PZA vs. IEF
Compare and contrast key facts about Invesco National AMT-Free Municipal Bond ETF (PZA) and iShares 7-10 Year Treasury Bond ETF (IEF).
PZA and IEF 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. IEF is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 7-10 Year Treasury Bond Index. It was launched on Jul 26, 2002. Both PZA and IEF 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 IEF.
Key characteristics
| PZA | IEF | |
|---|---|---|
| YTD Return | -0.84% | -2.33% |
| 1Y Return | 4.68% | -1.91% |
| 3Y Return (Ann) | -1.67% | -4.50% |
| 5Y Return (Ann) | 0.80% | -0.91% |
| 10Y Return (Ann) | 2.65% | 0.83% |
| Sharpe Ratio | 0.65 | -0.31 |
| Daily Std Dev | 6.10% | 8.06% |
| Max Drawdown | -24.49% | -23.93% |
| Current Drawdown | -6.75% | -18.81% |
Correlation
The correlation between PZA and IEF is 0.50, 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.
Performance
PZA vs. IEF - Performance Comparison
In the year-to-date period, PZA achieves a -0.84% return, which is significantly higher than IEF's -2.33% return. Over the past 10 years, PZA has outperformed IEF with an annualized return of 2.65%, while IEF has yielded a comparatively lower 0.83% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
PZA vs. IEF - Expense Ratio Comparison
PZA has a 0.28% expense ratio, which is higher than IEF's 0.15% expense ratio.
Risk-Adjusted Performance
PZA vs. IEF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco National AMT-Free Municipal Bond ETF (PZA) and iShares 7-10 Year Treasury Bond ETF (IEF). 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. IEF - Dividend Comparison
PZA's dividend yield for the trailing twelve months is around 3.04%, less than IEF's 3.22% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PZA Invesco National AMT-Free Municipal Bond ETF | 3.04% | 2.91% | 2.68% | 2.34% | 2.44% | 2.81% | 3.19% | 3.04% | 3.23% | 3.59% | 3.96% | 4.27% |
IEF iShares 7-10 Year Treasury Bond ETF | 3.22% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% | 2.05% | 1.77% |
Drawdowns
PZA vs. IEF - Drawdown Comparison
The maximum PZA drawdown since its inception was -24.49%, roughly equal to the maximum IEF drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for PZA and IEF. For additional features, visit the drawdowns tool.
Volatility
PZA vs. IEF - Volatility Comparison
The current volatility for Invesco National AMT-Free Municipal Bond ETF (PZA) is 0.90%, while iShares 7-10 Year Treasury Bond ETF (IEF) has a volatility of 1.58%. This indicates that PZA experiences smaller price fluctuations and is considered to be less risky than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.