PZA vs. IEF
PZA (Invesco National AMT-Free Municipal Bond ETF) and IEF (iShares 7-10 Year Treasury Bond ETF) are both exchange-traded funds - PZA is a Municipal Bonds fund tracking the BofA ML National Long-Term Core Plus Municipal Securities Index, while IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index. Both are passively managed. Over the past 10 years, PZA returned 1.60%/yr vs 0.40%/yr for IEF. Their 0.52 correlation means they have sometimes moved together and sometimes differently. PZA charges 0.28%/yr vs 0.15%/yr for IEF.
Performance
PZA vs. IEF - Performance Comparison
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Returns By Period
In the year-to-date period, PZA achieves a 0.76% return, which is significantly higher than IEF's -1.44% return. Over the past 10 years, PZA has outperformed IEF with an annualized return of 1.60%, while IEF has yielded a comparatively lower 0.40% annualized return.
PZA
- 1D
- -0.02%
- 1M
- -2.68%
- 6M
- 0.02%
- YTD
- 0.76%
- 1Y
- 6.61%
- 3Y*
- 2.52%
- 5Y*
- -0.50%
- 10Y*
- 1.60%
- ALL TIME*
- 3.12%
IEF
- 1D
- -0.28%
- 1M
- -1.24%
- 6M
- -1.22%
- YTD
- -1.44%
- 1Y
- 0.62%
- 3Y*
- 2.88%
- 5Y*
- -1.80%
- 10Y*
- 0.40%
- ALL TIME*
- 3.34%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $422.02M | $484.34M | $621.73M | |
| $37.18M | $30.60M | $27.57M |
PZA vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PZA Invesco National AMT-Free Municipal Bond ETF | 0.76% | 1.81% | 0.81% | 8.64% | -13.17% | 2.37% | 5.07% | 9.00% | -0.09% | 6.95% |
IEF iShares 7-10 Year Treasury Bond ETF | -1.44% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
Correlation
The correlation between PZA and IEF is 0.67, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.67 |
Correlation (3Y) Balances recent behavior with more history. | 0.72 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.67 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.62 |
Correlation (All Time) Calculated using the full available price history since Oct 18, 2007 | 0.52 |
The correlation between PZA and IEF shifts across timeframes, from 0.52 (all time) to 0.72 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
PZA vs. IEF — Risk / Return Rank
PZA
IEF
PZA vs. IEF - Risk-Adjusted Trends 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| PZA | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.43 | ||
| Sortino ratioReturn per unit of downside risk | +2.01 | ||
| Omega ratioGain probability vs. loss probability | 1.39 | 1.07 | +0.32 |
| Calmar ratioReturn relative to maximum drawdown | 2.38 | 0.44 | +1.94 |
| Martin ratioReturn relative to average drawdown | 8.15 | 1.01 | +7.14 |
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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.
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Drawdown Indicators
| PZA | IEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.49% | -23.93% | -0.56% |
Max Drawdown (1Y)Largest decline over 1 year | -3.18% | -4.07% | +0.89% |
Max Drawdown (3Y)Largest decline over 3 years | -7.74% | -6.89% | -0.85% |
Max Drawdown (5Y)Largest decline over 5 years | -18.40% | -21.38% | +2.98% |
Max Drawdown (10Y)Largest decline over 10 years | -21.69% | -23.93% | +2.24% |
Current DrawdownCurrent decline from peak | -2.75% | -12.05% | +9.30% |
Average DrawdownAverage peak-to-trough decline | -3.93% | -5.38% | +1.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.93% | 1.75% | -0.82% |
Volatility
PZA vs. IEF - Volatility Comparison
Invesco National AMT-Free Municipal Bond ETF (PZA) has a higher volatility of 1.32% compared to iShares 7-10 Year Treasury Bond ETF (IEF) at 1.18%. This indicates that PZA's price experiences larger fluctuations and is considered to be riskier than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PZA | IEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.32% | 1.18% | +0.14% |
Volatility (6M)Calculated over the trailing 6-month period | 3.18% | 3.64% | -0.46% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.19% | 4.67% | -0.48% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.03% | 7.70% | -1.67% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.09% | 6.61% | +0.48% |
PZA vs. IEF - Expense Ratio Comparison
PZA has a 0.28% expense ratio, which is higher than IEF's 0.15% expense ratio.
Dividends
PZA vs. IEF - Dividend Comparison
PZA's dividend yield for the trailing twelve months is around 3.77%, less than IEF's 3.95% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.62% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
PZA Invesco National AMT-Free Municipal Bond ETF | 3.77% | 3.55% | 3.22% | 2.91% | 2.68% | 2.34% | 2.44% | 2.81% | 3.19% | 3.04% | 3.23% | 3.59% |
Frequently Asked Questions
PZA and IEF have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PZA has higher volatility (1.32%) compared to IEF (1.18%). In terms of maximum drawdown, PZA dropped -24.49% vs IEF's -23.93%.
On 10-year performance, PZA leads with 1.60% vs 0.40% for IEF. On fees, IEF is cheaper at 0.15% per year. On volatility, IEF has been the lower-risk option at 1.18%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, PZA has performed better with a 1.60% return vs 0.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEF is cheaper with a 0.15% expense ratio, compared with 0.28% for PZA.
PZA has the higher dividend yield at 3.77%, compared with 3.62% for IEF.
PZA is categorized as Municipal Bonds, while IEF is Government Bonds. PZA tracks BofA ML National Long-Term Core Plus Municipal Securities Index, while IEF tracks ICE U.S. Treasury 7-10 Year Bond Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.28% for PZA and 0.15% for IEF.
PZA currently has the higher Sharpe Ratio (1.81 vs 0.38), 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.
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