin Ratio Rank: 60

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MUNY vs. SUB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard New York Tax-Exempt Bond ETF (MUNY) and iShares Short-Term National Muni Bond ETF (SUB). 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.

	MUNY	SUB	Difference
Sharpe ratio: Return per unit of total volatility	2.26	2.69	-0.43
Sortino ratio: Return per unit of downside risk	3.25	3.85	-0.61
Omega ratio: Gain probability vs. loss probability	1.51	1.58	-0.07
Calmar ratio: Return relative to maximum drawdown	2.42	3.40	-0.98
Martin ratio: Return relative to average drawdown	8.11	9.60	-1.48

MUNY vs. SUB - Sharpe Ratio Comparison

The current MUNY Sharpe Ratio is 2.26, which is comparable to the SUB Sharpe Ratio of 2.69. The chart below compares the historical Sharpe Ratios of MUNY and SUB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MUNY vs. SUB - Drawdown Comparison

The maximum MUNY drawdown since its inception was -2.70%, smaller than the maximum SUB drawdown of -9.46%. Use the drawdown chart below to compare losses from any high point for MUNY and SUB.

Drawdown Indicators

	MUNY	SUB	Difference
Max Drawdown Largest peak-to-trough decline	-2.70%	-9.46%	+6.76%
Max Drawdown (1Y) Largest decline over 1 year	-2.70%	-0.81%	-1.89%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.23%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-4.35%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-9.46%	—
Current Drawdown Current decline from peak	-0.20%	-0.15%	-0.05%
Average Drawdown Average peak-to-trough decline	-0.65%	-0.91%	+0.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.80%	0.28%	+0.52%

Volatility

MUNY vs. SUB - Volatility Comparison

Vanguard New York Tax-Exempt Bond ETF (MUNY) has a higher volatility of 0.75% compared to iShares Short-Term National Muni Bond ETF (SUB) at 0.30%. This indicates that MUNY's price experiences larger fluctuations and is considered to be riskier than SUB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MUNY	SUB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.75%	0.30%	+0.45%
Volatility (6M) Calculated over the trailing 6-month period	2.35%	0.81%	+1.54%
Volatility (1Y) Calculated over the trailing 1-year period	2.89%	1.02%	+1.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.86%	1.64%	+2.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.86%	2.60%	+1.26%

MUNY vs. SUB - Expense Ratio Comparison

MUNY has a 0.09% expense ratio, which is higher than SUB'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

MUNY vs. SUB - Dividend Comparison

MUNY's dividend yield for the trailing twelve months is around 3.10%, more than SUB's 2.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MUNY Vanguard New York Tax-Exempt Bond ETF	3.10%	1.80%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SUB iShares Short-Term National Muni Bond ETF	2.53%	2.42%	2.10%	1.73%	0.86%	0.72%	1.23%	1.58%	1.32%	0.95%	0.75%	0.77%

Frequently Asked Questions

Can I hold both MUNY and SUB in my portfolio?

MUNY and SUB have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MUNY or SUB?

MUNY has higher volatility (0.75%) compared to SUB (0.30%). In terms of maximum drawdown, MUNY dropped -2.70% vs SUB's -9.46%.

Which ETF is better, MUNY or SUB?

On 1-year performance, MUNY leads with 6.50% vs 2.73% for SUB. On fees, SUB is cheaper at 0.07% per year. On volatility, SUB has been the lower-risk option at 0.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MUNY or SUB?

Over the 1-year period, MUNY has performed better with a 6.50% return vs 2.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MUNY or SUB?

SUB is cheaper with a 0.07% expense ratio, compared with 0.09% for MUNY.

Which ETF pays a higher dividend yield, MUNY or SUB?

MUNY has the higher dividend yield at 3.10%, compared with 2.53% for SUB.

What is the main difference between MUNY and SUB?

MUNY tracks S&P New York AMT-Free Municipal USD10 Million Par Bond Index, while SUB tracks ICE Short Maturity AMT-Free US National Municipal Index - Benchmark TR Gross. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for MUNY and 0.07% for SUB.

Which has better risk-adjusted returns?

SUB currently has the higher Sharpe Ratio (2.69 vs 2.26), 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.