PWZ vs VOO
Invesco California AMT-Free Municipal Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. PWZ offers more diversification with 1,175 holdings.
Side-by-Side Comparison
| Metric | PWZ | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.03% | |
| AUM | $1.2B | $997.4B | |
| Dividend Yield | 3.73% | 1.08% | |
| Holdings | 1,175 | 509 | |
| YTD Return | +1.00% | +12.68% | |
| 1Y Return | +7.67% | +21.87% | |
| 3Y Return (annualized) | +3.14% | +22.06% | |
| 5Y Return (annualized) | -0.18% | +12.95% | |
| Volatility (annualized) | 7.0% | 14.1% | |
| Max Drawdown | -24.7% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 11, 2007 | Sep 7, 2010 |
PWZ vs VOO Performance
Invesco California AMT-Free Municipal Bond ETF (PWZ) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PWZ returned +7.67% while VOO returned +21.87%. Year to date, PWZ is up 1.00% versus a gain of 12.68% for VOO.
Over three years, PWZ compounded at +3.14% per year against +22.06% for VOO; over five years the annualized figures are -0.18% and +12.95% respectively. Across the full 16-year window we track, VOO has the edge at +13.47% annualized vs +0.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 7.0% for PWZ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -24.7% for PWZ and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PWZ charges 0.28% per year while VOO charges 0.03%. On a $10,000 position that is $28 vs $3 annually, a gap of $25 per year that compounds over a long holding period. On income, PWZ currently yields 3.73% against 1.08% for VOO.
Holdings Overlap
PWZ and VOO share 0 holdings out of 1012 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PWZ or VOO?
PWZ has an expense ratio of 0.28% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, PWZ or VOO?
Over the past year PWZ returned +7.67% vs +21.87% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PWZ annualized +0.62% vs +13.47% for VOO. Past performance does not guarantee future results.
Which is riskier, PWZ or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 7.0% for PWZ. Worst drawdown: PWZ -24.7% vs VOO -34.3%.
Should I hold both PWZ and VOO?
PWZ and VOO have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PWZ and VOO?
PWZ and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1012 unique securities.
Which pays a higher dividend, PWZ or VOO?
PWZ yields 3.73% while VOO yields 1.08%, so PWZ currently pays the higher dividend yield.
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