At a glance
SUB charges 0.07% a year, below the 0.18% average of the 7 funds most like it (the 3rd cheapest of 8). It has $11.64B in assets, the 3rd largest of that group; it paid 2.56% 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 +3.3% a year. At its worst it fell 9.5% in the 2020 crash (S&P 500: 33.7%) and 4.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 14 months after the lows. Its ten largest positions make up 2.5% of the fund, out of 2,942 in all.
The short version
iShares Short-Term National Muni Bond ETF (SUB) holds about 2,900 investment-grade bonds from US states and local governments that mature in one month to five years. Their interest is exempt from federal income tax and the alternative minimum tax. Its 0.07% expense ratio is well below the 0.18% average of similar funds. Its short maturities have kept price swings small: its worst calendar year was 2022, at -2.15%.
Price history
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SUB +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 | |
|---|---|---|---|---|---|---|
| SUB official prospectus, to Dec 31, 2025 | — | +3.69% | — | +1.35% | +1.45% | — |
| ICE BofA US Municipal Securities Index index, same period | — | +3.92% | — | +0.81% | +2.37% | — |
| ICEAMT Free US National Municipal Index index, same period | — | +3.90% | — | — | — | — |
| SUB price data to Oct 27, 2026 | +1.2% | +2.1% | +3.3% | +1.6% | +1.5% | +1.6% |
- Over the year to Oct 27, 2026, SUB returned +2.1%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +1.6% and its 10-year +1.5%.
- In the 2020 COVID crash it fell 9.5% and regained its old high 2 months after the low.
- Its worst full calendar year was 2022 (-2.0%); its best was 2009 (+4.2%).
- The deepest fall in its price history was 9.5% (Mar 6, 2020 to Mar 19, 2020), recovered by May 19, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.2% | — |
| 2025 | +3.6% | +3.69% |
| 2024 | +2.2% | +2.03% |
| 2023 | +2.9% | +3.11% |
| 2022 | -2.0% | -2.15% |
| 2021 | +0.0% | +0.19% |
| 2020 | +2.5% | +2.27% |
| 2019 | +2.9% | +3.09% |
| 2018 | +1.9% | +1.57% |
| 2017 | +0.8% | +0.90% |
| 2016 | -0.1% | -0.03% |
| 2015 | +0.8% | — |
| 2014 | +0.5% | — |
| 2013 | +0.8% | — |
| 2012 | +0.5% | — |
| 2011 | +3.9% | — |
| 2010 | +0.4% | — |
| 2009 | +4.2% | — |
| 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 6.8% over that stretch · deepest drop along the way 9.5%, back to its old high 2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 3.5% over that stretch · deepest drop along the way 4%, back to its old high 14.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.0400 | |
| 2025 | $2.5800 | +16.2% |
| 2024 | $2.2200 | +21.3% |
| 2023 | $1.8300 | +103.3% |
| 2022 | $0.9000 | +16.9% |
| 2021 | $0.7700 | -42.5% |
| 2020 | $1.3400 | -20.7% |
| 2019 | $1.6900 | +21.6% |
| 2018 | $1.3900 | +40.4% |
| 2017 | $0.9900 | +26.9% |
| 2016 | $0.7800 | -2.5% |
| 2015 | $0.8000 | 0.0% |
| 2014 | $0.8000 | -9.1% |
| 2013 | $0.8800 | -16.2% |
| 2012 | $1.0500 | -23.4% |
| 2011 | $1.3700 | +1.5% |
| 2010 | $1.3500 | -10.0% |
| 2009 | $1.5000 |
What's inside
As of Aug 31, 2026, the fund held 2,942 securities; the ten largest made up 2.49% of assets, and 4.08% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| New Jersey Economic Development Authority Bonds and notes | 0.35% | |
| State of California Bonds and notes | 0.28% | |
| State of California Bonds and notes | 0.26% | |
| Empire State Development Corp. Bonds and notes | 0.24% | |
| University of California Bonds and notes | 0.24% | |
| New Jersey Turnpike Authority Bonds and notes | 0.24% | |
| State of California Bonds and notes | 0.23% | |
| State of California Bonds and notes | 0.23% | |
| State of Georgia Bonds and notes | 0.22% | |
| Commonwealth of Massachusetts Bonds and notes | 0.20% | |
| State of Connecticut Special Tax Bonds and notes | 0.20% | |
| City of New York Bonds and notes | 0.20% | |
| New York City Transitional Finance Authority Future Tax Secured Bonds and notes | 0.20% | |
| State of New Jersey Bonds and notes | 0.19% | |
| Commonwealth of Pennsylvania Bonds and notes | 0.19% |
By country
United States 96.65%By issuer
Municipalities 96.65%The bonds mature in 3.3 years on average (weighted by size), with an average coupon of 4.79%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $404.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.33%, -0.28%, +0.38%.
How it works
BlackRock's SUB tracks the ICE Short Maturity AMT-Free US National Municipal Index, run by ICE Data Indices, LLC. The index holds bonds from US states and local governments whose interest is free from federal income tax and from the alternative minimum tax (AMT), a separate tax that can reach some otherwise tax-free income. Each bond must have between one month and five years left to maturity and be investment grade: rated at least BBB- or Baa3, using its lowest rating from S&P, Moody's or Fitch.
