Should ETF Investors Flock to Municipal Bonds or Treasuries in 2026?
MUB offers lower costs and stronger 5-year returns, while IEI provides government backing and higher current yield. Which fits your tax situation?
Overview
The iShares National Muni Bond ETF (NYSEMKT:MUB) offers a lower-cost path to tax-exempt income, while the iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) provides federal government backing with a higher trailing yield.
Both funds serve as core fixed-income holdings but target different segments of the bond market. While MUB focuses on the tax advantages of high-quality municipal debt, IEI targets the belly of the Treasury yield curve, offering high liquidity and sovereign credit quality.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on July 30.
Source
Originally published at www.fool.com.