Average Daily Volume
5.63M
Fund Overview
The iShares National Muni Bond ETF (MUB) is designed to track the investment results of the S&P National AMT-Free Municipal Bond Index. This index measures the performance of the investment-grade segment of the U.S. municipal bond market, which includes bonds issued by state and local governments to fund public projects. MUB provides investors with exposure to a broad range of municipal bonds that are exempt from federal income taxes and, in some cases, state and local taxes. The fund is widely regarded as a low-cost, liquid option for investors seeking tax-advantaged income. MUB holds a diversified portfolio of bonds with varying maturities, offering a balance between yield and risk.
- Asset Class
-
Bond
- Industry
-
Municipal Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 3.53 %
- Currency Hedged
-
No
- Portfolio Turnover
-
27 %
- Dividend Date
-
Why Invest in the MUB ETF?
Potential Benefits
- Tax-exempt income: Interest from MUB's holdings is generally exempt from federal income taxes, making it attractive for investors in higher tax brackets.
- Diversification: The fund provides exposure to a broad range of municipal bonds across different states and sectors, reducing single-issuer risk.
- Liquidity: MUB is one of the most liquid municipal bond ETFs, allowing for easy entry and exit.
- Low expense ratio: With a competitive expense ratio, MUB is a cost-effective way to gain exposure to the municipal bond market.
- Credit quality: The fund primarily invests in investment-grade bonds, offering relatively lower credit risk compared to high-yield options.
Potential Risks
- Interest rate risk: Like all bond funds, MUB is sensitive to changes in interest rates; rising rates can lead to falling bond prices.
- Credit risk: Although the fund holds investment-grade bonds, there is still a risk of issuer default or downgrade.
- State-specific risks: Some bonds may be concentrated in certain states, exposing investors to regional economic conditions.
- Tax law changes: Changes in federal or state tax laws could reduce the attractiveness of municipal bonds.
- Liquidity risk: While MUB itself is liquid, underlying bonds may be less liquid, especially in volatile markets.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.7%
|
+1.3%
|
-2.3%
|
+1.2%
|
+0.3%
|
+0.7%
|
-1.6%
|
-0.2%
|
-3.5%
|
+0.1%
|
-
|
-
|
| 2025 |
0.0%
|
+1.3%
|
-1.8%
|
-0.4%
|
-0.6%
|
+0.9%
|
-0.3%
|
+0.8%
|
+2.2%
|
+1.2%
|
+0.2%
|
+0.2%
|
| 2024 |
0.0%
|
-0.2%
|
-0.1%
|
-0.9%
|
-0.3%
|
+1.0%
|
+1.3%
|
+0.2%
|
+1.1%
|
-1.2%
|
+1.7%
|
-1.3%
|
| 2023 |
+2.5%
|
-2.3%
|
+2.4%
|
-0.2%
|
-0.6%
|
+0.6%
|
0.0%
|
-0.8%
|
-2.6%
|
-1.2%
|
+5.7%
|
+2.3%
|
| 2022 |
-2.4%
|
-0.5%
|
-2.6%
|
-2.5%
|
+1.5%
|
-1.5%
|
+2.3%
|
-2.4%
|
-2.8%
|
-0.8%
|
+4.8%
|
-0.3%
|
| 2021 |
+0.3%
|
-1.6%
|
+0.6%
|
+0.8%
|
+0.3%
|
+0.3%
|
+0.5%
|
-0.2%
|
-0.7%
|
0.0%
|
+0.7%
|
0.0%
|
| 2020 |
+1.7%
|
+1.0%
|
-3.0%
|
-1.4%
|
+3.8%
|
+0.4%
|
+1.4%
|
-0.6%
|
+0.1%
|
-0.5%
|
+1.6%
|
+0.7%
|
| 2019 |
+0.4%
|
+0.5%
|
+1.5%
|
+0.5%
|
+1.4%
|
+0.4%
|
+0.7%
|
+1.5%
|
-0.8%
|
+0.3%
|
+0.1%
|
+0.3%
|
| 2018 |
-1.1%
|
-0.6%
|
+0.5%
|
-0.7%
|
+1.3%
|
+0.1%
|
+0.1%
|
+0.2%
|
-0.7%
|
-0.6%
|
+1.1%
|
+1.3%
|
| 2017 |
+0.3%
|
+0.5%
|
+0.3%
|
+0.5%
|
+1.5%
|
-0.4%
|
+0.9%
|
+0.8%
|
-0.4%
|
+0.1%
|
-0.5%
|
+1.0%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: MUB vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
MUB seeks to track the S&P National AMT-Free Municipal Bond Index, which includes investment-grade municipal bonds that are exempt from the alternative minimum tax (AMT). The index is market-cap weighted, meaning larger issuers have greater representation in the portfolio. The fund primarily holds bonds with maturities ranging from one to thirty years, providing a mix of short, intermediate, and long-term exposure. MUB is passively managed and rebalances periodically to align with the index composition. The fund avoids derivatives, instead holding physical bonds to replicate the index.
