DFNM vs. PZT

Last updated Jun 3, 2026

DFNM (Dimensional National Municipal Bond ETF) and PZT (Invesco New York AMT-Free Municipal Bond ETF) are both Municipal Bonds funds. DFNM is actively managed, while PZT is passively managed. Over the past 3 years, DFNM returned 3.39%/yr vs 3.46%/yr for PZT. A 0.65 correlation means they provide meaningful diversification when combined. DFNM charges 0.17%/yr vs 0.28%/yr for PZT.

Performance

DFNM vs. PZT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional National Municipal Bond ETF (DFNM) and Invesco New York AMT-Free Municipal Bond ETF (PZT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFNM achieves a 1.27% return, which is significantly lower than PZT's 3.19% return.

DFNM

• 1D: 0.08%
• 1M: 0.38%
• YTD: 1.27%
• 6M: 1.66%
• 1Y: 5.31%
• 3Y*: 3.39%
• 5Y*: —
• 10Y*: —

PZT

• 1D: 0.53%
• 1M: 1.58%
• YTD: 3.19%
• 6M: 3.42%
• 1Y: 9.47%
• 3Y*: 3.46%
• 5Y*: 0.07%
• 10Y*: 1.94%

*Multi-year figures are annualized to reflect compound growth (CAGR)

DFNM vs. PZT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
DFNM Dimensional National Municipal Bond ETF	1.27%	3.87%	1.19%	3.97%	-4.02%	0.47%
PZT Invesco New York AMT-Free Municipal Bond ETF	3.19%	1.76%	1.17%	7.57%	-13.04%	1.15%

Correlation

The correlation between DFNM and PZT is 0.53, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (All Time) Calculated using the full available price history since Nov 17, 2021	0.65

The correlation between DFNM and PZT shifts across timeframes, from 0.53 (1 year) to 0.65 (all time), reflecting how their relationship changes across market environments.

Return for Risk

DFNM vs. PZT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DFNM

DFNM Risk / Return Rank: 77
DFNM Sharpe Ratio Rank: 88
DFNM Sortino Ratio Rank: 91
DFNM Omega Ratio Rank: 94
DFNM Calmar Ratio Rank: 54
DFNM Martin Ratio Rank: 56

PZT

PZT Risk / Return Rank: 59
PZT Sharpe Ratio Rank: 59
PZT Sortino Ratio Rank: 59
PZT Omega Ratio Rank: 65
PZT Calmar Ratio Rank: 58
PZT Martin Ratio Rank: 56

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DFNM vs. PZT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional National Municipal Bond ETF (DFNM) and Invesco New York AMT-Free Municipal Bond ETF (PZT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	DFNM	PZT	Difference
Sharpe ratio Return per unit of total volatility	3.04	2.01	+1.03
Sortino ratio Return per unit of downside risk	4.41	2.81	+1.60
Omega ratio Gain probability vs. loss probability	1.69	1.40	+0.29
Calmar ratio Return relative to maximum drawdown	2.77	2.93	-0.16
Martin ratio Return relative to average drawdown	10.07	10.01	+0.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFNM vs. PZT - Sharpe Ratio Comparison

The current DFNM Sharpe Ratio is 3.04, which is higher than the PZT Sharpe Ratio of 2.01. The chart below compares the historical Sharpe Ratios of DFNM and PZT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DFNM	PZT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.04	2.01	+1.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.01	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.28	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.38	+0.20

Drawdowns

DFNM vs. PZT - Drawdown Comparison

The maximum DFNM drawdown since its inception was -6.99%, smaller than the maximum PZT drawdown of -22.73%. Use the drawdown chart below to compare losses from any high point for DFNM and PZT.

Drawdown Indicators

	DFNM	PZT	Difference
Max Drawdown Largest peak-to-trough decline	-6.99%	-22.73%	+15.74%
Max Drawdown (1Y) Largest decline over 1 year	-1.84%	-3.17%	+1.33%
Max Drawdown (3Y) Largest decline over 3 years	-2.82%	-9.00%	+6.18%
Max Drawdown (5Y) Largest decline over 5 years	—	-19.13%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-19.13%	—
Current Drawdown Current decline from peak	-0.38%	-1.11%	+0.73%
Average Drawdown Average peak-to-trough decline	-1.96%	-3.91%	+1.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.50%	0.93%	-0.43%

Volatility

DFNM vs. PZT - Volatility Comparison

The current volatility for Dimensional National Municipal Bond ETF (DFNM) is 0.59%, while Invesco New York AMT-Free Municipal Bond ETF (PZT) has a volatility of 2.07%. This indicates that DFNM experiences smaller price fluctuations and is considered to be less risky than PZT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFNM	PZT	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.59%	2.07%	-1.48%
Volatility (6M) Calculated over the trailing 6-month period	1.29%	3.46%	-2.17%
Volatility (1Y) Calculated over the trailing 1-year period	1.77%	4.74%	-2.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.54%	6.62%	-4.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.54%	6.96%	-4.42%

DFNM vs. PZT - Expense Ratio Comparison

DFNM has a 0.17% expense ratio, which is lower than PZT's 0.28% expense ratio.

Dividends

DFNM vs. PZT - Dividend Comparison

DFNM's dividend yield for the trailing twelve months is around 2.89%, less than PZT's 3.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFNM Dimensional National Municipal Bond ETF	2.89%	2.94%	2.74%	2.39%	1.16%	0.05%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PZT Invesco New York AMT-Free Municipal Bond ETF	3.57%	3.43%	3.04%	2.82%	2.66%	2.77%	2.55%	2.73%	3.01%	2.94%	3.36%	3.40%

Frequently Asked Questions

Can I hold both DFNM and PZT in my portfolio?

DFNM and PZT have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFNM or PZT?

PZT has higher volatility (2.07%) compared to DFNM (0.59%). In terms of maximum drawdown, DFNM dropped -6.99% vs PZT's -22.73%.

Which ETF is better, DFNM or PZT?

On 3-year performance, PZT leads with 3.46% vs 3.39% for DFNM. On fees, DFNM is cheaper at 0.17% per year. On volatility, DFNM has been the lower-risk option at 0.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFNM or PZT?

Over the 3-year period, PZT has performed better with a 3.46% return vs 3.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFNM or PZT?

DFNM is cheaper with a 0.17% expense ratio, compared with 0.28% for PZT.

Which ETF pays a higher dividend yield, DFNM or PZT?

PZT has the higher dividend yield at 3.57%, compared with 2.89% for DFNM.

What is the main difference between DFNM and PZT?

They also come from different issuers: Dimensional and Invesco. Their fees differ too: 0.17% for DFNM and 0.28% for PZT.

Which has better risk-adjusted returns?

DFNM currently has the higher Sharpe Ratio (3.04 vs 2.01), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.