Weekly Channel Summary
The Municipal ETF channel, comprising 140 funds from 49 issuers, holds a total of $220.15 billion in assets. This week, the channel experienced net outflows of $561 million, a reversal from recent trends. Despite the weekly withdrawal, year-to-date flows remain robust at $39.5 billion, and the one-year total stands at $56.5 billion in new assets.
This Week’s Performance Leaders and Laggards
All municipal bond categories posted negative returns for the week amid a challenging market environment. The Municipal – Short category proved most resilient, declining by only 0.36%, and it remains the only category with a positive year-to-date return. On the other end of the spectrum, the Municipal – Long category suffered the steepest losses, falling 1.24% for the week.
Category Performance Snapshot
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Municipal – Short | -0.36% | -0.46% | -0.18% | 0.04% | 0.74% | 1.16% |
| Municipal – Single State | -0.84% | -2.39% | -2.75% | -2.05% | -1.39% | 0.15% |
| Municipal – Intermediate | -0.87% | -2.36% | -2.82% | -2.15% | -1.45% | 0.18% |
| Municipal – High Yield | -0.97% | -2.53% | -2.85% | -0.98% | -0.31% | 1.39% |
| Municipal – Long | -1.24% | -3.65% | -4.40% | -2.82% | -2.15% | -0.05% |
Top & Bottom 5 ETFs by Weekly Performance
In a difficult week for the asset class, the Invesco Floating Rate Municipal Income ETF (PVI) stood out with a positive return of 0.37%. This performance contrasted sharply with the broader market downturn. At the bottom of the weekly rankings, both the VanEck CEF Muni Income ETF (XMPT) and the X-Square Municipal Income ETF (ZTAX) dropped 2.28%.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| PVI | Invesco Floating Rate Municipal Income ETF | 0.37% |
| GUMI | Goldman Sachs Ultra Short Municipal Income ETF | -0.02% |
| AMUN | Abrdn Ultra Short Muncipal Income Active ETF | -0.04% |
| FUMB | First Trust Ultra Short Duration Municipal ETF | -0.12% |
| JMST | JPMorgan Ultra-Short Municipal Income ETF | -0.14% |
| Bottom Performers | ||
| XMPT | VanEck CEF Muni Income ETF | -2.28% |
| ZTAX | X-Square Municipal Income ETF | -2.28% |
| YYYM | Amplify Municipal CEF High Income ETF | -2.18% |
| RTAI | Rareview Tax Advantaged Income ETF | -2.06% |
| MFLX | First Trust Flexible Municipal High Income ETF | -1.65% |
Analyzing the Weekly Flows
The channel saw net outflows of $561 million, revealing a clear preference for shorter-duration assets among investors. The Municipal – Short category was the primary beneficiary, attracting $306 million in new capital. Conversely, the much larger Municipal – Intermediate category drove the overall outflow by shedding $711 million, while High Yield municipal funds also saw withdrawals of $166 million.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Municipal – Short | 26 | $35.27B | $306M | $1,447M | $3,258M | $6,273M | $9,382M |
| Municipal – Single State | 29 | $18.58B | $9M | $691M | $2,274M | $5,084M | $6,352M |
| Municipal – Long | 9 | $7.30B | $2M | $377M | $558M | $3,202M | $3,546M |
| Municipal – High Yield | 19 | $17.07B | -$166M | $260M | $1,299M | $2,837M | $4,512M |
| Municipal – Intermediate | 57 | $141.93B | -$711M | $1,391M | $7,480M | $22,153M | $32,667M |
Top & Bottom 5 ETFs by 5-Day Flow
Investor demand for shorter duration was evident in fund-level flows, with the Vanguard Short-Term Tax Exempt Bond ETF (VTES) leading all funds with $158 million in new assets. The week’s outflows were concentrated in the largest broad-market funds. The Vanguard Tax-Exempt Bond ETF (VTEB) and the iShares National Muni Bond ETF (MUB) saw the largest redemptions, losing $284 million and $259 million, respectively.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| VTES | Vanguard Short-Term Tax Exempt Bond ETF | $158M |
| JMST | JPMorgan Ultra-Short Municipal Income ETF | $63M |
| BKMI | BNY Mellon Municipal Intermediate ETF | $31M |
| VTEC | Vanguard California Tax-Exempt Bond ETF | $24M |
| VSDM | Vanguard Short Duration Tax-Exempt Bond ETF | $21M |
| Outflows | ||
| VTEB | Vanguard Tax-Exempt Bond ETF | -$284M |
| MUB | iShares National Muni Bond ETF | -$259M |
| HYD | VanEck High Yield Muni ETF | -$188M |
| JMUB | JPMorgan Municipal ETF | -$152M |
| ITM | VanEck Intermediate Muni ETF | -$34M |
Issuer League Table Update
iShares and Vanguard continue to dominate the municipal ETF landscape, commanding 31.57% and 25.74% of the market share, respectively. BNY Mellon led issuers in weekly inflows, albeit with a modest $44 million gain. On the other side of the ledger, iShares and VanEck experienced the largest outflows for the week, with investors pulling $223 million and $222 million from their respective fund lineups.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| iShares | 10 | $69.50B | 31.57% |
| Vanguard | 8 | $56.66B | 25.74% |
| JPMorgan | 6 | $17.44B | 7.92% |
| Capital Group | 3 | $11.55B | 5.25% |
| SPDR | 4 | $9.97B | 4.53% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| BNY Mellon | $44M |
| Capital Group | $12M |
| Schwab | $10M |
| Outflows | |
| iShares | -$223M |
| VanEck | -$222M |
| JPMorgan | -$91M |
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.
