Weekly Channel Summary
The Municipal ETF channel closed the week with $231.10B in total AUM spread across 145 funds from 50 issuers. Net flows were strongly positive over the trailing five days at $8,650M, contributing to a YTD net inflow of $52,925M and a 1-Year total of $68,579M. These figures underscore sustained investor demand for municipal exposure despite mixed price performance across the category spectrum. The scale of recent inflows suggests the channel remains a core allocation for income-focused portfolios.
This Week’s Performance Leaders and Laggards
On a week-to-date basis, Municipal – Short led all categories with a 0.29% gain, the only segment to post a positive return, while Municipal – Long lagged with a -0.74% decline. Municipal – Single State and Municipal – Intermediate were roughly flat, posting 0.02% and -0.02% respectively, while Municipal – High Yield slipped 0.61%. The longer-duration and lower-quality segments continue to show the steepest YTD drawdowns, with Municipal – Long down 5.18% YTD and Municipal – Intermediate and Single State each off roughly 3.4%. Municipal – Short remains the standout on a YTD basis as well, essentially flat at 0.07%, reinforcing a defensive positioning theme across the channel this year.
Category Performance Snapshot
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Municipal – Short | 0.29% | -1.01% | -1.06% | -0.37% | 0.07% | 0.73% |
| Municipal – Single State | 0.02% | -2.92% | -5.30% | -3.53% | -3.39% | -2.21% |
| Municipal – Intermediate | -0.02% | -2.98% | -5.35% | -3.62% | -3.40% | -1.98% |
| Municipal – High Yield | -0.61% | -3.88% | -6.50% | -3.55% | -3.02% | -1.51% |
| Municipal – Long | -0.74% | -4.53% | -8.34% | -5.73% | -5.18% | -3.80% |
Top & Bottom 5 ETFs by Weekly Performance
MNBD topped the fund-level leaderboard with a 1.47% weekly gain, well ahead of TXNY at 0.69% and MMCA at 0.66%. On the downside, ZTAX fell 1.98%, the weakest performer in the channel, followed by HYMB at -1.73%. High yield and long-duration names dominated the bottom of the list, consistent with the broader category trend favoring shorter-duration, higher-quality municipal exposure this week.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| MNBD | ALPS BBH Intermediate Municipal Bond ETF | 1.47% |
| TXNY | Northern Trust New York Intermediate Tax-Exempt Bond ETF | 0.69% |
| MMCA | NYLIM MacKay California Muni Intermediate ETF | 0.66% |
| ITM | VanEck Intermediate Muni ETF | 0.62% |
| BKMI | BNY Mellon Municipal Intermediate ETF | 0.60% |
| Bottom Performers | ||
| ZTAX | X-Square Municipal Income ETF | -1.98% |
| HYMB | State Street SPDR Nuveen ICE High Yield Municipal Bond ETF | -1.73% |
| TAFL | AB Tax-Aware Long Municipal ETF | -0.96% |
| HTAX | Nomura National High-Yield Municipal Bond ETF | -0.94% |
| JMHI | JPMorgan High Yield Municipal ETF | -0.93% |
Analyzing the Weekly Flows
The Municipal channel attracted $8,650M in net new assets over the past five trading days, led decisively by Municipal – Intermediate, which pulled in $6,572M and accounts for the bulk of this week’s activity. Municipal – Short followed with $1,079M in inflows, while Municipal – Single State and Municipal – High Yield added $531M and $359M, respectively. Municipal – Long rounded out the group with a modest $108M inflow, meaning every category tracked positive net flows for the week. No category registered outflows, reflecting broad-based demand across duration and credit quality tiers within the municipal space.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Municipal – Intermediate | 57 | $150.06B | $6,572M | $9,711M | $14,646M | $31,772M | $41,903M |
| Municipal – Short | 27 | $37.37B | $1,079M | $2,834M | $4,652M | $8,516M | $11,450M |
| Municipal – Single State | 31 | $19.31B | $531M | $1,024M | $2,272M | $6,018M | $7,187M |
| Municipal – High Yield | 21 | $17.31B | $359M | $614M | $1,583M | $3,520M | $4,830M |
| Municipal – Long | 9 | $7.06B | $108M | $148M | $318M | $3,099M | $3,209M |
Top & Bottom 5 ETFs by 5-Day Flow
VTEB led all funds with $3,613M in weekly inflows, followed by MUB at $1,796M, together accounting for a significant share of the channel’s net weekly inflow. On the outflow side, SCMB saw the largest redemptions at -$122M, followed by DFCA at -$67M. These outflows were modest relative to the scale of inflows elsewhere in the channel, with most redeeming funds losing well under $100M for the week.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| VTEB | Vanguard Tax-Exempt Bond ETF | $3,613M |
| MUB | iShares National Muni Bond ETF | $1,796M |
| VTES | Vanguard Short-Term Tax Exempt Bond ETF | $486M |
| VCRM | Vanguard Core Tax-Exempt Bond ETF | $267M |
| VTEC | Vanguard California Tax-Exempt Bond ETF | $256M |
| Outflows | ||
| SCMB | Schwab Municipal Bond ETF | -$122M |
| DFCA | Dimensional California Municipal Bond ETF | -$67M |
| BKMI | BNY Mellon Municipal Intermediate ETF | -$30M |
| CAM | AB California Intermediate Municipal ETF | -$20M |
| MUST | Columbia Multi-Sector Municipal Income ETF | -$9M |
Issuer League Table Update
iShares and Vanguard remain the dominant forces in the Municipal channel, holding 31.91% and 27.56% market share respectively, with combined AUM exceeding $137B across 18 funds. Vanguard led all issuers in weekly inflows at $4,847M, followed by iShares at $2,410M and Capital Group at $267M, together driving nearly the entire channel’s net weekly inflow. On the outflow side, Schwab saw the largest weekly redemptions at -$122M, followed by Dimensional at -$69M. The concentration of flows among the two largest issuers highlights their continued dominance in shaping overall channel activity.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| iShares | 10 | $73.74B | 31.91% |
| Vanguard | 8 | $63.69B | 27.56% |
| JPMorgan | 6 | $17.64B | 7.63% |
| Capital Group | 3 | $11.81B | 5.11% |
| SPDR | 4 | $10.03B | 4.34% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| Vanguard | $4,847M |
| iShares | $2,410M |
| Capital Group | $267M |
| Outflows | |
| Schwab | -$122M |
| Dimensional | -$69M |
| BNY Mellon | -$33M |
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.
