NEA delivers a 7.14% federally tax-free yield, which is double MUB's 3.52%, and posted a 12% price return over the past year.
NEA slashed its distribution nearly in half during 2022-2023 rate hikes and now trades at a NAV premium, eliminating the traditional CEF discount cushion.
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Investors who bought the iShares National Muni Bond ETF (NYSEARCA:MUB) did so for a good reason: it is the cheapest, most liquid way to own a diversified basket of federally tax-free municipal bonds. With a 0.05% expense ratio and $45.4 billion in **** ets, MUB has become the default core holding for taxable brokerage accounts. The problem is the payout. MUB's 30-day SEC yield of 3.52% as of August 13, 2026 looks thin against a 10-year Treasury at 4.63%, and even thinner for anyone trying to live on the income. A specific municipal fund pays more than double that rate, with the same AMT-free federal exemption, and Wall Street is only now re-rating it.
Roughly 5,900 investment-grade munis make up the portfolio at MUB, held with no leverage and no active security selection. That structure keeps the fee at a rounding error, though it also caps income near the underlying bond coupons. A retiree in the 32% federal bracket with $100,000 in MUB collects about $3,520 a year in tax-free interest. The taxable-equivalent yield is roughly 5.18%, which is respectable but leaves real purchasing power close to flat once inflation is deducted. For an investor whose entire reason for holding munis is tax-free monthly income, MUB is doing the job at half speed.
#federally
NEA slashed its distribution nearly in half during 2022-2023 rate hikes and now trades at a NAV premium, eliminating the traditional CEF discount cushion.
Don't wait: the **** yst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Investors who bought the iShares National Muni Bond ETF (NYSEARCA:MUB) did so for a good reason: it is the cheapest, most liquid way to own a diversified basket of federally tax-free municipal bonds. With a 0.05% expense ratio and $45.4 billion in **** ets, MUB has become the default core holding for taxable brokerage accounts. The problem is the payout. MUB's 30-day SEC yield of 3.52% as of August 13, 2026 looks thin against a 10-year Treasury at 4.63%, and even thinner for anyone trying to live on the income. A specific municipal fund pays more than double that rate, with the same AMT-free federal exemption, and Wall Street is only now re-rating it.
Roughly 5,900 investment-grade munis make up the portfolio at MUB, held with no leverage and no active security selection. That structure keeps the fee at a rounding error, though it also caps income near the underlying bond coupons. A retiree in the 32% federal bracket with $100,000 in MUB collects about $3,520 a year in tax-free interest. The taxable-equivalent yield is roughly 5.18%, which is respectable but leaves real purchasing power close to flat once inflation is deducted. For an investor whose entire reason for holding munis is tax-free monthly income, MUB is doing the job at half speed.
#federally
2 months ago
