MEAR vs VSDM

MEARBiShares Short Maturity Municipal Bond Active ETF

VSDMAVanguard Short Duration Tax-Exempt Bond ETF

In short

MEAR Active muni investing at the short end. Since 2015, iShares has hand-picked roughly 300 short-term municipal bonds here, chasing income exempt from federal tax and the AMT in a corner of the market most rivals index.

VSDM —No data

Stated mandate

MEAR The Fund seeks to maximize tax-free current income through active management of short-term municipal securities. It generally invests at least 80% of assets in municipal securities whose interest is exempt from U.S. federal income tax and the federal AMT.

VSDM —No data

Why people hold it

• MEAR Costs 0.26% a year, below the typical muni ETF, and that buys a manager picking bonds rather than a rulebook.
• At least 80% of assets sit in bonds whose interest is exempt from federal income tax and the federal AMT, spread across about 300 positions.ishares.com
• Short maturities mean milder price swings when rates move than long-dated muni portfolios face.
• A multi-billion-dollar fund that changes hands steadily, which tends to keep bid-ask costs contained.

VSDM —No data

Worth knowing

• MEAR Index muni funds go far cheaper: VTEB at 0.03% and MUB at 0.05%. Active security selection is the thing you are paying the difference for.
• No index to check the work against. Outcomes ride on the manager's credit and maturity calls.
• Payouts land on an irregular schedule, and the tax break is federal. State and local taxes can still apply.

VSDM —No data

Full MEAR profile⁠

Full VSDM profile⁠