PMIO vs. ZTAX

Last updated Jun 4, 2026

PMIO (PGIM Municipal Income Opportunities ETF) and ZTAX (X-Square Municipal Income Tax Free ETF) are both Municipal Bonds funds. Both are actively managed. Over the past year, PMIO returned 6.80% vs 6.21% for ZTAX. At a 0.00 correlation, their price movements are largely independent. PMIO charges 0.25%/yr vs 1.14%/yr for ZTAX.

Performance

PMIO vs. ZTAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM Municipal Income Opportunities ETF (PMIO) and X-Square Municipal Income Tax Free ETF (ZTAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PMIO achieves a 1.54% return, which is significantly higher than ZTAX's 0.20% return.

PMIO

• 1D: -0.06%
• 1M: 0.84%
• YTD: 1.54%
• 6M: 1.81%
• 1Y: 6.80%
• 3Y*: —
• 5Y*: —
• 10Y*: —

ZTAX

• 1D: 0.00%
• 1M: -1.80%
• YTD: 0.20%
• 6M: 5.42%
• 1Y: 6.21%
• 3Y*: 4.56%
• 5Y*: —
• 10Y*: —

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

PMIO vs. ZTAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PMIO PGIM Municipal Income Opportunities ETF	1.54%	5.30%	2.41%
ZTAX X-Square Municipal Income Tax Free ETF	0.20%	-1.02%	5.08%

Correlation

The correlation between PMIO and ZTAX is -0.10, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.10
Correlation (All Time) Calculated using the full available price history since Jul 1, 2024	0.00

The correlation between PMIO and ZTAX shifts across timeframes, from -0.10 (1 year) to 0.00 (all time), reflecting how their relationship changes across market environments.

Return for Risk

PMIO vs. ZTAX — Risk / Return Rank

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

PMIO

PMIO Risk / Return Rank: 79
PMIO Sharpe Ratio Rank: 89
PMIO Sortino Ratio Rank: 93
PMIO Omega Ratio Rank: 94
PMIO Calmar Ratio Rank: 62
PMIO Martin Ratio Rank: 58

ZTAX

ZTAX Risk / Return Rank: 14
ZTAX Sharpe Ratio Rank: 12
ZTAX Sortino Ratio Rank: 13
ZTAX Omega Ratio Rank: 15
ZTAX Calmar Ratio Rank: 17
ZTAX Martin Ratio Rank: 16

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.

PMIO vs. ZTAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM Municipal Income Opportunities ETF (PMIO) and X-Square Municipal Income Tax Free ETF (ZTAX). 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.

	PMIO	ZTAX	Difference
Sharpe ratio: Return per unit of total volatility	3.04	0.24	+2.80
Sortino ratio: Return per unit of downside risk	4.55	0.53	+4.02
Omega ratio: Gain probability vs. loss probability	1.69	1.09	+0.61
Calmar ratio: Return relative to maximum drawdown	3.05	0.60	+2.45
Martin ratio: Return relative to average drawdown	10.15	1.48	+8.67
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PMIO vs. ZTAX - Sharpe Ratio Comparison

The current PMIO Sharpe Ratio is 3.04, which is higher than the ZTAX Sharpe Ratio of 0.24. The chart below compares the historical Sharpe Ratios of PMIO and ZTAX, 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

	PMIO	ZTAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.04	0.24	+2.80
Sharpe Ratio (All Time) Calculated using the full available price history	1.57	0.20	+1.38

Drawdowns

PMIO vs. ZTAX - Drawdown Comparison

The maximum PMIO drawdown since its inception was -3.39%, smaller than the maximum ZTAX drawdown of -15.33%. Use the drawdown chart below to compare losses from any high point for PMIO and ZTAX.

Drawdown Indicators

	PMIO	ZTAX	Difference
Max Drawdown Largest peak-to-trough decline	-3.39%	-15.33%	+11.94%
Max Drawdown (1Y) Largest decline over 1 year	-2.24%	-10.47%	+8.23%
Max Drawdown (3Y) Largest decline over 3 years	—	-15.33%	—
Current Drawdown Current decline from peak	-0.47%	-6.58%	+6.11%
Average Drawdown Average peak-to-trough decline	-0.66%	-6.81%	+6.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.67%	4.22%	-3.55%

Volatility

PMIO vs. ZTAX - Volatility Comparison

The current volatility for PGIM Municipal Income Opportunities ETF (PMIO) is 0.73%, while X-Square Municipal Income Tax Free ETF (ZTAX) has a volatility of 4.07%. This indicates that PMIO experiences smaller price fluctuations and is considered to be less risky than ZTAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PMIO	ZTAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.73%	4.07%	-3.34%
Volatility (6M) Calculated over the trailing 6-month period	1.58%	21.96%	-20.38%
Volatility (1Y) Calculated over the trailing 1-year period	2.25%	26.32%	-24.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.08%	26.84%	-23.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.08%	26.84%	-23.76%

PMIO vs. ZTAX - Expense Ratio Comparison

PMIO has a 0.25% expense ratio, which is lower than ZTAX's 1.14% expense ratio.

Dividends

PMIO vs. ZTAX - Dividend Comparison

PMIO's dividend yield for the trailing twelve months is around 3.92%, less than ZTAX's 4.56% yield.

Position	TTM	2025	2024	2023
PMIO PGIM Municipal Income Opportunities ETF	3.92%	4.00%	2.11%	0.00%
ZTAX X-Square Municipal Income Tax Free ETF	4.56%	4.58%	4.55%	2.14%

Frequently Asked Questions

Can I hold both PMIO and ZTAX in my portfolio?

PMIO and ZTAX have a correlation of -0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PMIO or ZTAX?

ZTAX has higher volatility (4.07%) compared to PMIO (0.73%). In terms of maximum drawdown, PMIO dropped -3.39% vs ZTAX's -15.33%.

Which ETF is better, PMIO or ZTAX?

On 1-year performance, PMIO leads with 6.80% vs 6.21% for ZTAX. On fees, PMIO is cheaper at 0.25% per year. On volatility, PMIO has been the lower-risk option at 0.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PMIO or ZTAX?

Over the 1-year period, PMIO has performed better with a 6.80% return vs 6.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PMIO or ZTAX?

PMIO is cheaper with a 0.25% expense ratio, compared with 1.14% for ZTAX.

Which ETF pays a higher dividend yield, PMIO or ZTAX?

ZTAX has the higher dividend yield at 4.56%, compared with 3.92% for PMIO.

What is the main difference between PMIO and ZTAX?

They also come from different issuers: PGIM and X-Square. Their fees differ too: 0.25% for PMIO and 1.14% for ZTAX.

Which has better risk-adjusted returns?

PMIO currently has the higher Sharpe Ratio (3.04 vs 0.24), 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.