$342M Inflows For Municipals as Short Duration Leads

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Weekly Channel Summary

The Municipal Fixed Income channel currently tracks 126 ETFs across 46 issuers, managing a total of $176B in assets. The space saw positive momentum this week, gathering $342M in net inflows over the last 5 days. This continues a strong longer-term trend, with the channel accumulating approximately $32.88B Year-to-Date and $34.74B over the trailing 1-year period.

This Week’s Performance Leaders and Laggards

Performance was relatively flat across the board this week. The Short duration category was the best performer, posting a slight gain of 0.04% WTD, contributing to its 3.52% YTD return. Conversely, High Yield struggled the most, acting as the worst-performing category with a -0.07% decline, though it remains up 3.60% YTD.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Short 0.04% 0.10% 0.81% 2.49% 3.52% 3.61%
Single State 0.02% 0.10% 4.08% 4.80% 3.04% 2.72%
Intermediate 0.01% 0.07% 3.76% 5.13% 4.31% 3.85%
Long -0.02% -0.08% 5.83% 5.78% 2.38% 1.86%
High Yield -0.07% 0.04% 4.89% 5.26% 3.60% 2.90%

Top & Bottom 5 ETFs by Weekly Performance

The single best-performing fund this week was the TAXI, which posted a 0.24% return. On the downside, the RTAI and XMPT lagged significantly, dropping -1.50% and -0.94% respectively.

Ticker Fund Name WTD Performance
Top Performers
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF 0.24%
JMHI JPMorgan High Yield Municipal ETF 0.20%
HTAX Macquarie National High-Yield Municipal Bond ETF 0.20%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF 0.18%
ZTAX X-Square Municipal Income ETF 0.16%
Bottom Performers
RTAI Rareview Tax Advantaged Income ETF -1.50%
XMPT VanEck CEF Muni Income ETF -0.94%
NMB Simplify National Muni Bond ETF -0.55%
OVM Overlay Shares Municipal Bond ETF -0.31%
PMIO PGIM Municipal Income Opportunities ETF -0.16%

Analyzing the Weekly Flows

The channel attracted a total net inflow of $342M this week. The Blend credit category secured the most significant inflows, totaling $353M, with the Intermediate duration category (managing $142.1B in AUM) also seeing strong demand with $222M in new assets. Conversely, the Investment Grade credit category experienced the largest outflows, shedding $157M.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Credit: Blend 63 $41.3B $353M $3,705M $7,721M $18,085M $19,025M
Duration: Intermediate 88 $142.1B $222M $5,193M $11,546M $24,532M $26,052M
Duration: Short 25 $28.0B $172M $700M $2,173M $7,307M $7,651M
Credit: High Yield 19 $14.3B $145M $316M $1,150M $4,146M $4,204M
Duration: Long 9 $5.4B ($52M) $2M $462M $417M $417M
Credit: Investment Grade 40 $120.0B ($157M) $1,874M $5,311M $10,024M $10,891M

Top & Bottom 5 ETFs by 5-Day Flow

The HYD led inflows this week, bringing in $99M. Significant outflows were seen in the VTEB, which lost $219M, followed by the PZA with $60M in outflows.

Ticker Fund Name 5-Day Flow
Inflows
HYD VanEck High Yield Muni ETF $99M
JMST JPMorgan Ultra-Short Municipal Income ETF $53M
CGMU Capital Group Municipal Income ETF $46M
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF $36M
SUB iShares Short-Term National Muni Bond ETF $27M
Outflows
VTEB Vanguard Tax-Exempt Bond ETF ($219M)
PZA Invesco National AMT-Free Municipal Bond ETF ($60M)
CAM AB California Intermediate Municipal ETF ($3M)
FTNY Franklin New York Municipal Income ETF ($2M)
AVMU Avantis Core Municipal Fixed Income ETF ($2M)

Issuer League Table Update

iShares and Vanguard remain the dominant players in the space, controlling 34.41% and 26.58% of the market share respectively. In terms of recent momentum, VanEck gathered the most in weekly inflows ($99M), while Vanguard experienced the largest outflows of the week ($138M).

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 10 $60.62B 34.41%
Vanguard 8 $46.82B 26.58%
JPMorgan 4 $12.22B 6.94%
SPDR 5 $9.38B 5.32%
Capital Group 3 $7.80B 4.43%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
VanEck $99M
iShares $69M
Capital Group $64M
Outflows
Vanguard ($138M)
Invesco ($52M)
Avantis ($2M)

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.