The $3.6 billion Schwab Municipal Bond ETF (SCMB) has experienced over $530 million in investor withdrawals this month, marking its largest monthly outflow since inception in 2022. The capital flight follows a fixed-income market sell-off that pushed municipal bond yields to multi-month highs. Outflows accelerated significantly last week with a single-day redemption of $360 million, setting a new record for the fund's highest daily withdrawal. The sustained selling pressure highlights shifting investor sentiment in the municipal bond space as rising yields impact ETF valuations.