Vanguard’s BND offers a 0.03% expense ratio and 4.00% yield, while iShares’ MUB provides tax-exempt income at 3.20%.
Vanguard Total Bond Market ETF (BND) and iShares National Muni Bond ETF (MUB) serve distinct fixed-income strategies. BND, with a 0.03% expense ratio, delivers a 4.00% dividend yield from taxable investment-grade bonds, while MUB focuses on tax-exempt municipal bonds yielding 3.20%. Investors weigh tax efficiency against broader market exposure.
BND holds 346 diversified positions, none exceeding 0.48% of assets, primarily in government and corporate bonds. MUB, launched in 2007, tracks high-quality municipal bonds, offering historically lower volatility. Both funds exclude inflation-protected securities, but MUB’s tax-exempt status may appeal to higher-income investors.
The choice hinges on cost, yield, and tax considerations, with BND providing lower fees and higher nominal yields, while MUB targets tax-advantaged income.