STAX vs SUB

STAXCNomura Tax-Free USA Short Term ETF

SUBAiShares Short-Term National Muni Bond ETF

In short

STAX Actively managed munis at the short end of the curve: federally tax-free income paid monthly, with capital preservation written into the mandate. A small, young fund in a category ruled by giant index trackers.

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

STAX The fund seeks current interest income exempt from federal income tax while attempting to preserve capital through investments in short-term municipal obligations.

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

• STAX Active, not indexed: a manager picks the short-term municipal bonds, chasing income exempt from federal tax while attempting to preserve capital.
• Pays monthly, so the tax-exempt income shows up on a regular cadence rather than quarterly.
• 0.29% a year, roughly what the typical muni bond ETF charges, and that buys an active manager rather than an index rulebook.

• 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

• STAX Index beta is far cheaper: VTEB charges 0.03% and MUB 0.05%, versus 0.29% here. They track broad muni benchmarks across the maturity curve instead of trading actively.
• A small fund that trades thinly, which can widen the gap between bid and ask at the moment you place an order.
• Launched in December 2023, so there is limited history behind the manager's approach compared with long-running muni funds.

• 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 STAX profile⁠

Full SUB profile⁠