Invesco National AMT-Free Municipal Bond ETF

Invesco National AMT-Free Municipal Bond ETF (PZA) holds investment-grade, tax-exempt municipal bonds with at least 15 years left to maturity, sampled from the ICE BofA National Long-Term Core Plus Municipal Securities Index. Its long maturities, averaging 22.6 years as of May 31, 2026, carry more interest-rate risk than broader muni funds such as VTEB. It paid a 4.02% trailing yield as of October 27, 2026, monthly, and charges 0.28% a year.

• Over the year to Oct 27, 2026, PZA returned -2.7%, 8th of 8 among similar funds.
• Its 5-year annualized return was -0.8% and its 10-year +1.4%.
• In the 2020 COVID crash it fell 21.7% and regained its old high 8.6 months after the low.
• Its worst full calendar year was 2022 (-13.2%); its best was 2009 (+17.6%).
• The deepest fall in its price history was 24.5% (Jan 17, 2008 to Oct 15, 2008), recovered by Sep 11, 2009.

As of Aug 31, 2026, the fund held 7,123 securities; the ten largest made up 1.03% of assets.

The bonds mature in 22.5 years on average (weighted by size), with an average coupon of 4.63%.

• Over the three months to Aug 31, 2026, investors added a net $213.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.17%, -2.41%, -0.68%.

PZA, from Invesco, aims to match the ICE BofA National Long-Term Core Plus Municipal Securities Index, before fees. The index, run by ICE Data Indices, holds tax-exempt bonds from US states, territories and local governments. Each bond must pay fixed interest, have at least 15 years left to maturity and at least $25 million outstanding per maturity, and be investment grade (lower-risk credit ratings) on average across S&P, Moody's and Fitch. Its interest must also be exempt from the federal alternative minimum tax (AMT), a parallel tax that can hit some higher earners.

The fund does not buy every bond in the index, which had 7,993 as of October 31, 2025. Instead it uses “sampling,” holding a representative slice, and keeps at least 80% of its assets in index bonds. As of August 31, 2026, it held 7,123 positions and no derivatives. No single bond matters much: the largest, a California Health Facilities Financing Authority bond for Kaiser Permanente, was about 0.13% of assets, and the top ten totaled 1.03%.

It generally doesn't sell a lagging bond unless the index drops it, so trading is light: turnover was 6%, per the prospectus filed December 18, 2025. The 15-year floor keeps maturities long, averaging 22.5 years as of August 31, 2026, so its price reacts strongly to interest-rate changes.

• PZA charges 0.28% a year, versus an average of 0.35% for the similar funds below (4th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $29 in the first year and $355 over 10 years (assuming a 5% annual return).

PZA's main draw is monthly interest that is generally exempt from federal income tax, from a broad spread of investment-grade, long-term munis.

In a taxable account, PZA could add monthly income that is mostly free of federal income tax. The trailing 12-month yield was 4.02% as of October 27, 2026. It costs 0.28% a year, or $29 in the first year and $355 over 10 years in the SEC's standard $10,000 example.

The long maturities hurt in bad years. The fund fell 24.5% in 2008 and took 10.9 months to recover. It dropped 21.7% in March 2020 and recovered by December. In the 2022 rate shock it fell 16.9%, lost 12.76% for the calendar year (its worst) and needed 44.8 months, until June 2026, to recover. Someone forced to sell shares during a slump like that would have locked in losses. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).