Weekly Channel Summary
The Municipal ETF channel, comprising 139 funds from 49 issuers, holds total assets of $223.54 billion. Investor demand remained robust this week, with the channel attracting $1.13 billion in net new assets. This recent activity contributes to a strong year-to-date inflow of $38.42 billion. Over the past year, municipal ETFs have gathered an impressive $57.69 billion in net flows.
This Week’s Performance Leaders and Laggards
Municipal ETF categories delivered mixed results this week amid shifting interest rate expectations. The Municipal – Short category proved most resilient, finishing the week flat with a 0.00% return. Conversely, longer-dated funds faced headwinds, with the Municipal – Long category posting the weakest performance at -0.37%. Year-to-date, the Municipal – High Yield category maintains its lead with a 1.60% gain.
Category Performance Snapshot
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Municipal – Short | 0.00% | 0.37% | 0.49% | 0.29% | 1.25% | 2.19% |
| Municipal – High Yield | -0.10% | -0.48% | -0.50% | -0.40% | 1.60% | 6.51% |
| Municipal – Intermediate | -0.21% | -0.41% | -0.83% | -1.77% | 0.21% | 4.07% |
| Municipal – Single State | -0.29% | -0.44% | -0.79% | -1.69% | 0.20% | 4.09% |
| Municipal – Long | -0.37% | -0.90% | -1.49% | -2.01% | 0.23% | 5.91% |
Top & Bottom 5 ETFs by Weekly Performance
At the fund level, the Invesco Taxable Municipal Bond ETF (BAB) was the week’s top performer, gaining 0.34%. Other notable positive returns came from the NYLIM MacKay Muni Short Duration ETF (MMSD) and the Amplify Municipal CEF High Income ETF (YYYM). On the other end of the spectrum, the X-Square Municipal Income ETF (ZTAX) experienced the largest decline, falling by 1.89% for the week.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| BAB | Invesco Taxable Municipal Bond ETF | 0.34% |
| MMSD | NYLIM MacKay Muni Short Duration ETF | 0.32% |
| YYYM | Amplify Municipal CEF High Income ETF | 0.29% |
| MUNX | AMG GW&K Muni Income ETF | 0.22% |
| FUMB | First Trust Ultra Short Duration Municipal ETF | 0.22% |
| Bottom Performers | ||
| ZTAX | X-Square Municipal Income ETF | -1.89% |
| FMUB | Fidelity Municipal Bond Opportunities ETF | -0.71% |
| MUST | Columbia Multi-Sector Municipal Income ETF | -0.69% |
| FMUN | Fidelity Systematic Municipal Bond Index ETF | -0.65% |
| VTEL | Vanguard Long-Term Tax-Exempt Bond ETF | -0.51% |
Analyzing the Weekly Flows
Investors continued to allocate capital to municipal bond ETFs, pouring a net $1.13 billion into the channel this week. The Municipal – Intermediate category led the way, attracting $428 million in new assets. Demand was broad-based across all maturities, as the Municipal – Short and Municipal – Single State categories also saw significant inflows of $314 million and $219 million, respectively.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Municipal – Intermediate | 57 | $145.11B | $428M | $2,770M | $8,640M | $22,072M | $34,135M |
| Municipal – Short | 25 | $34.80B | $314M | $1,022M | $3,021M | $5,579M | $9,143M |
| Municipal – Single State | 29 | $18.83B | $219M | $711M | $2,353M | $4,936M | $6,349M |
| Municipal – High Yield | 19 | $17.54B | $110M | $557M | $1,590M | $2,888M | $4,730M |
| Municipal – Long | 9 | $7.26B | $55M | $11M | $353M | $2,948M | $3,328M |
Top & Bottom 5 ETFs by 5-Day Flow
The Goldman Sachs Municipal Income ETF (GMUB) was the most popular fund this week, gathering $122 million in net inflows. Several other funds also saw strong demand, including the Vanguard Short-Term Tax Exempt Bond ETF (VTES) and the iShares Short-Term National Muni Bond ETF (SUB). Outflows were minimal across the space, with the AB Tax-Aware Short Duration Municipal ETF (TAFI) and the VanEck High Yield Muni ETF (HYD) seeing the largest, yet modest, redemptions of $15 million and $13 million.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| GMUB | Goldman Sachs Municipal Income ETF | $122M |
| VTES | Vanguard Short-Term Tax Exempt Bond ETF | $93M |
| SUB | iShares Short-Term National Muni Bond ETF | $90M |
| FTMN | Franklin Minnesota Municipal Income ETF | $90M |
| SCMB | Schwab Municipal Bond ETF | $88M |
| Outflows | ||
| TAFI | AB Tax-Aware Short Duration Municipal ETF | -$15M |
| HYD | VanEck High Yield Muni ETF | -$13M |
| FTMS | Franklin Short-Term Municipal Income ETF | -$11M |
| GUMI | Goldman Sachs Ultra Short Municipal Income ETF | -$5M |
| BAB | Invesco Taxable Municipal Bond ETF | -$3M |
Issuer League Table Update
The issuer landscape remains concentrated, with iShares and Vanguard controlling a combined 57.21% of the channel’s assets. This week, Vanguard led all issuers in asset gathering, pulling in $186 million in net new money, closely followed by iShares with $176 million. On the other side of the ledger, outflows were very light, with VanEck registering the largest net redemption at just $11 million.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| iShares | 10 | $70.57B | 31.57% |
| Vanguard | 8 | $57.31B | 25.64% |
| JPMorgan | 6 | $17.74B | 7.93% |
| Capital Group | 3 | $11.59B | 5.19% |
| SPDR | 4 | $10.08B | 4.51% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| Vanguard | $186M |
| iShares | $176M |
| Franklin | $149M |
| Outflows | |
| VanEck | -$11M |
| Nomura | -$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.
