Municipal vs taxable bonds
MUB vs BND historical comparison
Compare a national municipal bond fund against a taxable total bond fund across the same historical window.
Modeled result
From 2008 to 2025, MUB finished ahead of BND before tax.
Historical model
Growth of $10,000
2008-01-02 to 2025-12-31
| Date | MUB | BND |
|---|---|---|
| Approx. Jan 2008 | $10,000 | $10,000 |
| Approx. Aug 2008 | $9,954 | $10,010 |
| Approx. Dec 2008 | $9,579 | $10,167 |
| Approx. Jul 2009 | $10,409 | $10,780 |
| Approx. Oct 2009 | $10,715 | $11,044 |
| Approx. Jun 2010 | $11,094 | $11,482 |
| Approx. Sep 2010 | $11,496 | $11,935 |
| Approx. May 2011 | $11,290 | $12,042 |
| Approx. Aug 2011 | $11,826 | $12,460 |
| Approx. Apr 2012 | $12,271 | $12,730 |
| Approx. Jul 2012 | $12,835 | $13,158 |
| Approx. Mar 2013 | $12,803 | $12,964 |
| Approx. Jun 2013 | $12,406 | $12,720 |
| Approx. Feb 2014 | $12,663 | $12,983 |
| Approx. May 2014 | $13,154 | $13,288 |
| Approx. Jan 2015 | $13,565 | $13,665 |
| Approx. Apr 2015 | $13,566 | $13,742 |
| Approx. Dec 2015 | $13,765 | $13,568 |
| Approx. Mar 2016 | $14,040 | $13,939 |
| Approx. Nov 2016 | $14,266 | $14,290 |
| Approx. Feb 2017 | $13,975 | $14,059 |
| Approx. Oct 2017 | $14,471 | $14,460 |
| Approx. Jan 2018 | $14,447 | $14,368 |
| Approx. Sep 2018 | $14,519 | $14,378 |
| Approx. Dec 2018 | $14,648 | $14,459 |
| Approx. Aug 2019 | $15,576 | $15,575 |
| Approx. Nov 2019 | $15,666 | $15,830 |
| Approx. Jul 2020 | $16,127 | $16,866 |
| Approx. Oct 2020 | $16,185 | $16,858 |
| Approx. Jun 2021 | $16,630 | $16,603 |
| Approx. Sep 2021 | $16,714 | $16,929 |
| Approx. May 2022 | $15,399 | $15,118 |
| Approx. Aug 2022 | $15,524 | $15,096 |
| Approx. Apr 2023 | $15,850 | $14,923 |
| Approx. Jul 2023 | $15,945 | $14,903 |
| Approx. Mar 2024 | $16,336 | $15,180 |
| Approx. Jun 2024 | $16,304 | $15,356 |
| Approx. Jan 2025 | $16,543 | $15,655 |
| Approx. May 2025 | $16,273 | $15,799 |
| Approx. Dec 2025 | $17,170 | $16,665 |
| Holding | Ending value | CAGR | Max drawdown |
|---|---|---|---|
MUB Municipal bonds (MUB) | $17,170 | 3.05% | -13.68% |
BND Taxable bonds (BND) | $16,665 | 2.88% | -18.58% |
MUB
Municipal bonds (MUB)
- Ending value
- $17,170
- CAGR
- 3.05%
- Max drawdown
- -13.68%
BND
Taxable bonds (BND)
- Ending value
- $16,665
- CAGR
- 2.88%
- Max drawdown
- -18.58%
Pre-tax results only. The federal exemption for municipal interest is not included in this comparison.
Detailed metrics
| Holding | Pre-tax value | Pre-tax CAGR | Max drawdown |
|---|---|---|---|
Municipal bonds (MUB) MUB | $17,170 | 3.05% | -13.68% |
Taxable bonds (BND) BND | $16,665 | 2.88% | -18.58% |
Assumptions
$10,000 lump sum; distributions reinvested; monthly rebalancing; 2008-01-02 to 2025-12-31.
FAQ
- Are municipal bonds always the better after-tax choice?
- No. Municipal yields are lower before tax in most markets, so the federal exemption has to make up the gap. This exhibit stays pre-tax; taxable-equivalent yield requires a separate bracket-specific calculation.
- Should municipal bonds go in an IRA or Roth?
- Their advantage is the federal tax exemption on interest, which has no value inside an account that is already tax-advantaged. Investors generally hold municipal bonds in taxable accounts for that reason.
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