PWZ vs. BSMQ

Last updated Jun 3, 2026

PWZ (Invesco California AMT-Free Municipal Bond ETF) and BSMQ (Invesco BulletShares 2026 Municipal Bond ETF) are both Municipal Bonds funds from Invesco - PWZ tracks the ICE BofA California Long-Term Core Plus Muni while BSMQ tracks the Invesco BulletShares Municipal Bond 2026 Index. Both are passively managed. Over the past 5 years, PWZ returned 0.17%/yr vs 0.33%/yr for BSMQ. At a 0.48 correlation, their price movements are largely independent. PWZ charges 0.28%/yr vs 0.18%/yr for BSMQ.

Performance

PWZ vs. BSMQ - Performance Comparison

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

Returns By Period

In the year-to-date period, PWZ achieves a 2.53% return, which is significantly higher than BSMQ's 0.80% return.

PWZ

• 1D: 0.25%
• 1M: 0.99%
• YTD: 2.53%
• 6M: 2.73%
• 1Y: 8.84%
• 3Y*: 3.24%
• 5Y*: 0.17%
• 10Y*: 1.91%

BSMQ

• 1D: 0.06%
• 1M: 0.16%
• YTD: 0.80%
• 6M: 1.25%
• 1Y: 3.23%
• 3Y*: 2.94%
• 5Y*: 0.33%
• 10Y*: —

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

PWZ vs. BSMQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
PWZ Invesco California AMT-Free Municipal Bond ETF	2.53%	1.26%	2.16%	6.55%	-11.35%	1.94%	4.90%	0.53%
BSMQ Invesco BulletShares 2026 Municipal Bond ETF	0.80%	3.12%	1.99%	3.60%	-7.62%	1.05%	5.26%	0.24%

Correlation

The correlation between PWZ and BSMQ is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.20
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (All Time) Calculated using the full available price history since Sep 27, 2019	0.48

Over the past year, the correlation between PWZ and BSMQ has dropped to 0.20 - well below their long-term average of 0.48, suggesting their price drivers have been diverging.

PWZ vs. BSMQ - Sectors Allocation Comparison

Sectors	PWZ	BSMQ
Financial Services	6.9%	2.6%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	0.0%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	0.0%
Utilities	-	-

Return for Risk

PWZ vs. BSMQ — Risk / Return Rank

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

PWZ

PWZ Risk / Return Rank: 58
PWZ Sharpe Ratio Rank: 60
PWZ Sortino Ratio Rank: 66
PWZ Omega Ratio Rank: 69
PWZ Calmar Ratio Rank: 47
PWZ Martin Ratio Rank: 50

BSMQ

BSMQ Risk / Return Rank: 86
BSMQ Sharpe Ratio Rank: 73
BSMQ Sortino Ratio Rank: 85
BSMQ Omega Ratio Rank: 83
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.

PWZ vs. BSMQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco California AMT-Free Municipal Bond ETF (PWZ) 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.

	PWZ	BSMQ	Difference
Sharpe ratio Return per unit of total volatility	2.04	2.44	-0.39
Sortino ratio Return per unit of downside risk	3.08	3.88	-0.80
Omega ratio Gain probability vs. loss probability	1.42	1.51	-0.09
Calmar ratio Return relative to maximum drawdown	2.36	9.79	-7.43
Martin ratio Return relative to average drawdown	8.55	25.74	-17.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PWZ vs. BSMQ - Sharpe Ratio Comparison

The current PWZ Sharpe Ratio is 2.04, which is comparable to the BSMQ Sharpe Ratio of 2.44. The chart below compares the historical Sharpe Ratios of PWZ 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

	PWZ	BSMQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.04	2.44	-0.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.03	0.12	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.32	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.25	+0.21

Drawdowns

PWZ vs. BSMQ - Drawdown Comparison

The maximum PWZ drawdown since its inception was -21.49%, which is greater than BSMQ's maximum drawdown of -13.18%. Use the drawdown chart below to compare losses from any high point for PWZ and BSMQ.

Drawdown Indicators

	PWZ	BSMQ	Difference
Max Drawdown Largest peak-to-trough decline	-21.49%	-13.18%	-8.31%
Max Drawdown (1Y) Largest decline over 1 year	-3.47%	-0.33%	-3.14%
Max Drawdown (3Y) Largest decline over 3 years	-9.09%	-2.53%	-6.56%
Max Drawdown (5Y) Largest decline over 5 years	-17.56%	-11.50%	-6.06%
Max Drawdown (10Y) Largest decline over 10 years	-17.56%	—	—
Current Drawdown Current decline from peak	-0.48%	-0.06%	-0.42%
Average Drawdown Average peak-to-trough decline	-3.54%	-3.48%	-0.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	0.12%	+0.84%

Volatility

PWZ vs. BSMQ - Volatility Comparison

Invesco California AMT-Free Municipal Bond ETF (PWZ) has a higher volatility of 1.39% compared to Invesco BulletShares 2026 Municipal Bond ETF (BSMQ) at 0.39%. This indicates that PWZ'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

	PWZ	BSMQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.39%	0.39%	+1.00%
Volatility (6M) Calculated over the trailing 6-month period	3.04%	0.97%	+2.07%
Volatility (1Y) Calculated over the trailing 1-year period	4.39%	1.33%	+3.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.25%	2.68%	+3.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.89%	4.79%	+1.10%

PWZ vs. BSMQ - Expense Ratio Comparison

PWZ has a 0.28% expense ratio, which is higher than BSMQ's 0.18% expense ratio.

Dividends

PWZ vs. BSMQ - Dividend Comparison

PWZ's dividend yield for the trailing twelve months is around 3.57%, more 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%
PWZ Invesco California AMT-Free Municipal Bond ETF	3.57%	3.41%	3.28%	2.84%	2.49%	2.28%	2.34%	2.51%	2.53%	2.48%	2.86%	3.16%

Frequently Asked Questions

Can I hold both PWZ and BSMQ in my portfolio?

PWZ and BSMQ have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PWZ or BSMQ?

PWZ has higher volatility (1.39%) compared to BSMQ (0.39%). In terms of maximum drawdown, PWZ dropped -21.49% vs BSMQ's -13.18%.

Which ETF is better, PWZ or BSMQ?

On 5-year performance, BSMQ leads with 0.33% vs 0.17% for PWZ. 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, PWZ or BSMQ?

Over the 5-year period, BSMQ has performed better with a 0.33% return vs 0.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PWZ or BSMQ?

BSMQ is cheaper with a 0.18% expense ratio, compared with 0.28% for PWZ.

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

PWZ has the higher dividend yield at 3.57%, compared with 2.76% for BSMQ.

What is the main difference between PWZ and BSMQ?

PWZ tracks ICE BofA California Long-Term Core Plus Muni, while BSMQ tracks Invesco BulletShares Municipal Bond 2026 Index. Their fees differ too: 0.28% for PWZ and 0.18% for BSMQ.

Which has better risk-adjusted returns?

BSMQ currently has the higher Sharpe Ratio (2.44 vs 2.04), 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.