PTCIX vs. BAB

Last updated Jun 4, 2026

PTCIX (PIMCO Long-Term Credit Bond Fund) and BAB (Invesco Taxable Municipal Bond ETF) are both funds - PTCIX is a Long-Term Bond fund managed by PIMCO, while BAB is a Municipal Bonds fund tracking the BofA Merrill Lynch Build America Bond Index. Over the past 10 years, PTCIX returned 2.78%/yr vs 2.24%/yr for BAB. A 0.79 correlation means they provide meaningful diversification when combined. PTCIX charges 0.55%/yr vs 0.28%/yr for BAB.

Performance

PTCIX vs. BAB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO Long-Term Credit Bond Fund (PTCIX) and Invesco Taxable Municipal Bond ETF (BAB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PTCIX achieves a 1.07% return, which is significantly higher than BAB's 0.12% return. Over the past 10 years, PTCIX has outperformed BAB with an annualized return of 2.78%, while BAB has yielded a comparatively lower 2.24% annualized return.

PTCIX

• 1D: 0.23%
• 1M: 1.89%
• YTD: 1.07%
• 6M: 0.33%
• 1Y: 9.03%
• 3Y*: 4.96%
• 5Y*: -1.74%
• 10Y*: 2.78%

BAB

• 1D: 0.00%
• 1M: 0.33%
• YTD: 0.12%
• 6M: -0.01%
• 1Y: 7.16%
• 3Y*: 4.42%
• 5Y*: -0.38%
• 10Y*: 2.24%

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

PTCIX vs. BAB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PTCIX PIMCO Long-Term Credit Bond Fund	1.07%	8.56%	-0.06%	9.20%	-27.04%	-1.00%	13.28%	24.99%	-5.92%	13.56%
BAB Invesco Taxable Municipal Bond ETF	0.12%	8.30%	1.03%	8.67%	-19.50%	1.00%	9.11%	10.85%	0.93%	9.87%

Correlation

The correlation between PTCIX and BAB is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Jan 5, 2010	0.79

The correlation between PTCIX and BAB has been stable across timeframes, ranging from 0.79 to 0.86 - a consistent structural relationship.

Return for Risk

PTCIX vs. BAB — Risk / Return Rank

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

PTCIX

PTCIX Risk / Return Rank: 16
PTCIX Sharpe Ratio Rank: 16
PTCIX Sortino Ratio Rank: 16
PTCIX Omega Ratio Rank: 15
PTCIX Calmar Ratio Rank: 18
PTCIX Martin Ratio Rank: 16

BAB

BAB Risk / Return Rank: 34
BAB Sharpe Ratio Rank: 34
BAB Sortino Ratio Rank: 37
BAB Omega Ratio Rank: 32
BAB Calmar Ratio Rank: 35
BAB Martin Ratio Rank: 33

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.

PTCIX vs. BAB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO Long-Term Credit Bond Fund (PTCIX) and Invesco Taxable Municipal Bond ETF (BAB). 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.

	PTCIX	BAB	Difference
Sharpe ratio: Return per unit of total volatility	1.13	1.24	-0.11
Sortino ratio: Return per unit of downside risk	1.66	1.92	-0.25
Omega ratio: Gain probability vs. loss probability	1.20	1.22	-0.02
Calmar ratio: Return relative to maximum drawdown	1.55	1.73	-0.18
Martin ratio: Return relative to average drawdown	4.46	4.93	-0.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PTCIX vs. BAB - Sharpe Ratio Comparison

The current PTCIX Sharpe Ratio is 1.13, which is comparable to the BAB Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of PTCIX and BAB, 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

	PTCIX	BAB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.13	1.24	-0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.15	-0.05	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.27	0.23	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.52	+0.06

Drawdowns

PTCIX vs. BAB - Drawdown Comparison

The maximum PTCIX drawdown since its inception was -35.64%, which is greater than BAB's maximum drawdown of -27.80%. Use the drawdown chart below to compare losses from any high point for PTCIX and BAB.

Drawdown Indicators

	PTCIX	BAB	Difference
Max Drawdown Largest peak-to-trough decline	-35.64%	-27.80%	-7.84%
Max Drawdown (1Y) Largest decline over 1 year	-5.95%	-4.15%	-1.80%
Max Drawdown (3Y) Largest decline over 3 years	-13.35%	-7.57%	-5.78%
Max Drawdown (5Y) Largest decline over 5 years	-35.64%	-24.95%	-10.69%
Max Drawdown (10Y) Largest decline over 10 years	-35.64%	-27.80%	-7.84%
Current Drawdown Current decline from peak	-14.53%	-5.64%	-8.89%
Average Drawdown Average peak-to-trough decline	-8.22%	-5.31%	-2.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.06%	1.46%	+0.60%

Volatility

PTCIX vs. BAB - Volatility Comparison

PIMCO Long-Term Credit Bond Fund (PTCIX) has a higher volatility of 2.78% compared to Invesco Taxable Municipal Bond ETF (BAB) at 1.72%. This indicates that PTCIX's price experiences larger fluctuations and is considered to be riskier than BAB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PTCIX	BAB	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.78%	1.72%	+1.06%
Volatility (6M) Calculated over the trailing 6-month period	6.07%	3.78%	+2.29%
Volatility (1Y) Calculated over the trailing 1-year period	8.17%	5.80%	+2.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.55%	8.33%	+3.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.47%	9.69%	+0.78%

PTCIX vs. BAB - Expense Ratio Comparison

PTCIX has a 0.55% expense ratio, which is higher than BAB's 0.28% expense ratio.

Dividends

PTCIX vs. BAB - Dividend Comparison

PTCIX's dividend yield for the trailing twelve months is around 5.80%, more than BAB's 4.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BAB Invesco Taxable Municipal Bond ETF	4.10%	3.96%	3.97%	3.65%	3.40%	2.63%	2.96%	3.77%	4.20%	3.96%	4.26%	4.71%
PTCIX PIMCO Long-Term Credit Bond Fund	5.80%	5.67%	5.23%	3.83%	4.86%	7.39%	7.72%	5.14%	6.51%	4.81%	5.75%	14.97%

Frequently Asked Questions

Can I hold both PTCIX and BAB in my portfolio?

PTCIX and BAB have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PTCIX or BAB?

PTCIX has higher volatility (2.78%) compared to BAB (1.72%). In terms of maximum drawdown, PTCIX dropped -35.64% vs BAB's -27.80%.

Which has better risk-adjusted returns?

BAB currently has the higher Sharpe Ratio (1.24 vs 1.13), 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.