PWZ vs. VTEC

Last updated Jun 3, 2026

PWZ (Invesco California AMT-Free Municipal Bond ETF) and VTEC (Vanguard California Tax-Exempt Bond ETF) are both Municipal Bonds funds - PWZ tracks the ICE BofA California Long-Term Core Plus Muni while VTEC tracks the S&P California AMT-Free Municipal Bond Index. Both are passively managed. Over the past year, PWZ returned 8.84% vs 6.75% for VTEC. A 0.63 correlation means they provide meaningful diversification when combined. PWZ charges 0.28%/yr vs 0.08%/yr for VTEC.

Performance

PWZ vs. VTEC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco California AMT-Free Municipal Bond ETF (PWZ) and Vanguard California Tax-Exempt Bond ETF (VTEC). 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 VTEC's 1.03% 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%

VTEC

• 1D: 0.16%
• 1M: 0.57%
• YTD: 1.03%
• 6M: 1.43%
• 1Y: 6.75%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PWZ vs. VTEC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PWZ Invesco California AMT-Free Municipal Bond ETF	2.53%	1.26%	1.77%
VTEC Vanguard California Tax-Exempt Bond ETF	1.03%	3.98%	1.42%

Correlation

The correlation between PWZ and VTEC is 0.70, 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	0.70
Correlation (All Time) Calculated using the full available price history since Jan 31, 2024	0.63

The correlation between PWZ and VTEC has been stable across timeframes, ranging from 0.63 to 0.70 - a consistent structural relationship.

Return for Risk

PWZ vs. VTEC — 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

VTEC

VTEC Risk / Return Rank: 65
VTEC Sharpe Ratio Rank: 72
VTEC Sortino Ratio Rank: 79
VTEC Omega Ratio Rank: 84
VTEC Calmar Ratio Rank: 45
VTEC Martin Ratio Rank: 46

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. VTEC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco California AMT-Free Municipal Bond ETF (PWZ) and Vanguard California Tax-Exempt Bond ETF (VTEC). 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	VTEC	Difference
Sharpe ratio Return per unit of total volatility	2.04	2.41	-0.36
Sortino ratio Return per unit of downside risk	3.08	3.56	-0.49
Omega ratio Gain probability vs. loss probability	1.42	1.52	-0.11
Calmar ratio Return relative to maximum drawdown	2.36	2.28	+0.09
Martin ratio Return relative to average drawdown	8.55	7.60	+0.95
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. VTEC - Sharpe Ratio Comparison

The current PWZ Sharpe Ratio is 2.04, which is comparable to the VTEC Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of PWZ and VTEC, 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	VTEC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.04	2.41	-0.36
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	0.74	-0.28

Drawdowns

PWZ vs. VTEC - Drawdown Comparison

The maximum PWZ drawdown since its inception was -21.49%, which is greater than VTEC's maximum drawdown of -4.50%. Use the drawdown chart below to compare losses from any high point for PWZ and VTEC.

Drawdown Indicators

	PWZ	VTEC	Difference
Max Drawdown Largest peak-to-trough decline	-21.49%	-4.50%	-16.99%
Max Drawdown (1Y) Largest decline over 1 year	-3.47%	-2.85%	-0.62%
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 Drawdown Current decline from peak	-0.48%	-0.77%	+0.29%
Average Drawdown Average peak-to-trough decline	-3.54%	-1.12%	-2.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	0.85%	+0.11%

Volatility

PWZ vs. VTEC - Volatility Comparison

Invesco California AMT-Free Municipal Bond ETF (PWZ) has a higher volatility of 1.39% compared to Vanguard California Tax-Exempt Bond ETF (VTEC) at 0.86%. This indicates that PWZ's price experiences larger fluctuations and is considered to be riskier than VTEC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PWZ	VTEC	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.39%	0.86%	+0.53%
Volatility (6M) Calculated over the trailing 6-month period	3.04%	1.88%	+1.16%
Volatility (1Y) Calculated over the trailing 1-year period	4.39%	2.83%	+1.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.25%	3.76%	+2.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.89%	3.76%	+2.13%

PWZ vs. VTEC - Expense Ratio Comparison

PWZ has a 0.28% expense ratio, which is higher than VTEC's 0.08% expense ratio.

Dividends

PWZ vs. VTEC - Dividend Comparison

PWZ's dividend yield for the trailing twelve months is around 3.57%, more than VTEC's 3.16% 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%
VTEC Vanguard California Tax-Exempt Bond ETF	3.16%	3.13%	2.54%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PWZ and VTEC in my portfolio?

PWZ and VTEC have a correlation of 0.70, 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 VTEC?

PWZ has higher volatility (1.39%) compared to VTEC (0.86%). In terms of maximum drawdown, PWZ dropped -21.49% vs VTEC's -4.50%.

Which ETF is better, PWZ or VTEC?

On 1-year performance, PWZ leads with 8.84% vs 6.75% for VTEC. On fees, VTEC is cheaper at 0.08% per year. On volatility, VTEC has been the lower-risk option at 0.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PWZ or VTEC?

Over the 1-year period, PWZ has performed better with a 8.84% return vs 6.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PWZ or VTEC?

VTEC is cheaper with a 0.08% expense ratio, compared with 0.28% for PWZ.

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

PWZ has the higher dividend yield at 3.57%, compared with 3.16% for VTEC.

What is the main difference between PWZ and VTEC?

PWZ tracks ICE BofA California Long-Term Core Plus Muni, while VTEC tracks S&P California AMT-Free Municipal Bond Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.28% for PWZ and 0.08% for VTEC.

Which has better risk-adjusted returns?

VTEC currently has the higher Sharpe Ratio (2.41 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.