Municipal Bond ETFs Near $200B AUM Mark Amid Robust Weekly Inflows

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Weekly Channel Summary

The Municipal Fixed Income (FI: Municipal) ETF channel currently oversees $197.3 billion in total Assets Under Management (AUM) spread across 136 distinct products and 47 issuers. Over the past week, the space attracted a robust $949 million in net new money. This short-term momentum builds upon a solid foundation, extending Year-to-Date (YTD) net flows to $7.45 billion and trailing 1-year inflows to an impressive $42.14 billion.

This Week’s Performance Leaders and Laggards

The Long duration category led the pack this week with an average return of 0.63%, pushing its YTD performance to 2.24%. On the other end of the spectrum, the Short duration segment lagged the broader group with a modest 0.10% weekly gain, keeping its YTD return to a more conservative 1.09%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Long 0.63% 1.67% 2.24% 7.71% 2.24% 3.64%
High Yield 0.49% 1.46% 2.54% 7.16% 2.41% 4.26%
Single State 0.44% 1.31% 2.09% 6.00% 1.98% 4.20%
Intermediate 0.36% 1.25% 2.23% 5.84% 2.06% 5.14%
Short 0.10% 0.51% 1.42% 2.21% 1.09% 4.03%

Top & Bottom 5 ETFs by Weekly Performance

Among individual funds, the Invesco Taxable Municipal Bond ETF (BAB) posted the strongest WTD return at 0.99%, while the Invesco Floating Rate Municipal Income ETF (PVI) and the Nomura Tax-Free USA Short Term ETF (STAX) brought up the rear with gains of 0.03% and 0.04%, respectively.

Ticker Fund Name WTD Performance
Top Performers
BAB Invesco Taxable Municipal Bond ETF 0.99%
FTMH Franklin Municipal High Yield ETF 0.89%
MLN VanEck Long Muni ETF 0.84%
PZT Invesco New York AMT-Free Municipal Bond ETF 0.81%
FTMU Franklin Municipal Income ETF 0.79%
Bottom Performers
PVI Invesco Floating Rate Municipal Income ETF 0.03%
STAX Nomura Tax-Free USA Short Term ETF 0.04%
FUMB First Trust Ultra Short Duration Municipal ETF 0.06%
GUMI Goldman Sachs Ultra Short Municipal Income ETF 0.06%
JMST JPMorgan Ultra-Short Municipal Income ETF 0.06%

Analyzing the Weekly Flows

The FI: Municipal channel saw widespread positive sentiment this week, capturing $949 million in net inflows. The Intermediate category, which dominates the channel with $130.7 billion in AUM, accounted for the bulk of this activity by raking in $563 million. The Single State segment also experienced notable interest with $175 million in new assets. Conversely, while no major category suffered net outflows, the High Yield segment saw the softest demand, attracting just $61 million.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Intermediate 56 $130.7B $563M $673M $6,662M $3,940M $23,443M
Single State 28 $15.1B $175M $679M $1,707M $1,124M $3,557M
Short 25 $30.5B $83M $640M $2,441M $913M $8,514M
Long 9 $5.0B $67M $476M $1,023M $495M $1,124M
High Yield 18 $16.0B $61M $402M $1,631M $973M $5,599M

Top & Bottom 5 ETFs by 5-Day Flow

At the fund level, the iShares National Muni Bond ETF (MUB) easily led the pack, pulling in $217 million over the trailing 5-day period. On the flip side, the BNY Mellon Municipal Opportunities ETF (BMOP) and the JPMorgan Ultra-Short Municipal Income ETF (JMST) experienced the largest net redemptions, losing -$10 million and -$8 million, respectively.

Ticker Fund Name 5-Day Flow
Inflows
MUB iShares National Muni Bond ETF $217M
VTEC Vanguard California Tax-Exempt Bond ETF $63M
CGMU Capital Group Municipal Income ETF $62M
VTEB Vanguard Tax-Exempt Bond ETF $58M
CMF iShares California Muni Bond ETF $47M
Outflows
BMOP BNY Mellon Municipal Opportunities ETF -$10M
JMST JPMorgan Ultra-Short Municipal Income ETF -$8M
BKMS BNY Mellon Municipal Short Duration ETF -$6M
MBNE State Street Nuveen Municipal Bond ESG ETF -$3M
BAB Invesco Taxable Municipal Bond ETF -$1M

Issuer League Table Update

The top two issuers continue to command a significant majority of the market, with iShares holding a 32.78% share and Vanguard right behind at 25.08%. iShares dominated the weekly flow activity as well, gathering $356 million in net new assets across its suite. Meanwhile, BNY Mellon experienced the largest weekly contraction among issuers, shedding -$15 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 10 $64.66B 32.78%
Vanguard 8 $49.47B 25.08%
JPMorgan 4 $13.91B 7.05%
SPDR 5 $9.64B 4.89%
Capital Group 3 $9.22B 4.67%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $356M
Vanguard $225M
Capital Group $85M
Outflows
BNY Mellon -$15M
SPDR -$3M
F/m -$1M

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.