PZA vs. VNJTX

Last updated Jun 3, 2026

PZA (Invesco National AMT-Free Municipal Bond ETF) and VNJTX (Vanguard New Jersey Long-Term Tax-Exempt Fund Investor Shares) are both Municipal Bonds funds. Over the past 10 years, PZA returned 1.88%/yr vs 3.05%/yr for VNJTX. A 0.61 correlation means they provide meaningful diversification when combined. PZA charges 0.28%/yr vs 0.17%/yr for VNJTX.

Performance

PZA vs. VNJTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco National AMT-Free Municipal Bond ETF (PZA) and Vanguard New Jersey Long-Term Tax-Exempt Fund Investor Shares (VNJTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PZA achieves a 2.47% return, which is significantly higher than VNJTX's 1.77% return. Over the past 10 years, PZA has underperformed VNJTX with an annualized return of 1.88%, while VNJTX has yielded a comparatively higher 3.05% 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%

VNJTX

• 1D: 0.00%
• 1M: 0.47%
• YTD: 1.77%
• 6M: 2.25%
• 1Y: 8.35%
• 3Y*: 4.69%
• 5Y*: 1.41%
• 10Y*: 3.05%

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

PZA vs. VNJTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
VNJTX Vanguard New Jersey Long-Term Tax-Exempt Fund Investor Shares	1.77%	4.89%	2.69%	8.04%	-10.31%	2.62%	6.02%	9.27%	1.53%	8.37%

Correlation

The correlation between PZA and VNJTX 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	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Oct 19, 2007	0.61

The correlation between PZA and VNJTX has been stable across timeframes, ranging from 0.61 to 0.70 - a consistent structural relationship.

Return for Risk

PZA vs. VNJTX — Risk / Return Rank

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

PZA

PZA Risk / Return Rank: 64
PZA Sharpe Ratio Rank: 65
PZA Sortino Ratio Rank: 68
PZA Omega Ratio Rank: 78
PZA Calmar Ratio Rank: 54
PZA Martin Ratio Rank: 55

VNJTX

VNJTX Risk / Return Rank: 73
VNJTX Sharpe Ratio Rank: 83
VNJTX Sortino Ratio Rank: 88
VNJTX Omega Ratio Rank: 90
VNJTX Calmar Ratio Rank: 53
VNJTX Martin Ratio Rank: 48

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. VNJTX - 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 Jersey Long-Term Tax-Exempt Fund Investor Shares (VNJTX). 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	VNJTX	Difference
Sharpe ratio Return per unit of total volatility	2.18	2.69	-0.51
Sortino ratio Return per unit of downside risk	3.16	4.26	-1.10
Omega ratio Gain probability vs. loss probability	1.47	1.65	-0.18
Calmar ratio Return relative to maximum drawdown	2.72	2.82	-0.10
Martin ratio Return relative to average drawdown	9.63	10.15	-0.52
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. VNJTX - Sharpe Ratio Comparison

The current PZA Sharpe Ratio is 2.18, which is comparable to the VNJTX Sharpe Ratio of 2.69. The chart below compares the historical Sharpe Ratios of PZA and VNJTX, 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	VNJTX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.18	2.69	-0.51
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.01	0.31	-0.30
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.27	0.67	-0.40
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	1.25	-0.82

Drawdowns

PZA vs. VNJTX - Drawdown Comparison

The maximum PZA drawdown since its inception was -24.49%, which is greater than VNJTX's maximum drawdown of -15.71%. Use the drawdown chart below to compare losses from any high point for PZA and VNJTX.

Drawdown Indicators

	PZA	VNJTX	Difference
Max Drawdown Largest peak-to-trough decline	-24.49%	-15.71%	-8.78%
Max Drawdown (1Y) Largest decline over 1 year	-3.18%	-2.94%	-0.24%
Max Drawdown (3Y) Largest decline over 3 years	-7.89%	-6.88%	-1.01%
Max Drawdown (5Y) Largest decline over 5 years	-18.55%	-15.71%	-2.84%
Max Drawdown (10Y) Largest decline over 10 years	-21.69%	-15.71%	-5.98%
Current Drawdown Current decline from peak	-1.10%	-0.40%	-0.70%
Average Drawdown Average peak-to-trough decline	-3.95%	-1.86%	-2.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	0.82%	+0.08%

Volatility

PZA vs. VNJTX - Volatility Comparison

Invesco National AMT-Free Municipal Bond ETF (PZA) has a higher volatility of 1.47% compared to Vanguard New Jersey Long-Term Tax-Exempt Fund Investor Shares (VNJTX) at 1.14%. This indicates that PZA's price experiences larger fluctuations and is considered to be riskier than VNJTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PZA	VNJTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.47%	1.14%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	2.93%	2.27%	+0.66%
Volatility (1Y) Calculated over the trailing 1-year period	4.24%	3.05%	+1.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.00%	4.55%	+1.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.08%	4.56%	+2.52%

PZA vs. VNJTX - Expense Ratio Comparison

PZA has a 0.28% expense ratio, which is higher than VNJTX's 0.17% expense ratio.

Dividends

PZA vs. VNJTX - Dividend Comparison

PZA's dividend yield for the trailing twelve months is around 3.63%, more than VNJTX's 3.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VNJTX Vanguard New Jersey Long-Term Tax-Exempt Fund Investor Shares	3.59%	4.42%	3.97%	3.26%	3.14%	2.84%	3.71%	4.06%	3.93%	4.03%	4.51%	3.70%

Frequently Asked Questions

Can I hold both PZA and VNJTX in my portfolio?

PZA and VNJTX 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.

Which is riskier, PZA or VNJTX?

PZA has higher volatility (1.47%) compared to VNJTX (1.14%). In terms of maximum drawdown, PZA dropped -24.49% vs VNJTX's -15.71%.

Which has better risk-adjusted returns?

VNJTX currently has the higher Sharpe Ratio (2.69 vs 2.18), 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.