Quick Read – NEA delivers a 7.14% federally tax-free yield, which is double MUB’s 3.52%, and posted a 12% price return over the past year. – NEA slashed its distribution nearly in half during 2022-2023 rate hikes and now trades at a NAV premium, eliminating the traditional CEF…
scount cushion. – Investors who bought the iShares National Muni Bond ETF (NYSEARCA:MUB) did so for a good reason: it is the cheapest, most liquid way to own a diversified basket of federally tax-free municipal bonds. With a 0.05% expense ratio and $45.4 billion in assets, MUB has become the default core holding for taxable brokerage accounts
The problem is the payout. MUB’s 30-day SEC yield of 3.52% as of August 13, 2026 looks thin against a 10-year Treasury at 4.63%, and even thinner for anyone trying to live on the income. A specific municipal fund pays more than double that rate, with the same AMT-free federal exemption, and Wall Street is only now re-rating it.
Why the MUB Yield Feels Small Roughly 5,900 investment-grade munis make up the portfolio at MUB, held with no leverage and no active security selection. That structure keeps the fee at a rounding error, though it also caps income near the underlying bond coupons. A retiree in the 32% federal bracket with $100,000 in MUB collects about $3,520 a year in tax-free interest.