PZA ETF: What Is It? — Total Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
An ETF issued by Invesco that tracks U.S. national investment-grade long-term municipal bonds with maturities of 15 years or longer, with income exempt from federal taxes and the alternative minimum tax.
SubscribeWhat is this ETF?
It follows an index tracking U.S. investment-grade municipal bonds with remaining maturities of 15 years or longer, investing in approximately 160 bonds. Interest income is exempt from both federal income tax and the alternative minimum tax.
For high-income taxpayers seeking long-term tax-exempt interest income who can tolerate price volatility from interest-rate changes
This is a passive (index-tracking) ETF launched by Invesco in 2007.
How does it invest?
| Item | Details |
|---|---|
| Tracking Index | ICE BofA National Long-Term Core Plus AMT-Free Muni Index |
| Management Style | Passive (Index Tracking) |
| Minimum Remaining Maturity | 15 years or longer |
| Tax Benefits | Dual exemption from federal tax and alternative minimum tax |
| Total Expense Ratio | 0.28% |
It focuses on long-term investment-grade municipal bonds with remaining maturities of 15 years or longer to pursue high federal-tax-exempt interest income. Holdings are concentrated mainly in general obligation bonds and essential-service revenue bonds, and due to the long-duration nature, the fund is sensitive to interest-rate movements.
- Unlike intermediate-term blended muni ETFs such as MUB and VTEB, it focuses exclusively on 15-year-plus long-duration bonds to pursue higher interest income
- Dual exemption from federal tax and the alternative minimum tax maximizes after-tax real returns for high-income taxpayers
Size and Costs
Assets under management (AUM) stand at $4.0B, with a total expense ratio of 0.28% annually.
MUB and VTEB blend munis of various maturities, resulting in lower interest-rate risk but also lower yields. JMUB and CGMU are actively managed or broad-market muni ETFs, while CMF is a California-state-specific muni ETF.
Performance and Flows
1-Year Price Performance
Dividend & Yield
52-Week Price RangeLong-term munis are highly sensitive to interest-rate changes, and price declines during rate-hiking periods are larger than those of short- or intermediate-term munis. Conversely, during rate-cutting cycles, the price-rally effect for long-duration bonds is particularly pronounced.
When demand for tax-exempt long-duration yield among high-tax-bracket taxpayers coincides with rate-cut expectations, inflows into long-term muni ETFs tend to increase. Tactical investors also pay attention, eyeing inflection points in the rate cycle.
Pros and Cons
Long-duration tax-exempt interest income is the strength, but high interest-rate sensitivity creates the risk of large price declines when rates rise.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
The MUB and VTEB shown in the table are broad-market muni ETFs blending various maturities, carrying lower interest-rate risk than PZA. JMUB is an actively managed muni ETF, and CMF is a California-specific ETF. If you prefer intermediate-term munis, ITM is worth comparing; for a focus on short-term tax-exempt bonds, consider SUB.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VTEB | Vanguard Tax-Exempt Bond ETF | $47.48 | -0.4% | $46.4B | 0.03% | 3.59% | -5.1% |
 MUB | iShares National Muni Bond ETF | $101.17 | -0.4% | $45.7B | 0.05% | 3.38% | -4.8% |
 JMUB | JPMorgan Municipal ETF | $47.77 | -0.6% | $8.3B | 0.18% | 3.81% | -5.3% |
 CGMU | Capital Group Municipal Income ETF | $26.06 | -0.5% | $6.7B | 0.27% | 3.52% | -4.4% |
 CMF | iShares California Muni Bond ETF | $54.05 | -0.6% | $4.7B | 0.08% | 3.12% | -5.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 NYT | New York Times Co | 0.00% | $63.83 | +1.2% | $10.3B | 26.6 | 1.42% |
| NYT | New York Times Co | 0.00% | $63.83 | +1.2% | $10.3B | 26.6 | 1.42% |
| NYT | New York Times Co | 0.00% | $63.83 | +1.2% | $10.3B | 26.6 | 1.42% |
| NYT | New York Times Co | 0.00% | $63.83 | +1.2% | $10.3B | 26.6 | 1.42% |
| NYT | New York Times Co | 0.00% | $63.83 | +1.2% | $10.3B | 26.6 | 1.42% |
 NJR | New Jersey Resources Corp | 0.00% | $50.61 | -0.9% | $5.1B | 14.0 | 3.8% |
| NJR | New Jersey Resources Corp | 0.00% | $50.61 | -0.9% | $5.1B | 14.0 | 3.8% |
 OBT | Orange County Bancorp Inc | 0.00% | $37.82 | +1.2% | $507.1M | 10.7 | 1.8% |
 ESBA | Empire State Realty OP LP | 0.00% | $4.00 | +0.0% | $1.1B | 222.2 | 3.5% |
 ESRT | Empire State Realty Trust Inc | 0.00% | $4.11 | -1.2% | $711.6M | 228.3 | 3.41% |
Investor Checklist
PZA is a long-term muni ETF suited to high-income taxpayers seeking to maximize tax-exempt interest income. Review the items below to confirm alignment with your investment objectives.
| Checklist Item | What to Verify | Current Status |
|---|---|---|
| 💵 Tax-equivalent yield | Calculate tax-equivalent yield using your personal tax rate and compare against taxable bonds | Favorable for high-tax-bracket taxpayers |
| 📊 Interest-rate direction check | Confirm that the long-duration concentration makes the fund highly sensitive to rate changes | Large price declines when rates rise |
| ⚡ Duration awareness | Check your current portfolio duration to understand the interest-rate sensitivity of held bonds | Duration in the 8–12 year range |
| 🔄 Comparison with MUB | Compare expense ratio and maturity composition against broad-market muni ETFs such as MUB and VTEB | 0.28% vs. low-cost competitors |
When rates rise, the long-duration nature can produce very large price drops. Muni-market liquidity is lower than that of Treasuries, making selling difficult during abrupt market events, while the high expense ratio erodes long-term returns.
PZA suits high-income taxpayers pursuing long-term tax-exempt interest income, but its high interest-rate sensitivity makes forecasting the rate direction important. Compare against intermediate-term blended muni ETFs such as MUB and VTEB and allocate in line with the duration strategy within your bond portfolio.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of September 3, 2026.
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