Weekly Channel Summary
The Municipal bond ETF channel ended the week with total assets of $216.9B across 139 funds from 49 issuers. The channel saw negligible net inflows of just $4M for the week, a pause in the strong demand seen year-to-date. Year-to-date inflows now stand at a robust $31.6B, while the one-year total has reached $56.3B.
This Week’s Performance Leaders and Laggards
Municipal bond ETFs posted negative returns across all categories this week as interest rates ticked higher. The Municipal – Long category was the weakest performer, falling by -1.69%, while the Municipal – Short category proved most resilient with a modest decline of -0.27%. Despite the weekly downturn, all categories remain positive on a year-to-date basis, led by Municipal – High Yield with a 1.68% gain.
Category Performance Snapshot
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Municipal – Short | -0.27% | -0.25% | 0.09% | 0.35% | 0.76% | 2.34% |
| Municipal – Single State | -0.98% | -1.38% | -0.74% | -0.11% | 0.32% | 5.55% |
| Municipal – Intermediate | -1.02% | -1.48% | -0.86% | -0.23% | 0.25% | 5.44% |
| Municipal – High Yield | -1.15% | -1.46% | -0.02% | 1.32% | 1.68% | 7.82% |
| Municipal – Long | -1.69% | -2.21% | -1.24% | 0.41% | 0.65% | 8.20% |
Top & Bottom 5 ETFs by Weekly Performance
In a challenging week for the asset class, X-Square Municipal Income ETF (ZTAX) stood out with a significant 1.15% gain. Most other funds in the space finished in negative territory for the week. The Amplify Municipal CEF High Income ETF (YYYM) was the largest decliner, falling -2.69% for the week.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| ZTAX | X-Square Municipal Income ETF | 1.15% |
| AMUN | Abrdn Ultra Short Muncipal Income Active ETF | 0.02% |
| GUMI | Goldman Sachs Ultra Short Municipal Income ETF | 0.02% |
| FUMB | First Trust Ultra Short Duration Municipal ETF | 0.02% |
| ZMUN | F/m Ultrashort Tax-Free Municipal ETF | -0.04% |
| Bottom Performers | ||
| YYYM | Amplify Municipal CEF High Income ETF | -2.69% |
| RTAI | Rareview Tax Advantaged Income ETF | -2.38% |
| XMPT | VanEck CEF Muni Income ETF | -2.26% |
| LMUB | iShares Long-Term National Muni Bond ETF | -1.94% |
| PZA | Invesco National AMT-Free Municipal Bond ETF | -1.74% |
Analyzing the Weekly Flows
Despite the nearly flat net flow total of $4M for the week, there were notable shifts among categories. The Long, Short, and High Yield segments each attracted over $30M in new assets, led by Municipal – Long funds with $36M in inflows. These gains were almost perfectly offset by outflows from the two largest categories, with Intermediate funds shedding $54M and Single State funds losing $43M.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Municipal – Long | 9 | $7.24B | $36M | $169M | $575M | $2,891M | $3,493M |
| Municipal – Short | 25 | $33.68B | $32M | $890M | $2,735M | $4,530M | $8,836M |
| Municipal – High Yield | 19 | $16.86B | $32M | $404M | $1,668M | $2,172M | $6,060M |
| Municipal – Single State | 29 | $18.00B | -$43M | $463M | $2,259M | $4,075M | $5,649M |
| Municipal – Intermediate | 57 | $141.10B | -$54M | $2,042M | $9,213M | $17,940M | $32,238M |
Top & Bottom 5 ETFs by 5-Day Flow
Flows at the fund level revealed significant divergence, with JPMorgan Municipal ETF (JMUB) leading all funds by attracting $118M in new capital. On the other hand, the largest fund in the channel, iShares National Muni Bond ETF (MUB), experienced substantial redemptions totaling $253M. The Schwab Municipal Bond ETF (SCMB) also saw notable outflows of $53M for the week.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| JMUB | JPMorgan Municipal ETF | $118M |
| VTEB | Vanguard Tax-Exempt Bond ETF | $57M |
| VTEC | Vanguard California Tax-Exempt Bond ETF | $45M |
| VTEI | Vanguard Intermediate-Term Tax-Exempt Bond ETF | $33M |
| HYMB | State Street SPDR Nuveen ICE High Yield Municipal Bond ETF | $30M |
| Outflows | ||
| MUB | iShares National Muni Bond ETF | -$253M |
| SCMB | Schwab Municipal Bond ETF | -$53M |
| FTCA | Franklin California Municipal Income ETF | -$50M |
| FTNY | Franklin New York Municipal Income ETF | -$46M |
| FTMU | Franklin Municipal Income ETF | -$34M |
Issuer League Table Update
iShares and Vanguard continue to dominate the municipal bond ETF landscape, commanding 31.85% and 25.43% of the market share, respectively. Vanguard was the top asset gatherer for the week, bringing in $202M in net new assets across its product suite. Conversely, iShares saw the largest outflows of any issuer, shedding $224M, driven almost entirely by redemptions from its flagship fund.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| iShares | 10 | $69.08B | 31.85% |
| Vanguard | 8 | $55.15B | 25.43% |
| JPMorgan | 6 | $16.97B | 7.83% |
| Capital Group | 3 | $11.11B | 5.12% |
| SPDR | 4 | $9.65B | 4.45% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| Vanguard | $202M |
| JPMorgan | $90M |
| Capital Group | $36M |
| Outflows | |
| iShares | -$224M |
| Franklin | -$167M |
| Schwab | -$53M |
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.