Bonds are weighted by market value, so bigger issues count more, with a cap to limit concentration. The index rebalances on the last calendar day of each month, adding newly eligible bonds and dropping those that no longer qualify. The fund aims to keep its weighted average maturity, the dollar-weighted average time until its bonds come due, under three years.
The index had 21,176 issues as of February 28, 2026. Rather than buy them all, BlackRock uses representative sampling: it holds a smaller set, 2,977 positions as of August 31, 2026, chosen to match the index's credit quality, yield, maturity and duration (sensitivity to interest rates). At least 80% of assets must be index bonds; up to 10% may go into futures, options, swaps or other bonds that aid tracking.
What it really costs
- SUB charges 0.07% a year, versus an average of 0.18% for the similar funds below (3rd 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 |
|---|---|---|---|---|
| SUB | $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
Short-maturity, investment-grade munis have produced small losses even in rough years, and they pay monthly income that is exempt from federal tax.
SUB launched in November 2008, so it missed most of the 2008 crisis. In 2020 it fell 9.5% between March 6 and March 19, its deepest drop on record, and it recovered by May 19, about two months later. During the 2022 rate shock it slid 4%, and it took about 14 months to recover, until November 30, 2023. Its worst calendar year was 2022, at -2.15%. Selling shares in a bad year has therefore meant a small loss, not a deep one. The trailing yield was 2.56% as of October 27, 2026, paid monthly. Costs are low: about $7 on $10,000 in the first year. Growth is modest, at 1.45% a year over the 10 years to December 31, 2025, so returns may not keep up with inflation. Past results don't predict the future, and any 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 with taxable accounts who want monthly income exempt from federal income tax and the AMT.
- People setting aside money needed within a few years who can accept small dips, like the fund's 2.15% loss in 2022.
- Cost-focused investors: its 0.07% expense ratio is below JMST's 0.18% and SHM's 0.20%.
Look elsewhere if
- Investors holding bonds inside IRAs or 401(k)s, where tax-exempt interest gives no extra benefit and taxable short-term bond funds may pay more.
- Those seeking growth: it returned 1.35% a year over five years and 1.45% over ten, through December 31, 2025.
- Anyone who needs a fixed share price: it fell 9.5% in March 2020 and took about 14 months to recover from its 2022 drop.
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 |
|---|---|---|---|---|---|
| SUB this fund | 3.3 yrs | 0.07% | $11.64B | +2.1% | +3.3% |
| JMST JPMorgan Ultra-Short Municipal Income ETF | 2.7 yrs | 0.18% | $7.36B | +2.5% | +3.3% |
| FUMB First Trust Ultra Short Duration Municipal … | 5.3 yrs | 0.45% | $246.5M | +3.0% | +3.1% |
| SHM SPDR Nuveen Bloomberg Short Term Municipal … | 6.2 yrs | 0.2% | $3.47B | +1.2% | +3.3% |
| SMB VanEck Short Muni ETF | 8.2 yrs | 0.07% | $311.5M | +2.1% | +3.7% |
| VCSH Vanguard Short-Term Corporate Bond ETF | 3.5 yrs | 0.03% | $51.74B | +1.9% | +5.7% |
| BSV Vanguard Short-Term Bond ETF | 2.9 yrs | 0.03% | $69.75B | +1.7% | +4.5% |
| TAFI AB Tax-Aware Short Duration Municipal ETF | 8.7 yrs | 0.27% | $1.38B | +1.6% | +3.9% |
Questions investors ask
Is SUB interest tax-free?
Mostly at the federal level. The fund holds municipal bonds whose interest is exempt from federal income tax and the alternative minimum tax. According to the prospectus, that interest is also exempt from the 3.8% Medicare tax on net investment income. The bonds come from many states, though, so state income tax may still apply to much of the income. Capital gains from selling shares are taxable.
Does SUB pay monthly dividends?
Yes. SUB pays income monthly. Over the 12 months to October 27, 2026, it paid $2.71 per share, a trailing yield of 2.56%. Payments can change. When rates fall, maturing or called bonds are reinvested at lower yields, so the monthly income can shrink. Because the fund holds only short-term bonds, this happens faster than in longer-term bond funds.
What's the difference between SUB and JMST?
Mainly cost. Both hold short-term municipal bonds, and JMST is the closest match by maturity and issuer mix. JMST's expense ratio is 0.18%, against SUB's 0.07%. As of August 31, 2026, JMST's average maturity was 2.7 years versus 3.3 years for SUB. As of October 27, 2026, JMST returned 2.5% over one year versus 2.1% for SUB, and both returned 3.3% a year over three years.
Can you lose money in SUB?
Yes, though losses have been small. Over the year to October 27, 2026, its volatility was just 1.4%. It still fell 9.5% in March 2020, lost 2.54% in the first quarter of 2022, and lost 2.15% for all of 2022. The prospectus lists interest rate, credit and call risk. A city, state or agency could fail to pay, and rising rates push bond prices down.
What is SUB's expense ratio?
SUB charges 0.07% a year, according to the prospectus filed June 18, 2026. In the SEC's standard example, $10,000 earning 5% a year would cost about $7 after one year, $23 after three, $40 after five and $90 after ten. Similar funds average 0.18%. VanEck's SMB also charges 0.07%, but its bonds average 8.2 years to maturity, so it is a less direct match.