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Muni Funds See Record Inflows in 2019

Investors' appetite for municipal bonds soared last year, helping push already low muni yields even lower.

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Municipal-bond funds saw record inflows in 2019, as investors poured a massive net $105.5 billion into muni open-end mutual funds and exchange-traded funds during the year. That amount dwarfed the annual gains of each of the past 25 years, including the group's previous boom year of 2009, which brought in roughly $75 billion. 

Demand remained high throughout the year, as muni funds saw 12 straight months of net inflows over $5 billion, and by midyear had gathered 10 times the assets that flowed into those strategies in all of 2018. 

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Elizabeth Foos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.