Muni Market Watch: High Yield Leads While Short Duration Sheds Assets

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Weekly Channel Summary

The Fixed Income: Municipal ETF channel currently oversees a total of $201 billion in Assets Under Management (AUM) across 137 individual ETFs managed by 48 distinct issuers. Over the past five days, the channel experienced net outflows of $86 million. Despite this short-term contraction, the segment’s longer-term asset gathering remains robust, with Year-to-Date (YTD) inflows totaling $13.68 billion and 1-Year net flows reaching an impressive $48.40 billion.

This Week’s Performance Leaders and Laggards

The High Yield category led the channel this week with a Week-to-Date (WTD) return of 0.37%, lifting its YTD performance to a solid 1.76%. On the other end of the spectrum, the Short duration category lagged its peers, posting a modest 0.05% WTD gain and carrying a 0.81% return YTD.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
High Yield 0.37% 0.52% 0.90% 2.37% 1.76% 7.99%
Long 0.29% 0.59% 0.95% 1.81% 1.55% 7.55%
Intermediate 0.24% 0.24% 0.43% 1.68% 1.11% 7.26%
Single State 0.24% 0.36% 0.57% 1.65% 1.19% 6.62%
Short 0.05% 0.01% 0.39% 1.33% 0.81% 4.31%

Top & Bottom 5 ETFs by Weekly Performance

The Rareview Tax Advantaged Income ETF (RTAI) led all individual funds with a WTD return of 0.99%. Conversely, the First Trust Ultra Short Duration Municipal ETF (FUMB) and the Allspring Ultra Short Municipal ETF (AUSM) were the weakest performers, returning -0.01% and 0.01% WTD, respectively.

Ticker Fund Name WTD Performance
Top Performers
RTAI Rareview Tax Advantaged Income ETF 0.99%
XMPT VanEck CEF Muni Income ETF 0.63%
ZTAX X-Square Municipal Income ETF 0.55%
YYYM Amplify Municipal CEF High Income ETF 0.53%
BAB Invesco Taxable Municipal Bond ETF 0.50%
Bottom Performers
FUMB First Trust Ultra Short Duration Municipal ETF -0.01%
AUSM Allspring Ultra Short Municipal ETF 0.01%
BKMS BNY Mellon Municipal Short Duration ETF 0.02%
SHM State Street SPDR Nuveen ICE Short Term Municipal Bond ETF 0.03%
SUB iShares Short-Term National Muni Bond ETF 0.03%

Analyzing the Weekly Flows

Overall, the channel experienced net outflows of $86 million over the trailing 5-day period. The Single State category captured the largest inflows, bringing in $68 million against its $15.5 billion asset base. High Yield was close behind, securing $66 million in new assets. Meanwhile, the Short duration category endured the steepest redemptions, bleeding $184 million over the week.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Single State 28 $15.5B $68M $327M $1,379M $1,657M $3,892M
High Yield 19 $15.2B $66M -$329M -$100M -$7M $4,741M
Long 9 $6.7B $65M $900M $2,203M $2,250M $2,863M
Intermediate 56 $133.1B $24M $2,798M $5,325M $7,739M $27,905M
Short 25 $31.0B -$184M $423M $889M $1,661M $9,002M

Top & Bottom 5 ETFs by 5-Day Flow

Among individual funds, the iShares National Muni Bond ETF (MUB) commanded the largest absolute inflow, adding $43 million. On the outflow side, the Vanguard Tax-Exempt Bond ETF (VTEB) and the JPMorgan Ultra-Short Municipal Income ETF (JMST) experienced the most significant net redemptions, shedding $215 million and $160 million, respectively.

Ticker Fund Name 5-Day Flow
Inflows
MUB iShares National Muni Bond ETF $43M
VTEC Vanguard California Tax-Exempt Bond ETF $37M
LMUB iShares Long-Term National Muni Bond ETF $37M
HYD VanEck High Yield Muni ETF $31M
PZA Invesco National AMT-Free Municipal Bond ETF $28M
Outflows
VTEB Vanguard Tax-Exempt Bond ETF -$215M
JMST JPMorgan Ultra-Short Municipal Income ETF -$160M
TFI State Street SPDR Nuveen ICE Municipal Bond ETF -$41M
MEAR iShares Short Maturity Municipal Bond Active ETF -$28M
SHM State Street SPDR Nuveen ICE Short Term Municipal Bond ETF -$19M

Issuer League Table Update

iShares and Vanguard maintain their dominant positions in the municipal space, capturing 32.79% and 24.95% of the total market share, respectively. iShares was also the top asset gatherer over the past five days, pulling in an impressive $87 million in net flows. In contrast, JPMorgan experienced the heaviest outflows among the major issuers, losing $150 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 10 $66.07B 32.79%
Vanguard 8 $50.28B 24.95%
JPMorgan 4 $14.21B 7.05%
Capital Group 3 $9.72B 4.83%
SPDR 5 $9.39B 4.66%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $87M
Invesco $41M
VanEck $31M
Outflows
JPMorgan -$150M
Vanguard -$141M
SPDR -$60M

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.