PZA vs. VTEB
Compare and contrast key facts about Invesco National AMT-Free Municipal Bond ETF (PZA) and Vanguard Tax-Exempt Bond ETF (VTEB).
PZA and VTEB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. PZA is a passively managed fund by Invesco that tracks the performance of the BofA ML National Long-Term Core Plus Municipal Securities Index. It was launched on Oct 11, 2007. VTEB is a passively managed fund by Vanguard that tracks the performance of the S&P National AMT-Free Municipal Bond Index. It was launched on Aug 21, 2015. Both PZA and VTEB are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: PZA or VTEB.
Key characteristics
| PZA | VTEB | |
|---|---|---|
| YTD Return | -0.84% | -0.85% |
| 1Y Return | 4.68% | 3.44% |
| 3Y Return (Ann) | -1.67% | -0.78% |
| 5Y Return (Ann) | 0.80% | 1.22% |
| Sharpe Ratio | 0.65 | 0.70 |
| Daily Std Dev | 6.10% | 4.28% |
| Max Drawdown | -24.49% | -17.00% |
| Current Drawdown | -6.75% | -3.59% |
Correlation
The correlation between PZA and VTEB is 0.72, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
PZA vs. VTEB - Performance Comparison
The year-to-date returns for both stocks are quite close, with PZA having a -0.84% return and VTEB slightly lower at -0.85%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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PZA vs. VTEB - Expense Ratio Comparison
PZA has a 0.28% expense ratio, which is higher than VTEB's 0.05% expense ratio.
Risk-Adjusted Performance
PZA vs. VTEB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco National AMT-Free Municipal Bond ETF (PZA) and Vanguard Tax-Exempt Bond ETF (VTEB). 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.
Dividends
PZA vs. VTEB - Dividend Comparison
PZA's dividend yield for the trailing twelve months is around 3.04%, more than VTEB's 2.96% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PZA Invesco National AMT-Free Municipal Bond ETF | 3.04% | 2.91% | 2.68% | 2.34% | 2.44% | 2.81% | 3.19% | 3.04% | 3.23% | 3.59% | 3.96% | 4.27% |
VTEB Vanguard Tax-Exempt Bond ETF | 2.96% | 2.79% | 2.09% | 1.64% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% | 0.00% | 0.00% |
Drawdowns
PZA vs. VTEB - Drawdown Comparison
The maximum PZA drawdown since its inception was -24.49%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for PZA and VTEB. For additional features, visit the drawdowns tool.
Volatility
PZA vs. VTEB - Volatility Comparison
Invesco National AMT-Free Municipal Bond ETF (PZA) has a higher volatility of 0.90% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.84%. This indicates that PZA's price experiences larger fluctuations and is considered to be riskier than VTEB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.