OPTAX vs. LSMSX

Last updated Jun 5, 2026

OPTAX (Invesco AMT-Free Municipal Fund) and LSMSX (Western Asset SMASh Series TF Fund) are both Municipal Bonds funds. Over the past 5 years, OPTAX returned 0.19%/yr vs 1.17%/yr for LSMSX. A 0.77 correlation means they provide meaningful diversification when combined. OPTAX charges 0.75%/yr vs 0.01%/yr for LSMSX.

Performance

OPTAX vs. LSMSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco AMT-Free Municipal Fund (OPTAX) and Western Asset SMASh Series TF Fund (LSMSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, OPTAX achieves a 1.51% return, which is significantly lower than LSMSX's 2.18% return.

OPTAX

• 1D: 0.00%
• 1M: 0.80%
• YTD: 1.51%
• 6M: 1.71%
• 1Y: 6.07%
• 3Y*: 3.19%
• 5Y*: 0.19%
• 10Y*: 3.54%

LSMSX

• 1D: 0.00%
• 1M: 0.97%
• YTD: 2.18%
• 6M: 2.48%
• 1Y: 8.19%
• 3Y*: 4.03%
• 5Y*: 1.17%
• 10Y*: —

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

OPTAX vs. LSMSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
OPTAX Invesco AMT-Free Municipal Fund	1.51%	2.70%	2.13%	6.64%	-12.15%	4.16%	7.57%	12.33%	7.43%	5.52%
LSMSX Western Asset SMASh Series TF Fund	2.18%	3.22%	2.22%	7.96%	-10.03%	4.11%	4.48%	8.16%	0.46%	4.92%

Correlation

The correlation between OPTAX and LSMSX is 0.77, 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	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Feb 2, 2017	0.77

The correlation between OPTAX and LSMSX shifts across timeframes, from 0.77 (all time) to 0.87 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

OPTAX vs. LSMSX — Risk / Return Rank

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

OPTAX

OPTAX Risk / Return Rank: 48
OPTAX Sharpe Ratio Rank: 45
OPTAX Sortino Ratio Rank: 52
OPTAX Omega Ratio Rank: 67
OPTAX Calmar Ratio Rank: 41
OPTAX Martin Ratio Rank: 35

LSMSX

LSMSX Risk / Return Rank: 78
LSMSX Sharpe Ratio Rank: 90
LSMSX Sortino Ratio Rank: 93
LSMSX Omega Ratio Rank: 94
LSMSX Calmar Ratio Rank: 64
LSMSX Martin Ratio Rank: 50

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.

OPTAX vs. LSMSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco AMT-Free Municipal Fund (OPTAX) and Western Asset SMASh Series TF Fund (LSMSX). 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.

	OPTAX	LSMSX	Difference
Sharpe ratio: Return per unit of total volatility	1.96	2.99	-1.03
Sortino ratio: Return per unit of downside risk	3.02	4.68	-1.66
Omega ratio: Gain probability vs. loss probability	1.45	1.74	-0.29
Calmar ratio: Return relative to maximum drawdown	2.42	3.04	-0.62
Martin ratio: Return relative to average drawdown	7.80	10.21	-2.41
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

OPTAX vs. LSMSX - Sharpe Ratio Comparison

The current OPTAX Sharpe Ratio is 1.96, which is lower than the LSMSX Sharpe Ratio of 2.99. The chart below compares the historical Sharpe Ratios of OPTAX and LSMSX, 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

	OPTAX	LSMSX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.96	2.99	-1.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.04	0.26	-0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.74	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.77	0.63	+0.14

Drawdowns

OPTAX vs. LSMSX - Drawdown Comparison

The maximum OPTAX drawdown since its inception was -48.56%, which is greater than LSMSX's maximum drawdown of -15.00%. Use the drawdown chart below to compare losses from any high point for OPTAX and LSMSX.

Drawdown Indicators

	OPTAX	LSMSX	Difference
Max Drawdown Largest peak-to-trough decline	-48.56%	-15.00%	-33.56%
Max Drawdown (1Y) Largest decline over 1 year	-2.93%	-2.82%	-0.11%
Max Drawdown (3Y) Largest decline over 3 years	-7.93%	-7.49%	-0.44%
Max Drawdown (5Y) Largest decline over 5 years	-17.30%	-15.00%	-2.30%
Max Drawdown (10Y) Largest decline over 10 years	-17.30%	—	—
Current Drawdown Current decline from peak	-0.37%	-0.23%	-0.14%
Average Drawdown Average peak-to-trough decline	-6.37%	-2.85%	-3.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	0.84%	+0.12%

Volatility

OPTAX vs. LSMSX - Volatility Comparison

Invesco AMT-Free Municipal Fund (OPTAX) has a higher volatility of 1.41% compared to Western Asset SMASh Series TF Fund (LSMSX) at 1.19%. This indicates that OPTAX's price experiences larger fluctuations and is considered to be riskier than LSMSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OPTAX	LSMSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.41%	1.19%	+0.22%
Volatility (6M) Calculated over the trailing 6-month period	2.54%	2.06%	+0.48%
Volatility (1Y) Calculated over the trailing 1-year period	3.62%	2.87%	+0.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.03%	4.49%	+0.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.87%	4.51%	+0.36%

OPTAX vs. LSMSX - Expense Ratio Comparison

OPTAX has a 0.75% expense ratio, which is higher than LSMSX's 0.01% expense ratio.

Dividends

OPTAX vs. LSMSX - Dividend Comparison

OPTAX's dividend yield for the trailing twelve months is around 2.68%, less than LSMSX's 3.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LSMSX Western Asset SMASh Series TF Fund	3.86%	3.83%	4.30%	3.37%	2.38%	2.73%	2.33%	2.55%	2.34%	0.90%	0.00%	0.00%
OPTAX Invesco AMT-Free Municipal Fund	2.68%	4.23%	4.16%	3.02%	2.99%	3.43%	3.80%	3.75%	3.82%	4.71%	5.77%	6.05%

Frequently Asked Questions

Can I hold both OPTAX and LSMSX in my portfolio?

OPTAX and LSMSX have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, OPTAX or LSMSX?

OPTAX has higher volatility (1.41%) compared to LSMSX (1.19%). In terms of maximum drawdown, OPTAX dropped -48.56% vs LSMSX's -15.00%.

Which has better risk-adjusted returns?

LSMSX currently has the higher Sharpe Ratio (2.99 vs 1.96), 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.