Category Review
Municipal bond funds are down for the year after a third-quarter selloff erased the first-half gain
Invesco National AMT-Free Municipal Bond ETF
$21.50+0.19 (+0.89%)
- 0.28%
- $4.0B
- −4.7%
- 4.11%
- 2.2M sh
- $21.35
- low $21.07high $23.63
The ETF.net PZA Grade
A
Score 71 out of 100
- 16 of 63
Score 71 of 100 falls in the A band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.B61 out of 100Rank 22 of 63Mission
Whether the fund did what it promised, tested against its stated mandate.A95 out of 100Rank 18 of 59Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.D35 out of 100Rank 59 of 63Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.A73 out of 100Rank 10 of 63Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.A87 out of 100Rank 6 of 63Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.A88 out of 100Rank 5 of 63
Our read on PZA
AMost muni ETFs hand you the whole yield curve. PZA goes long on purpose: its index only takes bonds with at least 15 years left to maturity, all screened to stay out of the alternative minimum tax. Income lands monthly.
The fund seeks to track an index of tax-exempt municipal debt that is not subject to the alternative minimum tax.
Why people hold it
- The long-end specialist. The index takes only investment-grade munis with at least 15 years to final maturity, so duration is the design choice, not a leftover.invesco.com
- Holdings are screened to be AMT-free, aimed at filers who need tax-exempt interest that does not get pulled back in by the alternative minimum tax.invesco.com
- Trading since 2007, now a multi-billion-dollar fund that changes hands actively, with tracking that has stayed tight to its benchmark.
- Pays monthly, spreads across thousands of individual bonds, and the index is rebalanced and reconstituted every month.invesco.com
Worth knowing
- At 0.28% it sits just under the typical muni ETF, but broad-market rivals VTEB and SCMB charge 0.03%. The long-maturity focus is what carries the premium.
- Long bonds swing harder when rates move, in both directions. This is the most rate-sensitive stretch of the muni market, by construction.invesco.com
- The fund samples its index instead of buying every bond in it, so the portfolio can differ modestly from the benchmark it follows.invesco.com
PZA Holdings
- Bonds
- 7,336
- 2%
- USD Pending Dividends
PZA Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
PZA$9,528
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | PZA |
|---|---|
| Year to date | −5.5% |
| 1 month | −3.3% |
| 3 months | −8.2% |
| 1 year | −4.7% |
| 3 years | +2.0% |
| 5 years | −1.4% |
| 10 years | +1.1% |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | PZA |
|---|---|---|
| 2026 YTD | −5.5% | |
| 2025 | +1.8% | |
| 2024 | +0.8% | |
| 2023 | +8.6% | |
| 2022 | −13.2% | |
| 2021 | +2.4% | |
| 2020 | +5.1% |
PZA in the news
PZA Dividends
- 4.11%
- $0.88
- $0.07 per share
- Monthly
Distribution history
PZA Risk
- 7.7%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- −0.25
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −18.3%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 1.29
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
PZA Cost
0.28%
PZA0.28%
- The middle half of Other Municipal Bond funds
- Median 0.30%
22 of the 63 Other Municipal Bond funds charge less.
Other funds in Other Municipal Bond
- AFLMIFranklin Dynamic Municipal Bond ETFExpense ratio 0.30%1 year return −1.9%
- AFMUNFidelity Systematic Municipal Bond Index ETFExpense ratio 0.05%1 year return −2.6%
- BHMOPHartford Municipal Opportunities ETFExpense ratio 0.29%1 year return −1.6%
- BAVMUAvantis Core Municipal Fixed Income ETFExpense ratio 0.15%1 year return −2.5%
- BDFCADimensional - California Municipal Bond ETFExpense ratio 0.19%1 year return −1.6%