SMB vs SUB

SMBAVanEck Short Muni ETF

SUBAiShares Short-Term National Muni Bond ETF

In short

SMB A muni fund built for the short end: VanEck has run this AMT-free, short-maturity national portfolio since 2008, and it charges 0.07%, a fraction of what the typical muni bond ETF costs.

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

SMB The fund seeks to track the price and yield performance of the ICE Short AMT-Free Broad National Municipal Index before fees and expenses.

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

• SMB Charges 0.07% a year, well under the typical muni bond ETF fee. When the whole point is tax-free income, the fee line matters.
• The index is AMT-free by design, so the interest it targets is federally tax-exempt without the alternative minimum tax wrinkle.vaneck.com
• Short maturities mean rate swings move prices less than in long-dated muni funds. Roughly 300 bonds, with income paid monthly.
• Running since 2008, so it has an audited record through a full round trip in interest rates rather than a two-year backtest.

• 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

• SMB The short end of the muni curve is the low-income end. This portfolio is about damping rate moves, not maximizing the payout.
• It is a national fund, aimed at federal tax exemption only. State-level exemption is the job of single-state funds like NYF.vaneck.com
• Broad-maturity rivals VTEB and SCMB charge less and cover the whole curve. The short-maturity focus is the reason to look here.

• 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 SMB profile⁠

Full SUB profile⁠