Intermediate Strategies Lead Municipal YTD Gains at 4.48%

Share

Weekly Channel Summary

The Municipal ETF channel continues to show significant scale and growth, currently managing $181B in total assets across 132 ETFs from 46 distinct issuers. Investor demand remains robust, with the channel attracting $0.89B in net new capital over the past five trading days. This recent activity contributes to a powerful long-term trend, with Year-to-Date (YTD) flows reaching $36.80B and the trailing one-year total standing at $37.48B.

This Week’s Performance Leaders and Laggards

Performance across the municipal landscape was broadly positive this week, led by the Single State category, which delivered a 0.18% return. Conversely, the High Yield category was the relative laggard with a modest gain of 0.06%. Despite the slower weekly pace, High Yield remains a competitive segment for long-term holders, currently boasting a YTD return of 3.77%, while the Intermediate category leads the group with a 4.48% YTD gain.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Single State 0.18% 0.06% 1.20% 4.52% 3.09% 3.71%
Intermediate 0.16% 0.19% 1.21% 4.72% 4.48% 5.09%
Long 0.14% -0.07% 1.43% 5.62% 2.24% 3.20%
Short 0.09% 0.31% 0.37% 2.19% 3.80% 4.02%
High Yield 0.06% 0.04% 1.11% 4.71% 3.77% 4.41%

Top & Bottom 5 ETFs by Weekly Performance

At the individual fund level, the RJ Eagle Municipal Income ETF (RJMI) secured the top spot this week with a return of 0.31%. On the downside, the VanEck CEF Muni Income ETF (XMPT) and Nomura National High-Yield Municipal Bond ETF (HTAX) struggled, posting weekly returns of -0.29% and -0.21%, respectively.

Ticker Fund Name WTD Performance
Top Performers
RJMI RJ Eagle Municipal Income ETF 0.31%
FTMH Franklin Municipal High Yield ETF 0.29%
FTMU Franklin Municipal Income ETF 0.27%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF 0.26%
GMNY Goldman Sachs Dynamic New York Municipal Income ETF 0.26%
Bottom Performers
XMPT VanEck CEF Muni Income ETF -0.29%
HTAX Nomura National High-Yield Municipal Bond ETF -0.21%
HIMU iShares High Yield Muni Active ETF -0.11%
JMHI JPMorgan High Yield Municipal ETF -0.10%
NMB Simplify National Muni Bond ETF -0.08%

Analyzing the Weekly Flows

The channel realized a net flow of $893M this week, reflecting a broad-based appetite for tax-exempt income. The Fixed Income: Municipal – Intermediate category remains the dominant force, capturing $372M in weekly inflows to bring its total AUM to a staggering $120.4B. The Short category also saw healthy participation with $253M in new assets, while all other major municipal categories also finished the week with positive net flows.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Municipal – Intermediate 52 $120.4B $372M $2,247M $9,274M $20,630M $21,100M
Municipal – Short 24 $28.0B $253M $824M $2,145M $7,672M $7,849M
Municipal – High Yield 18 $14.6B $140M $695M $1,332M $4,801M $4,710M
Municipal – Single State 28 $13.5B $112M $411M $1,645M $3,179M $3,304M
Municipal – Long 9 $4.4B $16M $34M $167M $513M $520M

Top & Bottom 5 ETFs by 5-Day Flow

Leading the pack for inflows was the iShares Short-Term National Muni Bond ETF (SUB), which brought in $112M. On the other end of the spectrum, the SPDR Nuveen ICE Municipal Bond ETF (TFI) and Franklin California Municipal Income ETF (FTCA) experienced the largest outflows, shedding -$23M and -$5M respectively.

Ticker Fund Name 5-Day Flow
Inflows
SUB iShares Short-Term National Muni Bond ETF $112M
HYD VanEck High Yield Muni ETF $71M
VTEC Vanguard California Tax-Exempt Bond ETF $55M
CGMU Capital Group Municipal Income ETF $54M
JMUB JPMorgan Municipal ETF $50M
Outflows
TFI SPDR Nuveen ICE Municipal Bond ETF -$23M
FTCA Franklin California Municipal Income ETF -$5M
FTMH Franklin Municipal High Yield ETF -$5M
FTNY Franklin New York Municipal Income ETF -$5M
PZA Invesco National AMT-Free Municipal Bond ETF -$5M

Issuer League Table Update

The issuer landscape is heavily concentrated, with iShares and Vanguard controlling 33.70% and 26.47% of the market share, respectively. In terms of momentum, Vanguard was the clear leader this week, attracting $211M in fresh capital. Meanwhile, among the active participants, Simplify saw the largest outflow relative to its size, losing -$3M over the five-day period.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 10 $60.98B 33.70%
Vanguard 8 $47.91B 26.47%
JPMorgan 4 $12.76B 7.05%
SPDR 5 $9.39B 5.19%
Capital Group 3 $8.08B 4.46%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $211M
iShares $158M
VanEck $117M
Outflows
Simplify -$3M
Rareview Funds $0M
X-Square $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.