SUB vs. MUB

Last updated Aug 2, 2026

SUB (iShares Short-Term National Muni Bond ETF) and MUB (iShares National AMT-Free Muni Bond ETF) are both Municipal Bonds funds from iShares - SUB tracks the ICE Short Maturity AMT-Free US National Municipal Index while MUB tracks the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 10 years, SUB returned 1.42%/yr vs 1.79%/yr for MUB. Their 0.39 correlation means their historical movements had little consistent relationship. Both charge a 0.07% expense ratio.

Performance

SUB vs. MUB - Performance Comparison

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

Returns By Period

In the year-to-date period, SUB achieves a 0.76% return, which is significantly higher than MUB's 0.21% return. Over the past 10 years, SUB has underperformed MUB with an annualized return of 1.42%, while MUB has yielded a comparatively higher 1.79% annualized return.

SUB

• 1D: 0.01%
• 1M: -0.15%
• 6M: 0.19%
• YTD: 0.76%
• 1Y: 1.85%
• 3Y*: 3.00%
• 5Y*: 1.40%
• 10Y*: 1.42%
• ALL TIME*: 1.58%

MUB

• 1D: -0.11%
• 1M: -1.73%
• 6M: -0.48%
• YTD: 0.21%
• 1Y: 4.48%
• 3Y*: 2.86%
• 5Y*: 0.55%
• 10Y*: 1.79%
• ALL TIME*: 3.11%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
MUB iShares National AMT-Free Muni Bond ETF	$531.87M	$437.83M	$388.20M
SUB iShares Short-Term National Muni Bond ETF	$44.46M	$43.86M	$47.41M

SUB vs. MUB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SUB iShares Short-Term National Muni Bond ETF	0.76%	3.64%	2.17%	2.91%	-2.05%	0.03%	2.51%	2.93%	1.85%	0.75%
MUB iShares National AMT-Free Muni Bond ETF	0.21%	3.78%	1.26%	5.56%	-7.34%	1.02%	5.12%	7.06%	0.93%	4.72%

Correlation

The correlation between SUB and MUB is 0.64, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.64
Correlation (3Y) Balances recent behavior with more history.	0.70
Correlation (5Y) Shows whether the relationship held over a longer period.	0.71
Correlation (10Y) Provides a long-term view across more market conditions.	0.60
Correlation (All Time) Calculated using the full available price history since Nov 7, 2008	0.39

Over the past year, SUB and MUB have become more correlated (0.64) than their long-term average of 0.39, meaning their price movements have been converging.

Return for Risk

SUB vs. MUB — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SUB

SUB Risk / Return Rank: 74
SUB Sharpe Ratio Rank: 79
SUB Sortino Ratio Rank: 78
SUB Omega Ratio Rank: 85
SUB Calmar Ratio Rank: 72
SUB Martin Ratio Rank: 58

MUB

MUB Risk / Return Rank: 66
MUB Sharpe Ratio Rank: 75
MUB Sortino Ratio Rank: 75
MUB Omega Ratio Rank: 81
MUB Calmar Ratio Rank: 50
MUB Martin Ratio Rank: 51

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SUB vs. MUB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Short-Term National Muni Bond ETF (SUB) 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.

	SUB	MUB	Difference
Sharpe ratio: Return per unit of total volatility	1.80	1.69	+0.10
Sortino ratio: Return per unit of downside risk	2.50	2.40	+0.10
Omega ratio: Gain probability vs. loss probability	1.37	1.34	+0.03
Calmar ratio: Return relative to maximum drawdown	2.50	1.80	+0.70
Martin ratio: Return relative to average drawdown	6.88	5.86	+1.02

SUB vs. MUB - Sharpe Ratio Comparison

The current SUB Sharpe Ratio is 1.80, which is comparable to the MUB Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of SUB and MUB, 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

SUB vs. MUB - Drawdown Comparison

The maximum SUB drawdown since its inception was -9.46%, smaller than the maximum MUB drawdown of -13.68%. Use the drawdown chart below to compare losses from any high point for SUB and MUB.

Drawdown Indicators

	SUB	MUB	Difference
Max Drawdown Largest peak-to-trough decline	-9.46%	-13.68%	+4.22%
Max Drawdown (1Y) Largest decline over 1 year	-0.81%	-2.79%	+1.98%
Max Drawdown (3Y) Largest decline over 3 years	-1.23%	-4.78%	+3.55%
Max Drawdown (5Y) Largest decline over 5 years	-4.33%	-11.78%	+7.45%
Max Drawdown (10Y) Largest decline over 10 years	-9.46%	-13.68%	+4.22%
Current Drawdown Current decline from peak	-0.20%	-1.79%	+1.59%
Average Drawdown Average peak-to-trough decline	-0.91%	-2.22%	+1.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.29%	0.86%	-0.57%

Volatility

SUB vs. MUB - Volatility Comparison

The current volatility for iShares Short-Term National Muni Bond ETF (SUB) is 0.51%, while iShares National AMT-Free Muni Bond ETF (MUB) has a volatility of 0.96%. This indicates that SUB 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.

Volatility by Period

	SUB	MUB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.51%	0.96%	-0.45%
Volatility (6M) Calculated over the trailing 6-month period	0.90%	2.41%	-1.51%
Volatility (1Y) Calculated over the trailing 1-year period	1.12%	2.98%	-1.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.65%	4.09%	-2.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.60%	4.91%	-2.31%

SUB vs. MUB - Expense Ratio Comparison

Both SUB and MUB have an expense ratio of 0.07%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

SUB vs. MUB - Dividend Comparison

SUB's dividend yield for the trailing twelve months is around 2.54%, less than MUB's 3.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MUB iShares National AMT-Free Muni Bond ETF	2.96%	3.14%	3.01%	2.65%	2.11%	1.81%	2.11%	2.42%	2.46%	2.26%	2.21%	2.51%
SUB iShares Short-Term National Muni Bond ETF	2.34%	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 SUB and MUB in my portfolio?

SUB and MUB have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SUB or MUB?

MUB has higher volatility (0.96%) compared to SUB (0.51%). In terms of maximum drawdown, SUB dropped -9.46% vs MUB's -13.68%.

Which ETF is better, SUB or MUB?

On 10-year performance, MUB leads with 1.79% vs 1.42% for SUB. Both ETFs have the same 0.07% expense ratio. On volatility, SUB has been the lower-risk option at 0.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SUB or MUB?

Over the 10-year period, MUB has performed better with a 1.79% return vs 1.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SUB or MUB?

SUB and MUB have the same expense ratio: 0.07% per year.

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

MUB has the higher dividend yield at 2.96%, compared with 2.34% for SUB.

What is the main difference between SUB and MUB?

SUB tracks ICE Short Maturity AMT-Free US National Municipal Index, while MUB tracks S&P National AMT-Free Municipal Bond Index.

Which has better risk-adjusted returns?

SUB currently has the higher Sharpe Ratio (1.80 vs 1.69), 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.