Municipal ETFs Attract Nearly $1.4 Billion as Long-Duration Bonds Lead Gains

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Weekly Channel Summary

The Municipal ETF channel now holds $217.0 billion in assets under management across 137 funds from 47 different issuers. Investor demand remained robust, with the channel attracting $1,389 million in net inflows over the past week. This brings year-to-date net flows to an impressive $28.34 billion and the one-year total to $55.06 billion.

This Week’s Performance Leaders and Laggards

Long-duration municipal bond ETFs led performance this week, posting an average gain of 0.27% as interest rates ticked lower. Conversely, short-duration funds were the only category to finish in the red, declining by a marginal 0.01%. On a year-to-date basis, High Yield municipal ETFs remain the top-performing category with a return of 3.22%, followed closely by Long-duration funds at 3.04%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Municipal – Long 0.27% 2.56% 3.58% 3.01% 3.04% 9.21%
Municipal – High Yield 0.24% 2.08% 3.78% 3.29% 3.22% 7.91%
Municipal – Intermediate 0.19% 1.55% 2.32% 1.94% 1.83% 6.67%
Municipal – Single State 0.17% 1.58% 2.37% 1.87% 1.83% 6.60%
Municipal – Short -0.01% 0.50% 0.76% 1.11% 1.03% 3.10%

Top & Bottom 5 ETFs by Weekly Performance

Two active funds, the iShares High Yield Muni Active ETF (HIMU) and the Columbia Multi-Sector Municipal Income ETF (MUST), tied for the top performance spot with a weekly gain of 0.63%. At the other end of the spectrum, the iShares Short-Term National Muni Bond ETF (SUB) was the weakest performer, declining by 0.16%. The Franklin Municipal Income ETF (FTMU) also had a strong week, rising 0.51%.

Ticker Fund Name WTD Performance
Top Performers
HIMU iShares High Yield Muni Active ETF 0.63%
MUST Columbia Multi-Sector Municipal Income ETF 0.63%
FTMU Franklin Municipal Income ETF 0.51%
FTNY Franklin New York Municipal Income ETF 0.50%
PWZ Invesco California AMT-Free Municipal Bond ETF 0.47%
Bottom Performers
SUB iShares Short-Term National Muni Bond ETF -0.16%
APMU ActivePassive Intermediate Municipal Bond ETF -0.11%
GENM Genter Capital Municipal Quality Intermediate ETF -0.10%
NMB Simplify National Muni Bond ETF -0.04%
HYD VanEck High Yield Muni ETF -0.04%

Analyzing the Weekly Flows

Municipal ETFs saw continued positive momentum with nearly $1.39 billion in net inflows for the week. All five categories gathered new assets, led by Intermediate-term funds which brought in $585 million. Short-term municipal ETFs were also popular, attracting $466 million in new capital, while High Yield funds added $152 million.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Municipal – Intermediate 55 $142.02B $585M $3,762M $10,858M $16,310M $31,643M
Municipal – Short 25 $33.07B $466M $1,244M $2,288M $3,766M $8,669M
Municipal – High Yield 19 $16.75B $152M $767M $1,365M $1,865M $5,911M
Municipal – Single State 29 $17.88B $141M $1,155M $2,246M $3,656M $5,500M
Municipal – Long 9 $7.27B $47M $175M $672M $2,740M $3,341M

Top & Bottom 5 ETFs by 5-Day Flow

The Capital Group Short Duration Municipal Income ETF (CGSM) led all funds, pulling in $296 million in net new assets. Following closely was the Vanguard Tax-Exempt Bond ETF (VTEB), which gathered $283 million. Outflows were very modest across the channel, with the State Street SPDR Nuveen ICE Municipal Bond ETF (TFI) and the BNY Mellon Municipal Opportunities ETF (BMOP) seeing the largest redemptions of just $14 million and $13 million, respectively.

Ticker Fund Name 5-Day Flow
Inflows
CGSM Capital Group Short Duration Municipal Income ETF $296M
VTEB Vanguard Tax-Exempt Bond ETF $283M
MUB iShares National Muni Bond ETF $86M
HYMB State Street SPDR Nuveen ICE High Yield Municipal Bond ETF $81M
JMST JPMorgan Ultra-Short Municipal Income ETF $66M
Outflows
TFI State Street SPDR Nuveen ICE Municipal Bond ETF -$14M
BMOP BNY Mellon Municipal Opportunities ETF -$13M
VCRM Vanguard Core Tax-Exempt Bond ETF -$9M
BKMI BNY Mellon Municipal Intermediate ETF -$6M
TAFI AB Tax-Aware Short Duration Municipal ETF -$5M

Issuer League Table Update

iShares and Vanguard continue to dominate the municipal ETF landscape, commanding 32.19% and 25.41% of the market share, respectively. This week, Vanguard was the top asset gatherer, attracting $382 million in net inflows across its suite of funds. Capital Group also had a strong week with $376 million in new assets, while BNY Mellon experienced the largest net outflows at $19 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 10 $69.86B 32.19%
Vanguard 8 $55.15B 25.41%
JPMorgan 6 $16.30B 7.51%
Capital Group 3 $10.98B 5.06%
SPDR 4 $9.59B 4.42%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $382M
Capital Group $376M
iShares $248M
Outflows
BNY Mellon -$19M
WisdomTree -$3M
Raymond James $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.