PCQ vs. NAZ

Last updated Jun 5, 2026

PCQ (PIMCO California Municipal Income Fund) and NAZ (Nuveen Arizona Quality Municipal Income Fund) are both Municipal Bonds funds. Over the past 10 years, PCQ returned -1.36%/yr vs 2.80%/yr for NAZ. At a 0.20 correlation, their price movements are largely independent.

Performance

PCQ vs. NAZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO California Municipal Income Fund (PCQ) and Nuveen Arizona Quality Municipal Income Fund (NAZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PCQ achieves a 4.38% return, which is significantly lower than NAZ's 13.82% return. Over the past 10 years, PCQ has underperformed NAZ with an annualized return of -1.36%, while NAZ has yielded a comparatively higher 2.80% annualized return.

PCQ

• 1D: 1.13%
• 1M: 2.35%
• YTD: 4.38%
• 6M: 4.33%
• 1Y: 11.04%
• 3Y*: 1.58%
• 5Y*: -9.57%
• 10Y*: -1.36%

NAZ

• 1D: 0.23%
• 1M: 4.35%
• YTD: 13.82%
• 6M: 13.59%
• 1Y: 21.66%
• 3Y*: 14.13%
• 5Y*: 1.29%
• 10Y*: 2.80%

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

PCQ vs. NAZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PCQ PIMCO California Municipal Income Fund	4.38%	1.50%	1.48%	-35.36%	-14.66%	7.73%	-5.23%	29.18%	-0.96%	16.34%
NAZ Nuveen Arizona Quality Municipal Income Fund	13.82%	12.08%	12.93%	-0.48%	-27.24%	4.75%	22.64%	18.15%	-12.52%	5.81%

Correlation

The correlation between PCQ and NAZ is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.30
Correlation (10Y) Calculated over the trailing 10-year period	0.26
Correlation (All Time) Calculated using the full available price history since Jun 28, 2001	0.20

The correlation between PCQ and NAZ shifts across timeframes, from 0.19 (1 year) to 0.37 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

PCQ vs. NAZ — Risk / Return Rank

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

PCQ

PCQ Risk / Return Rank: 22
PCQ Sharpe Ratio Rank: 27
PCQ Sortino Ratio Rank: 25
PCQ Omega Ratio Rank: 27
PCQ Calmar Ratio Rank: 19
PCQ Martin Ratio Rank: 15

NAZ

NAZ Risk / Return Rank: 61
NAZ Sharpe Ratio Rank: 44
NAZ Sortino Ratio Rank: 51
NAZ Omega Ratio Rank: 47
NAZ Calmar Ratio Rank: 74
NAZ Martin Ratio Rank: 86

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.

PCQ vs. NAZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO California Municipal Income Fund (PCQ) and Nuveen Arizona Quality Municipal Income Fund (NAZ). 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.

	PCQ	NAZ	Difference
Sharpe ratio: Return per unit of total volatility	1.42	1.89	-0.47
Sortino ratio: Return per unit of downside risk	2.05	2.93	-0.88
Omega ratio: Gain probability vs. loss probability	1.26	1.36	-0.11
Calmar ratio: Return relative to maximum drawdown	1.48	3.27	-1.78
Martin ratio: Return relative to average drawdown	4.06	15.98	-11.92
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PCQ vs. NAZ - Sharpe Ratio Comparison

The current PCQ Sharpe Ratio is 1.42, which is comparable to the NAZ Sharpe Ratio of 1.89. The chart below compares the historical Sharpe Ratios of PCQ and NAZ, 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

	PCQ	NAZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.42	1.89	-0.47
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.58	0.10	-0.68
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.08	0.19	-0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.22	0.35	-0.13

Drawdowns

PCQ vs. NAZ - Drawdown Comparison

The maximum PCQ drawdown since its inception was -56.31%, which is greater than NAZ's maximum drawdown of -38.28%. Use the drawdown chart below to compare losses from any high point for PCQ and NAZ.

Drawdown Indicators

	PCQ	NAZ	Difference
Max Drawdown Largest peak-to-trough decline	-56.31%	-38.28%	-18.03%
Max Drawdown (1Y) Largest decline over 1 year	-7.48%	-6.66%	-0.82%
Max Drawdown (3Y) Largest decline over 3 years	-19.78%	-13.76%	-6.02%
Max Drawdown (5Y) Largest decline over 5 years	-54.86%	-38.28%	-16.58%
Max Drawdown (10Y) Largest decline over 10 years	-54.86%	-38.28%	-16.58%
Current Drawdown Current decline from peak	-44.44%	0.00%	-44.44%
Average Drawdown Average peak-to-trough decline	-12.65%	-9.34%	-3.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.72%	1.36%	+1.36%

Volatility

PCQ vs. NAZ - Volatility Comparison

The current volatility for PIMCO California Municipal Income Fund (PCQ) is 2.98%, while Nuveen Arizona Quality Municipal Income Fund (NAZ) has a volatility of 3.59%. This indicates that PCQ experiences smaller price fluctuations and is considered to be less risky than NAZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PCQ	NAZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.98%	3.59%	-0.61%
Volatility (6M) Calculated over the trailing 6-month period	5.89%	9.23%	-3.34%
Volatility (1Y) Calculated over the trailing 1-year period	7.81%	11.51%	-3.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.55%	13.64%	+2.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.85%	14.93%	+1.92%

Dividends

PCQ vs. NAZ - Dividend Comparison

PCQ's dividend yield for the trailing twelve months is around 4.84%, less than NAZ's 6.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NAZ Nuveen Arizona Quality Municipal Income Fund	6.13%	7.09%	6.20%	3.63%	5.01%	3.75%	3.52%	3.82%	4.52%	4.65%	5.53%	5.25%
PCQ PIMCO California Municipal Income Fund	4.84%	4.95%	4.78%	4.64%	5.29%	4.20%	4.39%	4.65%	5.72%	5.35%	5.89%	5.89%

Frequently Asked Questions

Can I hold both PCQ and NAZ in my portfolio?

PCQ and NAZ have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PCQ or NAZ?

NAZ has higher volatility (3.59%) compared to PCQ (2.98%). In terms of maximum drawdown, PCQ dropped -56.31% vs NAZ's -38.28%.

Which has better risk-adjusted returns?

NAZ currently has the higher Sharpe Ratio (1.89 vs 1.42), 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.