PVI vs. BAB
PVI (Invesco VRDO Tax-Free ETF) and BAB (Invesco Taxable Municipal Bond ETF) are both Municipal Bonds funds from Invesco - PVI tracks the ICE US Municipal AMT-Free VRDO Constrained Index while BAB tracks the BofA Merrill Lynch Build America Bond Index. Both are passively managed. Over the past 10 years, PVI returned 1.31%/yr vs 2.24%/yr for BAB. At a 0.03 correlation, their price movements are largely independent. PVI charges 0.25%/yr vs 0.28%/yr for BAB.
Performance
PVI vs. BAB - Performance Comparison
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Returns By Period
In the year-to-date period, PVI achieves a 0.68% return, which is significantly higher than BAB's 0.12% return. Over the past 10 years, PVI has underperformed BAB with an annualized return of 1.31%, while BAB has yielded a comparatively higher 2.24% annualized return.
PVI
- 1D
- 0.36%
- 1M
- 0.52%
- YTD
- 0.68%
- 6M
- 1.24%
- 1Y
- 2.24%
- 3Y*
- 2.62%
- 5Y*
- 1.95%
- 10Y*
- 1.31%
BAB
- 1D
- 0.19%
- 1M
- -0.08%
- YTD
- 0.12%
- 6M
- 0.14%
- 1Y
- 7.08%
- 3Y*
- 4.42%
- 5Y*
- -0.29%
- 10Y*
- 2.24%
PVI vs. BAB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PVI Invesco VRDO Tax-Free ETF | 0.68% | 3.12% | 2.43% | 2.74% | 0.89% | -0.07% | 0.17% | 1.18% | 1.21% | 0.44% |
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 PVI and BAB is 0.05, 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 | 0.05 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.01 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.02 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.03 |
Correlation (All Time) Calculated using the full available price history since Nov 18, 2009 | 0.03 |
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Return for Risk
PVI vs. BAB — Risk / Return Rank
PVI
BAB
PVI vs. BAB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco VRDO Tax-Free ETF (PVI) 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.
| PVI | BAB | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 0.84 | 1.23 | -0.38 |
Sortino ratioReturn per unit of downside risk | 1.27 | 1.89 | -0.63 |
Omega ratioGain probability vs. loss probability | 1.17 | 1.22 | -0.05 |
Calmar ratioReturn relative to maximum drawdown | 2.29 | 1.61 | +0.68 |
Martin ratioReturn relative to average drawdown | 7.40 | 4.61 | +2.79 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| PVI | BAB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.84 | 1.23 | -0.38 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.99 | -0.04 | +1.03 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.75 | 0.23 | +0.52 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.53 | 0.52 | +0.02 |
Drawdowns
PVI vs. BAB - Drawdown Comparison
The maximum PVI drawdown since its inception was -4.10%, smaller than the maximum BAB drawdown of -27.80%. Use the drawdown chart below to compare losses from any high point for PVI and BAB.
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Drawdown Indicators
| PVI | BAB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -4.10% | -27.80% | +23.70% |
Max Drawdown (1Y)Largest decline over 1 year | -0.99% | -4.15% | +3.16% |
Max Drawdown (3Y)Largest decline over 3 years | -1.17% | -7.57% | +6.40% |
Max Drawdown (5Y)Largest decline over 5 years | -1.17% | -24.95% | +23.78% |
Max Drawdown (10Y)Largest decline over 10 years | -1.17% | -27.80% | +26.63% |
Current DrawdownCurrent decline from peak | 0.00% | -5.64% | +5.64% |
Average DrawdownAverage peak-to-trough decline | -0.28% | -5.31% | +5.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.31% | 1.45% | -1.14% |
Volatility
PVI vs. BAB - Volatility Comparison
The current volatility for Invesco VRDO Tax-Free ETF (PVI) is 0.77%, while Invesco Taxable Municipal Bond ETF (BAB) has a volatility of 1.77%. This indicates that PVI experiences smaller price fluctuations and is considered to be less risky than BAB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PVI | BAB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.77% | 1.77% | -1.00% |
Volatility (6M)Calculated over the trailing 6-month period | 1.84% | 3.79% | -1.95% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.66% | 5.81% | -3.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.97% | 8.34% | -6.37% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.75% | 9.70% | -7.95% |
PVI vs. BAB - Expense Ratio Comparison
PVI has a 0.25% expense ratio, which is lower than BAB's 0.28% expense ratio.
Dividends
PVI vs. BAB - Dividend Comparison
PVI's dividend yield for the trailing twelve months is around 2.15%, less 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% |
PVI Invesco VRDO Tax-Free ETF | 2.15% | 2.22% | 2.72% | 3.36% | 0.56% | 0.00% | 0.36% | 1.15% | 1.14% | 0.56% | 0.13% | 0.00% |
Frequently Asked Questions
PVI and BAB have a correlation of 0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BAB has higher volatility (1.77%) compared to PVI (0.77%). In terms of maximum drawdown, PVI dropped -4.10% vs BAB's -27.80%.
On 10-year performance, BAB leads with 2.24% vs 1.31% for PVI. On fees, PVI is cheaper at 0.25% per year. On volatility, PVI has been the lower-risk option at 0.77%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, BAB has performed better with a 2.24% return vs 1.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PVI is cheaper with a 0.25% expense ratio, compared with 0.28% for BAB.
BAB has the higher dividend yield at 4.10%, compared with 2.15% for PVI.
PVI tracks ICE US Municipal AMT-Free VRDO Constrained Index, while BAB tracks BofA Merrill Lynch Build America Bond Index. Their fees differ too: 0.25% for PVI and 0.28% for BAB.
BAB currently has the higher Sharpe Ratio (1.23 vs 0.84), 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.
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