Municipal ETFs Attract Over $1.8 Billion as Investors Favor Intermediate Duration

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Weekly Channel Summary

The Municipal ETF channel, comprising 139 funds from 49 issuers, holds a total of $220.87 billion in assets under management. Investors continued to allocate capital to the space, adding a substantial $1.82 billion over the past week. This recent activity contributes to a strong year-to-date net inflow of $35.39 billion and a one-year total of $58.48 billion.

This Week’s Performance Leaders and Laggards

All municipal bond categories posted gains for the week, with longer-duration strategies leading the way. The Municipal – Long category was the top performer, returning 0.95%, bringing its year-to-date gain to 1.65%. Conversely, the Municipal – Short category saw the smallest advance, rising just 0.31% for the week, though it has still returned a respectable 1.21% so far this year.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Municipal – Long 0.95% -1.34% -0.11% 0.71% 1.65% 7.86%
Municipal – High Yield 0.72% -1.04% 0.51% 1.55% 2.33% 7.45%
Municipal – Single State 0.70% -0.84% 0.10% 0.04% 1.04% 5.37%
Municipal – Intermediate 0.64% -0.89% -0.05% -0.05% 0.93% 5.20%
Municipal – Short 0.31% 0.10% 0.56% 0.51% 1.21% 2.37%

Top & Bottom 5 ETFs by Weekly Performance

The VanEck CEF Muni Income ETF (XMPT) was the week’s top individual performer, gaining 1.32%. Several other funds, including the Invesco New York AMT-Free Municipal Bond ETF (PZT), also delivered returns above 1.30%. At the other end of the spectrum, ultra-short duration funds logged the smallest gains, with the F/m Ultrashort Tax-Free Municipal ETF (ZMUN) returning 0.02%.

Ticker Fund Name WTD Performance
Top Performers
XMPT VanEck CEF Muni Income ETF 1.32%
PZT Invesco New York AMT-Free Municipal Bond ETF 1.31%
YYYM Amplify Municipal CEF High Income ETF 1.23%
RTAI Rareview Tax Advantaged Income ETF 1.18%
PWZ Invesco California AMT-Free Municipal Bond ETF 1.15%
Bottom Performers
ZMUN F/m Ultrashort Tax-Free Municipal ETF 0.02%
AMUN Abrdn Ultra Short Muncipal Income Active ETF 0.09%
PVI Invesco Floating Rate Municipal Income ETF 0.10%
GUMI Goldman Sachs Ultra Short Municipal Income ETF 0.10%
MEAR iShares Short Maturity Municipal Bond Active ETF 0.11%

Analyzing the Weekly Flows

Municipal ETFs attracted a robust $1.82 billion in net new assets over the past week. Investor demand was heavily concentrated in the Municipal – Intermediate category, which alone gathered over $1.36 billion. All other municipal categories also experienced net inflows, though on a much smaller scale, with Municipal – Long funds collecting the least at just $5 million.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Municipal – Intermediate 57 $144.17B $1,364M $3,279M $10,434M $20,892M $34,207M
Municipal – Short 25 $33.94B $178M $554M $2,746M $4,767M $8,742M
Municipal – High Yield 19 $17.25B $154M $556M $1,801M $2,564M $6,349M
Municipal – Single State 29 $18.30B $114M $465M $2,219M $4,353M $5,894M
Municipal – Long 9 $7.21B $5M $25M $384M $2,818M $3,291M

Top & Bottom 5 ETFs by 5-Day Flow

The Vanguard Tax-Exempt Bond ETF (VTEB) led all funds, pulling in a substantial $588 million for the week. Its primary competitor, the iShares National Muni Bond ETF (MUB), also saw significant demand, attracting $348 million. On the redemption side, the VanEck High Yield Muni ETF (HYD) experienced the largest outflow at $56 million, followed by the iShares Long-Term National Muni Bond ETF (LMUB) with a minor outflow of $7 million.

Ticker Fund Name 5-Day Flow
Inflows
VTEB Vanguard Tax-Exempt Bond ETF $588M
MUB iShares National Muni Bond ETF $348M
HYMB State Street SPDR Nuveen ICE High Yield Municipal Bond ETF $94M
CGMU Capital Group Municipal Income ETF $94M
SCMB Schwab Municipal Bond ETF $56M
Outflows
HYD VanEck High Yield Muni ETF -$56M
LMUB iShares Long-Term National Muni Bond ETF -$7M
BAB Invesco Taxable Municipal Bond ETF -$7M
TAFI AB Tax-Aware Short Duration Municipal ETF -$3M
FLMB Franklin Municipal Green Bond ETF -$1M

Issuer League Table Update

iShares and Vanguard continue to dominate the municipal ETF landscape, controlling 31.81% and 25.62% of the market share, respectively. Vanguard led the week in asset gathering, bringing in $762 million in net new money, followed by iShares with $455 million. In contrast, VanEck registered the largest net outflow among issuers, shedding $52 million for the week.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 10 $70.26B 31.81%
Vanguard 8 $56.58B 25.62%
JPMorgan 6 $17.25B 7.81%
Capital Group 3 $11.41B 5.16%
SPDR 4 $9.98B 4.52%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $762M
iShares $455M
Capital Group $146M
Outflows
VanEck -$52M
Northern Trust -$1M
BNY Mellon -$1M

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.