Comparing iShares Bond ETFs: MUB vs. IEI

Exploring the differences in fees, risk, and bond types between these two fixed income funds.

Apr. 11, 2026 at 12:40pm

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An extreme close-up of stacked U.S. Treasury bonds and municipal bonds, dramatically lit to emphasize the tactile, industrial nature of fixed income investments as a metaphor for financial security and stability.A close examination of the physical bonds that underpin the fixed income market reveals the tangible mechanics driving investment strategies.NYC Today

The iShares National Muni Bond ETF (MUB) and iShares 3-7 Year Treasury Bond ETF (IEI) are both high-quality fixed income ETFs from iShares, but they differ in their cost, yield, performance, and bond exposure. MUB focuses on municipal bonds while IEI tracks intermediate-term U.S. Treasuries, each offering distinct risk-return profiles for investors.

Why it matters

The choice between MUB and IEI depends on an investor's financial goals and priorities. MUB provides tax-exempt income that can be attractive for high-income individuals, while IEI offers greater safety and stability at a higher cost. Understanding the nuances between these two bond ETFs can help investors determine which one better fits their fixed income strategy.

The details

MUB has a lower expense ratio of 0.05% compared to IEI's 0.15%, making it the more affordable option. However, IEI offers a slightly higher dividend yield of 3.6% versus MUB's 3.2%. In terms of performance, MUB had a 1-year return of 6.9% as of April 9, 2026, while IEI returned 4.3% over the same period. MUB also has a higher beta of 0.9 compared to IEI's 0.7, indicating it is more volatile. In terms of portfolio composition, MUB provides exposure to a broad mix of investment-grade municipal bonds, while IEI tracks U.S. Treasury bonds with maturities between 3-7 years.

  • The data in this comparison is current as of April 9, 2026.

The players

iShares

The issuer of both the MUB and IEI ETFs.

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The takeaway

Investors must weigh the trade-offs between MUB and IEI based on their specific financial goals and priorities. MUB's tax-exempt income may be more appealing for high-income individuals, while IEI's greater safety and stability could be preferable for those seeking a lower-risk fixed income allocation. Understanding the nuances of these two bond ETFs can help investors make an informed decision about which one best fits their portfolio needs.