Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBrendan Coffey, The Motley FoolSat, July 4, 2026 at 5:01 PM GMT+2 5 min readInvestors seeking tax-exempt income may prefer iShares National Muni Bond ETF (NYSEMKT:MUB), while those prioritizing higher yields and lower costs could favor Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT).Fixed-income investors often choose between municipal and corporate debt depending on their specific tax bracket and overall risk appetite. While the iShares fund targets the tax-advantaged municipal market for those in higher brackets, the Vanguard fund provides exposure to investment-grade corporate bonds with intermediate maturities. This comparison analyzes how these two massive bond funds differ in cost, volatility, and total return.Snapshot (cost & size)MetricMUBVCITIssueriSharesVanguardShare price$107.34 (as of 2026-07-01)$82.19 (as of 2026-07-01)Expense ratio0.05%0.03%1-yr return (as of July 1, 2026)6.30%4.40%Dividend yield3.40%5.20%Beta0.240.33Assets under management (AUM)$45.7 billion$68.7 billionBeta 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 based on the July 1 closing price.The Vanguard fund is slightly more affordable with a 0.03% expense ratio compared to 0.05% for the iShares fund. This small difference can compound over long holding periods. Additionally, the Vanguard fund provides a significantly higher yield, with a gap of 1.74 percentage points over the iShares fund payout.Performance & risk comparisonMetricMUBVCITMax drawdown (5 yr)(11.90%)(20.60%)Growth of $1,000 over 5 years (total return)$1,043$1,055What's insideVanguard Intermediate-Term Corporate Bond ETF is a fixed-income fund that holds 2,283 securities. It primarily invests in U.S. dollar-denominated investment-grade corporate securities with maturities between five and 10 years. Its largest positions include debt from industrial, utility, and financial companies, and the portfolio is highly diversified, with no single position exceeding 0.31% of assets. The fund was launched in 2009. VCIT has paid $4.28 per share over the trailing 12 months, which, on its recent ~$82.19 share price, works out to a 5.20% yield.iShares National Muni Bond ETF is a fixed-income fund that manages 6,379 holdings. It tracks an index of high-quality municipal bonds issued by various U.S. states and territories. Its largest positions include a diversified mix of tax-exempt bonds, and the portfolio is structured so that no single holding accounts for more than 0.26% of assets. The fund was launched in 2007. iShares National Muni Bond ETF has paid $3.69 per share over the trailing 12 months, which, on its recent ~$107.34 share price, works out to a 3.40% yield.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info