JMUB vs VTEB

JMUBAJPMorgan Municipal ETF

VTEBAVanguard Tax-Exempt Bond ETF

In short

JMUB A national municipal bond portfolio aiming at federal tax-exempt income and capital preservation, spread across roughly 2,000 bonds, priced at 0.18% a year (well under the typical muni ETF) and paying monthly.

VTEB Vanguard's national muni index fund, running since 2015 at three basis points, a tenth of what the typical muni ETF charges. Its benchmark screens for investment-grade bonds whose income is exempt from federal tax and the AMT.

Stated mandate

JMUB The fund seeks federal tax-exempt income and capital preservation by investing in municipal securities.

VTEB VTEB seeks to track an index measuring the investment-grade segment of the U.S. municipal bond market. It uses passive sampling to approximate the index and generally invests in federally tax-exempt municipal securities.

Why people hold it

• JMUB 0.18% a year, against a muni-ETF field where the typical fee runs closer to 0.30%.
• Roughly 2,000 municipal bonds, so no single issuer, state or project sets the tone for the whole portfolio.
• Cash arrives monthly, and the mandate targets interest exempt from federal income tax.
• A multi-billion-dollar, actively traded fund that stays inside its stated muni mandate, and one of the stronger implementations in a crowded municipal peer group.

• VTEB Three basis points a year against a 0.30% muni-ETF median. On tax-exempt bonds, where coupons are modest, that fee gap is a real slice of the payout.
• The index holds only investment-grade munis whose interest is exempt from federal income tax and the alternative minimum tax, so the income carries no AMT surprise.vanguard.com
• A multi-billion-dollar fund and one of the most heavily traded in the muni category, which tends to show up as tight bid-ask spreads. Income is paid monthly.
• It has tracked its benchmark closely and sits among the strongest implementations in a crowded muni bond peer group.

Worth knowing

• JMUB Broad index rivals go cheaper: VTEB, SCMB and MUB all charge a handful of basis points versus 0.18% here.
• Munis still move with interest rates and credit spreads. Capital preservation is the stated goal, not a floor under the share price.
• The tax break is a federal one, so what it is worth depends on your bracket and your state's rules.

• VTEB Federal exemption, not blanket coverage. Income can still be taxable in your home state, which is why single-state funds like NYF exist alongside it.vanguard.com
• Credit quality is investment grade, so rates are the main swing factor: when muni yields rise, bond prices and the fund's share price fall.vanguard.com
• Sampling, not full replication. The fund owns a representative slice of a very large index rather than every bond in it.vanguard.com

Full JMUB profile⁠

Full VTEB profile⁠