Frequently Asked Questions
Is MUB's income exempt from state taxes?
MUB's income is exempt from federal taxes, but state tax treatment depends on your state of residence and where the bonds were issued. Many states also exempt interest from bonds issued within that state.
How often does MUB pay dividends?
MUB pays dividends monthly, providing regular income streams to investors.
What is the average duration of MUB's holdings?
As of the latest data, MUB has an average duration of approximately 6-7 years, meaning it has moderate sensitivity to interest rate changes.
Does MUB hold bonds from all 50 states?
MUB holds bonds from many states but not necessarily all 50. The portfolio is concentrated in larger issuers like California, New York, and Texas, which have more active municipal bond markets.
How does MUB compare to individual municipal bonds?
MUB offers instant diversification across hundreds of bonds, eliminating the need to research and select individual issues. While individual bonds can be held to maturity, MUB provides ongoing exposure to the broader market with professional management.
Industry Overview
The iShares National Muni Bond ETF (MUB) provides exposure to the U.S. municipal bond market, which is known for its tax-advantaged income potential. Municipal bonds are issued by state and local governments to fund infrastructure projects, schools, and other public services. The market is valued for its relative stability and lower default rates compared to corporate bonds. MUB's focus on investment-grade, AMT-free bonds makes it a core holding for investors seeking tax-efficient income, particularly those in higher tax brackets. The ETF's broad diversification across issuers and maturities helps mitigate risks associated with individual bonds.
Alternative Comparison
Compared to similar funds like VTEB (Vanguard Tax-Exempt Bond ETF) and TFI (SPDR Nuveen Bloomberg Municipal Bond ETF), MUB stands out for its broader diversification across states and sectors. While VTEB offers a slightly lower expense ratio, MUB provides greater liquidity and tighter bid-ask spreads, which can be advantageous for active traders. Unlike some competitors that may include AMT bonds, MUB focuses exclusively on AMT-free securities, enhancing its tax efficiency for certain investors. Both MUB and VTEB use physical replication, while some peers may employ sampling techniques.
Issuer Overview
MUB is issued by iShares, a leading ETF provider and subsidiary of BlackRock. iShares is known for its extensive lineup of low-cost, passively managed ETFs that track a wide range of indices. With trillions in assets under management, iShares has established itself as a trusted name in the ETF space, offering investors access to various asset classes through transparent and liquid investment vehicles.
Conclusion
MUB is a core holding for investors seeking tax-advantaged income from the municipal bond market. Its broad diversification, liquidity, and focus on investment-grade, AMT-free bonds make it a compelling choice for both individual and institutional investors. While subject to interest rate and credit risks like all bond funds, MUB's low cost and tax efficiency position it as a staple in many tax-sensitive portfolios.
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