At a glance
PZT charges 0.28% a year, below the 0.39% average of the 7 funds most like it (the 3rd cheapest of 8). It has $141.4M in assets, the 8th largest of that group; it paid 4.03% of its price in distributions over the past 12 months, monthly. Over the past year it returned −2.7% with distributions reinvested, 7th of those 8 funds; over three years it returned +3.9% a year. At its worst it fell 16.5% in the 2020 crash (S&P 500: 33.7%) and 16.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 45 months after the lows. Its ten largest positions make up 8.5% of the fund, out of 1,312 in all.
The short version
Invesco New York AMT-Free Municipal Bond ETF (PZT) holds long-term, investment-grade New York municipal bonds and tracks the ICE BofA New York Long-Term Core Plus Municipal Securities Index. Its interest is designed to be free of federal income tax and the alternative minimum tax. Two things set it apart: it buys bonds from a single state, and its bonds are long. They averaged 22.8 years to maturity as of August 31, 2026, so its price moves more when interest rates change.
Price history
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PZT -2.7% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| PZT official prospectus, to Dec 31, 2024 | — | +1.31% | — | +0.66% | +2.27% | — |
| PZT price data to Oct 27, 2026 | -2.3% | -2.7% | +3.9% | -0.9% | +1.5% | +2.7% |
- Over the year to Oct 27, 2026, PZT returned -2.7%, 7th of 8 among similar funds.
- Its 5-year annualized return was -0.9% and its 10-year +1.5%.
- In the 2020 COVID crash it fell 16.5% and regained its old high 4.4 months after the low.
- Its worst full calendar year was 2008 (-13.6%); its best was 2009 (+17.5%).
- The deepest fall in its price history was 22.7% (Jan 16, 2008 to Oct 16, 2008), recovered by Sep 18, 2009.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -2.3% | — |
| 2025 | +1.7% | — |
| 2024 | +1.1% | +1.31% |
| 2023 | +7.5% | +7.80% |
| 2022 | -13.0% | -13.01% |
| 2021 | +2.6% | +2.52% |
| 2020 | +6.0% | +6.10% |
| 2019 | +9.6% | +8.81% |
| 2018 | -0.5% | +0.23% |
| 2017 | +6.2% | +5.82% |
| 2016 | +1.6% | +1.06% |
| 2015 | +2.9% | +3.82% |
| 2014 | +15.7% | — |
| 2013 | -6.8% | — |
| 2012 | +7.1% | — |
| 2011 | +12.9% | — |
| 2010 | -0.1% | — |
| 2009 | +17.5% | — |
| 2008 | -13.6% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 15.4% over that stretch · deepest drop along the way 16.5%, back to its old high 4.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 15.4% over that stretch · deepest drop along the way 16.6%, back to its old high 45 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7100 | |
| 2025 | $0.7600 | +13.4% |
| 2024 | $0.6700 | +4.7% |
| 2023 | $0.6400 | +6.7% |
| 2022 | $0.6000 | -16.7% |
| 2021 | $0.7200 | +5.9% |
| 2020 | $0.6800 | -4.2% |
| 2019 | $0.7100 | -2.7% |
| 2018 | $0.7300 | +1.4% |
| 2017 | $0.7200 | -8.9% |
| 2016 | $0.7900 | -4.8% |
| 2015 | $0.8300 | -9.8% |
| 2014 | $0.9200 | -2.1% |
| 2013 | $0.9400 | -6.9% |
| 2012 | $1.0100 | -1.0% |
| 2011 | $1.0200 | -4.7% |
| 2010 | $1.0700 | +0.9% |
| 2009 | $1.0600 | +1.9% |
| 2008 | $1.0400 |
What's inside
As of Aug 31, 2026, the fund held 1,312 securities; the ten largest made up 8.51% of assets.
| Holding | Weight | |
|---|---|---|
| New York (State of) Dormitory Authority Bonds and notes | 1.72% | |
| Hudson Yards Infrastructure Corp. Bonds and notes | 0.89% | |
| New York (State of) Dormitory Authority (Northwell Health Obligated Group) Bonds and notes | 0.85% | |
| Battery Park City Authority Bonds and notes | 0.78% | |
| New York (State of) Power Authority (Green Bonds) Bonds and notes | 0.77% | |
| New York (State of) Dormitory Authority (Northwell Health Obligated Group) Bonds and notes | 0.71% | |
| New York (State of) Power Authority (Green Bonds) Bonds and notes | 0.71% | |
| New York Liberty Development Corp. (Green Bonds) Bonds and notes | 0.71% | |
| Monroe County Industrial Development Corp. (University of Rochester) Bonds and notes | 0.68% | |
| New York Liberty Development Corp. Bonds and notes | 0.68% | |
| Hudson Yards Infrastructure Corp. Bonds and notes | 0.66% | |
| Hudson Yards Infrastructure Corp. Bonds and notes | 0.62% | |
| New York (State of) Dormitory Authority Bonds and notes | 0.62% | |
| New York (State of) Dormitory Authority (White Plains Hospital Obligated Group) Bonds and notes | 0.59% | |
| New York Liberty Development Corp. (Bank of America Tower at One Bryant Park) Bonds and notes | 0.59% |
By country
United States 98.67%By issuer
Municipalities 98.67%The bonds mature in 22.8 years on average (weighted by size), with an average coupon of 4.55%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $11.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.20%, -2.51%, -0.76%.
