Which Is the Better iShares Bond ETF for Your Tax Bracket: IGIB or MUB?

The iShares 5-10 Year Investment Grade Corporate Bond ETF provides a higher trailing-12-month dividend yield than the iShares National Muni Bond ETF, but the corporate bond ETF also shows a significantly higher maximum drawdown. The trade-off implies higher income potential comes with greater downside risk versus municipal exposure.

Analysis

The iShares 5-10 Year Investment Grade Corporate Bond ETF provides a higher trailing-12-month dividend yield than the iShares National Muni Bond ETF, but the corporate bond ETF also shows a significantly higher maximum drawdown. The trade-off implies higher income potential comes with greater downside risk versus municipal exposure.