Muni ETFs Pull in $1.48B as Long-Duration Funds Lead Weekly Performance

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Overview

The Fixed Income – Municipal ETF composite, comprising 108 funds from 40 issuers with a total of $155 billion in assets under management (AUM), had a productive week. The category attracted significant inflows of nearly $1.5 billion, with intermediate-duration funds capturing the lion’s share of new assets. On the performance side, long-duration funds delivered the strongest returns in a positive week for the municipal bond market.

Performance

Overall performance for municipal bond ETFs was positive across the board. Long-duration funds were the top performers, posting an average week-to-date (WTD) return of 0.26%. High-yield funds followed with a 0.24% gain. Intermediate-duration and single-state municipal ETFs both saw gains of 0.15%, while short-duration funds posted a modest gain of 0.07%.

Flows

The category saw total net inflows of $1.48 billion for the week. The intermediate-duration municipal category was the standout, attracting over $1.1 billion in new assets. All other categories also saw positive inflows. The largest individual fund flows highlight the week’s activity.

Top 5 ETF Inflows (5-Day):

  1. Vanguard Tax-Exempt Bond ETF (VTEB): +$543M
  2. JPMorgan Municipal ETF (JMUB): +$156M
  3. Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI): +$151M
  4. Capital Group Municipal Income ETF (CGMU): +$79M
  5. Invesco California AMT-Free Municipal Bond ETF (PWZ): +$55M

Top ETF Outflows (5-Day):

  1. SPDR Nuveen ICE High Yield Municipal Bond ETF (HYMB): -$15M
  2. NYLI MacKay Muni Intermediate ETF (MMIT): -$13M
  3. Franklin Municipal Green Bond ETF (FLMB): -$1M

Issuer League Tables

The top three issuers by AUM remain iShares ($56.9B), Vanguard ($42.9B), and SPDR ($9.4B), who collectively manage over 70% of the category’s assets. However, weekly flow activity told a different story, with Vanguard leading the pack.

Top 3 Issuers by Flows (5-Day):

  1. Vanguard: +$731M
  2. JPMorgan: +$209M
  3. Capital Group: +$116M

Bottom 3 Issuers by Flows (5-Day):

  1. New York Life Investments: -$12M
  2. SPDR: -$10M
  3. Rareview Funds: $0M

All data sourced from ETF Action’s weekly Fixed Income – Municipal composite reports.

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.

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