iShares National Muni Bond ETF (NYSEMKT:MUB) focuses on high-quality municipal debt with federal tax advantages, while Vanguard Intermediate-Term Treasury ETF (NASDAQ:VGIT) offers lower costs and direct exposure to U.S.
Both funds serve as core fixed-income holdings for investors seeking stability and income. The iShares fund provides broad exposure to the municipal bond market, which is often favored by high-net-worth individuals for its tax benefits. Conversely, the Vanguard fund tracks intermediate-term Treasury notes, offering government backing and high liquidity.
These funds both offer high credit quality but cater to different tax situations and risk tolerances. Snapshot (cost & size) Vanguard Intermediate-Term Treasury ETF is the more affordable option with a 0.03% expense ratio. While its 3.90% yield is higher than the 3.20% offered by iShares National Muni Bond ETF, investors should consider the tax-exempt status of municipal bonds.