Broad Bond Exposure or Tax-Exempt Muni Income? BND vs. MUB
The Vanguard Total Bond Market ETF (BND) and the iShares National Muni Bond ETF (MUB) both appeal to income-focused investors, but the right fit may depend on more than the payout. The bigger question is how that income works after taxes.
Broad Bond Exposure or Tax-Exempt Muni Income? BND vs. MUB
Overview
Vanguard Total Bond Market ETF (NASDAQ:BND) offers broad exposure to taxable investment-grade bonds at a lower cost, while iShares National Muni Bond ETF (NYSEMKT:MUB) focuses on tax-exempt income with historically lower volatility.
Fixed-income investors often choose between taxable and tax-exempt strategies to manage risk and income. This comparison evaluates how BND, a massive aggregate bond fund, matches up against MUB, a leading municipal bond fund, regarding costs, returns, and portfolio composition.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.
