MBND vs VOO
State Street Nuveen Municipal Bond ETF vs Vanguard S&P 500 ETF
Which is better, MBND or VOO?
Municipal Bond against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | MBND | VOO |
|---|---|---|
| Expense Ratio | 0.40% | 0.03%Best |
| AUM | $27M | $997.4B |
| Dividend Yield | 3.51% | 1.04% |
| Holdings | 73 | 509 |
| YTD Return | -4.92% | +12.37%Best |
| 1Y Return | -3.93% | +16.61%Best |
| 3Y Return (annualized) | +1.74% | +21.37%Best |
| 5Y Return (annualized) | -0.68% | +13.49%Best |
| Volatility (annualized) | 5.5%Best | 15.2% |
| Max Drawdown | -13.2%Best | -24.5% |
| $10,000 over 5 years | $9,665 | $18,827Best |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Feb 4, 2021 | Sep 7, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 4, 2021 to Sep 18, 2026 (5.6 years).
MBND vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.6 years both funds cover.
MBND vs VOO Performance
State Street Nuveen Municipal Bond ETF (MBND) is an ETF from State Street Investment Management and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year MBND returned -3.93% while VOO returned +16.61%. Year to date, MBND is down 4.92% versus a gain of 12.37% for VOO.
Over three years, MBND compounded at +1.74% per year against +21.37% for VOO; over five years the annualized figures are -0.68% and +13.49% respectively. Across the full 6-year window we track, VOO has the edge at +14.47% annualized vs -0.42%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 15.2% compared with 5.5% for MBND. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -13.2% for MBND and -24.5% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.66. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MBND charges 0.40% per year while VOO charges 0.03%. On a $10,000 position that is $40 vs $3 annually, a gap of $37 per year that compounds over a long holding period. On income, MBND currently yields 3.51% against 1.04% for VOO.
You are not choosing between two funds in isolation.
Whichever of MBND and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MBND or VOO?
MBND has an expense ratio of 0.40% while VOO charges 0.03%. VOO is the cheaper option, by $37 a year on a $10,000 investment.
Which performed better, MBND or VOO?
Over the past year MBND returned -3.93% vs +16.61% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (6 years), MBND annualized -0.42% vs +14.47% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MBND or VOO?
VOO has been the more volatile fund at 15.2% annualized versus 5.5% for MBND. Worst drawdown: MBND -13.2% vs VOO -24.5%.
Should I hold both MBND and VOO?
MBND and VOO have a monthly-return correlation of 0.66, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, MBND or VOO?
MBND yields 3.51% while VOO yields 1.04%, so MBND currently pays the higher dividend yield.
Is VOO better than MBND?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.