Weekly Channel Summary
The Municipal channel ended the week with total AUM of $254.89B spread across 147 ETFs and 51 issuers. Net flows were positive at $2,133M for the five-day period, extending a robust $72,397M year-to-date total and $81,235M over the trailing year. Both the weekly and longer-term trends point to sustained investor demand for municipal bond exposure throughout 2026.
This Week’s Performance Leaders and Laggards
All five municipal categories posted positive returns for the week, led by Municipal – Long at 0.96% WTD and Municipal – High Yield close behind at 0.80%. Municipal – Short lagged the group with a 0.27% weekly gain, though it remains the top YTD performer at 1.48% and leads on a 1-Year basis at 2.17%. Longer-duration and lower-quality segments, by contrast, continue to show negative YTD and 1-Year returns, with Municipal – Long down 1.48% YTD despite its strong recent week. This divergence highlights a near-term rotation into duration and high-yield municipal exposure even as short paper retains the better long-term track record.
Category Performance Snapshot
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Municipal – Long | 0.96% | 3.67% | -2.14% | -2.92% | -1.48% | -1.44% |
| Municipal – High Yield | 0.80% | 3.43% | -1.20% | -1.04% | 0.41% | 0.90% |
| Municipal – Intermediate | 0.74% | 3.45% | -0.53% | -1.07% | -0.23% | 0.20% |
| Municipal – Single State | 0.70% | 3.25% | -0.70% | -1.19% | -0.42% | -0.04% |
| Municipal – Short | 0.27% | 1.66% | 0.59% | 0.87% | 1.48% | 2.17% |
Top & Bottom 5 ETFs by Weekly Performance
ZTAX led all municipal funds with a 4.69% weekly gain, followed by closed-end-fund-linked strategies XMPT at 3.68% and YYYM at 3.13%, reflecting the strength seen in the Long and High Yield categories. At the other end, PVI was the lone decliner at -0.16%, with short-duration peers such as INTM and SMB essentially flat. The spread between top and bottom performers underscores the week’s tilt toward duration-sensitive and credit-oriented municipal funds over ultra-short strategies.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| ZTAX | X-Square Municipal Income ETF | 4.69% |
| XMPT | VanEck CEF Muni Income ETF | 3.68% |
| YYYM | Amplify Municipal CEF High Income ETF | 3.13% |
| RTAI | Rareview Tax Advantaged Income ETF | 2.92% |
| MLN | VanEck Long Muni ETF | 1.44% |
| Bottom Performers | ||
| PVI | Invesco Floating Rate Municipal Income ETF | -0.16% |
| INTM | Invesco Intermediate Municipal ETF | -0.05% |
| SMB | VanEck Short Muni ETF | 0.00% |
| GUMI | Goldman Sachs Ultra Short Municipal Income ETF | 0.10% |
| JMST | JPMorgan Ultra-Short Municipal Income ETF | 0.12% |
Analyzing the Weekly Flows
The channel attracted $2,133M in net new assets over the week, with Municipal – Intermediate dominating inflows at $1,233M, consistent with its YTD and 1-Year leadership at $44,064M and $48,815M respectively. Municipal – Short added a further $469M, while Municipal – High Yield and Municipal – Single State each gathered more modest sums of $241M and $229M. Municipal – Long was the only category to see outflows, shedding $40M for the week despite its strong price performance. Intermediate-duration municipal exposure remains the clear flow magnet across nearly every time horizon measured.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Municipal – Intermediate | 58 | $165.34B | $1,233M | $14,077M | $24,629M | $44,064M | $48,815M |
| Municipal – Short | 27 | $41.12B | $469M | $3,663M | $7,330M | $11,910M | $14,165M |
| Municipal – High Yield | 22 | $19.26B | $241M | $1,631M | $2,700M | $5,033M | $6,009M |
| Municipal – Single State | 31 | $21.56B | $229M | $2,034M | $3,664M | $7,902M | $8,783M |
| Municipal – Long | 9 | $7.61B | -$40M | $462M | $633M | $3,487M | $3,463M |
Top & Bottom 5 ETFs by 5-Day Flow
VTEB topped fund-level inflows with $627M, well ahead of VCRM at $187M, reinforcing Vanguard’s dominance in intermediate municipal flows. On the outflow side, TFI led redemptions at -$75M, followed by PZA at -$57M. The gap between the largest inflow and outflow funds illustrates concentrated demand for a handful of large, low-cost intermediate municipal products even as smaller actively managed and single-state funds saw modest redemptions.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| VTEB | Vanguard Tax-Exempt Bond ETF | $627M |
| VCRM | Vanguard Core Tax-Exempt Bond ETF | $187M |
| JMST | JPMorgan Ultra-Short Municipal Income ETF | $163M |
| MUB | iShares National Muni Bond ETF | $145M |
| VTEC | Vanguard California Tax-Exempt Bond ETF | $123M |
| Outflows | ||
| TFI | State Street SPDR Nuveen ICE Municipal Bond ETF | -$75M |
| PZA | Invesco National AMT-Free Municipal Bond ETF | -$57M |
| BMOP | BNY Mellon Municipal Opportunities ETF | -$40M |
| FMB | First Trust Managed Municipal ETF | -$34M |
| BKMI | BNY Mellon Municipal Intermediate ETF | -$20M |
Issuer League Table Update
iShares and Vanguard remain the two dominant issuers in the Municipal channel, holding 32.61% and 27.32% market share respectively, with combined AUM approaching $153B. Vanguard led weekly inflow activity by a wide margin with $1,103M, more than triple the $315M gathered by iShares, while JPMorgan added $229M. On the outflow side, SPDR recorded the largest weekly redemptions among issuers at -$98M, with BNY Mellon and Invesco also posting modest net outflows. The data suggests Vanguard is currently capturing a disproportionate share of new municipal allocations relative to its already substantial asset base.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| iShares | 10 | $83.11B | 32.61% |
| Vanguard | 8 | $69.64B | 27.32% |
| JPMorgan | 6 | $19.02B | 7.46% |
| Capital Group | 3 | $12.92B | 5.07% |
| SPDR | 3 | $10.29B | 4.04% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| Vanguard | $1,103M |
| iShares | $315M |
| JPMorgan | $229M |
| Outflows | |
| SPDR | -$98M |
| BNY Mellon | -$59M |
| Invesco | -$31M |
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.
