Muni Recap: High Yield Inflows Surge as Long-Duration Leads Performance

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Weekly Channel Summary

The FI: Municipal ETF channel currently manages $196.0 billion in Assets Under Management (AUM) across 136 ETFs offered by 47 unique issuers. Over the past week, the channel experienced net inflows of $230 million. Looking at broader timeframes, year-to-date (YTD) flows stand at a robust $6.50 billion, while the 1-year flow total reflects significant demand, accumulating $42.37 billion in net new assets.

This Week’s Performance Leaders and Laggards

In the municipal bond space, the Long category led weekly performance with a WTD return of 0.26%, bringing its YTD performance to 1.60%. Conversely, the Short category lagged the group, posting a WTD return of 0.06% (YTD 0.99%).

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Long 0.26% 1.43% 1.78% 7.48% 1.60% 3.76%
High Yield 0.20% 1.40% 2.31% 7.17% 1.91% 4.45%
Single State 0.18% 1.20% 1.81% 5.88% 1.54% 4.47%
Intermediate 0.16% 1.25% 2.06% 5.80% 1.69% 5.43%
Short 0.06% 0.59% 1.42% 2.24% 0.99% 4.21%

Top & Bottom 5 ETFs by Weekly Performance

At the fund level, the Simplify National Muni Bond ETF (NMB) was the top performer, returning 0.36% for the week. On the downside, the VanEck CEF Muni Income ETF (XMPT) and the First Trust Ultra Short Duration Municipal ETF (FUMB) were the bottom performers, returning -0.04% and 0.03% respectively.

Ticker Fund Name WTD Performance
Top Performers
NMB Simplify National Muni Bond ETF 0.36%
LTAX Nomura Tax-Free USA ETF 0.36%
PZT Invesco New York AMT-Free Municipal Bond ETF 0.34%
HTAX Nomura National High-Yield Municipal Bond ETF 0.33%
LMUB iShares Long-Term National Muni Bond ETF 0.30%
Bottom Performers
XMPT VanEck CEF Muni Income ETF -0.04%
FUMB First Trust Ultra Short Duration Municipal ETF 0.03%
AMUN Abrdn Ultra Short Muncipal Income Active ETF 0.04%
AUSM Allspring Ultra Short Municipal ETF 0.04%
GUMI Goldman Sachs Ultra Short Municipal Income ETF 0.04%

Analyzing the Weekly Flows

The channel gathered $230 million in net flows this week. The Credit: Blend segment attracted the most capital, reeling in $468 million to build on its $52.3 billion in AUM. Duration: Short ETFs also saw significant interest with $160 million in weekly inflows. On the outflow side, the Credit: Investment Grade category faced the largest redemptions, losing -$373 million.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Credit: Blend 69 $52.3B $468M $2,999M $7,955M $4,505M $24,321M
Duration: Short 27 $31.4B $160M $889M $2,738M $965M $9,083M
Credit: High Yield 20 $16.1B $136M $501M $1,728M $919M $5,531M
Duration: Intermediate 99 $158.5B $62M $1,931M $9,822M $5,090M $32,244M
Duration: Long 10 $6.0B $8M $377M $528M $442M $1,042M
Credit: Investment Grade 47 $127.5B -$373M -$302M $3,404M $1,073M $12,518M

Top & Bottom 5 ETFs by 5-Day Flow

The iShares High Yield Muni Active ETF (HIMU) led all individual products with $82 million in new assets. Conversely, the Vanguard Tax-Exempt Bond ETF (VTEB) and the VanEck Long Muni ETF (MLN) experienced the heaviest outflows, shedding -$560 million and -$4 million, respectively.

Ticker Fund Name 5-Day Flow
Inflows
HIMU iShares High Yield Muni Active ETF $82M
CGMU Capital Group Municipal Income ETF $62M
JMUB JPMorgan Municipal ETF $59M
CMF iShares California Muni Bond ETF $44M
VTEC Vanguard California Tax-Exempt Bond ETF $43M
Outflows
VTEB Vanguard Tax-Exempt Bond ETF -$560M
MLN VanEck Long Muni ETF -$4M
JMST JPMorgan Ultra-Short Municipal Income ETF -$3M
PZT Invesco New York AMT-Free Municipal Bond ETF -$2M

Issuer League Table Update

iShares and Vanguard continue to dominate the market share landscape, commanding 32.74% and 25.11% of the channel’s AUM, respectively. This week, iShares gathered the most assets with $219 million in inflows, while Vanguard recorded the largest outflows, shedding -$405 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 10 $64.12B 32.74%
Vanguard 8 $49.17B 25.11%
JPMorgan 4 $13.86B 7.08%
SPDR 5 $9.62B 4.91%
Capital Group 3 $9.11B 4.65%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $219M
Capital Group $99M
JPMorgan $56M
Outflows
Vanguard -$405M
SPDR $0M
Fidelity $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.