PZA vs. MUNY
PZA (Invesco National AMT-Free Municipal Bond ETF) and MUNY (Vanguard New York Tax-Exempt Bond ETF) are both Municipal Bonds funds - PZA tracks the BofA ML National Long-Term Core Plus Municipal Securities Index while MUNY tracks the S&P New York AMT-Free Municipal USD10 Million Par Bond Index. Both are passively managed. Over the past year, PZA returned 8.99% vs 5.02% for MUNY. A 0.78 correlation means they provide meaningful diversification when combined. PZA charges 0.28%/yr vs 0.09%/yr for MUNY.
Performance
PZA vs. MUNY - Performance Comparison
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Returns By Period
In the year-to-date period, PZA achieves a 2.60% return, which is significantly higher than MUNY's 1.56% 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%
MUNY
- 1D
- 0.06%
- 1M
- 0.76%
- YTD
- 1.56%
- 6M
- 1.98%
- 1Y
- 5.02%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
PZA vs. MUNY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
PZA Invesco National AMT-Free Municipal Bond ETF | 2.60% | 6.22% |
MUNY Vanguard New York Tax-Exempt Bond ETF | 1.56% | 5.54% |
Correlation
The correlation between PZA and MUNY is 0.77, 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 | 0.77 |
Correlation (All Time) Calculated using the full available price history since May 23, 2025 | 0.78 |
The correlation between PZA and MUNY has been stable across timeframes, ranging from 0.77 to 0.78 - a consistent structural relationship.
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Return for Risk
PZA vs. MUNY — Risk / Return Rank
PZA
MUNY
PZA vs. MUNY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco National AMT-Free Municipal Bond ETF (PZA) and Vanguard New York Tax-Exempt Bond ETF (MUNY). 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 | MUNY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.67 | ||
| Sortino ratioReturn per unit of downside risk | +1.23 | ||
| Omega ratioGain probability vs. loss probability | 1.46 | 1.35 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 2.84 | 1.87 | +0.97 |
| Martin ratioReturn relative to average drawdown | 10.03 | 6.31 | +3.71 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| PZA | MUNY | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.14 | 1.47 | +0.67 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.00 | — | — |
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 | 1.78 | -1.35 |
Drawdowns
PZA vs. MUNY - Drawdown Comparison
The maximum PZA drawdown since its inception was -24.49%, which is greater than MUNY's maximum drawdown of -2.70%. Use the drawdown chart below to compare losses from any high point for PZA and MUNY.
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Drawdown Indicators
| PZA | MUNY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.49% | -2.70% | -21.79% |
Max Drawdown (1Y)Largest decline over 1 year | -3.18% | -2.70% | -0.48% |
Max Drawdown (3Y)Largest decline over 3 years | -7.89% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -18.55% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -21.69% | — | — |
Current DrawdownCurrent decline from peak | -0.98% | -0.44% | -0.54% |
Average DrawdownAverage peak-to-trough decline | -3.95% | -0.66% | -3.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.90% | 0.97% | -0.07% |
Volatility
PZA vs. MUNY - Volatility Comparison
Invesco National AMT-Free Municipal Bond ETF (PZA) has a higher volatility of 1.49% compared to Vanguard New York Tax-Exempt Bond ETF (MUNY) at 1.04%. This indicates that PZA's price experiences larger fluctuations and is considered to be riskier than MUNY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PZA | MUNY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.49% | 1.04% | +0.45% |
Volatility (6M)Calculated over the trailing 6-month period | 2.90% | 2.30% | +0.60% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.23% | 3.93% | +0.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.00% | 3.92% | +2.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.08% | 3.92% | +3.16% |
PZA vs. MUNY - Expense Ratio Comparison
PZA has a 0.28% expense ratio, which is higher than MUNY's 0.09% expense ratio.
Dividends
PZA vs. MUNY - Dividend Comparison
PZA's dividend yield for the trailing twelve months is around 3.63%, more than MUNY's 3.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MUNY Vanguard New York Tax-Exempt Bond ETF | 3.11% | 1.80% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 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
PZA and MUNY have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PZA has higher volatility (1.49%) compared to MUNY (1.04%). In terms of maximum drawdown, PZA dropped -24.49% vs MUNY's -2.70%.
On 1-year performance, PZA leads with 8.99% vs 5.02% for MUNY. On fees, MUNY is cheaper at 0.09% per year. On volatility, MUNY has been the lower-risk option at 1.04%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, PZA has performed better with a 8.99% return vs 5.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MUNY is cheaper with a 0.09% expense ratio, compared with 0.28% for PZA.
PZA has the higher dividend yield at 3.63%, compared with 3.11% for MUNY.
PZA tracks BofA ML National Long-Term Core Plus Municipal Securities Index, while MUNY tracks S&P New York AMT-Free Municipal USD10 Million Par Bond Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.28% for PZA and 0.09% for MUNY.
PZA currently has the higher Sharpe Ratio (2.14 vs 1.47), 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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