Weekly Channel Summary
The Municipal channel comprises 147 ETFs across 51 issuers with total AUM of $259.55B. Weekly net inflows totaled $2,708M, extending a strong year with YTD inflows of $75,105M and 1-Year inflows of $83,075M. These figures underscore sustained investor appetite for municipal bond exposure despite ongoing rate volatility. The channel’s flow trajectory remains firmly positive across all measured horizons.
This Week’s Performance Leaders and Laggards
Municipal categories posted broad gains on a WTD basis, led by Municipal – Long at 1.65% and Municipal – High Yield at 1.10%, while Municipal – Short lagged with a more modest 0.29% gain. The Long category’s strength stands in contrast to its weaker YTD return of just 0.15%, suggesting a recent reversal after earlier softness, with 1-month returns of 5.32% reinforcing the near-term momentum. High Yield continues to show the strongest YTD performance among the top movers at 1.52%, with a 1-Year return of 2.04%. Single State and Intermediate categories delivered similar WTD results near 1.0%, reflecting broad-based duration-driven gains across the municipal curve this week.
Category Performance Snapshot
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Municipal – Long | 1.65% | 5.32% | -1.01% | -1.60% | 0.15% | 0.29% |
| Municipal – High Yield | 1.10% | 4.61% | -0.49% | -0.29% | 1.52% | 2.04% |
| Municipal – Single State | 1.04% | 4.08% | -0.12% | -0.31% | 0.61% | 1.01% |
| Municipal – Intermediate | 1.02% | 4.23% | 0.12% | -0.21% | 0.79% | 1.21% |
| Municipal – Short | 0.29% | 1.70% | 0.64% | 1.11% | 1.77% | 2.41% |
Top & Bottom 5 ETFs by Weekly Performance
Fund-level performance this week favored longer-duration and high-yield municipal strategies, with PZA leading all funds at 1.91% WTD, followed closely by PZT at 1.74% and HYMB at 1.72%. At the other end, ultra-short and floating-rate strategies saw minimal movement, with ZTAX the lone decliner at -0.64% and funds like GUMI and AMUN essentially flat. The spread between top and bottom performers highlights the duration sensitivity driving this week’s rally, with longer and lower-rated credit exposures capturing the largest gains.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| PZA | Invesco National AMT-Free Municipal Bond ETF | 1.91% |
| PZT | Invesco New York AMT-Free Municipal Bond ETF | 1.74% |
| HYMB | State Street SPDR Nuveen ICE High Yield Municipal Bond ETF | 1.72% |
| FLMB | Franklin Municipal Green Bond ETF | 1.70% |
| MFLX | First Trust Flexible Municipal High Income ETF | 1.68% |
| Bottom Performers | ||
| ZTAX | X-Square Municipal Income ETF | -0.64% |
| GUMI | Goldman Sachs Ultra Short Municipal Income ETF | 0.04% |
| AMUN | Abrdn Ultra Short Muncipal Income Active ETF | 0.05% |
| PVI | Invesco Floating Rate Municipal Income ETF | 0.06% |
| AUSM | Allspring Ultra Short Municipal ETF | 0.12% |
Analyzing the Weekly Flows
The Municipal channel attracted $2,708M in net inflows over the past week, with Municipal – Intermediate capturing the lion’s share at $1,701M, consistent with its dominant $168.48B AUM base. Municipal – Short followed with $456M in inflows, while Single State and High Yield categories added $270M and $198M respectively. Municipal – Long rounded out the group with $83M in inflows, the smallest contribution but still positive. No category registered net outflows this week, with Intermediate funds also leading on 30-day, 90-day, YTD, and 1-Year flow horizons, reinforcing its role as the primary growth engine of the channel.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Municipal – Intermediate | 58 | $168.48B | $1,701M | $13,690M | $24,779M | $45,765M | $49,866M |
| Municipal – Short | 27 | $41.64B | $456M | $3,554M | $7,602M | $12,366M | $14,510M |
| Municipal – Single State | 31 | $22.02B | $270M | $1,977M | $3,822M | $8,173M | $8,992M |
| Municipal – High Yield | 22 | $19.62B | $198M | $1,717M | $2,660M | $5,231M | $6,156M |
| Municipal – Long | 9 | $7.80B | $83M | $444M | $744M | $3,570M | $3,551M |
Top & Bottom 5 ETFs by 5-Day Flow
Vanguard Tax-Exempt Bond ETF (VTEB) led all funds with $424M in weekly inflows, followed by Vanguard Core Tax-Exempt Bond ETF (VCRM) at $250M. On the outflow side, State Street SPDR Nuveen ICE Municipal Bond ETF (TFI) saw the largest redemptions at -$40M, followed by Invesco National AMT-Free Municipal Bond ETF (PZA) at -$33M. These outflows were modest relative to the broader channel’s inflow total, with redemptions concentrated in a handful of single-digit to low-double-digit million dollar amounts across the remaining bottom funds.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| VTEB | Vanguard Tax-Exempt Bond ETF | $424M |
| VCRM | Vanguard Core Tax-Exempt Bond ETF | $250M |
| VTEI | Vanguard Intermediate-Term Tax-Exempt Bond ETF | $177M |
| MUB | iShares National Muni Bond ETF | $166M |
| JMUB | JPMorgan Municipal ETF | $128M |
| Outflows | ||
| TFI | State Street SPDR Nuveen ICE Municipal Bond ETF | -$40M |
| PZA | Invesco National AMT-Free Municipal Bond ETF | -$33M |
| SCMB | Schwab Municipal Bond ETF | -$20M |
| FMB | First Trust Managed Municipal ETF | -$15M |
| BKMI | BNY Mellon Municipal Intermediate ETF | -$14M |
Issuer League Table Update
iShares and Vanguard remain the dominant forces in the Municipal channel, holding 32.47% and 27.49% market share respectively, together accounting for roughly 60% of total channel AUM. Vanguard led all issuers in weekly inflows with $1,113M, more than double iShares’ $587M, while PIMCO added a further $222M. On the outflow side, SPDR experienced the largest weekly redemptions at -$59M, followed by Invesco at -$24M and Schwab at -$20M. The concentration of inflows among the top three issuers contrasts with the comparatively small scale of outflows across the channel’s laggards.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| iShares | 10 | $84.28B | 32.47% |
| Vanguard | 8 | $71.34B | 27.49% |
| JPMorgan | 6 | $19.30B | 7.44% |
| Capital Group | 3 | $13.19B | 5.08% |
| SPDR | 3 | $10.29B | 3.97% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| Vanguard | $1,113M |
| iShares | $587M |
| PIMCO | $222M |
| Outflows | |
| SPDR | -$59M |
| Invesco | -$24M |
| Schwab | -$20M |
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.
