MUB vs VTI
iShares National Muni Bond ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | MUB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $45.2B | $663.5B | |
| Dividend Yield | 3.16% | 1.07% | |
| Holdings | 6,825 | 3,543 | |
| YTD Return | +0.58% | +14.96% | |
| 1Y Return | +4.88% | +22.39% | |
| 3Y Return (annualized) | +3.18% | +21.51% | |
| 5Y Return (annualized) | +0.68% | +12.36% | |
| Volatility (annualized) | 5.4% | 15.4% | |
| Max Drawdown | -14.1% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 7, 2007 | May 24, 2001 |
MUB vs VTI Performance
iShares National Muni Bond ETF (MUB) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year MUB returned +4.88% while VTI returned +22.39%. Year to date, MUB is up 0.58% versus a gain of 14.96% for VTI.
Over three years, MUB compounded at +3.18% per year against +21.51% for VTI; over five years the annualized figures are +0.68% and +12.36% respectively. Across the full 19-year window we track, VTI has the edge at +8.16% annualized vs +1.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 5.4% for MUB. 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 -14.1% for MUB and -56.6% for VTI. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUB charges 0.05% per year while VTI charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, MUB currently yields 3.16% against 1.07% for VTI.
Holdings Overlap
MUB and VTI share 0 holdings out of 3657 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MUB or VTI?
MUB has an expense ratio of 0.05% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, MUB or VTI?
Over the past year MUB returned +4.88% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), MUB annualized +1.00% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, MUB or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 5.4% for MUB. Worst drawdown: MUB -14.1% vs VTI -56.6%.
Should I hold both MUB and VTI?
MUB and VTI have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUB and VTI?
MUB and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3657 unique securities.
Which pays a higher dividend, MUB or VTI?
MUB yields 3.16% while VTI yields 1.07%, so MUB currently pays the higher dividend yield.
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