Municipal ETFs Capture $994M in Net New Money to Start the Year

Share

Weekly Channel Summary

The Municipal ETF channel closed the week with a total of $183.8 billion in Assets Under Management (AUM) spread across 132 ETFs from 47 unique issuers. Investor sentiment remained overwhelmingly positive as the channel captured $994 million in net new money over the past five trading days. This weekly activity brings the Year-to-Date (YTD) flow total to $196 million, continuing the strong momentum seen over the past year, which has accounted for $39.45 billion in total inflows.

This Week’s Performance Leaders and Laggards

Municipal bonds showed modest gains across the board this week. The High Yield category led the pack with a Week-to-Date (WTD) return of 0.32%, slightly outperforming its YTD return of 0.04%. Conversely, the Short category was the relative laggard for the week, returning 0.12% WTD. Despite the weekly variance, all major municipal categories remain in positive territory for the young calendar year.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
High Yield 0.32% 0.48% 1.47% 4.50% 0.04% 3.81%
Intermediate 0.20% 0.50% 1.54% 4.45% 0.08% 4.65%
Long 0.20% 0.46% 1.69% 5.58% 0.05% 2.35%
Single State 0.19% 0.43% 1.47% 4.40% 0.05% 3.26%
Short 0.12% 0.38% 0.73% 2.01% 0.03% 3.93%

Top & Bottom 5 ETFs by Weekly Performance

The single best-performing ETF this week was the ZTAX (X-Square Municipal Income ETF), which posted a notable 2.19% WTD return. On the other end of the spectrum, the NMB (Simplify National Muni Bond ETF) and OVM (Overlay Shares Municipal Bond ETF) were the week’s laggards, with returns of -0.20% and -0.04%, respectively.

Ticker Fund Name WTD Performance
Top Performers
ZTAX X-Square Municipal Income ETF 2.19%
XMPT VanEck CEF Muni Income ETF 1.07%
RTAI Rareview Tax Advantaged Income ETF 0.95%
MFLX First Trust Flexible Municipal High Income ETF 0.35%
FTMH Franklin Municipal High Yield ETF 0.32%
Bottom Performers
NMB Simplify National Muni Bond ETF -0.20%
OVM Overlay Shares Municipal Bond ETF -0.04%
AMUN Abrdn Ultra Short Muncipal Income Active ETF 0.04%
GUMI Goldman Sachs Ultra Short Municipal Income ETF 0.06%
PVI Invesco Floating Rate Municipal Income ETF 0.06%

Analyzing the Weekly Flows

Total net flows for the Municipal channel reached $994 million this week. The Intermediate category dominated investor interest, pulling in $558 million in weekly inflows, further bolstering its $121.8 billion AUM base. Short-term funds also saw significant interest with $188 million in inflows. On a relative basis, the Long category saw the softest demand among major segments, contributing $24 million to the weekly total.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Intermediate 53 $121.8B $558M $2,934M $8,585M $154M $29,916M
Short 24 $28.9B $188M $1,508M $3,453M $37M $9,026M
Single State 28 $13.8B $131M $558M $1,861M $14M $3,453M
High Yield 18 $14.8B $93M $1,303M $4,971M $25M $4,910M
Long 9 $4.5B $24M $66M $213M $6M $504M

Top & Bottom 5 ETFs by 5-Day Flow

The MUB (iShares National Muni Bond ETF) led all funds in dollar inflows this week, adding $139 million. Conversely, the OVM (Overlay Shares Municipal Bond ETF) was the primary outlier for outflows, losing approximately $1 million over the 5-day period.

Ticker Fund Name 5-Day Flow
Inflows
MUB iShares National Muni Bond ETF $139M
JMST JPMorgan Ultra-Short Municipal Income ETF $92M
CGMU Capital Group Municipal Income ETF $69M
VTEB Vanguard Tax-Exempt Bond ETF $66M
SCMB Schwab Municipal Bond ETF $59M
Outflows
OVM Overlay Shares Municipal Bond ETF -$1M

Issuer League Table Update

The issuer landscape remains highly concentrated, with iShares (33.46% market share) and Vanguard (26.43% market share) accounting for the vast majority of municipal ETF assets. iShares cemented its lead this week by gathering $248 million in weekly inflows. Meanwhile, among the top issuers, SPDR maintained a stable asset base despite lighter flow activity, and Overlay Shares saw the largest weekly outflows within the broader channel.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 10 $61.49B 33.46%
Vanguard 8 $48.58B 26.43%
JPMorgan 4 $13.47B 7.33%
SPDR 5 $9.46B 5.15%
Capital Group 3 $8.24B 4.48%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $248M
Vanguard $143M
JPMorgan $119M
Outflows
Overlay Shares -$1M
aberdeen $0M
Allspring $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.