VTEC vs. PZA
VTEC (Vanguard California Tax-Exempt Bond ETF) and PZA (Invesco National AMT-Free Municipal Bond ETF) are both Municipal Bonds funds - VTEC tracks the S&P California AMT-Free Municipal Bond Index while PZA tracks the BofA ML National Long-Term Core Plus Municipal Securities Index. Both are passively managed. Over the past year, VTEC returned 4.35% vs 6.61% for PZA. Their 0.77 correlation means they have sometimes moved together and sometimes differently. VTEC charges 0.08%/yr vs 0.28%/yr for PZA.
Performance
VTEC vs. PZA - Performance Comparison
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Returns By Period
In the year-to-date period, VTEC achieves a -0.07% return, which is significantly lower than PZA's 0.76% return.
VTEC
- 1D
- -0.07%
- 1M
- -1.73%
- 6M
- -0.76%
- YTD
- -0.07%
- 1Y
- 4.35%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 2.14%
PZA
- 1D
- -0.02%
- 1M
- -2.68%
- 6M
- 0.02%
- YTD
- 0.76%
- 1Y
- 6.61%
- 3Y*
- 2.52%
- 5Y*
- -0.50%
- 10Y*
- 1.60%
- ALL TIME*
- 3.12%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $37.18M | $30.60M | $27.57M | |
| $29.98M | $33.04M | $31.95M |
VTEC vs. PZA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
VTEC Vanguard California Tax-Exempt Bond ETF | -0.07% | 3.98% | 1.48% |
PZA Invesco National AMT-Free Municipal Bond ETF | 0.76% | 1.81% | 1.85% |
Correlation
The correlation between VTEC and PZA is 0.78, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.78 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2024 | 0.77 |
The correlation between VTEC and PZA has been stable across timeframes, ranging from 0.77 to 0.78 - a consistent structural relationship.
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Return for Risk
VTEC vs. PZA — Risk / Return Rank
VTEC
PZA
VTEC vs. PZA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard California Tax-Exempt Bond ETF (VTEC) and Invesco National AMT-Free Municipal Bond ETF (PZA). 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.
| VTEC | PZA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.07 | ||
| Sortino ratioReturn per unit of downside risk | +0.15 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.39 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.78 | 2.38 | -0.60 |
| Martin ratioReturn relative to average drawdown | 5.53 | 8.15 | -2.62 |
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Drawdowns
VTEC vs. PZA - Drawdown Comparison
The maximum VTEC drawdown since its inception was -4.50%, smaller than the maximum PZA drawdown of -24.49%. Use the drawdown chart below to compare losses from any high point for VTEC and PZA.
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Drawdown Indicators
| VTEC | PZA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -4.50% | -24.49% | +19.99% |
Max Drawdown (1Y)Largest decline over 1 year | -2.85% | -3.18% | +0.33% |
Max Drawdown (3Y)Largest decline over 3 years | — | -7.74% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -18.40% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -21.69% | — |
Current DrawdownCurrent decline from peak | -1.85% | -2.75% | +0.90% |
Average DrawdownAverage peak-to-trough decline | -1.10% | -3.93% | +2.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.93% | -0.01% |
Volatility
VTEC vs. PZA - Volatility Comparison
The current volatility for Vanguard California Tax-Exempt Bond ETF (VTEC) is 0.85%, while Invesco National AMT-Free Municipal Bond ETF (PZA) has a volatility of 1.32%. This indicates that VTEC experiences smaller price fluctuations and is considered to be less risky than PZA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTEC | PZA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.85% | 1.32% | -0.47% |
Volatility (6M)Calculated over the trailing 6-month period | 2.06% | 3.18% | -1.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.71% | 4.19% | -1.48% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.69% | 6.03% | -2.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.69% | 7.09% | -3.40% |
VTEC vs. PZA - Expense Ratio Comparison
VTEC has a 0.08% expense ratio, which is lower than PZA's 0.28% expense ratio.
Dividends
VTEC vs. PZA - Dividend Comparison
VTEC's dividend yield for the trailing twelve months is around 3.19%, less than PZA's 3.77% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PZA Invesco National AMT-Free Municipal Bond ETF | 3.77% | 3.55% | 3.22% | 2.91% | 2.68% | 2.34% | 2.44% | 2.81% | 3.19% | 3.04% | 3.23% | 3.59% |
VTEC Vanguard California Tax-Exempt Bond ETF | 2.95% | 3.13% | 2.54% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
VTEC and PZA have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PZA has higher volatility (1.32%) compared to VTEC (0.85%). In terms of maximum drawdown, VTEC dropped -4.50% vs PZA's -24.49%.
On 1-year performance, PZA leads with 6.61% vs 4.35% for VTEC. On fees, VTEC is cheaper at 0.08% per year. On volatility, VTEC has been the lower-risk option at 0.85%. 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 6.61% return vs 4.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTEC is cheaper with a 0.08% expense ratio, compared with 0.28% for PZA.
PZA has the higher dividend yield at 3.77%, compared with 2.95% for VTEC.
VTEC tracks S&P California AMT-Free Municipal Bond Index, while PZA tracks BofA ML National Long-Term Core Plus Municipal Securities Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.08% for VTEC and 0.28% for PZA.
VTEC currently has the higher Sharpe Ratio (1.88 vs 1.81), 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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