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PZA vs. IEF
Performance
Return for Risk
Drawdowns
Volatility
Dividends

PZA vs. IEF

Last updated Jun 3, 2026

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 1.88%/yr vs 0.66%/yr for IEF. A 0.52 correlation means they provide meaningful diversification when combined. PZA charges 0.28%/yr vs 0.15%/yr for IEF.

Performance

PZA vs. IEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco National AMT-Free Municipal Bond ETF (PZA) and iShares 7-10 Year Treasury Bond ETF (IEF). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, PZA achieves a 2.47% return, which is significantly higher than IEF's -0.40% return. Over the past 10 years, PZA has outperformed IEF with an annualized return of 1.88%, while IEF has yielded a comparatively lower 0.66% annualized return.

PZA

1D
0.26%
1M
0.88%
YTD
2.47%
6M
2.78%
1Y
9.14%
3Y*
3.33%
5Y*
0.04%
10Y*
1.88%

IEF

1D
0.07%
1M
-0.19%
YTD
-0.40%
6M
-0.71%
1Y
4.23%
3Y*
2.56%
5Y*
-0.98%
10Y*
0.66%
*Multi-year figures are annualized to reflect compound growth (CAGR)

PZA vs. IEF - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
PZA
Invesco National AMT-Free Municipal Bond ETF		2.47%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		-0.40%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 0.64, 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

0.64

Correlation (3Y)
Calculated over the trailing 3-year period

0.73

Correlation (5Y)
Calculated over the trailing 5-year period

0.66

Correlation (10Y)
Calculated over the trailing 10-year period

0.62

Correlation (All Time)
Calculated using the full available price history since Oct 19, 2007

0.52

The correlation between PZA and IEF shifts across timeframes, from 0.52 (all time) to 0.73 (3 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Invesco National AMT-Free Municipal Bond ETF

iShares 7-10 Year Treasury Bond ETF

Often compared with PZA:
PZA vs. VTEBPZA vs. MUBPZA vs. HYMUPZA vs. NJTFXPZA vs. VNJTXPZA vs. BNDPZA vs. VTEI
Often compared with IEF:
IEF vs. TLTIEF vs. VGITIEF vs. LQDIEF vs. BNDIEF vs. SHYIEF vs. IEIIEF vs. TIP

Return for Risk

PZA vs. IEF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
PZA
PZA Risk / Return Rank: 6464
Overall Rank
PZA Sharpe Ratio Rank: 6565
Sharpe Ratio Rank
PZA Sortino Ratio Rank: 6868
Sortino Ratio Rank
PZA Omega Ratio Rank: 7878
Omega Ratio Rank
PZA Calmar Ratio Rank: 5454
Calmar Ratio Rank
PZA Martin Ratio Rank: 5555
Martin Ratio Rank
IEF
IEF Risk / Return Rank: 2323
Overall Rank
IEF Sharpe Ratio Rank: 2525
Sharpe Ratio Rank
IEF Sortino Ratio Rank: 2525
Sortino Ratio Rank
IEF Omega Ratio Rank: 2323
Omega Ratio Rank
IEF Calmar Ratio Rank: 2121
Calmar Ratio Rank
IEF Martin Ratio Rank: 2222
Martin Ratio Rank
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.

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.

PZAIEFDifference

Sharpe ratio

Return per unit of total volatility

2.18

0.89

+1.29

Sortino ratio

Return per unit of downside risk

3.16

1.34

+1.82

Omega ratio

Gain probability vs. loss probability

1.47

1.15

+0.32

Calmar ratio

Return relative to maximum drawdown

2.72

0.95

+1.77

Martin ratio

Return relative to average drawdown

9.63

2.86

+6.77

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PZA vs. IEF - Sharpe Ratio Comparison

The current PZA Sharpe Ratio is 2.18, which is higher than the IEF Sharpe Ratio of 0.89. The chart below compares the historical Sharpe Ratios of PZA and IEF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

PZAIEFDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.18

0.89

+1.29

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.01

-0.13

+0.13

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.27

0.10

+0.17

Sharpe Ratio (All Time)

Calculated using the full available price history

0.43

0.50

-0.07

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

PZAIEFDifference

Max Drawdown

Largest 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

-7.89%

-7.74%

-0.15%

Max Drawdown (5Y)

Largest decline over 5 years

-18.55%

-21.40%

+2.85%

Max Drawdown (10Y)

Largest decline over 10 years

-21.69%

-23.93%

+2.24%

Current Drawdown

Current decline from peak

-1.10%

-11.12%

+10.02%

Average Drawdown

Average peak-to-trough decline

-3.95%

-5.34%

+1.39%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.90%

1.36%

-0.46%

Volatility

PZA vs. IEF - Volatility Comparison

The current volatility for Invesco National AMT-Free Municipal Bond ETF (PZA) is 1.47%, while iShares 7-10 Year Treasury Bond ETF (IEF) has a volatility of 1.57%. 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.

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Volatility by Period

PZAIEFDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.47%

1.57%

-0.10%

Volatility (6M)

Calculated over the trailing 6-month period

2.93%

3.37%

-0.44%

Volatility (1Y)

Calculated over the trailing 1-year period

4.24%

4.79%

-0.55%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.00%

7.71%

-1.71%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

7.08%

6.62%

+0.46%

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 3.63%, less than IEF's 3.89% yield.

PositionTTM20252024202320222021202020192018201720162015
IEF
iShares 7-10 Year Treasury Bond ETF		3.89%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		3.63%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 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IEF has higher volatility (1.57%) compared to PZA (1.47%). In terms of maximum drawdown, PZA dropped -24.49% vs IEF's -23.93%.

On 10-year performance, PZA leads with 1.88% vs 0.66% for IEF. On fees, IEF is cheaper at 0.15% per year. Their volatility is very similar. 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 1.88% return vs 0.66%. 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.

IEF has the higher dividend yield at 3.89%, compared with 3.63% for PZA.

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 (2.18 vs 0.89), 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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