Invesco Takes Flow Lead While Long Duration Outperforms

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Weekly Channel Summary

The Municipal ETF landscape continues to show steady growth and engagement, currently comprising 137 ETFs managed by 48 distinct issuers with a total Assets Under Management (AUM) of $194B. Weekly flow activity was modest but positive, with the channel bringing in $0.06B over the past five days. This contributes to a healthy Year-to-Date (YTD) inflow of $5.91B, maintaining the strong momentum observed over the past year, which has seen total inflows reach $42.10B.

This Week’s Performance Leaders and Laggards

Performance across the municipal sector was positive across all major categories this week. The Long category led the pack with a Week-to-Date (WTD) return of 0.40%, while also maintaining a YTD gain of 0.94%. Conversely, the Short category was the week’s relative laggard, returning 0.19% WTD, bringing its YTD performance to 0.75%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Long 0.40% 0.66% 1.12% 6.82% 0.94% 2.66%
Intermediate 0.37% 0.90% 1.62% 5.36% 1.18% 4.63%
Single State 0.37% 0.78% 1.42% 5.32% 1.03% 3.74%
High Yield 0.32% 0.96% 1.66% 6.27% 1.27% 3.81%
Short 0.19% 0.59% 1.30% 2.05% 0.75% 4.04%

Top & Bottom 5 ETFs by Weekly Performance

The best-performing individual fund this week was the NYLI MacKay Muni Allocation ETF (MMMA), which posted a 0.64% return. On the lower end of the spectrum, the Invesco Floating Rate Municipal Income ETF (PVI) and the Abrdn Ultra Short Muncipal Income Active ETF (AMUN) struggled relative to peers, returning 0.04% and 0.06% respectively.

Ticker Fund Name WTD Performance
Top Performers
MMMA NYLI MacKay Muni Allocation ETF 0.64%
XMPT VanEck CEF Muni Income ETF 0.60%
RJMI RJ Eagle Municipal Income ETF 0.52%
EVYM Eaton Vance High Income Municipal ETF 0.48%
ZTAX X-Square Municipal Income ETF 0.47%
Bottom Performers
PVI Invesco Floating Rate Municipal Income ETF 0.04%
AMUN Abrdn Ultra Short Muncipal Income Active ETF 0.06%
FUMB First Trust Ultra Short Duration Municipal ETF 0.06%
HIMU iShares High Yield Muni Active ETF 0.06%
SHYD VanEck Short High Yield Muni ETF 0.06%

Analyzing the Weekly Flows

The channel realized a total net inflow of $65M this week. The Long category attracted the most capital with $194M in weekly flows, supporting its total AUM of $4.8B. The Short category also saw significant interest with $157M in new money. On the other end, the Intermediate category experienced the largest rotation out of funds, shedding -$488M over the past five days.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Long 9 $4.8B $194M $358M $384M $379M $893M
Short 25 $30.0B $157M $531M $2,876M $649M $8,954M
Single State 28 $14.6B $143M $585M $1,496M $677M $3,148M
High Yield 18 $15.6B $59M $650M $1,631M $711M $5,414M
Intermediate 57 $129.4B -$488M $3,030M $7,753M $3,627M $24,166M

Top & Bottom 5 ETFs by 5-Day Flow

In terms of dollar inflows, the Invesco National AMT-Free Municipal Bond ETF (PZA) led the channel with $191M. Outflows were heavily concentrated in the Vanguard Tax-Exempt Bond ETF (VTEB), which saw a significant -$946M redemption, followed by the Invesco California AMT-Free Municipal Bond ETF (PWZ) with -$7M.

Ticker Fund Name 5-Day Flow
Inflows
PZA Invesco National AMT-Free Municipal Bond ETF $191M
CGMU Capital Group Municipal Income ETF $96M
JMUB JPMorgan Municipal ETF $74M
VTEC Vanguard California Tax-Exempt Bond ETF $68M
MUB iShares National Muni Bond ETF $65M
Outflows
VTEB Vanguard Tax-Exempt Bond ETF -$946M
PWZ Invesco California AMT-Free Municipal Bond ETF -$7M
FLMB Franklin Municipal Green Bond ETF -$6M
HTAB Hartford Schroders Tax-Aware Bond ETF -$2M
FTNJ Franklin New Jersey Municipal Income ETF -$1M

Issuer League Table Update

The market remains dominated by two major players: iShares holds 32.65% market share, followed closely by Vanguard at 25.58%. In terms of attracting new assets this week, Invesco took the lead with $184M in weekly inflows. Conversely, Vanguard saw the largest outflows among the top-tier issuers, with a net reduction of -$735M over the 5-day period.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 10 $63.49B 32.65%
Vanguard 8 $49.74B 25.58%
JPMorgan 4 $13.65B 7.02%
SPDR 5 $9.58B 4.93%
Capital Group 3 $8.86B 4.56%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Invesco $184M
Capital Group $147M
iShares $145M
Outflows
Vanguard -$735M
T. Rowe Price -$1M
F/m -$1M

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.