BlackRock and Vanguard’s municipal bond ETFs recorded their largest weekly inflows ever, following a recent bond market rout that triggered outflows elsewhere. BlackRock Inc.’s $46 billion iShares National Muni Bond ETF attracted about $1.2 billion, while Vanguard’s $47 billion Tax‑Exempt Bond Index ETF saw $1.7 billion in inflows, according to Bloomberg‑compiled data. The surge highlights renewed investor confidence in muni debt despite broader market volatility.

The influx comes as investors seek higher yields and tax advantages in a low‑interest‑rate environment. Analysts note that the strong demand may indicate a shift in sentiment toward municipal bonds, especially as credit quality remains solid and tax‑exempt status remains attractive.

For market participants, the data suggest that muni ETFs can attract substantial capital even after a sell‑off, offering diversification benefits and stable income streams. The trend may influence future fund flows and could prompt other asset managers to adjust their muni strategies accordingly.