Muni-Bond ETF MUB Beats Treasury Fund VGIT on Five-Year Returns

Overview

• MUB led on five-year total return at 3.7% versus 0.8% for VGIT and also had a smaller maximum drop in value.
• VGIT charges a 0.03% expense ratio and yields 3.8%, compared with MUB at 0.05% and a 3.2% yield.
• MUB holds more than 6,300 investment-grade municipal bonds, compared with 76 U.S. Treasury issues in VGIT.
• Both funds are large and easy to trade, with VGIT at $48.8 billion in assets and MUB at $42.3 billion.
• Interest from many municipal bonds is exempt from federal income tax, which can improve MUB’s after-tax appeal for investors in taxable accounts.