MUB vs BND: Head-to-Head Comparison
MUB vs BND: iShares National Muni Bond ETF has an expense ratio of 0.07% while Vanguard Total Bond Market ETF charges 0.03%. MUB holds 5,600 securities vs BND's 11,286. 5-year returns: 1.20% vs -0.50%.
Last updated: April 2026
Bond
Quick Verdict
Both ETFs score equally well for beginners (10/10). Your choice depends on your specific investment goals.
Side-by-Side Comparison
| Metric | MUB | BND |
|---|---|---|
| Expense Ratio | 0.07% | 0.03% |
| AUM | $35.0B | $116.0B |
| Dividend Yield | 3.20% | 4.30% |
| Holdings | 5,600 | 11,286 |
| 1-Year Return | 2.80% | 3.20% |
| 5-Year Return (Ann.) | 1.20% | -0.50% |
| 10-Year Return (Ann.) | 2.20% | 1.40% |
| Beta | 0.12 | 0.03 |
| P/E Ratio | N/A | N/A |
MUB 5-year annualized return is 1.20% compared to BND's -0.50%. Over 10 years, MUB returned 2.20% vs BND's 1.40%.
View data table
| Period | MUB Return | BND Return |
|---|---|---|
| YTD | 0.50% | 0.50% |
| 1 Year | 2.80% | 3.20% |
| 3 Year | -0.20% | -1.80% |
| 5 Year | 1.20% | -0.50% |
| 10 Year | 2.20% | 1.40% |
Key Differences Between MUB and BND
MUB (iShares National Muni Bond ETF) is a municipal bond fund managed by BlackRock. MUB invests in investment-grade municipal bonds issued by U.S. state and local governments, which are exempt from federal income tax. This tax advantage makes munis particularly attractive for investors in higher tax brackets. Beginners should understand that MUB's stated yield understates its true benefit because the income is tax-free at the federal level, effectively boosting your after-tax return.
BND (Vanguard Total Bond Market ETF) is a u.s. intermediate-term bond fund managed by Vanguard. BND provides exposure to the entire U.S. investment-grade bond market, including government, corporate, and mortgage-backed bonds. Bonds generally provide stability and income to a portfolio, acting as a cushion when stocks decline. Beginners often add BND to their portfolio to reduce overall volatility and provide steady income, with the typical rule of thumb being to hold your age in bonds as a percentage of your portfolio.
The most notable differences are in fees (0.07% vs 0.03%), number of holdings (5,600 vs 11,286), and 5-year returns (1.20% vs -0.50%).
MUB vs BND multi-factor comparison: MUB has a 0.07% expense ratio, 1.20% 5-year return, 5,600 holdings, 0.12 beta, and 3.20% yield. BND has 0.03% expense ratio, -0.50% 5-year return, 11,286 holdings, 0.03 beta, and 4.30% yield.
View data table
| Metric | MUB | BND |
|---|---|---|
| Expense Ratio | 0.07% | 0.03% |
| 5-Year Return | 1.20% | -0.50% |
| Holdings | 5,600 | 11,286 |
| Beta | 0.12 | 0.03 |
| Dividend Yield | 3.20% | 4.30% |
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Holdings Overlap Analysis
0%
Holdings Overlap
MUB and BND share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
MUB and BND share 0% of their top holdings (low overlap). MUB has 5,600 total holdings and BND has 11,286.
View data table
| Metric | MUB | BND |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 5,600 | 11,286 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
MUB
Fee cost: $600
BND
Fee cost: $258
Over 20 years, the fee difference amounts to $342 on a $10,000 investment. BND saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, MUB (0.07% fee) grows to $46,009 while BND (0.03% fee) grows to $46,351. The fee difference costs $342.
View data table
| Year | MUB Value | BND Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,646 | $14,673 |
| 10 | $21,450 | $21,529 |
| 15 | $31,415 | $31,590 |
| 20 | $46,009 | $46,351 |
Which One Should a Beginner Choose?
Choose MUB if: You want investors in the 32% or higher federal tax bracket seeking tax-efficient fixed income, retirees who want tax-free monthly income to keep more of their investment returns, those looking to reduce overall portfolio volatility with a low-risk bond allocation. It's managed by BlackRock with an expense ratio of 0.07%.
Choose BND if: You want conservative investors who want portfolio stability and predictable income, investors approaching or in retirement who need to reduce portfolio volatility, anyone building a balanced stock-and-bond portfolio. It's managed by Vanguard with an expense ratio of 0.03%.
Can You Own Both MUB and BND?
Absolutely! With only 0% overlap, MUB and BND complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy MUB or BND?▾
Both ETFs score equally well for beginners (10/10). Your choice depends on your specific investment goals. However, both are solid options. MUB is best for investors who want investors in the 32% or higher federal tax bracket seeking tax-efficient fixed income, while BND is better suited for conservative investors who want portfolio stability and predictable income.
What is the difference between MUB and BND?▾
MUB (iShares National Muni Bond ETF) tracks municipal bond investments with 5,600 holdings and a 0.07% expense ratio. BND (Vanguard Total Bond Market ETF) focuses on u.s. intermediate-term bond with 11,286 holdings at 0.03%. Their top holdings overlap by 0%.
Can I own both MUB and BND?▾
Yes! With only 0% holdings overlap, MUB and BND complement each other well. Owning both gives you broader diversification.