JMST vs SUB

JMSTAJPMorgan Ultra-Short Municipal Income ETF

SUBAiShares Short-Term National Muni Bond ETF

In short

JMST Munis without the long-end drama. JMST holds investment-grade municipal bonds with an average weighted maturity of two years or less and pays federally tax-exempt income monthly, for 0.18% a year.

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

JMST The fund seeks current income exempt from federal income tax while maintaining stability of principal. It primarily invests in investment-grade fixed-, variable-, and floating-rate municipal securities and seeks an average weighted maturity of two years or less.

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

• JMST 0.18% a year, well under the 0.30% median for its muni cohort.
• The mandate targets an average weighted maturity of two years or less, so rate moves hit it far less than they hit long-dated muni funds.jpmorgan.com
• Roughly 1,600 investment-grade positions across fixed, variable and floating rate munis, so no single issuer carries the fund.
• A multi-billion-dollar fund that trades actively, which generally keeps the spread you pay to get in and out narrow.

• 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

• JMST Broad muni index funds go cheaper: VTEB and SCMB run 0.03%, MUB 0.05%. You are paying up for the ultra-short mandate.
• Short maturities cut rate risk, and they cut the extra income longer municipal bonds pay for carrying that risk. This is a stability-of-principal design.
• The stated exemption is from federal income tax. State and local treatment is a separate question that depends on where you file.

• 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 JMST profile⁠

Full SUB profile⁠