PWZ vs. SWCAX

Last updated Jun 3, 2026

PWZ (Invesco California AMT-Free Municipal Bond ETF) and SWCAX (Schwab California Tax-Free Bond Fund™) are both Municipal Bonds funds. Over the past 10 years, PWZ returned 1.91%/yr vs 1.51%/yr for SWCAX. At a 0.50 correlation, their price movements are largely independent. PWZ charges 0.28%/yr vs 0.48%/yr for SWCAX.

Performance

PWZ vs. SWCAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco California AMT-Free Municipal Bond ETF (PWZ) and Schwab California Tax-Free Bond Fund™ (SWCAX). 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 SWCAX's 0.85% return. Over the past 10 years, PWZ has outperformed SWCAX with an annualized return of 1.91%, while SWCAX has yielded a comparatively lower 1.51% 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%

SWCAX

• 1D: 0.00%
• 1M: 0.35%
• YTD: 0.85%
• 6M: 1.22%
• 1Y: 6.04%
• 3Y*: 3.19%
• 5Y*: 0.52%
• 10Y*: 1.51%

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

PWZ vs. SWCAX - 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%
SWCAX Schwab California Tax-Free Bond Fund™	0.85%	3.95%	1.51%	4.73%	-8.10%	0.36%	3.93%	6.02%	1.16%	4.37%

Correlation

The correlation between PWZ and SWCAX is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Oct 19, 2007	0.50

The correlation between PWZ and SWCAX shifts across timeframes, from 0.50 (all time) to 0.62 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

PWZ vs. SWCAX — 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

SWCAX

SWCAX Risk / Return Rank: 63
SWCAX Sharpe Ratio Rank: 77
SWCAX Sortino Ratio Rank: 85
SWCAX Omega Ratio Rank: 91
SWCAX Calmar Ratio Rank: 33
SWCAX Martin Ratio Rank: 27

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. SWCAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco California AMT-Free Municipal Bond ETF (PWZ) and Schwab California Tax-Free Bond Fund™ (SWCAX). 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	SWCAX	Difference
Sharpe ratio Return per unit of total volatility	2.04	2.55	-0.51
Sortino ratio Return per unit of downside risk	3.08	4.03	-0.95
Omega ratio Gain probability vs. loss probability	1.42	1.66	-0.24
Calmar ratio Return relative to maximum drawdown	2.36	2.20	+0.17
Martin ratio Return relative to average drawdown	8.55	6.78	+1.77
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. SWCAX - Sharpe Ratio Comparison

The current PWZ Sharpe Ratio is 2.04, which is comparable to the SWCAX Sharpe Ratio of 2.55. The chart below compares the historical Sharpe Ratios of PWZ and SWCAX, 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	SWCAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.04	2.55	-0.51
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.03	0.17	-0.14
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.32	0.45	-0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	1.18	-0.72

Drawdowns

PWZ vs. SWCAX - Drawdown Comparison

The maximum PWZ drawdown since its inception was -21.49%, which is greater than SWCAX's maximum drawdown of -13.51%. Use the drawdown chart below to compare losses from any high point for PWZ and SWCAX.

Drawdown Indicators

	PWZ	SWCAX	Difference
Max Drawdown Largest peak-to-trough decline	-21.49%	-13.51%	-7.98%
Max Drawdown (1Y) Largest decline over 1 year	-3.47%	-2.75%	-0.72%
Max Drawdown (3Y) Largest decline over 3 years	-9.09%	-4.36%	-4.73%
Max Drawdown (5Y) Largest decline over 5 years	-17.56%	-12.30%	-5.26%
Max Drawdown (10Y) Largest decline over 10 years	-17.56%	-12.30%	-5.26%
Current Drawdown Current decline from peak	-0.48%	-1.10%	+0.62%
Average Drawdown Average peak-to-trough decline	-3.54%	-1.87%	-1.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	0.89%	+0.07%

Volatility

PWZ vs. SWCAX - Volatility Comparison

Invesco California AMT-Free Municipal Bond ETF (PWZ) has a higher volatility of 1.39% compared to Schwab California Tax-Free Bond Fund™ (SWCAX) at 0.92%. This indicates that PWZ's price experiences larger fluctuations and is considered to be riskier than SWCAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PWZ	SWCAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.39%	0.92%	+0.47%
Volatility (6M) Calculated over the trailing 6-month period	3.04%	1.81%	+1.23%
Volatility (1Y) Calculated over the trailing 1-year period	4.39%	2.31%	+2.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.25%	3.11%	+3.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.89%	3.37%	+2.52%

PWZ vs. SWCAX - Expense Ratio Comparison

PWZ has a 0.28% expense ratio, which is lower than SWCAX's 0.48% expense ratio.

Dividends

PWZ vs. SWCAX - Dividend Comparison

PWZ's dividend yield for the trailing twelve months is around 3.57%, more than SWCAX's 3.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
SWCAX Schwab California Tax-Free Bond Fund™	3.19%	3.46%	2.67%	2.23%	1.57%	1.68%	2.45%	2.54%	2.50%	2.22%	3.10%	2.79%

Frequently Asked Questions

Can I hold both PWZ and SWCAX in my portfolio?

PWZ and SWCAX have a correlation of 0.62, 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 SWCAX?

PWZ has higher volatility (1.39%) compared to SWCAX (0.92%). In terms of maximum drawdown, PWZ dropped -21.49% vs SWCAX's -13.51%.

Which has better risk-adjusted returns?

SWCAX currently has the higher Sharpe Ratio (2.55 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.