At a glance
SMB charges 0.07% a year, below the 0.28% average of the 7 funds most like it (the cheapest of 8). It has $311.5M in assets, the 7th largest of that group; it paid 2.9% of its price in distributions over the past 12 months, monthly. Over the past year it returned +2.1% with distributions reinvested, 3rd of those 8 funds; over three years it returned +3.7% a year. At its worst it fell 12.6% in the 2020 crash (S&P 500: 33.7%) and 6.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 22 months after the lows. Its ten largest positions make up 9.4% of the fund, out of 329 in all.
The short version
VanEck Short Muni ETF (SMB) is an index fund that holds short-term municipal bonds, which are debts issued by US states, cities and public agencies. It tracks the ICE Short AMT-Free Broad National Municipal Index. Its 0.07% annual expense ratio ties for the lowest among the similar funds compared here, where the average is 0.28%. It pays tax-exempt income monthly, but it is not risk-free: it lost money in 2022 when interest rates rose.
Price history
The interactive chart needs JavaScript.
SMB +2.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SMB official prospectus, to Dec 31, 2025 | — | +4.15% | — | +1.09% | +1.53% | — |
| SMB price data to Oct 27, 2026 | +1.2% | +2.1% | +3.7% | +1.4% | +1.6% | +2.1% |
- Over the year to Oct 27, 2026, SMB returned +2.1%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +1.4% and its 10-year +1.6%.
- In the 2020 COVID crash it fell 12.6% and regained its old high 2.7 months after the low.
- Its worst full calendar year was 2022 (-4.5%); its best was 2009 (+7.9%).
- The deepest fall in its price history was 12.6% (Mar 9, 2020 to Mar 19, 2020), recovered by Jun 10, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.2% | — |
| 2025 | +4.7% | +4.15% |
| 2024 | +2.4% | +2.12% |
| 2023 | +3.1% | +3.46% |
| 2022 | -4.5% | -4.31% |
| 2021 | +0.2% | +0.25% |
| 2020 | +3.1% | +3.22% |
| 2019 | +4.3% | +4.09% |
| 2018 | +1.8% | +1.42% |
| 2017 | +1.3% | +1.67% |
| 2016 | -0.2% | -0.45% |
| 2015 | +1.3% | — |
| 2014 | +1.1% | — |
| 2013 | +0.8% | — |
| 2012 | +1.4% | — |
| 2011 | +5.6% | — |
| 2010 | +1.3% | — |
| 2009 | +7.9% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 9.8% over that stretch · deepest drop along the way 12.6%, back to its old high 2.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 5.9% over that stretch · deepest drop along the way 6.7%, back to its old high 22.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.3800 | |
| 2025 | $0.4700 | +17.5% |
| 2024 | $0.4000 | +33.3% |
| 2023 | $0.3000 | +30.4% |
| 2022 | $0.2300 | 0.0% |
| 2021 | $0.2300 | -4.2% |
| 2020 | $0.2400 | 0.0% |
| 2019 | $0.2400 | 0.0% |
| 2018 | $0.2400 | 0.0% |
| 2017 | $0.2400 | 0.0% |
| 2016 | $0.2400 | 0.0% |
| 2015 | $0.2400 | 0.0% |
| 2014 | $0.2400 | 0.0% |
| 2013 | $0.2400 | -11.1% |
| 2012 | $0.2700 | -25.0% |
| 2011 | $0.3600 | -14.3% |
| 2010 | $0.4200 | 0.0% |
| 2009 | $0.4200 |
What's inside
As of Jul 31, 2026, the fund held 329 securities; the ten largest made up 9.39% of assets.
| Holding | Weight | |
|---|---|---|
| New York City Transitional Finance Authority Building Aid Revenue Bonds and notes | 1.06% | |
| Indiana Finance Authority Bonds and notes | 1.04% | |
| Charlotte-Mecklenburg Hospital Authority Bonds and notes | 1.04% | |
| State of California Bonds and notes | 1.01% | |
| Southeast Energy Authority A Cooperative District Bonds and notes | 0.96% | |
| Commonwealth of Massachusetts Bonds and notes | 0.93% | |
| State of New Jersey Bonds and notes | 0.90% | |
| Kansas Development Finance Authority Bonds and notes | 0.85% | |
| New York City Housing Development Corp Bonds and notes | 0.81% | |
| Commonwealth of Massachusetts Bonds and notes | 0.79% | |
| California Statewide Communities Development Authority Bonds and notes | 0.75% | |
| Black Belt Energy Gas District Bonds and notes | 0.71% | |
| Massachusetts Water Resources Authority Bonds and notes | 0.70% | |
| State of Connecticut Bonds and notes | 0.69% | |
| County of King WA Bonds and notes | 0.68% |
By country
United States 98.47%By issuer
Municipalities 98.47%The bonds mature in 8.2 years on average (weighted by size), with an average coupon of 4.67%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $8.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.24%, +0.33%, -0.46%.
How it works
SMB is a VanEck index fund. It aims to match, before fees, the price and yield performance of the ICE Short AMT-Free Broad National Municipal Index, which covers short-term, tax-exempt bonds from US states, cities and agencies. "AMT-free" means the index leaves out bonds whose interest can trigger the federal alternative minimum tax. The fund does not try to beat the index or take defensive positions when markets fall.
Buying every bond in the index would be impractical and costly, so the adviser uses "sampling": it holds a subset of bonds with similar risk and return traits. At least 80% of total assets must be in index bonds, a rule that can change on 60 days' notice, and 80% in municipal securities, which only a shareholder vote can change. The index rebalances on the last calendar day of each month.
