Vanguard Says Tax-Loss Inflows to Muni ETFs Likely to Stick

Tax-loss harvesting has turbocharged the growth of municipal-bond exchange traded funds in 2026 at the expense of open-end mutual funds, according to Vanguard Group. The asset manager says those inflows are likely to stick, meaning mutual funds may lose much of those assets for good. The shift reflects investors' growing preference for the lower-cost, more liquid ETF structure.