MUB VS ITM: A Comprehensive Comparison of ETFs
4 min read
By Ron Koren, ETF Insider

MUB VS ITM: A Comprehensive Comparison of ETFs

Exchange-Traded Funds (ETFs) have transformed the investment landscape by providing diversified exposure to various sectors and asset classes. In this article, we will conduct a comprehensive comparison between two prominent ETFs: MUB (iShares National Muni Bond ETF) and ITM (VanEck Vectors AMT-Free Intermediate Municipal Index ETF). We will delve into key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

MUB VS ITM: Overview

MUB and ITM are two ETFs that offer distinct investment opportunities within the municipal bond market. While MUB aims to track the performance of a broad range of national municipal bonds, ITM targets intermediate-term municipal bonds. This fundamental difference in focus leads to varied exposure and risk profiles, which we will explore in the subsequent sections.

MUB VS ITM: Sectors and Top Holdings

The MUB ETF is primarily invested in a diversified portfolio of national municipal bonds issued by various municipalities. ITM, on the other hand, focuses on intermediate-term municipal bonds issued by state and local governments. Understanding the sectors and top holdings within these ETFs enables investors to make informed decisions based on their investment objectives and risk tolerance.

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MUB VS ITM: Capitalization and Strategy

MUB boasts a substantial Asset Under Management (AUM), reflecting its popularity among investors seeking exposure to the municipal bond market. ITM's strategy revolves around intermediate-term municipal bonds that are exempt from the Alternative Minimum Tax (AMT). The difference in capitalization and strategy between the two ETFs presents investors with distinct potential returns and risk factors, underscoring the importance of careful consideration.

MUB VS ITM: Tracking and Exposure

MUB aims to provide investors with exposure to the performance of a broad index of national municipal bonds. In contrast, ITM seeks to track the performance of intermediate-term municipal bonds that are exempt from AMT. The tracking methodologies differ, with MUB following a broader spectrum of bonds and ITM narrowing its focus to a specific segment of the municipal bond market. Understanding these tracking and exposure strategies aids investors in choosing the ETF that aligns with their investment preferences.

Conclusion

MUB and ITM are distinctive ETFs that cater to investors' preferences within the municipal bond market. For individuals interested in delving deeper into insights regarding holdings, correlations, overlaps, and other pertinent information, ETF Insider serves as an invaluable tool. This user-friendly app offers comprehensive details about various financial instruments, enabling investors to make well-informed decisions.

Disclaimer: This article is not intended to provide any investment advisory services.

Sources:

iShares. (n.d.). iShares National Muni Bond ETF (MUB). Retrieved from [Link to MUB]
VanEck. (n.d.). VanEck Vectors AMT-Free Intermediate Municipal Index ETF (ITM). Retrieved from [Link to ITM]

MUB ETF issuer
MUB ETF official page

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