PVI vs SUB

PVICInvesco Floating Rate Municipal Income ETF

SUBAiShares Short-Term National Muni Bond ETF

In short

PVI Most short-muni funds own short bonds. PVI owns muni floaters: VRDOs whose rates reset as often as weekly and can be tendered back at par. A tax-exempt parking spot that has been running since 2007.

SUB Munis, but only the near end of the curve. Since 2008 SUB has tracked an AMT-free index of investment-grade municipal bonds maturing inside five years, paying tax-exempt income monthly with far less rate sensitivity than long-dated muni funds.

Stated mandate

PVI The fund generally invests at least 80% of its assets in U.S.-dollar, tax-exempt variable-rate demand obligations, providing exposure to the municipal bond market.

SUB The fund seeks to track an index of short-term, investment-grade U.S. municipal bonds maturing from one month through five years, providing tax-exempt income while managing interest-rate risk.

Why people hold it

• PVI Built on AMT-free tax-exempt VRDOs. Rates reset daily, weekly or monthly and holders can put the notes back at par, keeping rate sensitivity at the front of the curve.invesco.commsrb.org
• Running since 2007 and it sticks to the script: at least 80% of assets in the VRDOs of its ICE AMT-Free index, roughly 150 positions.invesco.com
• Pays monthly, and the index screens out bonds whose interest is subject to the alternative minimum tax.invesco.com

• SUB Charges 0.07% a year against a category median near 0.30%. On tax-exempt bond income, that fee gap is a meaningful slice of what actually reaches you.
• Two dials set on purpose: maturities from one month to five years, and an AMT-free index, so neither rate swings nor the alternative minimum tax hit the same way.ishares.com
• A multi-billion-dollar fund running since 2008 under iShares, with tight tracking of its ICE benchmark. One of the sturdier implementations in the muni group.
• Pays monthly, so the tax-exempt income arrives on a regular cadence rather than in quarterly lumps.

Worth knowing

• PVI At 0.25% it matches the typical short-muni fund, but index rivals undercut it: VTES and TAXS charge 0.05%.
• Small asset base and light trading, so spreads can run wider than the household-name muni ETFs.
• The put feature leans on bank liquidity providers. Invesco flags that a thin secondary market for some variable-rate notes could make them hard to sell.invesco.commsrb.org

• SUB The five-year ceiling is the whole design, and it cuts both ways: less rate sensitivity, but a shorter stretch of the curve to draw income from than full-maturity muni funds.
• This is a national portfolio. Single-state funds like NYF chase a home-state tax break that a nationwide muni basket cannot offer.
• Broad-maturity peers VTEB and SCMB run at 0.03%. The short-end tilt here costs a few basis points more.

Full PVI profile⁠

Full SUB profile⁠