PZA vs. BND
Compare and contrast key facts about Invesco National AMT-Free Municipal Bond ETF (PZA) and Vanguard Total Bond Market ETF (BND).
PZA and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. PZA is a passively managed fund by Invesco that tracks the performance of the BofA ML National Long-Term Core Plus Municipal Securities Index. It was launched on Oct 11, 2007. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both PZA and BND are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: PZA or BND.
Performance
PZA vs. BND - Performance Comparison
Returns By Period
The year-to-date returns for both investments are quite close, with PZA having a 1.65% return and BND slightly higher at 1.66%. Over the past 10 years, PZA has outperformed BND with an annualized return of 2.49%, while BND has yielded a comparatively lower 1.39% annualized return.
PZA
1.65%
0.43%
3.41%
7.15%
0.73%
2.49%
BND
1.66%
-0.79%
3.22%
6.06%
-0.33%
1.39%
Key characteristics
| PZA | BND | |
|---|---|---|
| Sharpe Ratio | 1.35 | 1.09 |
| Sortino Ratio | 1.96 | 1.59 |
| Omega Ratio | 1.25 | 1.19 |
| Calmar Ratio | 0.68 | 0.42 |
| Martin Ratio | 6.15 | 3.51 |
| Ulcer Index | 1.23% | 1.75% |
| Daily Std Dev | 5.59% | 5.65% |
| Max Drawdown | -24.49% | -18.84% |
| Current Drawdown | -4.41% | -9.11% |
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PZA vs. BND - Expense Ratio Comparison
PZA has a 0.28% expense ratio, which is higher than BND's 0.03% expense ratio.
Correlation
The correlation between PZA and BND is 0.52, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Risk-Adjusted Performance
PZA vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco National AMT-Free Municipal Bond ETF (PZA) and Vanguard Total Bond Market ETF (BND). 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.
Dividends
PZA vs. BND - Dividend Comparison
PZA's dividend yield for the trailing twelve months is around 3.19%, less than BND's 3.57% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PZA Invesco National AMT-Free Municipal Bond ETF | 3.19% | 2.92% | 2.69% | 2.34% | 2.43% | 2.80% | 3.18% | 3.04% | 3.23% | 3.60% | 3.96% | 4.26% |
BND Vanguard Total Bond Market ETF | 3.57% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
PZA vs. BND - Drawdown Comparison
The maximum PZA drawdown since its inception was -24.49%, which is greater than BND's maximum drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for PZA and BND. For additional features, visit the drawdowns tool.
Volatility
PZA vs. BND - Volatility Comparison
Invesco National AMT-Free Municipal Bond ETF (PZA) has a higher volatility of 2.55% compared to Vanguard Total Bond Market ETF (BND) at 1.52%. This indicates that PZA's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.