Muni bond ETFs took in a record $20.8 billion in October while open-end municipal funds shed $20.5 billion, JPMorgan reported.
Vanguard said the muni ETF cash stayed after a $23 billion third quarter.
For advisors, the split left tax-aware muni exposure more concentrated in ETF shares, with $20.8 billion of ETF buying nearly offset by $20.5 billion of open-end redemptions.
What this means for advisors
Muni exposure sits in ETF shares
With $20.8 billion of October ETF buying against $20.5 billion of open-end redemptions, tax-aware muni exposure is more concentrated in ETF shares.
Match wrapper to the job
Check that the ETF wrapper still fits each client's duration and tax-loss-harvesting needs, rather than following the flow headline.
Judge on the quarter
October's record $20.8 billion is a single month; Vanguard points to the $23 billion third quarter as the base for staying power.
Reported by The Advisor's Note desk from JPMorgan and Vanguard. Published . Corrections