EVSM vs SUB

EVSMBEaton Vance Short Duration Municipal Income ETF

SUBAiShares Short-Term National Muni Bond ETF

In short

EVSM Tax-free monthly income with the interest-rate dial turned down. EVSM's own mandate keeps average duration under three years, and it charges well under the typical muni bond ETF, an unusual combination in a fee-sensitive category.

SUB Munis, but only the near end of the curve. Since 2008 SUB has tracked an AMT-free index of investment-grade municipal bonds maturing inside five years, paying tax-exempt income monthly with far less rate sensitivity than long-dated muni funds.

Stated mandate

EVSM The Fund seeks current income exempt from regular federal income tax. It invests as a short-duration municipal strategy, normally maintaining a dollar-weighted average portfolio duration below three years.

SUB The fund seeks to track an index of short-term, investment-grade U.S. municipal bonds maturing from one month through five years, providing tax-exempt income while managing interest-rate risk.

Why people hold it

• EVSM 0.19% a year, versus a roughly 0.30% median for muni bond ETFs. When most of the return is coupon, the fee gap is real money.
• The short leash is contractual, not a style drift: the fund normally keeps dollar-weighted average duration below three years, measured against a 1-3 year municipal index.
• Income is the stated job, and it arrives monthly. The objective is current income exempt from regular federal income tax.
• Trading since 2018 under the Eaton Vance banner, with a solid asset base and a standing in the upper half of a crowded muni bond ETF field.

• SUB Charges 0.07% a year against a category median near 0.30%. On tax-exempt bond income, that fee gap is a meaningful slice of what actually reaches you.
• Two dials set on purpose: maturities from one month to five years, and an AMT-free index, so neither rate swings nor the alternative minimum tax hit the same way.ishares.com
• A multi-billion-dollar fund running since 2008 under iShares, with tight tracking of its ICE benchmark. One of the sturdier implementations in the muni group.
• Pays monthly, so the tax-exempt income arrives on a regular cadence rather than in quarterly lumps.

Worth knowing

• EVSM Short is the whole point, which means skipping the longer end of the muni curve where more yield typically sits.
• Broad muni index funds undercut it on price: VTEB and MUB run at 0.03% and 0.05%. They also span the full maturity curve rather than the short end.
• Volume is moderate rather than heavy, which is typical for a short-duration muni fund of this size.

• SUB The five-year ceiling is the whole design, and it cuts both ways: less rate sensitivity, but a shorter stretch of the curve to draw income from than full-maturity muni funds.
• This is a national portfolio. Single-state funds like NYF chase a home-state tax break that a nationwide muni basket cannot offer.
• Broad-maturity peers VTEB and SCMB run at 0.03%. The short-end tilt here costs a few basis points more.

Full EVSM profile⁠

Full SUB profile⁠