Weekly Muni ETF Recap: Short Duration Shines, High Yield Stumbles

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Weekly Channel Summary

The FI: Municipal ETF channel currently oversees $196.2 billion in total assets across 137 ETFs, managed by 48 unique issuers. Over the past five days, the channel attracted $338 million in net new money. This recent positive momentum brings the year-to-date net flows to $11.02 billion and the 1-year trailing flows to a substantial $46.43 billion.

This Week’s Performance Leaders and Laggards

Municipal ETFs saw broadly negative returns this week, with the Short category exhibiting the most resilience, dropping just -0.21% WTD while maintaining a positive 0.27% YTD return. On the other end of the spectrum, the High Yield category was the most significant laggard, falling -0.68% for the week and slipping to -0.56% YTD.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Short -0.21% -0.81% 0.35% 0.99% 0.27% 3.51%
Single State -0.48% -2.45% -0.37% 1.19% -0.52% 3.94%
Long -0.50% -2.81% -0.49% 1.33% -0.64% 3.97%
Intermediate -0.54% -2.50% -0.36% 1.19% -0.49% 4.80%
High Yield -0.68% -2.90% -0.28% 1.12% -0.56% 3.50%

Top & Bottom 5 ETFs by Weekly Performance

Among individual funds, the F/m Ultrashort Tax-Free Municipal ETF (ZMUN) led the pack with a 0.04% WTD gain. Conversely, the VanEck CEF Muni Income ETF (XMPT) and the Rareview Tax Advantaged Income ETF (RTAI) suffered the steepest declines, shedding -2.18% and -2.06%, respectively.

Ticker Fund Name WTD Performance
Top Performers
ZMUN F/m Ultrashort Tax-Free Municipal ETF 0.04%
PVI Invesco Floating Rate Municipal Income ETF 0.04%
GUMI Goldman Sachs Ultra Short Municipal Income ETF 0.02%
AMUN Abrdn Ultra Short Muncipal Income Active ETF 0.00%
FUMB First Trust Ultra Short Duration Municipal ETF -0.01%
Bottom Performers
XMPT VanEck CEF Muni Income ETF -2.18%
RTAI Rareview Tax Advantaged Income ETF -2.06%
MFLX First Trust Flexible Municipal High Income ETF -0.73%
MUNX AMG GW&K Muni Income ETF -0.73%
SCNM Sterling Capital National Municipal Bond ETF -0.73%

Analyzing the Weekly Flows

The Municipal ETF channel accumulated $338 million in net inflows this week. The Credit: Blend category led the asset gathering, pulling in $331 million to reach $53.2 billion in total AUM. The Duration: Short category also saw healthy interest with $215 million in new assets. Conversely, the Credit: High Yield segment faced notable headwinds, bleeding -$165 million in net outflows over the 5-day period.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Credit: Blend 69 $53.2B $331M $1,498M $6,898M $6,450M $25,266M
Duration: Short 27 $31.8B $215M $652M $1,876M $1,714M $9,685M
Credit: Investment Grade 47 $127.8B $172M $2,632M $4,460M $4,178M $16,782M
Duration: Long 10 $7.5B $126M $1,590M $2,120M $2,097M $2,730M
Duration: Intermediate 99 $156.9B -$3M $1,297M $7,822M $7,209M $34,014M
Credit: High Yield 20 $15.2B -$165M -$592M $461M $393M $4,381M

Top & Bottom 5 ETFs by 5-Day Flow

The Vanguard Tax-Exempt Bond ETF (VTEB) commanded the highest individual inflows, attracting $118 million. On the outflow side, the iShares National Muni Bond ETF (MUB) and the iShares High Yield Muni Active ETF (HIMU) saw the largest redemptions, losing $234 million and $94 million, respectively.

Ticker Fund Name 5-Day Flow
Inflows
VTEB Vanguard Tax-Exempt Bond ETF $118M
CGMU Capital Group Municipal Income ETF $105M
SUB iShares Short-Term National Muni Bond ETF $69M
PZA Invesco National AMT-Free Municipal Bond ETF $54M
JMST JPMorgan Ultra-Short Municipal Income ETF $51M
Outflows
MUB iShares National Muni Bond ETF -$234M
HIMU iShares High Yield Muni Active ETF -$94M
HYMB State Street SPDR Nuveen ICE High Yield Municipal Bond ETF -$50M
HYD VanEck High Yield Muni ETF -$48M
SCMB Schwab Municipal Bond ETF -$36M

Issuer League Table Update

iShares and Vanguard continue to dominate the Municipal ETF landscape, holding 32.89% and 24.94% of the market share, respectively. Vanguard successfully gathered the most weekly inflows, adding $160 million to its asset base, while top-ranked iShares experienced the most significant outflows, shedding $181 million over the past five days.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 10 $64.55B 32.89%
Vanguard 8 $48.93B 24.94%
JPMorgan 4 $14.03B 7.15%
Capital Group 3 $9.40B 4.79%
SPDR 5 $9.37B 4.77%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $160M
Capital Group $131M
JPMorgan $106M
Outflows
iShares -$181M
Schwab -$36M
VanEck -$27M

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.