Municipal ETFs Attract Nearly $1 Billion as Investors Favor Intermediate Duration

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Weekly Channel Summary

The Municipal ETF channel, encompassing 139 funds from 49 issuers, holds a total of $222.87 billion in assets under management. This week, the channel attracted $935 million in net new assets. These recent inflows contribute to a year-to-date total of $36,328 million and a one-year total of $59,248 million.

This Week’s Performance Leaders and Laggards

Municipal bond ETF performance was largely flat to slightly negative this week, with shorter-duration funds outperforming. The Municipal – Short category was the only group to post a gain, rising 0.03%. In contrast, the Municipal – Long category experienced the largest decline, falling 0.17% for the week. On a year-to-date basis, Municipal – High Yield remains the top-performing category with a return of 2.27%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Municipal – Short 0.03% 0.14% 0.66% 0.35% 1.24% 2.34%
Municipal – Single State -0.01% -0.61% 0.40% -0.36% 1.03% 5.36%
Municipal – Intermediate -0.06% -0.71% 0.19% -0.55% 0.87% 5.11%
Municipal – High Yield -0.07% -0.87% 0.76% 0.93% 2.27% 7.47%
Municipal – Long -0.17% -1.26% 0.15% 0.08% 1.48% 7.72%

Top & Bottom 5 ETFs by Weekly Performance

Among individual funds, the Amplify Municipal CEF High Income ETF (YYYM) was the week’s top performer, gaining 0.67%. The Rareview Tax Advantaged Income ETF (RTAI) also posted a strong return of 0.65%. At the other end of the spectrum, the Invesco New York AMT-Free Municipal Bond ETF (PZT) registered the largest loss for the week, declining by 0.56%.

Ticker Fund Name WTD Performance
Top Performers
YYYM Amplify Municipal CEF High Income ETF 0.67%
RTAI Rareview Tax Advantaged Income ETF 0.65%
FMUN Fidelity Systematic Municipal Bond Index ETF 0.54%
XMPT VanEck CEF Muni Income ETF 0.53%
APMU ActivePassive Intermediate Municipal Bond ETF 0.28%
Bottom Performers
PZT Invesco New York AMT-Free Municipal Bond ETF -0.56%
RVNU Xtrackers Municipal Infrastructure Revenue Bond Active ETF -0.38%
HMOP Hartford Municipal Opportunities ETF -0.30%
MLN VanEck Long Muni ETF -0.26%
HIMU iShares High Yield Muni Active ETF -0.23%

Analyzing the Weekly Flows

Investors continued to allocate capital to municipal bond ETFs, adding a net $935 million over the past week. All five municipal categories recorded net inflows, demonstrating broad demand across the asset class. The Municipal – Intermediate category led the way, attracting $368 million, followed by the Municipal – Short category which gathered $206 million in new assets.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Municipal – Intermediate 57 $145.37B $368M $3,459M $10,456M $21,260M $34,634M
Municipal – Short 25 $34.22B $206M $636M $2,799M $4,973M $8,811M
Municipal – Single State 29 $18.58B $196M $530M $2,274M $4,549M $6,063M
Municipal – High Yield 19 $17.41B $120M $594M $1,790M $2,685M $6,423M
Municipal – Long 9 $7.29B $44M $35M $389M $2,862M $3,317M

Top & Bottom 5 ETFs by 5-Day Flow

The Vanguard Tax-Exempt Bond ETF (VTEB) was the most popular fund this week, pulling in $211 million in net new assets. In contrast, redemptions were led by the State Street SPDR Nuveen ICE Municipal Bond ETF (TFI), which saw outflows of $45 million. The iShares National Muni Bond ETF (MUB) also experienced net redemptions, shedding $11 million over the period.

Ticker Fund Name 5-Day Flow
Inflows
VTEB Vanguard Tax-Exempt Bond ETF $211M
SUB iShares Short-Term National Muni Bond ETF $80M
VTEC Vanguard California Tax-Exempt Bond ETF $72M
HYMB State Street SPDR Nuveen ICE High Yield Municipal Bond ETF $65M
CGMU Capital Group Municipal Income ETF $36M
Outflows
TFI State Street SPDR Nuveen ICE Municipal Bond ETF -$45M
MUB iShares National Muni Bond ETF -$11M
BAB Invesco Taxable Municipal Bond ETF -$11M
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF -$5M
CAM AB California Intermediate Municipal ETF -$5M

Issuer League Table Update

iShares and Vanguard continue to dominate the municipal ETF landscape, commanding 31.72% and 25.77% of the market share, respectively. This week, Vanguard was the leading asset gatherer, attracting $325 million in net inflows across its fund lineup. On the other side of the ledger, Northern Trust experienced the largest net outflows among issuers, with redemptions totaling $4 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 10 $70.70B 31.72%
Vanguard 8 $57.42B 25.77%
JPMorgan 6 $17.31B 7.77%
Capital Group 3 $11.49B 5.16%
SPDR 4 $10.02B 4.49%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $325M
iShares $196M
AB Funds $63M
Outflows
Northern Trust -$4M
BNY Mellon -$1M
Nomura -$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.