PWZ vs. OVM

Last updated Jun 3, 2026

PWZ (Invesco California AMT-Free Municipal Bond ETF) and OVM (Overlay Shares Municipal Bond ETF) are both Municipal Bonds funds. PWZ is passively managed, while OVM is actively managed. Over the past 5 years, PWZ returned 0.17%/yr vs 1.68%/yr for OVM. A 0.56 correlation means they provide meaningful diversification when combined. PWZ charges 0.28%/yr vs 0.82%/yr for OVM.

Performance

PWZ vs. OVM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco California AMT-Free Municipal Bond ETF (PWZ) and Overlay Shares Municipal Bond ETF (OVM). 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 lower than OVM's 4.13% 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%

OVM

• 1D: 0.29%
• 1M: 1.14%
• YTD: 4.13%
• 6M: 4.81%
• 1Y: 12.10%
• 3Y*: 5.43%
• 5Y*: 1.68%
• 10Y*: —

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

PWZ vs. OVM - 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%
OVM Overlay Shares Municipal Bond ETF	4.13%	4.14%	3.42%	7.35%	-11.26%	4.22%	6.17%	1.72%

Correlation

The correlation between PWZ and OVM is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (All Time) Calculated using the full available price history since Oct 2, 2019	0.56

The correlation between PWZ and OVM has been stable across timeframes, ranging from 0.56 to 0.61 - a consistent structural relationship.

PWZ vs. OVM - Sectors Allocation Comparison

Sectors	PWZ	OVM
Financial Services	6.9%	11.8%
Basic Materials	-	1.8%
Communication Services	-	11.2%
Consumer Cyclical	-	10.1%
Consumer Defensive	-	4.9%
Energy	-	3.5%
Healthcare	-	8.5%
Industrials	-	8.3%
Real Estate	-	1.9%
Technology	-	35.6%
Utilities	-	2.4%

Return for Risk

PWZ vs. OVM — 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

OVM

OVM Risk / Return Rank: 88
OVM Sharpe Ratio Rank: 87
OVM Sortino Ratio Rank: 91
OVM Omega Ratio Rank: 91
OVM Calmar Ratio Rank: 86
OVM Martin Ratio Rank: 87

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. OVM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco California AMT-Free Municipal Bond ETF (PWZ) and Overlay Shares Municipal Bond ETF (OVM). 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	OVM	Difference
Sharpe ratio Return per unit of total volatility	2.04	2.93	-0.89
Sortino ratio Return per unit of downside risk	3.08	4.34	-1.27
Omega ratio Gain probability vs. loss probability	1.42	1.60	-0.18
Calmar ratio Return relative to maximum drawdown	2.36	4.83	-2.47
Martin ratio Return relative to average drawdown	8.55	18.85	-10.31
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. OVM - Sharpe Ratio Comparison

The current PWZ Sharpe Ratio is 2.04, which is lower than the OVM Sharpe Ratio of 2.93. The chart below compares the historical Sharpe Ratios of PWZ and OVM, 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	OVM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.04	2.93	-0.89
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.03	0.31	-0.29
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	0.43	+0.03

Drawdowns

PWZ vs. OVM - Drawdown Comparison

The maximum PWZ drawdown since its inception was -21.49%, which is greater than OVM's maximum drawdown of -15.58%. Use the drawdown chart below to compare losses from any high point for PWZ and OVM.

Drawdown Indicators

	PWZ	OVM	Difference
Max Drawdown Largest peak-to-trough decline	-21.49%	-15.58%	-5.91%
Max Drawdown (1Y) Largest decline over 1 year	-3.47%	-2.44%	-1.03%
Max Drawdown (3Y) Largest decline over 3 years	-9.09%	-8.20%	-0.89%
Max Drawdown (5Y) Largest decline over 5 years	-17.56%	-15.58%	-1.98%
Max Drawdown (10Y) Largest decline over 10 years	-17.56%	—	—
Current Drawdown Current decline from peak	-0.48%	0.00%	-0.48%
Average Drawdown Average peak-to-trough decline	-3.54%	-4.01%	+0.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	0.63%	+0.33%

Volatility

PWZ vs. OVM - Volatility Comparison

Invesco California AMT-Free Municipal Bond ETF (PWZ) has a higher volatility of 1.39% compared to Overlay Shares Municipal Bond ETF (OVM) at 1.25%. This indicates that PWZ's price experiences larger fluctuations and is considered to be riskier than OVM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PWZ	OVM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.39%	1.25%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	3.04%	3.38%	-0.34%
Volatility (1Y) Calculated over the trailing 1-year period	4.39%	4.16%	+0.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.25%	5.39%	+0.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.89%	6.55%	-0.66%

PWZ vs. OVM - Expense Ratio Comparison

PWZ has a 0.28% expense ratio, which is lower than OVM's 0.82% expense ratio.

Dividends

PWZ vs. OVM - Dividend Comparison

PWZ's dividend yield for the trailing twelve months is around 3.57%, less than OVM's 6.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
OVM Overlay Shares Municipal Bond ETF	6.10%	5.45%	4.91%	4.66%	4.21%	6.10%	3.97%	0.58%	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 OVM in my portfolio?

PWZ and OVM have a correlation of 0.57, 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 OVM?

PWZ has higher volatility (1.39%) compared to OVM (1.25%). In terms of maximum drawdown, PWZ dropped -21.49% vs OVM's -15.58%.

Which ETF is better, PWZ or OVM?

On 5-year performance, OVM leads with 1.68% vs 0.17% for PWZ. On fees, PWZ is cheaper at 0.28% per year. On volatility, OVM has been the lower-risk option at 1.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PWZ or OVM?

Over the 5-year period, OVM has performed better with a 1.68% 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 OVM?

PWZ is cheaper with a 0.28% expense ratio, compared with 0.82% for OVM.

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

OVM has the higher dividend yield at 6.10%, compared with 3.57% for PWZ.

What is the main difference between PWZ and OVM?

They also come from different issuers: Invesco and Liquid Strategies. Their fees differ too: 0.28% for PWZ and 0.82% for OVM.

Which has better risk-adjusted returns?

OVM currently has the higher Sharpe Ratio (2.93 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.