Takeaways by Bloomberg AI
- The Vanguard Tax-Exempt Bond ETF has $39.9 billion in assets after drawing in $4.3 billion so far this year, surpassing the $39.4 billion iShares National Muni Bond ETF.
- Investors have yanked $884 million from the iShares National Muni Bond ETF this year, which hasn’t had an annual outflow since 2013.
- Assets in muni ETFs have jumped to $156.7 billion, up 12% this year, with Vanguard’s fund at an advantage due to its lower fees and longer-dated bonds.
Competition is heating up in the rapidly growing arena of municipal-bond exchange-traded funds.
The Vanguard Tax-Exempt Bond ETF (ticker VTEB) now has $39.9 billion in assets after drawing in $4.3 billion so far this year, according to data compiled by Bloomberg. That has nudged it just past the $39.4 billion iShares National Muni Bond ETF (ticker MUB), which was long the largest fund in the category.
Bloomberg Markets
By Shruti Singh and Amanda Albright
October 3, 2025