Weekly Channel Summary
The Municipal ETF channel encompasses 139 funds from 49 issuers, with total assets under management standing at $219.2 billion. Investors continued to allocate capital to the space, adding a net $712 million over the past week. This brings year-to-date inflows to a substantial $31.6 billion, while the one-year total has reached nearly $57.5 billion.
This Week’s Performance Leaders and Laggards
Municipal bond ETF categories experienced modest declines this week, with longer-duration segments seeing the largest drops. The Municipal – Long category was the weakest performer, falling by 0.52%, though it remains the top performer over the past year with a 10.03% gain. On the other end of the spectrum, the Municipal – Short category proved most resilient, declining by only 0.09% for the week. Despite the weekly dip, all categories maintain positive returns year-to-date, led by the Municipal – High Yield group’s 2.86% gain.
Category Performance Snapshot
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Municipal – Short | -0.09% | 0.08% | 0.35% | 0.65% | 1.04% | 2.74% |
| Municipal – High Yield | -0.35% | 0.28% | 1.22% | 2.11% | 2.86% | 9.05% |
| Municipal – Intermediate | -0.38% | -0.07% | 0.17% | 0.69% | 1.27% | 6.57% |
| Municipal – Single State | -0.38% | -0.07% | 0.30% | 0.71% | 1.33% | 6.73% |
| Municipal – Long | -0.52% | 0.04% | 0.52% | 1.82% | 2.38% | 10.03% |
Top & Bottom 5 ETFs by Weekly Performance
The X-Square Municipal Income ETF (ZTAX) delivered an extraordinary 24.76% return, making it the standout top performer for the week. Other positive results were more muted, with the Invesco Taxable Municipal Bond ETF (BAB) gaining 0.22%. On the downside, the Columbia Multi-Sector Municipal Income ETF (MUST) was the week’s laggard, posting a loss of 1.21%. It was followed by the Avantis Core Municipal Fixed Income ETF (AVMU), which declined by 0.74%.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| ZTAX | X-Square Municipal Income ETF | 24.76% |
| BAB | Invesco Taxable Municipal Bond ETF | 0.22% |
| ZMUN | F/m Ultrashort Tax-Free Municipal ETF | 0.15% |
| GUMI | Goldman Sachs Ultra Short Municipal Income ETF | 0.12% |
| RTAI | Rareview Tax Advantaged Income ETF | 0.06% |
| Bottom Performers | ||
| MUST | Columbia Multi-Sector Municipal Income ETF | -1.21% |
| AVMU | Avantis Core Municipal Fixed Income ETF | -0.74% |
| RVNU | Xtrackers Municipal Infrastructure Revenue Bond ETF | -0.63% |
| FTMN | Franklin Minnesota Municipal Income ETF | -0.62% |
| MINN | Mairs & Power Minnesota Municipal Bond ETF | -0.60% |
Analyzing the Weekly Flows
Municipal ETFs attracted $712 million in net new assets this week, with every category posting positive inflows. The Municipal – Intermediate category led the way, gathering $327 million from investors. This category has also been the most popular year-to-date, accumulating nearly $18.0 billion in new capital. The Municipal – Single State and Municipal – Short categories also saw significant demand, pulling in $161 million and $133 million, respectively.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Municipal – Intermediate | 57 | $142.83B | $327M | $1,991M | $10,129M | $17,985M | $33,063M |
| Municipal – Single State | 29 | $18.24B | $161M | $594M | $2,429M | $4,118M | $5,884M |
| Municipal – Short | 25 | $33.76B | $133M | $1,224M | $2,829M | $4,497M | $8,995M |
| Municipal – High Yield | 19 | $17.03B | $62M | $422M | $1,765M | $2,139M | $6,085M |
| Municipal – Long | 9 | $7.34B | $30M | $161M | $600M | $2,855M | $3,470M |
Top & Bottom 5 ETFs by 5-Day Flow
The JPMorgan Municipal ETF (JMUB) was the week’s top asset gatherer, attracting $108 million in net inflows. Another JPMorgan fund, the JPMorgan Ultra-Short Municipal Income ETF (JMST), also saw strong demand with $92 million in new assets. In contrast, the iShares Short Maturity Municipal Bond Active ETF (MEAR) experienced the largest redemption, shedding $43 million. The Vanguard Tax-Exempt Bond ETF (VTEB) followed with the second-largest outflow of the week at $20 million.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| JMUB | JPMorgan Municipal ETF | $108M |
| JMST | JPMorgan Ultra-Short Municipal Income ETF | $92M |
| VTEC | Vanguard California Tax-Exempt Bond ETF | $85M |
| VTES | Vanguard Short-Term Tax Exempt Bond ETF | $45M |
| VCRM | Vanguard Core Tax-Exempt Bond ETF | $41M |
| Outflows | ||
| MEAR | iShares Short Maturity Municipal Bond Active ETF | -$43M |
| VTEB | Vanguard Tax-Exempt Bond ETF | -$20M |
| BAB | Invesco Taxable Municipal Bond ETF | -$5M |
| SHM | State Street SPDR Nuveen ICE Short Term Municipal Bond ETF | -$5M |
| PVI | Invesco Floating Rate Municipal Income ETF | -$2M |
Issuer League Table Update
iShares and Vanguard continue to dominate the Municipal ETF landscape, commanding 32.0% and 25.4% of the market share, respectively. However, JPMorgan was the leader in asset gathering this week, bringing in $200 million in net new capital across its fund lineup. Vanguard also had a strong week with $179 million in total inflows. X-Square registered the largest net outflow among issuers, though the total was a minimal $2 million.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| iShares | 10 | $70.06B | 31.96% |
| Vanguard | 8 | $55.62B | 25.37% |
| JPMorgan | 6 | $17.01B | 7.76% |
| Capital Group | 3 | $11.19B | 5.10% |
| SPDR | 4 | $9.70B | 4.42% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| JPMorgan | $200M |
| Vanguard | $179M |
| Capital Group | $50M |
| Outflows | |
| X-Square | -$2M |
| BNY Mellon | -$0M |
| WisdomTree | $0M |
For a deeper dive into these trends, access our FREE, in-depth Municipal ETF reports in the right side panel of this page.
Disclosures
This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.
This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.
