MUB vs VYM
iShares National Muni Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. MUB offers more diversification with 874 holdings.
Side-by-Side Comparison
| Metric | MUB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.04% | |
| AUM | $45.2B | $79.0B | |
| Dividend Yield | 3.16% | 2.86% | |
| Holdings | 6,825 | 568 | |
| YTD Return | +0.37% | +16.16% | |
| 1Y Return | +4.73% | +26.05% | |
| 3Y Return (annualized) | +3.12% | +18.43% | |
| 5Y Return (annualized) | +0.62% | +12.21% | |
| Volatility (annualized) | 5.4% | 14.6% | |
| Max Drawdown | -14.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 7, 2007 | Nov 10, 2006 |
MUB vs VYM Performance
iShares National Muni Bond ETF (MUB) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MUB returned +4.73% while VYM returned +26.05%. Year to date, MUB is up 0.37% versus a gain of 16.16% for VYM.
Over three years, MUB compounded at +3.12% per year against +18.43% for VYM; over five years the annualized figures are +0.62% and +12.21% respectively. Across the full 19-year window we track, VYM has the edge at +7.09% annualized vs +0.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUB charges 0.05% per year while VYM charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, MUB currently yields 3.16% against 2.86% for VYM.
Holdings Overlap
MUB and VYM share 0 holdings out of 1432 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 VYM?
MUB has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, MUB or VYM?
Over the past year MUB returned +4.73% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), MUB annualized +0.99% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, MUB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.4% for MUB. Worst drawdown: MUB -14.1% vs VYM -58.8%.
Should I hold both MUB and VYM?
MUB and VYM have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUB and VYM?
MUB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1432 unique securities.
Which pays a higher dividend, MUB or VYM?
MUB yields 3.16% while VYM yields 2.86%, so MUB currently pays the higher dividend yield.
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