Municipal bond exchange-traded funds drew more than double the amount of cash this year compared to traditional mutual funds focused on the asset class, highlighting the growing popularity of ETFs as an investment vehicle in the space.
Year-to-date, muni ETFs have nabbed around $19.6 billion in net inflows, compared to $8 billion for mutual funds, according to data compiled by CreditSights Inc. The difference was particularly stark in August, when investors sent more than $4.5 billion into ETFs, while net inflows for mutual funds were negative, the firm’s data showed.