NJTFX vs. PZA
NJTFX (T. Rowe Price New Jersey Tax Free Bond Fund) and PZA (Invesco National AMT-Free Municipal Bond ETF) are both Municipal Bonds funds. Over the past 10 years, NJTFX returned 2.24%/yr vs 1.60%/yr for PZA. Their 0.61 correlation means they have sometimes moved together and sometimes differently. NJTFX charges 0.56%/yr vs 0.28%/yr for PZA.
Performance
NJTFX vs. PZA - Performance Comparison
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Returns By Period
In the year-to-date period, NJTFX achieves a 0.81% return, which is significantly higher than PZA's 0.76% return. Over the past 10 years, NJTFX has outperformed PZA with an annualized return of 2.24%, while PZA has yielded a comparatively lower 1.60% annualized return.
NJTFX
- 1D
- -0.26%
- 1M
- -1.91%
- 6M
- 0.08%
- YTD
- 0.81%
- 1Y
- 6.88%
- 3Y*
- 4.27%
- 5Y*
- 1.12%
- 10Y*
- 2.24%
- ALL TIME*
- 4.51%
PZA
- 1D
- -0.02%
- 1M
- -2.68%
- 6M
- 0.02%
- YTD
- 0.76%
- 1Y
- 6.61%
- 3Y*
- 2.52%
- 5Y*
- -0.50%
- 10Y*
- 1.60%
- ALL TIME*
- 3.12%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $0.00 | $0.00 | $0.00 | |
| $37.18M | $30.60M | $27.57M |
NJTFX vs. PZA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
NJTFX T. Rowe Price New Jersey Tax Free Bond Fund | 0.81% | 5.00% | 4.01% | 7.17% | -10.24% | 2.67% | 4.73% | 6.65% | 1.31% | 5.30% |
PZA Invesco National AMT-Free Municipal Bond ETF | 0.76% | 1.81% | 0.81% | 8.64% | -13.17% | 2.37% | 5.07% | 9.00% | -0.09% | 6.95% |
Correlation
The correlation between NJTFX and PZA is 0.60, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.61 |
Correlation (3Y) Balances recent behavior with more history. | 0.69 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.70 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.65 |
Correlation (All Time) Calculated using the full available price history since Oct 18, 2007 | 0.61 |
The correlation between NJTFX and PZA has been stable across timeframes, ranging from 0.60 to 0.70 - a consistent structural relationship.
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Return for Risk
NJTFX vs. PZA — Risk / Return Rank
NJTFX
PZA
NJTFX vs. PZA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price New Jersey Tax Free Bond Fund (NJTFX) and Invesco National AMT-Free Municipal Bond ETF (PZA). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| NJTFX | PZA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.02 | ||
| Sortino ratioReturn per unit of downside risk | +1.78 | ||
| Omega ratioGain probability vs. loss probability | 1.72 | 1.39 | +0.33 |
| Calmar ratioReturn relative to maximum drawdown | 3.01 | 2.38 | +0.63 |
| Martin ratioReturn relative to average drawdown | 10.81 | 8.15 | +2.66 |
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Drawdowns
NJTFX vs. PZA - Drawdown Comparison
The maximum NJTFX drawdown since its inception was -15.19%, smaller than the maximum PZA drawdown of -24.49%. Use the drawdown chart below to compare losses from any high point for NJTFX and PZA.
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Drawdown Indicators
| NJTFX | PZA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.19% | -24.49% | +9.30% |
Max Drawdown (1Y)Largest decline over 1 year | -2.59% | -3.18% | +0.59% |
Max Drawdown (3Y)Largest decline over 3 years | -5.55% | -7.74% | +2.19% |
Max Drawdown (5Y)Largest decline over 5 years | -15.19% | -18.40% | +3.21% |
Max Drawdown (10Y)Largest decline over 10 years | -15.19% | -21.69% | +6.50% |
Current DrawdownCurrent decline from peak | -1.91% | -2.75% | +0.84% |
Average DrawdownAverage peak-to-trough decline | -1.81% | -3.93% | +2.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.72% | 0.93% | -0.21% |
Volatility
NJTFX vs. PZA - Volatility Comparison
The current volatility for T. Rowe Price New Jersey Tax Free Bond Fund (NJTFX) is 0.90%, while Invesco National AMT-Free Municipal Bond ETF (PZA) has a volatility of 1.32%. This indicates that NJTFX experiences smaller price fluctuations and is considered to be less risky than PZA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| NJTFX | PZA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.90% | 1.32% | -0.42% |
Volatility (6M)Calculated over the trailing 6-month period | 2.15% | 3.18% | -1.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.76% | 4.19% | -1.43% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.01% | 6.03% | -2.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.87% | 7.09% | -3.22% |
NJTFX vs. PZA - Expense Ratio Comparison
NJTFX has a 0.56% expense ratio, which is higher than PZA's 0.28% expense ratio.
Dividends
NJTFX vs. PZA - Dividend Comparison
NJTFX's dividend yield for the trailing twelve months is around 3.97%, more than PZA's 3.77% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NJTFX T. Rowe Price New Jersey Tax Free Bond Fund | 3.97% | 4.44% | 4.27% | 3.27% | 2.03% | 2.56% | 2.79% | 2.84% | 3.13% | 3.13% | 3.26% | 3.36% |
PZA Invesco National AMT-Free Municipal Bond ETF | 3.77% | 3.55% | 3.22% | 2.91% | 2.68% | 2.34% | 2.44% | 2.81% | 3.19% | 3.04% | 3.23% | 3.59% |
Frequently Asked Questions
NJTFX and PZA have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PZA has higher volatility (1.32%) compared to NJTFX (0.90%). In terms of maximum drawdown, NJTFX dropped -15.19% vs PZA's -24.49%.
NJTFX currently has the higher Sharpe Ratio (2.83 vs 1.81), 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.
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