PZT vs VCRM

PZTCInvesco New York AMT-Free Municipal Bond ETF

VCRMAVanguard Core Tax-Exempt Bond E

In short

PZT One of the few ETFs built only for New York municipal bonds, and it fishes at the long end of the curve. Tracks a long-term New York muni index, aims for income exempt from federal tax and free of the AMT, and has been running since 2007.

VCRM Vanguard's active answer in a mostly-index category: managers working the whole muni curve for 0.12% a year, under half the muni ETF median fee. Monthly income, exempt from federal personal income taxes.

Stated mandate

PZT The Fund seeks current income exempt from federal income tax through a portfolio of New York municipal securities. It generally invests at least 80% of assets in municipal securities comprising its declared index.

VCRM The fund seeks total return through current income exempt from federal personal income taxes and capital appreciation.

Why people hold it

• PZT A single-state mandate with a clear job: New York municipal securities chosen to pay income exempt from federal tax, with the alternative minimum tax screened out.invesco.com
• The benchmark is a long-term New York muni index, so this is a deliberate long-maturity stance rather than a blended one.invesco.com
• Roughly 1,200 bonds, so no single New York issuer carries the portfolio. Income is paid monthly.
• At 0.28%, the fee sits a shade below the median for muni bond ETFs.

• VCRM Active management priced at 0.12% a year, less than half the 0.30% median for muni ETFs.
• Run by Vanguard's Fixed Income Group, with all-curve exposure to primarily high-quality investment-grade munis spread across sectors, states and credit tiers.prnewswire.com
• Pays monthly, with income the fund seeks to keep exempt from federal personal income taxes.vanguard.com
• Sticks tightly to its stated mandate and grades among the strongest implementations in its muni peer group.

Worth knowing

• PZT That 0.28% is still well above the cheapest New York option, iShares' NYF at 0.09%, and far above broad national muni funds priced near 0.03%.
• Trading is thin next to national muni ETFs, which tends to mean wider spreads on the way in and out.
• Two concentrations stack here: one state's credit and the long end of the maturity curve, where prices move more when rates do.

• VCRM You pay up for the manager: index peers VTEB and SCMB run at 0.03%, a quarter of VCRM's 0.12%.
• Launched in November 2024, so there is only a short record to judge the active mandate on.
• All-curve exposure puts longer maturities in the mix, so prices move with rates. And the exemption is federal: state treatment of a national muni fund depends on where you live.prnewswire.com

Full PZT profile⁠

Full VCRM profile⁠