Fresh Data Update the Bond ETF Trade-Off: FBND's Higher Yield Comes With Higher Fees and Risk

Late-January comparisons quantify the income–cost–risk trade-offs across these core bond funds.

Overview

FBND’s recent dividend yield around 4.6%–4.7% tops IEI at 3.5%, BND at 3.85% and MUB at 3.13%, based on snapshots through January 24–25.
Fees diverge sharply, with FBND at 0.36% versus IEI at 0.15%, BND at 0.03% and MUB at 0.05%, reinforcing the cost gap across options.
FBND holds about 4,459 bonds across sectors and allows up to 20% in lower‑quality debt, while IEI owns only 3–7 year Treasuries and BND tracks a larger, higher‑AAA bond universe.
Five‑year max drawdowns highlight risk differences: FBND at −17.23% versus IEI at −14.05%, BND at −17.93% and MUB at −11.88%.
Scale and structure vary, with BND at roughly $149 billion and about 15,000 holdings and 72.45% AAA, FBND near $24 billion with a corporate and energy tilt, and MUB offering tax‑exempt income with higher per‑share payouts due to a higher share price.