The Schwab Municipal Bond ETF (SCMB) has been significantly impacted by recent bond market turmoil, experiencing $360.47 million in outflows. This redemption represents a 9.55% decrease in the ETF's assets under management (AUM), which now stands at $3,772.63 million as of September 17, 2026. This outflow makes SCMB one of the top redemption drivers in the ETF channel universe, according to recent reports.
Further analysis indicates that the SCMB ETF saw 14.2 million units retired in the past week, an 8.5% reduction month-over-month. The fund, which aims to track the ICE AMT-Free Core U.S. National Municipal Index, had total net assets of $4,148,758,596.78 and 166,200,000 shares outstanding as of September 2, 2026. Its market price declined 1.61% over the last month, and its NAV fell 1.84% during the same period.
The broader bond market has faced challenges, with 10-year Treasury yields reaching over 5% this week, the highest in nearly two decades. The Federal Reserve's recent interest rate hike and potential for further increases have contributed to investor concerns about inflation and government spending. Despite a slight retreat in global bond yields following the Fed's actions, the overall environment has led to substantial outflows from bond-focused ETFs like SCMB. Financial advisors suggest strategies for investors to navigate this volatile period, including taking advantage of higher yields.
