Investors evaluating iShares National Muni Bond ETF (NYSEMKT:MUB) against Vanguard Intermediate-Term Treasury ETF (NASDAQ:VGIT) are essentially weighing the federal tax advantages of municipal income against the government-backed credit security of U.S.
MUB focuses on high-quality municipal bonds, providing a strategy that is often favored by those in higher tax brackets seeking federal tax-exempt income. VGIT tracks intermediate-term U.S. Treasury notes, offering government-backed credit quality and a moderate sensitivity to interest rates with maturities typically ranging between three — 10 years.
Snapshot (cost & size) The Vanguard fund is slightly more affordable with a 0.03% expense ratio compared to the 0.05% fee for the iShares fund. Regarding income distributions, VGIT provides a higher trailing-12-month distribution yield of 3.90%, though MUB may offer superior after-tax returns for certain investors. Performance & risk comparison What’s inside VGIT is a fixed income fund without an equity sector breakdown, primarily holding 76 U.S.