PWZ vs. FBND

Last updated Jun 3, 2026

PWZ (Invesco California AMT-Free Municipal Bond ETF) and FBND (Fidelity Total Bond ETF) are both exchange-traded funds - PWZ is a Municipal Bonds fund tracking the ICE BofA California Long-Term Core Plus Muni, while FBND is a Intermediate Core-Plus Bond fund actively managed by Fidelity. PWZ is passively managed, while FBND is actively managed. Over the past 10 years, PWZ returned 1.91%/yr vs 2.58%/yr for FBND. At a 0.48 correlation, their price movements are largely independent. PWZ charges 0.28%/yr vs 0.36%/yr for FBND.

Performance

PWZ vs. FBND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco California AMT-Free Municipal Bond ETF (PWZ) and Fidelity Total Bond ETF (FBND). 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 FBND's 0.70% return. Over the past 10 years, PWZ has underperformed FBND with an annualized return of 1.91%, while FBND has yielded a comparatively higher 2.58% annualized 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%

FBND

• 1D: 0.09%
• 1M: 0.23%
• YTD: 0.70%
• 6M: 0.67%
• 1Y: 5.75%
• 3Y*: 4.77%
• 5Y*: 0.94%
• 10Y*: 2.58%

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

PWZ vs. FBND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PWZ Invesco California AMT-Free Municipal Bond ETF	2.53%	1.26%	2.16%	6.55%	-11.35%	1.94%	4.90%	8.72%	0.32%	6.82%
FBND Fidelity Total Bond ETF	0.70%	7.57%	2.13%	6.81%	-12.54%	-0.43%	9.41%	9.82%	-0.57%	3.52%

Correlation

The correlation between PWZ and FBND is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Oct 10, 2014	0.48

The correlation between PWZ and FBND shifts across timeframes, from 0.48 (all time) to 0.61 (3 years), reflecting how their relationship changes across market environments.

PWZ vs. FBND - Sectors Allocation Comparison

Sectors	PWZ	FBND
Financial Services	6.9%	0.2%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	1.1%
Healthcare	-	-
Industrials	-	71.4%
Real Estate	-	-
Technology	-	-
Utilities	-	27.5%

Return for Risk

PWZ vs. FBND — 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

FBND

FBND Risk / Return Rank: 41
FBND Sharpe Ratio Rank: 42
FBND Sortino Ratio Rank: 45
FBND Omega Ratio Rank: 40
FBND Calmar Ratio Rank: 41
FBND Martin Ratio Rank: 39

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. FBND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco California AMT-Free Municipal Bond ETF (PWZ) and Fidelity Total Bond ETF (FBND). 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	FBND	Difference
Sharpe ratio Return per unit of total volatility	2.04	1.50	+0.54
Sortino ratio Return per unit of downside risk	3.08	2.23	+0.84
Omega ratio Gain probability vs. loss probability	1.42	1.26	+0.16
Calmar ratio Return relative to maximum drawdown	2.36	2.06	+0.30
Martin ratio Return relative to average drawdown	8.55	6.28	+2.27
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. FBND - Sharpe Ratio Comparison

The current PWZ Sharpe Ratio is 2.04, which is higher than the FBND Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of PWZ and FBND, 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	FBND	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.04	1.50	+0.54
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.03	0.16	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.32	0.42	-0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.45	+0.01

Drawdowns

PWZ vs. FBND - Drawdown Comparison

The maximum PWZ drawdown since its inception was -21.49%, which is greater than FBND's maximum drawdown of -17.25%. Use the drawdown chart below to compare losses from any high point for PWZ and FBND.

Drawdown Indicators

	PWZ	FBND	Difference
Max Drawdown Largest peak-to-trough decline	-21.49%	-17.25%	-4.24%
Max Drawdown (1Y) Largest decline over 1 year	-3.47%	-2.66%	-0.81%
Max Drawdown (3Y) Largest decline over 3 years	-9.09%	-5.94%	-3.15%
Max Drawdown (5Y) Largest decline over 5 years	-17.56%	-17.25%	-0.31%
Max Drawdown (10Y) Largest decline over 10 years	-17.56%	-17.25%	-0.31%
Current Drawdown Current decline from peak	-0.48%	-1.23%	+0.75%
Average Drawdown Average peak-to-trough decline	-3.54%	-3.35%	-0.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	0.88%	+0.08%

Volatility

PWZ vs. FBND - Volatility Comparison

Invesco California AMT-Free Municipal Bond ETF (PWZ) has a higher volatility of 1.39% compared to Fidelity Total Bond ETF (FBND) at 1.28%. This indicates that PWZ's price experiences larger fluctuations and is considered to be riskier than FBND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PWZ	FBND	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.39%	1.28%	+0.11%
Volatility (6M) Calculated over the trailing 6-month period	3.04%	2.76%	+0.28%
Volatility (1Y) Calculated over the trailing 1-year period	4.39%	3.86%	+0.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.25%	5.92%	+0.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.89%	6.10%	-0.21%

PWZ vs. FBND - Expense Ratio Comparison

PWZ has a 0.28% expense ratio, which is lower than FBND's 0.36% expense ratio.

Dividends

PWZ vs. FBND - Dividend Comparison

PWZ's dividend yield for the trailing twelve months is around 3.57%, less than FBND's 4.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FBND Fidelity Total Bond ETF	4.69%	4.70%	4.73%	4.26%	3.07%	1.86%	4.25%	2.90%	2.93%	2.56%	2.84%	3.26%
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 FBND in my portfolio?

PWZ and FBND have a correlation of 0.60, 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 FBND?

PWZ has higher volatility (1.39%) compared to FBND (1.28%). In terms of maximum drawdown, PWZ dropped -21.49% vs FBND's -17.25%.

Which ETF is better, PWZ or FBND?

On 10-year performance, FBND leads with 2.58% vs 1.91% for PWZ. On fees, PWZ is cheaper at 0.28% per year. On volatility, FBND has been the lower-risk option at 1.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PWZ or FBND?

Over the 10-year period, FBND has performed better with a 2.58% return vs 1.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PWZ or FBND?

PWZ is cheaper with a 0.28% expense ratio, compared with 0.36% for FBND.

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

FBND has the higher dividend yield at 4.69%, compared with 3.57% for PWZ.

What is the main difference between PWZ and FBND?

PWZ is categorized as Municipal Bonds, while FBND is Intermediate Core-Plus Bond. They also come from different issuers: Invesco and Fidelity. Their fees differ too: 0.28% for PWZ and 0.36% for FBND.

Which has better risk-adjusted returns?

PWZ currently has the higher Sharpe Ratio (2.04 vs 1.50), 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.