SMB vs. SUB

Last updated Jun 24, 2026

SMB (VanEck Short Muni ETF) and SUB (iShares Short-Term National Muni Bond ETF) are both Municipal Bonds funds - SMB tracks the Bloomberg AMT-Free Short Continuous while SUB tracks the ICE Short Maturity AMT-Free US National Municipal Index - Benchmark TR Gross. Both are passively managed. Over the past 10 years, SMB returned 1.48%/yr vs 1.45%/yr for SUB. At a 0.26 correlation, their price movements are largely independent. SMB charges 0.20%/yr vs 0.07%/yr for SUB.

Performance

SMB vs. SUB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Short Muni ETF (SMB) 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, SMB achieves a 0.76% return, which is significantly lower than SUB's 0.80% return. Both investments have delivered pretty close results over the past 10 years, with SMB having a 1.48% annualized return and SUB not far behind at 1.45%.

SMB

• 1D: -0.03%
• 1M: 0.79%
• YTD: 0.76%
• 6M: 0.76%
• 1Y: 3.53%
• 3Y*: 3.47%
• 5Y*: 1.24%
• 10Y*: 1.48%

SUB

• 1D: -0.13%
• 1M: 0.39%
• YTD: 0.80%
• 6M: 0.93%
• 1Y: 2.77%
• 3Y*: 3.03%
• 5Y*: 1.47%
• 10Y*: 1.45%

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

SMB vs. SUB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMB VanEck Short Muni ETF	0.76%	4.61%	2.41%	3.14%	-4.50%	0.12%	3.30%	4.54%	1.86%	1.16%
SUB iShares Short-Term National Muni Bond ETF	0.80%	3.64%	2.17%	2.91%	-2.05%	0.03%	2.51%	2.93%	1.85%	0.75%

Correlation

The correlation between SMB and SUB is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.39
Correlation (All Time) Calculated using the full available price history since Nov 7, 2008	0.26

The correlation between SMB and SUB shifts across timeframes, from 0.26 (all time) to 0.55 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

SMB vs. SUB — Risk / Return Rank

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

SMB

SMB Risk / Return Rank: 69
SMB Sharpe Ratio Rank: 73
SMB Sortino Ratio Rank: 77
SMB Omega Ratio Rank: 79
SMB Calmar Ratio Rank: 66
SMB Martin Ratio Rank: 52

SUB

SUB Risk / Return Rank: 80
SUB Sharpe Ratio Rank: 88
SUB Sortino Ratio Rank: 89
SUB Omega Ratio Rank: 92
SUB Calmar Ratio Rank: 71
SUB Martin Ratio Rank: 58

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.

SMB vs. SUB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Short Muni ETF (SMB) 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.

	SMB	SUB	Difference
Sharpe ratio: Return per unit of total volatility	2.18	2.74	-0.56
Sortino ratio: Return per unit of downside risk	3.20	3.92	-0.72
Omega ratio: Gain probability vs. loss probability	1.43	1.59	-0.15
Calmar ratio: Return relative to maximum drawdown	3.03	3.46	-0.43
Martin ratio: Return relative to average drawdown	8.52	9.77	-1.25

SMB vs. SUB - Sharpe Ratio Comparison

The current SMB Sharpe Ratio is 2.18, which is comparable to the SUB Sharpe Ratio of 2.74. The chart below compares the historical Sharpe Ratios of SMB 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

SMB vs. SUB - Drawdown Comparison

The maximum SMB drawdown since its inception was -12.64%, which is greater than SUB's maximum drawdown of -9.46%. Use the drawdown chart below to compare losses from any high point for SMB and SUB.

Drawdown Indicators

	SMB	SUB	Difference
Max Drawdown Largest peak-to-trough decline	-12.64%	-9.46%	-3.18%
Max Drawdown (1Y) Largest decline over 1 year	-1.17%	-0.81%	-0.36%
Max Drawdown (3Y) Largest decline over 3 years	-1.80%	-1.23%	-0.57%
Max Drawdown (5Y) Largest decline over 5 years	-7.48%	-4.35%	-3.13%
Max Drawdown (10Y) Largest decline over 10 years	-12.64%	-9.46%	-3.18%
Current Drawdown Current decline from peak	-0.05%	-0.13%	+0.08%
Average Drawdown Average peak-to-trough decline	-1.14%	-0.91%	-0.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.42%	0.28%	+0.14%

Volatility

SMB vs. SUB - Volatility Comparison

VanEck Short Muni ETF (SMB) and iShares Short-Term National Muni Bond ETF (SUB) have volatilities of 0.29% and 0.29%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMB	SUB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.29%	0.29%	0.00%
Volatility (6M) Calculated over the trailing 6-month period	1.16%	0.81%	+0.35%
Volatility (1Y) Calculated over the trailing 1-year period	1.63%	1.02%	+0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.48%	1.64%	+0.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.26%	2.60%	+1.66%

SMB vs. SUB - Expense Ratio Comparison

SMB has a 0.20% 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

SMB vs. SUB - Dividend Comparison

SMB's dividend yield for the trailing twelve months is around 2.69%, more than SUB's 2.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMB VanEck Short Muni ETF	2.69%	2.63%	2.38%	1.83%	1.32%	1.24%	1.50%	1.58%	1.49%	1.23%	1.12%	1.13%
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 SMB and SUB in my portfolio?

SMB and SUB have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMB or SUB?

SUB has higher volatility (0.29%) compared to SMB (0.29%). In terms of maximum drawdown, SMB dropped -12.64% vs SUB's -9.46%.

Which ETF is better, SMB or SUB?

On 10-year performance, SMB leads with 1.48% vs 1.45% for SUB. On fees, SUB is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMB or SUB?

Over the 10-year period, SMB has performed better with a 1.48% return vs 1.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMB or SUB?

SUB is cheaper with a 0.07% expense ratio, compared with 0.20% for SMB.

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

SMB has the higher dividend yield at 2.69%, compared with 2.53% for SUB.

What is the main difference between SMB and SUB?

SMB tracks Bloomberg AMT-Free Short Continuous, while SUB tracks ICE Short Maturity AMT-Free US National Municipal Index - Benchmark TR Gross. They also come from different issuers: VanEck and iShares. Their fees differ too: 0.20% for SMB and 0.07% for SUB.

Which has better risk-adjusted returns?

SUB currently has the higher Sharpe Ratio (2.74 vs 2.18), 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.