PZA vs. TAXT

Last updated Jun 25, 2026

PZA (Invesco National AMT-Free Municipal Bond ETF) and TAXT (Northern Trust Tax-Exempt Bond ETF) are both Municipal Bonds funds - PZA tracks the BofA ML National Long-Term Core Plus Municipal Securities Index while TAXT tracks the ICE Focused Municipal Bond Index. Both are passively managed. Their correlation of 0.80 suggests significant overlap in exposure. PZA charges 0.28%/yr vs 0.05%/yr for TAXT.

Performance

PZA vs. TAXT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco National AMT-Free Municipal Bond ETF (PZA) and Northern Trust Tax-Exempt Bond ETF (TAXT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PZA achieves a 3.01% return, which is significantly higher than TAXT's 1.66% return.

PZA

• 1D: 0.34%
• 1M: 2.45%
• YTD: 3.01%
• 6M: 3.05%
• 1Y: 8.89%
• 3Y*: 3.20%
• 5Y*: 0.10%
• 10Y*: 1.80%

TAXT

• 1D: 0.21%
• 1M: 1.21%
• YTD: 1.66%
• 6M: 1.67%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PZA vs. TAXT - Yearly Performance Comparison

	2026 (YTD)	2025
PZA Invesco National AMT-Free Municipal Bond ETF	3.01%	6.14%
TAXT Northern Trust Tax-Exempt Bond ETF	1.66%	3.91%

Correlation

The correlation between PZA and TAXT is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025	0.80

Return for Risk

PZA vs. TAXT — Risk / Return Rank

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

PZA

PZA Risk / Return Rank: 74
PZA Sharpe Ratio Rank: 76
PZA Sortino Ratio Rank: 80
PZA Omega Ratio Rank: 86
PZA Calmar Ratio Rank: 64
PZA Martin Ratio Rank: 62

TAXT

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. TAXT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco National AMT-Free Municipal Bond ETF (PZA) and Northern Trust Tax-Exempt Bond ETF (TAXT). 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	TAXT	Difference
Sharpe ratio: Return per unit of total volatility	2.14	—	—
Sortino ratio: Return per unit of downside risk	3.13	—	—
Omega ratio: Gain probability vs. loss probability	1.46	—	—
Calmar ratio: Return relative to maximum drawdown	2.81	—	—
Martin ratio: Return relative to average drawdown	9.93	—	—

Drawdowns

PZA vs. TAXT - Drawdown Comparison

The maximum PZA drawdown since its inception was -24.49%, which is greater than TAXT's maximum drawdown of -2.49%. Use the drawdown chart below to compare losses from any high point for PZA and TAXT.

Drawdown Indicators

	PZA	TAXT	Difference
Max Drawdown Largest peak-to-trough decline	-24.49%	-2.49%	-22.00%
Max Drawdown (1Y) Largest decline over 1 year	-3.18%	—	—
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 Drawdown Current decline from peak	-0.58%	-0.40%	-0.18%
Average Drawdown Average peak-to-trough decline	-3.94%	-0.48%	-3.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	—	—

Volatility

Volatility by Period

	PZA	TAXT	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.11%	—	—
Volatility (6M) Calculated over the trailing 6-month period	2.97%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	4.17%	2.54%	+1.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.01%	2.54%	+3.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.08%	2.54%	+4.54%

PZA vs. TAXT - Expense Ratio Comparison

PZA has a 0.28% expense ratio, which is higher than TAXT's 0.05% expense ratio.

Dividends

PZA vs. TAXT - Dividend Comparison

PZA's dividend yield for the trailing twelve months is around 3.65%, more than TAXT's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PZA Invesco National AMT-Free Municipal Bond ETF	3.65%	3.55%	3.22%	2.91%	2.68%	2.34%	2.44%	2.81%	3.19%	3.04%	3.23%	3.59%
TAXT Northern Trust Tax-Exempt Bond ETF	2.54%	1.23%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PZA and TAXT in my portfolio?

PZA and TAXT have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, PZA or TAXT?

On fees, TAXT is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, PZA or TAXT?

TAXT is cheaper with a 0.05% expense ratio, compared with 0.28% for PZA.

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

PZA has the higher dividend yield at 3.65%, compared with 2.54% for TAXT.

What is the main difference between PZA and TAXT?

PZA tracks BofA ML National Long-Term Core Plus Municipal Securities Index, while TAXT tracks ICE Focused Municipal Bond Index. They also come from different issuers: Invesco and Northern Trust. Their fees differ too: 0.28% for PZA and 0.05% for TAXT.