iShares National Muni Bond ETF

MUB

Market cap $43.6B

For financial advisors, tax season should not be the only time to talk to clients about municipal bonds. However, with April 15 arriving this week, the timing is ideal to examine how muni bond ETFs are rapidly becoming a cornerstone of fixed-income allocations in 2026.

IEI carries a higher expense ratio and a slightly higher yield than MUB. MUB outperformed IEI over the past year and five-year period, but IEI holds up well in risk-adjusted terms.

VGIT and MUB both manage over $40 billion in assets. VGIT's yield is slightly higher, but it has seen a larger drawdown over five years compared to MUB.

VCIT and MUB both keep expenses low, but VCIT delivers a higher yield and slightly better 1-year return. MUB's municipal bonds showed a much shallower five-year drawdown than VCIT's corporates, which signals lower historical risk.

The iShares National Muni Bond ETF offers competitive tax-equivalent yields versus corporate bonds and Treasuries making it an attractive option in the current market environment. Nearly half of the ETF's asset base is covered by tax-linked revenue, which arguably reduces cyclical risks. MUB ETF's credit sensitivity is low-to-moderate and the vehicle handled the U.S.-Iran event's inception rather well, on a relative basis.

IGIB charges a slightly lower expense ratio and offers a higher yield than MUB IGIB has delivered stronger one-year returns but experienced a deeper five-year drawdown Both funds hold thousands of bonds, but MUB focuses on municipal debt while IGIB targets investment-grade corporates

IEI charges a higher expense ratio but has a higher dividend yield than MUB. MUB has multiple tax exemptions, while IEI has none.

There's a reason a lot of people end up getting stretched thin financially in retirement.

Interest gained from investing in MUB is exempt from federal income tax. VCIT offers a higher dividend yield and lower expense ratio than MUB.

Fidelity's FBND ETF has a higher dividend yield than BlackRock's MUB ETF, but MUB has a significantly cheaper expense ratio. MUB holds far more bonds with a tax-exempt municipal focus, while FBND tilts heavily into energy and corporate credit.