Average Daily Volume
579.6K
Fund Overview
The iShares Short-Term National Muni Bond ETF (SUB) seeks to track the investment results of an index composed of investment-grade U.S. municipal bonds with remaining maturities between one month and five years. SUB provides investors with exposure to short-term municipal debt issued by state and local governments, offering potential tax-free income for investors in higher tax brackets. The fund is designed for those seeking relatively stable income with lower interest rate risk compared to longer-duration muni bond funds. With over $10 billion in assets under management, SUB is one of the most liquid and widely held short-term municipal bond ETFs available.
- Asset Class
-
Bond
- Industry
-
Municipal Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 2.73 %
- Currency Hedged
-
No
- Portfolio Turnover
-
28 %
- Dividend Date
-
Why Invest in the SUB ETF?
Potential Benefits
- Tax-advantaged income: Interest from municipal bonds is typically exempt from federal income taxes and may also be exempt from state and local taxes if investing in bonds issued within the investor's state of residence.
- Lower interest rate risk: The fund's short duration (typically 2-3 years) makes it less sensitive to interest rate changes compared to longer-term bond funds.
- High credit quality: The fund invests primarily in investment-grade municipal bonds, offering relatively lower credit risk.
- Liquidity: As one of the largest muni bond ETFs, SUB offers daily liquidity and tight bid-ask spreads.
- Diversification: Provides exposure to a broad range of municipal issuers across different states and sectors.
Potential Risks
- Interest rate risk: While less than longer-term bonds, SUB is still subject to price declines when interest rates rise.
- Credit risk: Although minimal, there is still potential for issuer defaults or downgrades in the municipal bond market.
- Tax law changes: Changes in federal or state tax laws could reduce the attractiveness of municipal bonds.
- Liquidity risk: While the ETF itself is liquid, the underlying municipal bond market can experience periods of reduced liquidity.
- Call risk: Some municipal bonds may be called before maturity, potentially forcing reinvestment at lower rates.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.6%
|
+0.3%
|
-0.7%
|
+0.3%
|
+0.1%
|
+0.2%
|
-0.1%
|
+0.3%
|
-1.4%
|
+0.2%
|
-
|
-
|
| 2025 |
+0.4%
|
+0.3%
|
-0.3%
|
+0.2%
|
+0.6%
|
+0.6%
|
+0.6%
|
+0.5%
|
0.0%
|
0.0%
|
+0.4%
|
+0.4%
|
| 2024 |
-0.2%
|
0.0%
|
-0.2%
|
0.0%
|
-0.2%
|
+0.6%
|
+0.9%
|
+0.7%
|
+0.5%
|
-0.5%
|
+0.5%
|
+0.1%
|
| 2023 |
+0.7%
|
-1.2%
|
+1.3%
|
-0.2%
|
-0.5%
|
+0.5%
|
+0.1%
|
0.0%
|
-0.7%
|
+0.4%
|
+1.9%
|
+0.8%
|
| 2022 |
-1.2%
|
-0.2%
|
-1.1%
|
-0.8%
|
+1.0%
|
+0.1%
|
+0.7%
|
-1.1%
|
-1.3%
|
0.0%
|
+1.8%
|
+0.1%
|
| 2021 |
0.0%
|
-0.4%
|
+0.2%
|
+0.2%
|
0.0%
|
+0.1%
|
+0.2%
|
0.0%
|
-0.3%
|
-0.1%
|
0.0%
|
+0.1%
|
| 2020 |
+0.5%
|
+0.2%
|
-0.9%
|
0.0%
|
+1.8%
|
0.0%
|
+0.6%
|
-0.2%
|
+0.1%
|
-0.3%
|
+0.4%
|
+0.3%
|
| 2019 |
+0.2%
|
+0.1%
|
+0.5%
|
+0.1%
|
+0.6%
|
+0.3%
|
+0.5%
|
+0.2%
|
-0.3%
|
+0.4%
|
+0.1%
|
+0.3%
|
| 2018 |
+0.2%
|
-0.1%
|
+0.1%
|
-0.4%
|
+0.6%
|
+0.2%
|
+0.4%
|
0.0%
|
-0.3%
|
-0.1%
|
+0.6%
|
+0.8%
|
| 2017 |
+0.2%
|
+0.5%
|
0.0%
|
+0.2%
|
+0.4%
|
-0.2%
|
+0.4%
|
+0.3%
|
-0.3%
|
-0.1%
|
-0.6%
|
0.0%
|
< -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: SUB vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
SUB tracks the ICE Short-Term AMT-Free Broad National Municipal Index, which includes investment-grade municipal bonds with remaining maturities between one month and five years. The index is market-cap weighted, meaning larger issuances have greater representation in the portfolio. The fund holds physical bonds rather than using derivatives, and it excludes bonds subject to the Alternative Minimum Tax (AMT). The portfolio is rebalanced monthly to maintain its short-term maturity profile. As of the most recent holdings, SUB maintains an average duration of approximately 2.5 years and an average credit quality of AA.
