PWZ vs. TAXT
PWZ (Invesco California AMT-Free Municipal Bond ETF) and TAXT (Northern Trust Tax-Exempt Bond ETF) are both Municipal Bonds funds - PWZ tracks the ICE BofA California Long-Term Core Plus Muni while TAXT tracks the ICE Focused Municipal Bond Index. Both are passively managed. A 0.77 correlation means they provide meaningful diversification when combined. PWZ charges 0.28%/yr vs 0.05%/yr for TAXT.
Performance
PWZ vs. TAXT - Performance Comparison
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Returns By Period
In the year-to-date period, PWZ achieves a 2.53% return, which is significantly higher than TAXT's 1.55% 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%
TAXT
- 1D
- 0.15%
- 1M
- 0.66%
- YTD
- 1.55%
- 6M
- 2.18%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
PWZ vs. TAXT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
PWZ Invesco California AMT-Free Municipal Bond ETF | 2.53% | 6.01% |
TAXT Northern Trust Tax-Exempt Bond ETF | 1.55% | 3.96% |
Correlation
The correlation between PWZ and TAXT is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (All Time) Calculated using the full available price history since Aug 20, 2025 | 0.77 |
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Return for Risk
PWZ vs. TAXT — Risk / Return Rank
PWZ
TAXT
PWZ vs. TAXT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco California AMT-Free Municipal Bond ETF (PWZ) and Northern Trust Tax-Exempt Bond ETF (TAXT). 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 | TAXT | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.04 | — | — |
Sortino ratioReturn per unit of downside risk | 3.08 | — | — |
Omega ratioGain probability vs. loss probability | 1.42 | — | — |
Calmar ratioReturn relative to maximum drawdown | 2.36 | — | — |
Martin ratioReturn relative to average drawdown | 8.55 | — | — |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| PWZ | TAXT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.04 | — | — |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.03 | — | — |
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 | 2.84 | -2.38 |
Drawdowns
PWZ vs. TAXT - Drawdown Comparison
The maximum PWZ drawdown since its inception was -21.49%, which is greater than TAXT's maximum drawdown of -2.49%. Use the drawdown chart below to compare losses from any high point for PWZ and TAXT.
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Drawdown Indicators
| PWZ | TAXT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -21.49% | -2.49% | -19.00% |
Max Drawdown (1Y)Largest decline over 1 year | -3.47% | — | — |
Max Drawdown (3Y)Largest decline over 3 years | -9.09% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -17.56% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -17.56% | — | — |
Current DrawdownCurrent decline from peak | -0.48% | -0.52% | +0.04% |
Average DrawdownAverage peak-to-trough decline | -3.54% | -0.47% | -3.07% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.96% | — | — |
Volatility
PWZ vs. TAXT - Volatility Comparison
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Volatility by Period
| PWZ | TAXT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.39% | — | — |
Volatility (6M)Calculated over the trailing 6-month period | 3.04% | — | — |
Volatility (1Y)Calculated over the trailing 1-year period | 4.39% | 2.54% | +1.85% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.25% | 2.54% | +3.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.89% | 2.54% | +3.35% |
PWZ vs. TAXT - Expense Ratio Comparison
PWZ has a 0.28% expense ratio, which is higher than TAXT's 0.05% expense ratio.
Dividends
PWZ vs. TAXT - Dividend Comparison
PWZ's dividend yield for the trailing twelve months is around 3.57%, more than TAXT's 2.54% 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% |
TAXT Northern Trust Tax-Exempt Bond ETF | 2.54% | 1.23% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
PWZ and TAXT have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, TAXT is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.
TAXT is cheaper with a 0.05% expense ratio, compared with 0.28% for PWZ.
PWZ has the higher dividend yield at 3.57%, compared with 2.54% for TAXT.
PWZ tracks ICE BofA California Long-Term Core Plus Muni, while TAXT tracks ICE Focused Municipal Bond Index. They also come from different issuers: Invesco and Northern Trust. Their fees differ too: 0.28% for PWZ and 0.05% for TAXT.
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