Weekly Channel Summary
The Municipal ETF channel closed the week with total assets of $258.41B spread across 147 funds from 51 issuers. Net flows turned negative over the trailing five days at -$376M, a sharp reversal from the channel’s robust longer-term trends of $74,729M YTD and $81,515M over the past year. The weekly outflow suggests some near-term profit-taking or rate-driven repositioning even as the broader 2026 inflow trend remains intact.
This Week’s Performance Leaders and Laggards
On a WTD basis, all five municipal categories posted negative returns, reflecting broad price pressure likely tied to rising rate expectations. Municipal – Short was the most resilient segment, down just -0.41% WTD and still the top YTD performer at 1.36%, while Municipal – Long lagged with a -1.46% weekly decline and a -1.32% YTD loss. Municipal – High Yield and Municipal – Intermediate also underperformed on the week, down -1.40% and -1.19% respectively, despite stronger 1-month returns above 2%. The data shows a clear pattern of shorter-duration munis outperforming longer-duration peers across nearly every timeframe.
Category Performance Snapshot
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Municipal – Short | -0.41% | 0.92% | 0.09% | 0.79% | 1.36% | 1.90% |
| Municipal – Single State | -1.06% | 2.36% | -1.62% | -1.06% | -0.46% | -0.06% |
| Municipal – Intermediate | -1.19% | 2.29% | -1.53% | -1.12% | -0.41% | 0.03% |
| Municipal – High Yield | -1.40% | 2.42% | -2.42% | -1.39% | 0.11% | 0.60% |
| Municipal – Long | -1.46% | 3.09% | -3.09% | -2.58% | -1.32% | -1.16% |
Top & Bottom 5 ETFs by Weekly Performance
INTM topped the weekly leaderboard with a modest 0.22% gain, followed by ultra-short offerings ZMUN and AMUN, each up 0.08%. At the other end, ZTAX was the week’s worst performer, falling -4.18%, with closed-end-fund-linked products XMPT and RTAI also posting losses exceeding 2.8%. The dispersion between top and bottom performers underscores how duration and structural exposure to closed-end vehicles amplified downside this week.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| INTM | Invesco Intermediate Municipal ETF | 0.22% |
| ZMUN | F/m Ultrashort Tax-Free Municipal ETF | 0.08% |
| AMUN | Abrdn Ultra Short Muncipal Income Active ETF | 0.08% |
| GUMI | Goldman Sachs Ultra Short Municipal Income ETF | 0.01% |
| PVI | Invesco Floating Rate Municipal Income ETF | 0.00% |
| Bottom Performers | ||
| ZTAX | X-Square Municipal Income ETF | -4.18% |
| XMPT | VanEck CEF Muni Income ETF | -2.95% |
| RTAI | Rareview Tax Advantaged Income ETF | -2.82% |
| YYYM | Amplify Municipal CEF High Income ETF | -2.73% |
| LTAX | Nomura Tax-Free USA ETF | -2.01% |
Analyzing the Weekly Flows
The channel saw a net outflow of -$376M for the week, driven primarily by a -$667M withdrawal from Municipal – Intermediate, the largest category by AUM at $167.24B. Municipal – Short led inflows with $192M, followed by Municipal – High Yield at $90M, while Municipal – Long and Single State saw only marginal inflows of $6M and $3M respectively. This pattern suggests investors rotated toward shorter-duration and higher-yield exposures while trimming intermediate-duration holdings amid the week’s rate-sensitive price declines.
Category Flows Summary
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Municipal – Short | 27 | $41.76B | $192M | $2,390M | $7,634M | $12,559M | $14,498M |
| Municipal – High Yield | 22 | $19.68B | $90M | $1,093M | $2,670M | $5,321M | $6,192M |
| Municipal – Long | 9 | $7.77B | $6M | $246M | $738M | $3,576M | $3,543M |
| Municipal – Single State | 31 | $21.96B | $3M | $1,155M | $3,674M | $8,175M | $8,897M |
| Municipal – Intermediate | 58 | $167.24B | -$667M | $8,014M | $24,067M | $45,098M | $48,385M |
Top & Bottom 5 ETFs by 5-Day Flow
HIMU and HMOP tied for the top weekly inflow at $57M each, with SMMU close behind at $49M. On the outflow side, VTEB dominated redemptions with -$629M withdrawn, far exceeding the next largest outflow from MUB at -$240M. These two funds alone accounted for the bulk of the channel’s net negative flow for the week.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| HIMU | iShares High Yield Muni Active ETF | $57M |
| HMOP | Hartford Municipal Opportunities ETF | $57M |
| SMMU | PIMCO Short Term Municipal Bond Active ETF | $49M |
| JMST | JPMorgan Ultra-Short Municipal Income ETF | $43M |
| VTEI | Vanguard Intermediate-Term Tax-Exempt Bond ETF | $42M |
| Outflows | ||
| VTEB | Vanguard Tax-Exempt Bond ETF | -$629M |
| MUB | iShares National Muni Bond ETF | -$240M |
| BMOP | BNY Mellon Municipal Opportunities ETF | -$26M |
| FMB | First Trust Managed Municipal ETF | -$22M |
| SUB | iShares Short-Term National Muni Bond ETF | -$16M |
Issuer League Table Update
iShares and Vanguard remain the dominant forces in the Municipal channel, holding 32.46% and 27.31% market share respectively, together representing roughly 60% of total channel assets. Despite its scale, Vanguard posted the week’s largest issuer-level outflow at -$519M, driven largely by redemptions from VTEB, while iShares also saw net outflows of -$158M tied to MUB. On the inflow side, Capital Group led all issuers with $87M gathered, followed closely by PIMCO and Hartford, each adding $55M, highlighting active managers capturing share even as passive giants faced redemptions this week.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| iShares | 10 | $83.88B | 32.46% |
| Vanguard | 8 | $70.56B | 27.31% |
| JPMorgan | 6 | $19.30B | 7.47% |
| Capital Group | 3 | $13.24B | 5.12% |
| SPDR | 3 | $10.30B | 3.99% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| Capital Group | $87M |
| PIMCO | $55M |
| Hartford | $55M |
| Outflows | |
| Vanguard | -$519M |
| iShares | -$158M |
| BNY Mellon | -$42M |
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.
