PGX vs. PZA

Last updated Jun 5, 2026

PGX (Invesco Preferred ETF) and PZA (Invesco National AMT-Free Municipal Bond ETF) are both exchange-traded funds - PGX is a Preferred Stock/Convertible Bonds fund tracking the BofA Merrill Lynch Core Fixed Rate Preferred Securities Index, while PZA is a Municipal Bonds fund tracking the BofA ML National Long-Term Core Plus Municipal Securities Index. Both are passively managed. Over the past 10 years, PGX returned 2.35%/yr vs 1.90%/yr for PZA. At a 0.16 correlation, their price movements are largely independent. PGX charges 0.52%/yr vs 0.28%/yr for PZA.

Performance

PGX vs. PZA - Performance Comparison

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

Returns By Period

In the year-to-date period, PGX achieves a -0.18% return, which is significantly lower than PZA's 2.60% return. Over the past 10 years, PGX has outperformed PZA with an annualized return of 2.35%, while PZA has yielded a comparatively lower 1.90% annualized return.

PGX

• 1D: 0.00%
• 1M: -1.08%
• YTD: -0.18%
• 6M: 0.39%
• 1Y: 5.25%
• 3Y*: 4.45%
• 5Y*: -0.74%
• 10Y*: 2.35%

PZA

• 1D: 0.26%
• 1M: 1.10%
• YTD: 2.60%
• 6M: 2.86%
• 1Y: 8.99%
• 3Y*: 3.37%
• 5Y*: 0.03%
• 10Y*: 1.90%

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

PGX vs. PZA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PGX Invesco Preferred ETF	-0.18%	3.48%	6.53%	9.48%	-21.16%	3.15%	7.09%	17.09%	-4.01%	10.48%
PZA Invesco National AMT-Free Municipal Bond ETF	2.60%	1.81%	0.81%	8.64%	-13.17%	2.37%	5.07%	9.00%	-0.09%	6.95%

Correlation

The correlation between PGX and PZA is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.40
Correlation (10Y) Calculated over the trailing 10-year period	0.29
Correlation (All Time) Calculated using the full available price history since Feb 1, 2008	0.16

Over the past year, PGX and PZA have become more correlated (0.42) than their long-term average of 0.16, meaning their price movements have been converging.

PGX vs. PZA - Sectors Allocation Comparison

Sectors	PGX	PZA
Financial Services	70.9%	1.2%
Utilities	8.2%	-
Real Estate	6.5%	-
Communication Services	6.5%	-
Consumer Cyclical	1.9%	0.1%
Industrials	0.8%	0.0%
Basic Materials	0.1%	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Technology	-	0.0%

Return for Risk

PGX vs. PZA — Risk / Return Rank

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

PGX

PGX Risk / Return Rank: 24
PGX Sharpe Ratio Rank: 25
PGX Sortino Ratio Rank: 25
PGX Omega Ratio Rank: 24
PGX Calmar Ratio Rank: 24
PGX Martin Ratio Rank: 20

PZA

PZA Risk / Return Rank: 66
PZA Sharpe Ratio Rank: 65
PZA Sortino Ratio Rank: 69
PZA Omega Ratio Rank: 79
PZA Calmar Ratio Rank: 58
PZA Martin Ratio Rank: 58

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.

PGX vs. PZA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Preferred ETF (PGX) 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.

	PGX	PZA	Difference
Sharpe ratio: Return per unit of total volatility	0.87	2.14	-1.27
Sortino ratio: Return per unit of downside risk	1.34	3.11	-1.77
Omega ratio: Gain probability vs. loss probability	1.16	1.46	-0.31
Calmar ratio: Return relative to maximum drawdown	1.06	2.84	-1.78
Martin ratio: Return relative to average drawdown	2.35	10.03	-7.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PGX vs. PZA - Sharpe Ratio Comparison

The current PGX Sharpe Ratio is 0.87, which is lower than the PZA Sharpe Ratio of 2.14. The chart below compares the historical Sharpe Ratios of PGX and PZA, 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

	PGX	PZA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.87	2.14	-1.27
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.07	0.00	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.18	0.27	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.14	0.43	-0.29

Drawdowns

PGX vs. PZA - Drawdown Comparison

The maximum PGX drawdown since its inception was -66.44%, which is greater than PZA's maximum drawdown of -24.49%. Use the drawdown chart below to compare losses from any high point for PGX and PZA.

Drawdown Indicators

	PGX	PZA	Difference
Max Drawdown Largest peak-to-trough decline	-66.44%	-24.49%	-41.95%
Max Drawdown (1Y) Largest decline over 1 year	-4.98%	-3.18%	-1.80%
Max Drawdown (3Y) Largest decline over 3 years	-11.17%	-7.89%	-3.28%
Max Drawdown (5Y) Largest decline over 5 years	-24.67%	-18.55%	-6.12%
Max Drawdown (10Y) Largest decline over 10 years	-34.10%	-21.69%	-12.41%
Current Drawdown Current decline from peak	-5.29%	-0.98%	-4.31%
Average Drawdown Average peak-to-trough decline	-8.13%	-3.95%	-4.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.24%	0.90%	+1.34%

Volatility

PGX vs. PZA - Volatility Comparison

Invesco Preferred ETF (PGX) has a higher volatility of 1.72% compared to Invesco National AMT-Free Municipal Bond ETF (PZA) at 1.49%. This indicates that PGX's price experiences larger fluctuations and is considered to be riskier than PZA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PGX	PZA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.72%	1.49%	+0.23%
Volatility (6M) Calculated over the trailing 6-month period	4.10%	2.90%	+1.20%
Volatility (1Y) Calculated over the trailing 1-year period	6.11%	4.23%	+1.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.11%	6.00%	+5.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.02%	7.08%	+5.94%

PGX vs. PZA - Expense Ratio Comparison

PGX has a 0.52% expense ratio, which is higher than PZA's 0.28% expense ratio.

Dividends

PGX vs. PZA - Dividend Comparison

PGX's dividend yield for the trailing twelve months is around 6.23%, more than PZA's 3.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PGX Invesco Preferred ETF	6.23%	6.03%	5.95%	6.42%	6.29%	4.82%	4.89%	4.85%	6.09%	5.66%	6.02%	5.84%
PZA Invesco National AMT-Free Municipal Bond ETF	3.63%	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

Can I hold both PGX and PZA in my portfolio?

PGX and PZA have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PGX or PZA?

PGX has higher volatility (1.72%) compared to PZA (1.49%). In terms of maximum drawdown, PGX dropped -66.44% vs PZA's -24.49%.

Which ETF is better, PGX or PZA?

On 10-year performance, PGX leads with 2.35% vs 1.90% for PZA. On fees, PZA is cheaper at 0.28% per year. On volatility, PZA has been the lower-risk option at 1.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PGX or PZA?

Over the 10-year period, PGX has performed better with a 2.35% return vs 1.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PGX or PZA?

PZA is cheaper with a 0.28% expense ratio, compared with 0.52% for PGX.

Which ETF pays a higher dividend yield, PGX or PZA?

PGX has the higher dividend yield at 6.23%, compared with 3.63% for PZA.

What is the main difference between PGX and PZA?

PGX is categorized as Preferred Stock/Convertible Bonds, while PZA is Municipal Bonds. PGX tracks BofA Merrill Lynch Core Fixed Rate Preferred Securities Index, while PZA tracks BofA ML National Long-Term Core Plus Municipal Securities Index. Their fees differ too: 0.52% for PGX and 0.28% for PZA.

Which has better risk-adjusted returns?

PZA currently has the higher Sharpe Ratio (2.14 vs 0.87), 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.