PZA vs. JEPI

Last updated Jun 5, 2026

PZA (Invesco National AMT-Free Municipal Bond ETF) and JEPI (JPMorgan Equity Premium Income 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 JEPI is a Dividend fund actively managed by JPMorgan. PZA is passively managed, while JEPI is actively managed. Over the past 5 years, PZA returned 0.03%/yr vs 7.37%/yr for JEPI. At a 0.16 correlation, their price movements are largely independent. PZA charges 0.28%/yr vs 0.35%/yr for JEPI.

Performance

PZA vs. JEPI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco National AMT-Free Municipal Bond ETF (PZA) and JPMorgan Equity Premium Income ETF (JEPI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PZA achieves a 2.60% return, which is significantly higher than JEPI's 0.69% return.

PZA

• 1D: 0.26%
• 1M: 1.10%
• YTD: 2.60%
• 6M: 2.86%
• 1Y: 8.99%
• 3Y*: 3.37%
• 5Y*: 0.03%
• 10Y*: 1.90%

JEPI

• 1D: 0.54%
• 1M: -0.71%
• YTD: 0.69%
• 6M: 1.05%
• 1Y: 8.25%
• 3Y*: 9.05%
• 5Y*: 7.37%
• 10Y*: —

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

PZA vs. JEPI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
PZA Invesco National AMT-Free Municipal Bond ETF	2.60%	1.81%	0.81%	8.64%	-13.17%	2.37%	4.69%
JEPI JPMorgan Equity Premium Income ETF	0.69%	8.09%	12.57%	9.83%	-3.49%	21.52%	18.61%

Correlation

The correlation between PZA and JEPI is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.24
Correlation (3Y) Calculated over the trailing 3-year period	0.21
Correlation (5Y) Calculated over the trailing 5-year period	0.17
Correlation (All Time) Calculated using the full available price history since May 22, 2020	0.16

PZA vs. JEPI - Sectors Allocation Comparison

Sectors	PZA	JEPI
Financial Services	1.2%	9.8%
Consumer Cyclical	0.1%	11.7%
Technology	0.0%	19.1%
Industrials	0.0%	13.8%
Basic Materials	-	1.9%
Communication Services	-	6.9%
Consumer Defensive	-	9.6%
Energy	-	3.5%
Healthcare	-	14.1%
Real Estate	-	3.5%
Utilities	-	6.2%

Return for Risk

PZA vs. JEPI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PZA

PZA Risk / Return Rank: 66
PZA Sharpe Ratio Rank: 65
PZA Sortino Ratio Rank: 69
PZA Omega Ratio Rank: 79
PZA Calmar Ratio Rank: 58
PZA Martin Ratio Rank: 58

JEPI

JEPI Risk / Return Rank: 29
JEPI Sharpe Ratio Rank: 30
JEPI Sortino Ratio Rank: 30
JEPI Omega Ratio Rank: 30
JEPI Calmar Ratio Rank: 27
JEPI Martin Ratio Rank: 28

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. JEPI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco National AMT-Free Municipal Bond ETF (PZA) and JPMorgan Equity Premium Income ETF (JEPI). 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.

	PZA	JEPI	Difference
Sharpe ratio: Return per unit of total volatility	2.14	1.05	+1.09
Sortino ratio: Return per unit of downside risk	3.11	1.57	+1.54
Omega ratio: Gain probability vs. loss probability	1.46	1.19	+0.27
Calmar ratio: Return relative to maximum drawdown	2.84	1.24	+1.60
Martin ratio: Return relative to average drawdown	10.03	3.96	+6.06
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. JEPI - Sharpe Ratio Comparison

The current PZA Sharpe Ratio is 2.14, which is higher than the JEPI Sharpe Ratio of 1.05. The chart below compares the historical Sharpe Ratios of PZA and JEPI, 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

	PZA	JEPI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.14	1.05	+1.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.00	0.67	-0.67
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.27	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	1.02	-0.58

Drawdowns

PZA vs. JEPI - Drawdown Comparison

The maximum PZA drawdown since its inception was -24.49%, which is greater than JEPI's maximum drawdown of -13.71%. Use the drawdown chart below to compare losses from any high point for PZA and JEPI.

Drawdown Indicators

	PZA	JEPI	Difference
Max Drawdown Largest peak-to-trough decline	-24.49%	-13.71%	-10.78%
Max Drawdown (1Y) Largest decline over 1 year	-3.18%	-6.68%	+3.50%
Max Drawdown (3Y) Largest decline over 3 years	-7.89%	-13.26%	+5.37%
Max Drawdown (5Y) Largest decline over 5 years	-18.55%	-13.71%	-4.84%
Max Drawdown (10Y) Largest decline over 10 years	-21.69%	—	—
Current Drawdown Current decline from peak	-0.98%	-4.31%	+3.33%
Average Drawdown Average peak-to-trough decline	-3.95%	-2.12%	-1.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	2.08%	-1.18%

Volatility

PZA vs. JEPI - Volatility Comparison

Invesco National AMT-Free Municipal Bond ETF (PZA) and JPMorgan Equity Premium Income ETF (JEPI) have volatilities of 1.49% and 1.46%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PZA	JEPI	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.49%	1.46%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	2.90%	6.10%	-3.20%
Volatility (1Y) Calculated over the trailing 1-year period	4.23%	7.87%	-3.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.00%	11.06%	-5.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.08%	10.80%	-3.72%

PZA vs. JEPI - Expense Ratio Comparison

PZA has a 0.28% expense ratio, which is lower than JEPI's 0.35% expense ratio.

Dividends

PZA vs. JEPI - Dividend Comparison

PZA's dividend yield for the trailing twelve months is around 3.63%, less than JEPI's 8.23% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
JEPI JPMorgan Equity Premium Income ETF	8.23%	8.25%	7.33%	8.40%	11.68%	6.59%	5.79%	0.00%	0.00%	0.00%	0.00%	0.00%
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

Can I hold both PZA and JEPI in my portfolio?

PZA and JEPI have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PZA or JEPI?

PZA has higher volatility (1.49%) compared to JEPI (1.46%). In terms of maximum drawdown, PZA dropped -24.49% vs JEPI's -13.71%.

Which ETF is better, PZA or JEPI?

On 5-year performance, JEPI leads with 7.37% vs 0.03% for PZA. On fees, PZA is cheaper at 0.28% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PZA or JEPI?

Over the 5-year period, JEPI has performed better with a 7.37% return vs 0.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PZA or JEPI?

PZA is cheaper with a 0.28% expense ratio, compared with 0.35% for JEPI.

Which ETF pays a higher dividend yield, PZA or JEPI?

JEPI has the higher dividend yield at 8.23%, compared with 3.63% for PZA.

What is the main difference between PZA and JEPI?

PZA is categorized as Municipal Bonds, while JEPI is Dividend. They also come from different issuers: Invesco and JPMorgan. Their fees differ too: 0.28% for PZA and 0.35% for JEPI.

Which has better risk-adjusted returns?

PZA currently has the higher Sharpe Ratio (2.14 vs 1.05), 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.