PZT vs. SCMB

Last updated Jun 4, 2026

PZT (Invesco New York AMT-Free Municipal Bond ETF) and SCMB (Schwab Municipal Bond ETF) are both Municipal Bonds funds - PZT tracks the ICE BofA New York Long-Term Core Plus Muni while SCMB tracks the ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, PZT returned 3.35%/yr vs 3.37%/yr for SCMB. A 0.69 correlation means they provide meaningful diversification when combined. PZT charges 0.28%/yr vs 0.03%/yr for SCMB.

Performance

PZT vs. SCMB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco New York AMT-Free Municipal Bond ETF (PZT) and Schwab Municipal Bond ETF (SCMB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PZT achieves a 2.87% return, which is significantly higher than SCMB's 1.07% return.

PZT

• 1D: -0.31%
• 1M: 1.38%
• YTD: 2.87%
• 6M: 3.17%
• 1Y: 9.52%
• 3Y*: 3.35%
• 5Y*: -0.03%
• 10Y*: 1.90%

SCMB

• 1D: -0.12%
• 1M: 0.60%
• YTD: 1.07%
• 6M: 1.55%
• 1Y: 6.86%
• 3Y*: 3.37%
• 5Y*: —
• 10Y*: —

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

PZT vs. SCMB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
PZT Invesco New York AMT-Free Municipal Bond ETF	2.87%	1.76%	1.17%	7.57%	3.08%
SCMB Schwab Municipal Bond ETF	1.07%	3.78%	0.91%	5.86%	3.05%

Correlation

The correlation between PZT and SCMB is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (All Time) Calculated using the full available price history since Oct 13, 2022	0.69

The correlation between PZT and SCMB shifts across timeframes, from 0.56 (1 year) to 0.69 (all time), reflecting how their relationship changes across market environments.

Return for Risk

PZT vs. SCMB — Risk / Return Rank

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

PZT

PZT Risk / Return Rank: 61
PZT Sharpe Ratio Rank: 60
PZT Sortino Ratio Rank: 60
PZT Omega Ratio Rank: 66
PZT Calmar Ratio Rank: 61
PZT Martin Ratio Rank: 58

SCMB

SCMB Risk / Return Rank: 64
SCMB Sharpe Ratio Rank: 70
SCMB Sortino Ratio Rank: 75
SCMB Omega Ratio Rank: 81
SCMB Calmar Ratio Rank: 47
SCMB Martin Ratio Rank: 47

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.

PZT vs. SCMB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco New York AMT-Free Municipal Bond ETF (PZT) and Schwab Municipal Bond ETF (SCMB). 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.

	PZT	SCMB	Difference
Sharpe ratio Return per unit of total volatility	2.02	2.34	-0.32
Sortino ratio Return per unit of downside risk	2.82	3.45	-0.63
Omega ratio Gain probability vs. loss probability	1.40	1.50	-0.09
Calmar ratio Return relative to maximum drawdown	3.02	2.36	+0.65
Martin ratio Return relative to average drawdown	10.29	7.89	+2.40
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PZT vs. SCMB - Sharpe Ratio Comparison

The current PZT Sharpe Ratio is 2.02, which is comparable to the SCMB Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of PZT and SCMB, 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

	PZT	SCMB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.02	2.34	-0.32
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	0.37	0.97	-0.60

Drawdowns

PZT vs. SCMB - Drawdown Comparison

The maximum PZT drawdown since its inception was -22.73%, which is greater than SCMB's maximum drawdown of -6.13%. Use the drawdown chart below to compare losses from any high point for PZT and SCMB.

Drawdown Indicators

	PZT	SCMB	Difference
Max Drawdown Largest peak-to-trough decline	-22.73%	-6.13%	-16.60%
Max Drawdown (1Y) Largest decline over 1 year	-3.17%	-2.92%	-0.25%
Max Drawdown (3Y) Largest decline over 3 years	-9.00%	-5.57%	-3.43%
Max Drawdown (5Y) Largest decline over 5 years	-19.13%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-19.13%	—	—
Current Drawdown Current decline from peak	-1.42%	-0.87%	-0.55%
Average Drawdown Average peak-to-trough decline	-3.91%	-1.32%	-2.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.93%	0.87%	+0.06%

Volatility

PZT vs. SCMB - Volatility Comparison

Invesco New York AMT-Free Municipal Bond ETF (PZT) has a higher volatility of 2.10% compared to Schwab Municipal Bond ETF (SCMB) at 1.04%. This indicates that PZT's price experiences larger fluctuations and is considered to be riskier than SCMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PZT	SCMB	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.10%	1.04%	+1.06%
Volatility (6M) Calculated over the trailing 6-month period	3.45%	2.17%	+1.28%
Volatility (1Y) Calculated over the trailing 1-year period	4.75%	2.94%	+1.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.62%	4.16%	+2.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.96%	4.16%	+2.80%

PZT vs. SCMB - Expense Ratio Comparison

PZT has a 0.28% expense ratio, which is higher than SCMB's 0.03% expense ratio.

Dividends

PZT vs. SCMB - Dividend Comparison

PZT's dividend yield for the trailing twelve months is around 3.58%, more than SCMB's 3.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PZT Invesco New York AMT-Free Municipal Bond ETF	3.58%	3.43%	3.04%	2.82%	2.66%	2.77%	2.55%	2.73%	3.01%	2.94%	3.36%	3.40%
SCMB Schwab Municipal Bond ETF	3.54%	3.36%	3.34%	3.10%	0.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PZT and SCMB in my portfolio?

PZT and SCMB have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PZT or SCMB?

PZT has higher volatility (2.10%) compared to SCMB (1.04%). In terms of maximum drawdown, PZT dropped -22.73% vs SCMB's -6.13%.

Which ETF is better, PZT or SCMB?

On 3-year performance, SCMB leads with 3.37% vs 3.35% for PZT. On fees, SCMB is cheaper at 0.03% per year. On volatility, SCMB has been the lower-risk option at 1.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PZT or SCMB?

Over the 3-year period, SCMB has performed better with a 3.37% return vs 3.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PZT or SCMB?

SCMB is cheaper with a 0.03% expense ratio, compared with 0.28% for PZT.

Which ETF pays a higher dividend yield, PZT or SCMB?

PZT has the higher dividend yield at 3.58%, compared with 3.54% for SCMB.

What is the main difference between PZT and SCMB?

PZT tracks ICE BofA New York Long-Term Core Plus Muni, while SCMB tracks ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross. They also come from different issuers: Invesco and Charles Schwab. Their fees differ too: 0.28% for PZT and 0.03% for SCMB.

Which has better risk-adjusted returns?

SCMB currently has the higher Sharpe Ratio (2.34 vs 2.02), 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.