Frequently Asked Questions
Is SUB's dividend income really tax-free?
SUB's dividends are generally exempt from federal income taxes, and may also be exempt from state and local taxes if the bonds are issued in your state of residence. However, capital gains from selling shares of the ETF are still taxable.
How does SUB compare to a money market fund?
SUB typically offers higher yields than money market funds while maintaining relatively low volatility. However, money market funds have even shorter durations and are generally considered to have slightly lower risk.
What percentage of SUB's holdings are rated AAA?
As of the most recent data, approximately 60% of SUB's holdings carry AAA ratings, with most of the remainder in AA-rated bonds, reflecting its high credit quality focus.
Can SUB lose value?
Yes, while SUB is relatively stable compared to longer-term bond funds or equities, its NAV can decline due to rising interest rates or credit concerns in the municipal bond market.
How often does SUB pay dividends?
SUB pays dividends monthly, which is typical for municipal bond ETFs. The dividend amount may vary based on the income received from the underlying bonds.
Industry Overview
The municipal bond market represents debt issued by state and local governments to fund public projects like schools, highways, and utilities. The iShares Short-Term National Muni Bond ETF (SUB) provides exposure to this $4 trillion market while focusing on shorter maturities. Short-term muni bonds like those in SUB's portfolio typically offer lower yields than longer-term bonds but with reduced price volatility. This sector is particularly attractive to high-income investors in higher tax brackets due to the tax-exempt status of municipal bond interest. The short-term focus of SUB makes it well-suited for current environments where interest rates may be rising or uncertain.
Alternative Comparison
Compared to MUB (iShares National Muni Bond ETF), SUB offers shorter duration exposure, making it less sensitive to interest rate movements. While SHM (SPDR Nuveen Bloomberg Short Term Municipal Bond ETF) also focuses on short-term munis, SUB has a broader national focus and typically offers slightly better liquidity. For investors specifically seeking state-specific tax benefits, funds like NYF (iShares New York Muni Bond ETF) might be more appropriate, though they concentrate geographic risk. SUB's expense ratio of 0.07% is highly competitive within the short-term muni bond ETF category.
Issuer Overview
SUB is issued by iShares, the ETF arm of BlackRock, the world's largest asset manager. iShares is a leading provider of fixed income ETFs with over $1 trillion in fixed income ETF assets globally. The firm is known for its rigorous index construction methodologies and robust risk management frameworks. BlackRock's scale provides SUB with advantages in liquidity, tight spreads, and efficient portfolio management.
Conclusion
The iShares Short-Term National Muni Bond ETF (SUB) represents a core holding for investors seeking tax-advantaged income with relatively low interest rate risk. Its focus on high-quality, short-duration municipal bonds makes it particularly suitable for conservative investors in higher tax brackets or those looking to reduce fixed income volatility in their portfolios. While yields are modest compared to longer-term bonds or taxable alternatives, the tax-equivalent yield can be attractive for appropriate investors. As with all fixed income investments, investors should consider their tax situation, risk tolerance, and investment horizon when evaluating SUB.
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