ETF Versus

BND vs MUB

Vanguard Total Bond Market Index Fund vs iShares National Muni Bond ETF

Last updated: 2026-04-02

BND Vanguard

Vanguard Total Bond Market Index Fund (BND) is an exchange-traded fund issued by Vanguard that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.93%. Launched in 2007, the fund has a 19-year track record.

AUM: $150.4B ER: 0.03% Yield: 3.93% Since: Apr 3, 2007
MUB

iShares National Muni Bond ETF (MUB) is an exchange-traded fund that provides exposure to us municipal bond securities. It charges a very low expense ratio of 0.05%. The fund offers an attractive dividend yield of 3.18%. Launched in 2007, the fund has a 19-year track record.

AUM: $42.4B ER: 0.05% Yield: 3.18% Since: Sep 7, 2007

Quick Verdict

BND has a slightly lower expense ratio (0.03% vs 0.05%), saving about $40 per $10,000 over 10 years. Both funds have delivered similar 1-year returns (-0.0% vs 0.8%), tracking closely. Income investors may prefer BND for its higher yield (3.9% vs 3.2%).

Key Metrics

Metric BND MUB
Expense Ratio 0.03% 0.05%
Dividend Yield 3.9% 3.2%
Fund Family Vanguard N/A
Category US Aggregate Bond US Municipal Bond

Performance Chart

Indexed to 100 at start (5-year comparison)

80 85 90 95 100 105 2021-04 2022-06 2023-09 2024-12 2026-04
BND -13.3%
MUB -8.3%

Performance Comparison

Period BND MUB Difference
1 Month -1.63% -1.81% +0.18%
3 Months -0.84% -0.87% +0.03%
6 Months -1.20% -0.07% -1.13%
YTD -0.84% -0.87% +0.03%
1 Year -0.03% +0.76% -0.79%
3 Years -0.73% -1.21% +0.48%
5 Years -13.29% -8.28% -5.01%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period BND Fees MUB Fees You Save
$10.000 10 years $60 $100 $40
$10.000 20 years $258 $430 $171
$10.000 30 years $835 $1.388 $553
$50.000 10 years $299 $499 $199
$50.000 30 years $4.176 $6.941 $2.765
$100.000 30 years $8.352 $13.882 $5.531

Risk Metrics

Based on 5 years of daily returns

Metric BND MUB
Annualized Volatility 6.0% 4.1%
Max Drawdown -21.7% -14.4%
Sharpe Ratio -1.19 -1.51

Dividend Comparison

Metric BND MUB
Annual Dividend (per share) $2.88 $3.38
Dividend Yield 3.92% 3.18%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose BND if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose BND if...

you prioritize dividend income and want higher regular distributions from your portfolio.

Related Comparisons

AGG vs BND BND vs BNDX BND vs EFA BND vs EMB BND vs GLD BND vs HYG BND vs IEFA BND vs IEMG