How it works
PZT tries to match the ICE BofA New York Long-Term Core Plus Municipal Securities Index, which ICE Data Indices builds and maintains. A municipal bond is a loan to a state, city or public agency. To join the index, a bond must be issued by New York, a U.S. territory or one of their agencies. It must be tax-exempt and free of the federal alternative minimum tax (AMT). It also needs at least 15 years left to final maturity, a fixed interest rate and at least $25 million outstanding per maturity. It must be investment grade, based on an average of its S&P, Moody's and Fitch ratings.
The index had 1,409 bonds as of October 31, 2025. The fund doesn't buy all of them. Instead it uses "sampling," which means holding a representative subset. It held 1,312 positions as of August 31, 2026, and it invests at least 80% of its total assets in index bonds. Because it follows the index rather than picking bonds, it generally won't sell a weak bond unless the index drops it. Portfolio turnover was 20%.
The fund is "non-diversified," so it is allowed to put more money into a few issuers. Even so, its 10 largest positions made up just 8.51% of assets as of August 31, 2026. Its bonds averaged 22.8 years to maturity and paid an average coupon (interest rate) of 4.55%. Callable bonds may be paid off early when rates fall.
What it really costs
- PZT charges 0.28% a year, versus an average of 0.39% for the similar funds below (3rd 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).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PZT | $29 | $90 | $157 | $355 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
PZT pays monthly income from New York municipal bonds, and that interest is designed to be free of federal tax and the AMT, but its long maturities make it less steady than a defensive holding.
PZT's trailing 12-month yield was 4.03%, or $0.85 per share, as of October 27, 2026. It pays monthly. Annual expenses are 0.28%. Under the SEC's standard example, that's $29 in the first year and $355 over 10 years on a $10,000 investment. The trade-off is price risk. From January to October 2008 the fund fell 22.7% and took about 11 months to recover. It lost 13.6% in calendar 2008. In March 2020 it dropped 16.5% in two weeks and recovered within about four months. The 2022 bear market cut 16.6%, and recovery took about 45 months, until June 30, 2026. Selling shares for cash during a stretch like that would lock in losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- New York residents in higher tax brackets who want monthly income designed to be free of federal income tax and the AMT.
- Holders who accept long-maturity bonds, averaging 22.8 years as of August 31, 2026, and the bigger price swings that come with them.
- Cost-conscious investors: its 0.28% expense ratio is below the 0.39% average of similar municipal bond funds.
Look elsewhere if
- Investors outside New York, who can get the same long-maturity approach at the same 0.28% cost in the national PZA, a $4.2 billion fund.
- Anyone who may need to sell within a few years: after its 16.6% drop in 2022, the fund took about 45 months to recover.
- People investing through IRAs or other tax-deferred accounts, where tax-exempt interest adds no extra benefit.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| PZT this fund | 22.8 yrs | 0.28% | $141.4M | -2.7% | +3.9% |
| PZA Invesco National AMT-Free Municipal Bond ETF | 22.5 yrs | 0.28% | $4.24B | -2.7% | +3.8% |
| HYMB SPDR Nuveen Bloomberg High Yield Municipal … | 20.5 yrs | 0.35% | $3.09B | -0.5% | +5.6% |
| FMHI First Trust Municipal High Income ETF | 20.2 yrs | 0.7% | $994.3M | +0.2% | +5.8% |
| HYD VanEck High Yield Muni ETF | 19.2 yrs | 0.32% | $4.43B | +0.9% | +5.5% |
| FMB First Trust Managed Municipal ETF | 15.5 yrs | 0.65% | $2.05B | 0.0% | +4.3% |
| TFI SPDR Nuveen Bloomberg Municipal Bond ETF | 15.1 yrs | 0.23% | $3.12B | -0.8% | +3.9% |
| JMUB JPMorgan Municipal ETF | 16.7 yrs | 0.18% | $8.75B | -0.2% | +4.4% |
Questions investors ask
Does PZT pay monthly dividends?
Yes. PZT pays income monthly. Over the 12 months to October 27, 2026, it paid $0.85 per share, a trailing yield of 4.03%. The payments come from interest on the New York municipal bonds it holds, which averaged a 4.55% coupon as of August 31, 2026. Payments can rise or fall as bonds mature, get called early or are replaced with lower-yielding bonds.
What's the difference between PZT and PZA?
Both are Invesco AMT-free municipal bond ETFs. They charge the same 0.28% and hold similarly long bonds, averaging 22.8 years for PZT and 22.5 years for PZA. The main difference is geography. PZT holds New York bonds, while PZA buys bonds from across the country. PZA is much larger, with about $4.2 billion in net assets against PZT's $141 million. As of October 27, 2026, both returned -2.7% over one year.
Is PZT interest tax-free in New York?
Mostly, by design. PZT's bonds pay interest that is exempt from federal income tax and the federal alternative minimum tax. For New York residents, interest from in-state municipal bonds is generally exempt from state income tax as well. The prospectus warns there's no guarantee, though: a bond can later be ruled taxable, even back to its issue date. Some index bonds come from U.S. territories. Profits from selling shares are still taxable.
Why did PZT lose money in 2022?
Rising interest rates. Bond prices fall when rates rise, and long-term bonds fall the most. PZT returned -13.01% in 2022, according to its prospectus. Its worst quarter on record was the first quarter of 2022, at -7.87%. From January 3 to September 29, 2022, it fell 16.6%. The fund didn't get back to its earlier high until June 30, 2026, about 45 months later.
How has PZT performed over 10 years?
Modestly. Its prospectus shows an average annual return of 2.27% for the 10 years to December 31, 2024, 0.66% over five years and 1.31% over one year. Based on prices through October 27, 2026, its 10-year return was 1.5% a year and its five-year return was -0.9% a year. The 2022 loss dragged both down. Strong years included 2019, up 8.81%, and 2023, up 7.80%.