As of July 31, 2026, the fund held 329 bonds and no derivatives. The top 10 made up 9.4%, led by a New York City Transitional Finance Authority building aid bond at about 1.1%. As of April 30, 2026, general obligation bonds, backed by an issuer's taxing power, and special tax bonds, repaid from a specific tax, were each a significant share. Sampling means one issuer's trouble can hurt the fund more than the index.
What it really costs
- SMB charges 0.07% a year, versus an average of 0.28% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $7 in the first year and $90 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SMB | $7 | $23 | $40 | $90 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It holds a broad set of municipal bonds whose price has swung much less than stocks, with an annual cost of 0.07%.
SMB could serve as a low-volatility reserve for money a retiree may need within a few years. It pays monthly income from tax-exempt bonds. The yield was 2.9% for the 12 months to October 27, 2026. Costs are low: the SEC's standard example puts expenses on a $10,000 investment at $7 for one year and $90 over 10 years. It is not crash-proof, though. No stress-test figures are available for 2008. In March 2020 it fell 12.6% in 10 days and recovered by June 10. From January to September 2022 it fell 6.7%, and it took about 22 months, until August 2024, to recover. Its worst calendar year was 2022, at -4.31%. Someone forced to sell during a stretch like that would lock in losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors in higher tax brackets seeking monthly tax-exempt income from a broad portfolio of 329 municipal bonds for 0.07% a year.
- Retirees setting aside money for the next few years who can accept modest price swings, like the 4.31% loss in 2022.
- Index investors who want national muni exposure that excludes AMT bonds, with no single holding above about 1.1% as of July 31, 2026.
Look elsewhere if
- Investors in low tax brackets, for whom a 2.9% tax-exempt yield may compare poorly with taxable bonds after tax.
- Anyone who can't tolerate drops: SMB fell 12.6% in March 2020 and needed about 22 months to recover from its 2022 slide.
- Those wanting very short maturities: SMB's 8.2-year average is far longer than SUB's 3.3 years, at the same 0.07% fee.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| SMB this fund | 8.2 yrs | 0.07% | $311.5M | +2.1% | +3.7% |
| TAFI AB Tax-Aware Short Duration Municipal ETF | 8.7 yrs | 0.27% | $1.38B | +1.6% | +3.9% |
| SHM SPDR Nuveen Bloomberg Short Term Municipal … | 6.2 yrs | 0.2% | $3.47B | +1.2% | +3.3% |
| SHYD VanEck Short High Yield Muni ETF | 10.2 yrs | 0.35% | $450.4M | +2.4% | +5.1% |
| FUMB First Trust Ultra Short Duration Municipal … | 5.3 yrs | 0.45% | $246.5M | +3.0% | +3.1% |
| FSMB First Trust Short Duration Managed Municipa… | 11.7 yrs | 0.55% | $621.7M | +1.7% | +3.8% |
| CMF iShares California Muni Bond ETF | 12.4 yrs | 0.08% | $4.63B | -0.6% | +3.8% |
| SUB iShares Short-Term National Muni Bond ETF | 3.3 yrs | 0.07% | $11.64B | +2.1% | +3.3% |
Questions investors ask
Does SMB pay monthly dividends?
Yes. VanEck Short Muni ETF pays income monthly. Over the 12 months to October 27, 2026, it paid about $0.50 per share, a yield of 2.9%. The income comes from interest on the municipal bonds it holds. The amount changes with interest rates and with the bonds in the portfolio. The 4.67% average coupon on its holdings as of July 31, 2026, is not the same as the fund's yield.
Is SMB income tax-free?
Mostly at the federal level, in general. SMB follows an index of tax-exempt municipal bonds that leaves out bonds subject to the alternative minimum tax. Interest on municipal bonds is generally free of federal income tax. However, state income tax may apply to bonds from other states, and gains from selling shares are taxable. Since the fund holds bonds from many states, a tax professional can confirm how its income is taxed in a particular situation.
What's the difference between SMB and TAFI?
The biggest difference is cost. Of the similar funds compared, the AB Tax-Aware Short Duration Municipal ETF (TAFI) is the closest match to SMB. TAFI charges 0.27% a year, versus 0.07% for SMB. Their bonds have similar average maturities: 8.7 years for TAFI and 8.2 years for SMB. As of October 27, 2026, SMB returned 2.1% over one year versus 1.6% for TAFI. Over three years, TAFI was slightly ahead, at 3.9% a year versus 3.7%. TAFI is larger, with about $1.38 billion in net assets as of August 31, 2026, against SMB's $311 million as of July 31, 2026.
What's the difference between SMB and SUB?
Both charge 0.07% a year, but they hold bonds of different lengths. As of August 31, 2026, the iShares Short-Term National Muni Bond ETF (SUB) had an average of 3.3 years to maturity. SMB's average was 8.2 years as of July 31, 2026. Longer bonds usually react more to interest rate changes. As of October 27, 2026, both returned 2.1% over one year. SMB returned 3.7% a year over three years, versus 3.3% for SUB. SUB is far larger, with about $11.6 billion in net assets.
How has SMB performed over the long term?
Returns have been modest, with occasional losses. Per its prospectus, average annual returns through December 31, 2025, were 4.15% over one year, 1.09% over five years and 1.53% over 10 years. It lost 4.31% in 2022, including a 3.95% drop in the first quarter, as interest rates rose. Its deepest drop was 12.6%, in March 2020, and it recovered by June 2020. Past results don't predict future returns.