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TLT vs. MUB
Performance
Return for Risk
Drawdowns
Volatility
Dividends

TLT vs. MUB

Last updated Jun 9, 2026

TLT (iShares 20+ Year Treasury Bond ETF) and MUB (iShares National AMT-Free Muni Bond ETF) are both exchange-traded funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ 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, TLT returned -1.85%/yr vs 1.94%/yr for MUB. A 0.54 correlation means they provide meaningful diversification when combined. TLT charges 0.15%/yr vs 0.07%/yr for MUB.

Performance

TLT vs. MUB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 20+ Year Treasury Bond ETF (TLT) and iShares National AMT-Free Muni Bond ETF (MUB). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, TLT achieves a -1.08% return, which is significantly lower than MUB's 1.17% return. Over the past 10 years, TLT has underperformed MUB with an annualized return of -1.85%, while MUB has yielded a comparatively higher 1.94% annualized return.

TLT

1D
-0.52%
1M
-1.31%
YTD
-1.08%
6M
-1.51%
1Y
3.67%
3Y*
-2.05%
5Y*
-6.70%
10Y*
-1.85%

MUB

1D
-0.03%
1M
0.21%
YTD
1.17%
6M
1.69%
1Y
6.99%
3Y*
3.29%
5Y*
0.77%
10Y*
1.94%
*Multi-year figures are annualized to reflect compound growth (CAGR)

TLT vs. MUB - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
TLT
iShares 20+ Year Treasury Bond ETF		-1.08%4.25%-8.05%2.77%-31.23%-4.60%18.15%14.12%-1.61%9.18%
MUB
iShares National AMT-Free Muni Bond ETF		1.17%3.78%1.26%5.56%-7.34%1.02%5.12%7.06%0.93%4.72%

Correlation

The correlation between TLT and MUB is 0.69, 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

0.69

Correlation (3Y)
Calculated over the trailing 3-year period

0.80

Correlation (5Y)
Calculated over the trailing 5-year period

0.73

Correlation (10Y)
Calculated over the trailing 10-year period

0.68

Correlation (All Time)
Calculated using the full available price history since Sep 11, 2007

0.54

The correlation between TLT and MUB shifts across timeframes, from 0.54 (all time) to 0.80 (3 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares 20+ Year Treasury Bond ETF

iShares National AMT-Free Muni Bond ETF

Often compared with TLT:
TLT vs. SPYTLT vs. IEFTLT vs. TMFTLT vs. BNDTLT vs. VGLTTLT vs. TLTWTLT vs. EDV
Often compared with MUB:
MUB vs. VTEBMUB vs. SUBMUB vs. CMFMUB vs. NYFMUB vs. MUNIMUB vs. HYDMUB vs. VWIUX

Return for Risk

TLT vs. MUB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
TLT
TLT Risk / Return Rank: 1515
Overall Rank
TLT Sharpe Ratio Rank: 1616
Sharpe Ratio Rank
TLT Sortino Ratio Rank: 1515
Sortino Ratio Rank
TLT Omega Ratio Rank: 1414
Omega Ratio Rank
TLT Calmar Ratio Rank: 1515
Calmar Ratio Rank
TLT Martin Ratio Rank: 1515
Martin Ratio Rank
MUB
MUB Risk / Return Rank: 7474
Overall Rank
MUB Sharpe Ratio Rank: 8383
Sharpe Ratio Rank
MUB Sortino Ratio Rank: 8686
Sortino Ratio Rank
MUB Omega Ratio Rank: 8989
Omega Ratio Rank
MUB Calmar Ratio Rank: 5656
Calmar Ratio Rank
MUB Martin Ratio Rank: 5656
Martin Ratio Rank
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.

TLT vs. MUB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) 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.

TLTMUBDifference
Sharpe ratioReturn per unit of total volatility
0.38
2.42

-2.04

Sortino ratioReturn per unit of downside risk
0.62
3.54

-2.92

Omega ratioGain probability vs. loss probability

1.07

1.51

-0.44

Calmar ratioReturn relative to maximum drawdown

0.49

2.52

-2.03

Martin ratioReturn relative to average drawdown

1.19

8.85

-7.66

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TLT vs. MUB - Sharpe Ratio Comparison

The current TLT Sharpe Ratio is 0.38, which is lower than the MUB Sharpe Ratio of 2.42. The chart below compares the historical Sharpe Ratios of TLT 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.

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Sharpe Ratios by Period

TLTMUBDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.38

2.42

-2.04

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.42

0.19

-0.62

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

-0.12

0.39

-0.52

Sharpe Ratio (All Time)

Calculated using the full available price history

0.25

0.58

-0.33

Drawdowns

TLT vs. MUB - Drawdown Comparison

The maximum TLT drawdown since its inception was -48.35%, which is greater than MUB's maximum drawdown of -13.68%. Use the drawdown chart below to compare losses from any high point for TLT and MUB.

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Drawdown Indicators

TLTMUBDifference

Max Drawdown

Largest peak-to-trough decline

-48.35%

-13.68%

-34.67%

Max Drawdown (1Y)

Largest decline over 1 year

-7.58%

-2.79%

-4.79%

Max Drawdown (3Y)

Largest decline over 3 years

-19.18%

-5.34%

-13.84%

Max Drawdown (5Y)

Largest decline over 5 years

-43.70%

-11.88%

-31.82%

Max Drawdown (10Y)

Largest decline over 10 years

-48.35%

-13.68%

-34.67%

Current Drawdown

Current decline from peak

-40.92%

-0.77%

-40.15%

Average Drawdown

Average peak-to-trough decline

-13.83%

-2.23%

-11.60%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.08%

0.79%

+2.29%

Volatility

TLT vs. MUB - Volatility Comparison

iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.65% compared to iShares National AMT-Free Muni Bond ETF (MUB) at 0.99%. This indicates that TLT'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

TLTMUBDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.65%

0.99%

+1.66%

Volatility (6M)

Calculated over the trailing 6-month period

6.51%

2.23%

+4.28%

Volatility (1Y)

Calculated over the trailing 1-year period

9.60%

2.90%

+6.70%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.85%

4.06%

+11.79%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.91%

4.92%

+9.99%

TLT vs. MUB - Expense Ratio Comparison

TLT 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

TLT vs. MUB - Dividend Comparison

TLT's dividend yield for the trailing twelve months is around 4.63%, more than MUB's 3.18% yield.

PositionTTM20252024202320222021202020192018201720162015
MUB
iShares National AMT-Free Muni Bond ETF		3.18%3.14%3.01%2.65%2.11%1.81%2.11%2.42%2.46%2.26%2.21%2.51%
TLT
iShares 20+ Year Treasury Bond ETF		4.63%4.43%4.30%3.38%2.67%1.50%1.50%2.27%2.63%2.43%2.60%2.61%

Frequently Asked Questions

TLT and MUB have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

TLT has higher volatility (2.65%) compared to MUB (0.99%). In terms of maximum drawdown, TLT dropped -48.35% vs MUB's -13.68%.

On 10-year performance, MUB leads with 1.94% vs -1.85% for TLT. On fees, MUB is cheaper at 0.07% per year. On volatility, MUB has been the lower-risk option at 0.99%. 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 1.94% return vs -1.85%. 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 TLT.

TLT has the higher dividend yield at 4.63%, compared with 3.18% for MUB.

TLT is categorized as Government Bonds, while MUB is Municipal Bonds. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while MUB tracks S&P National AMT-Free Municipal Bond Index. Their fees differ too: 0.15% for TLT and 0.07% for MUB.

MUB currently has the higher Sharpe Ratio (2.42 vs 0.38), 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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