PVI vs. BSMQ

Last updated Jun 4, 2026

PVI (Invesco VRDO Tax-Free ETF) and BSMQ (Invesco BulletShares 2026 Municipal Bond ETF) are both Municipal Bonds funds from Invesco - PVI tracks the ICE US Municipal AMT-Free VRDO Constrained Index while BSMQ tracks the Invesco BulletShares Municipal Bond 2026 Index. Both are passively managed. Over the past 5 years, PVI returned 1.96%/yr vs 0.29%/yr for BSMQ. At a 0.01 correlation, their price movements are largely independent. PVI charges 0.25%/yr vs 0.18%/yr for BSMQ.

Performance

PVI vs. BSMQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco VRDO Tax-Free ETF (PVI) and Invesco BulletShares 2026 Municipal Bond ETF (BSMQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with PVI having a 0.74% return and BSMQ slightly lower at 0.73%.

PVI

• 1D: 0.06%
• 1M: 0.68%
• YTD: 0.74%
• 6M: 1.28%
• 1Y: 2.32%
• 3Y*: 2.64%
• 5Y*: 1.96%
• 10Y*: 1.31%

BSMQ

• 1D: -0.06%
• 1M: 0.14%
• YTD: 0.73%
• 6M: 1.17%
• 1Y: 3.08%
• 3Y*: 2.92%
• 5Y*: 0.29%
• 10Y*: —

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

PVI vs. BSMQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
PVI Invesco VRDO Tax-Free ETF	0.74%	3.12%	2.43%	2.74%	0.89%	-0.07%	0.17%	0.33%
BSMQ Invesco BulletShares 2026 Municipal Bond ETF	0.73%	3.12%	1.99%	3.60%	-7.62%	1.05%	5.26%	0.24%

Correlation

The correlation between PVI and BSMQ is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.04
Correlation (5Y) Calculated over the trailing 5-year period	0.02
Correlation (All Time) Calculated using the full available price history since Sep 27, 2019	0.01

The correlation between PVI and BSMQ shifts across timeframes, from 0.01 (all time) to 0.13 (1 year), reflecting how their relationship changes across market environments.

PVI vs. BSMQ - Sectors Allocation Comparison

Sectors	PVI	BSMQ
Consumer Cyclical	0.3%	0.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	2.6%
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	0.0%
Utilities	-	-

Return for Risk

PVI vs. BSMQ — Risk / Return Rank

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

PVI

PVI Risk / Return Rank: 34
PVI Sharpe Ratio Rank: 24
PVI Sortino Ratio Rank: 24
PVI Omega Ratio Rank: 26
PVI Calmar Ratio Rank: 48
PVI Martin Ratio Rank: 46

BSMQ

BSMQ Risk / Return Rank: 85
BSMQ Sharpe Ratio Rank: 71
BSMQ Sortino Ratio Rank: 82
BSMQ Omega Ratio Rank: 81
BSMQ Calmar Ratio Rank: 96
BSMQ Martin Ratio Rank: 93

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.

PVI vs. BSMQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco VRDO Tax-Free ETF (PVI) and Invesco BulletShares 2026 Municipal Bond ETF (BSMQ). 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	BSMQ	Difference
Sharpe ratio: Return per unit of total volatility	0.88	2.32	-1.45
Sortino ratio: Return per unit of downside risk	1.31	3.68	-2.37
Omega ratio: Gain probability vs. loss probability	1.17	1.48	-0.31
Calmar ratio: Return relative to maximum drawdown	2.36	9.43	-7.07
Martin ratio: Return relative to average drawdown	7.62	24.69	-17.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PVI vs. BSMQ - Sharpe Ratio Comparison

The current PVI Sharpe Ratio is 0.88, which is lower than the BSMQ Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of PVI and BSMQ, 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

	PVI	BSMQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.88	2.32	-1.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.00	0.11	+0.89
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.25	+0.29

Drawdowns

PVI vs. BSMQ - Drawdown Comparison

The maximum PVI drawdown since its inception was -4.10%, smaller than the maximum BSMQ drawdown of -13.18%. Use the drawdown chart below to compare losses from any high point for PVI and BSMQ.

Drawdown Indicators

	PVI	BSMQ	Difference
Max Drawdown Largest peak-to-trough decline	-4.10%	-13.18%	+9.08%
Max Drawdown (1Y) Largest decline over 1 year	-0.99%	-0.33%	-0.66%
Max Drawdown (3Y) Largest decline over 3 years	-1.17%	-2.53%	+1.36%
Max Drawdown (5Y) Largest decline over 5 years	-1.17%	-11.50%	+10.33%
Max Drawdown (10Y) Largest decline over 10 years	-1.17%	—	—
Current Drawdown Current decline from peak	0.00%	-0.12%	+0.12%
Average Drawdown Average peak-to-trough decline	-0.28%	-3.48%	+3.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.30%	0.12%	+0.18%

Volatility

PVI vs. BSMQ - Volatility Comparison

Invesco VRDO Tax-Free ETF (PVI) has a higher volatility of 0.76% compared to Invesco BulletShares 2026 Municipal Bond ETF (BSMQ) at 0.39%. This indicates that PVI's price experiences larger fluctuations and is considered to be riskier than BSMQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PVI	BSMQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.76%	0.39%	+0.37%
Volatility (6M) Calculated over the trailing 6-month period	1.81%	0.94%	+0.87%
Volatility (1Y) Calculated over the trailing 1-year period	2.66%	1.33%	+1.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.97%	2.68%	-0.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.75%	4.79%	-3.04%

PVI vs. BSMQ - Expense Ratio Comparison

PVI has a 0.25% expense ratio, which is higher than BSMQ's 0.18% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

PVI vs. BSMQ - Dividend Comparison

PVI's dividend yield for the trailing twelve months is around 2.14%, less than BSMQ's 2.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BSMQ Invesco BulletShares 2026 Municipal Bond ETF	2.76%	2.74%	2.75%	2.47%	1.60%	1.14%	1.57%	0.44%	0.00%	0.00%	0.00%	0.00%
PVI Invesco VRDO Tax-Free ETF	2.14%	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

Can I hold both PVI and BSMQ in my portfolio?

PVI and BSMQ have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PVI or BSMQ?

PVI has higher volatility (0.76%) compared to BSMQ (0.39%). In terms of maximum drawdown, PVI dropped -4.10% vs BSMQ's -13.18%.

Which ETF is better, PVI or BSMQ?

On 5-year performance, PVI leads with 1.96% vs 0.29% for BSMQ. On fees, BSMQ is cheaper at 0.18% per year. On volatility, BSMQ has been the lower-risk option at 0.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PVI or BSMQ?

Over the 5-year period, PVI has performed better with a 1.96% return vs 0.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PVI or BSMQ?

BSMQ is cheaper with a 0.18% expense ratio, compared with 0.25% for PVI.

Which ETF pays a higher dividend yield, PVI or BSMQ?

BSMQ has the higher dividend yield at 2.76%, compared with 2.14% for PVI.

What is the main difference between PVI and BSMQ?

PVI tracks ICE US Municipal AMT-Free VRDO Constrained Index, while BSMQ tracks Invesco BulletShares Municipal Bond 2026 Index. Their fees differ too: 0.25% for PVI and 0.18% for BSMQ.

Which has better risk-adjusted returns?

BSMQ currently has the higher Sharpe Ratio (2.32 vs 0.88), 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.