Munis on the Move: Investors Pour $1.5 Billion into Municipal ETFs

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Weekly Channel Summary

The FI: Municipal ETF channel currently stands at $206.3 billion in total Assets Under Management (AUM) across 135 ETFs and 48 issuers. Over the past week, the channel experienced robust net inflows of $1.50 billion. This recent capital injection adds to a strong trajectory for the category, bringing Year-to-Date (YTD) net flows to $19.45 billion and 1-Year net flows to $50.55 billion.

This Week’s Performance Leaders and Laggards

During the week, the Short category led relative performance despite a slightly negative Week-to-Date (WTD) return of -0.21% (0.60% YTD). Conversely, the Long category lagged the broader market, posting a -1.06% WTD return (0.52% YTD).

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Short -0.21% -0.14% -0.31% 1.06% 0.60% 3.51%
Intermediate -0.75% -0.47% -1.11% 0.76% 0.37% 5.47%
Single State -0.79% -0.46% -0.84% 0.79% 0.48% 5.09%
High Yield -0.98% -0.35% -0.63% 1.35% 1.07% 6.05%
Long -1.06% -0.69% -0.81% 0.61% 0.52% 5.67%

Top & Bottom 5 ETFs by Weekly Performance

Among individual funds, the F/m Ultrashort Tax-Free Municipal ETF (ZMUN) posted the highest weekly return at 0.06%. On the opposite end of the spectrum, the Rareview Tax Advantaged Income ETF (RTAI) and the VanEck CEF Muni Income ETF (XMPT) faced the steepest declines, shedding -1.86% and -1.77%, respectively.

Ticker Fund Name WTD Performance
Top Performers
ZMUN F/m Ultrashort Tax-Free Municipal ETF 0.06%
PVI Invesco Floating Rate Municipal Income ETF 0.04%
GUMI Goldman Sachs Ultra Short Municipal Income ETF 0.00%
AMUN Abrdn Ultra Short Muncipal Income Active ETF 0.00%
FUMB First Trust Ultra Short Duration Municipal ETF -0.02%
Bottom Performers
RTAI Rareview Tax Advantaged Income ETF -1.86%
XMPT VanEck CEF Muni Income ETF -1.77%
YYYM Amplify Municipal CEF High Income ETF -1.52%
BAB Invesco Taxable Municipal Bond ETF -1.42%
PZT Invesco New York AMT-Free Municipal Bond ETF -1.35%

Analyzing the Weekly Flows

The Municipal ETF channel attracted a robust $1.50 billion in net inflows this week. The Intermediate duration category captured the lion’s share, pulling in $1.25 billion across its broad $165.7 billion asset base. The Short duration segment also saw notable interest, gathering $193 million in new assets. No major category suffered net outflows on a consolidated basis this week.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Duration: Intermediate 98 $165.7B $1,252M $4,878M $9,348M $14,382M $38,391M
Duration: Short 27 $32.7B $193M $673M $1,748M $2,553M $8,969M
Credit: High Yield 21 $16.0B $191M $604M $209M $992M $5,132M
Duration: Long 10 $8.0B $56M $265M $2,078M $2,512M $3,192M

Top & Bottom 5 ETFs by 5-Day Flow

At the fund level, the iShares National Muni Bond ETF (MUB) led the pack, drawing in $362 million in weekly creations. Conversely, the State Street SPDR Nuveen ICE Municipal Bond ETF (TFI) and the State Street SPDR Nuveen ICE Short Term Municipal Bond ETF (SHM) experienced the largest redemptions, bleeding -$64 million and -$19 million, respectively.

Ticker Fund Name 5-Day Flow
Inflows
MUB iShares National Muni Bond ETF $362M
VTEB Vanguard Tax-Exempt Bond ETF $210M
CGMU Capital Group Municipal Income ETF $93M
JMUB JPMorgan Municipal ETF $88M
JMST JPMorgan Ultra-Short Municipal Income ETF $86M
Outflows
TFI State Street SPDR Nuveen ICE Municipal Bond ETF -$64M
SHM State Street SPDR Nuveen ICE Short Term Municipal Bond ETF -$19M
BMOP BNY Mellon Municipal Opportunities ETF -$10M
FTMS Franklin Short-Term Municipal Income ETF -$3M
BKMI BNY Mellon Municipal Intermediate ETF -$2M

Issuer League Table Update

iShares and Vanguard continue to dominate the Municipal ETF landscape, commanding 32.62% and 25.18% of the total market share, respectively. iShares also controlled the weekly flows race, amassing $536 million in net new assets. In contrast, SPDR faced the stiffest headwinds among top issuers, registering -$78 million in net outflows over the 5-day period.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 10 $67.32B 32.62%
Vanguard 8 $51.95B 25.18%
JPMorgan 4 $14.57B 7.06%
Capital Group 3 $10.15B 4.92%
SPDR 4 $9.37B 4.54%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $536M
Vanguard $331M
JPMorgan $179M
Outflows
SPDR -$78M
BNY Mellon -$12M
aberdeen $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.