Invesco National AMT-Free Municipal Bond ETF

PZA

Market cap $4.27B

One of the few downsides of passive income from stocks and bonds is that the income generated by those investments is subject to federal and state income tax.

For high earners hunting tax-free monthly income, the Invesco National AMT-Free Municipal Bond ETF (NYSEARCA:PZA) has become a reliable workhorse.

For decades, the playbook for high-income investors was almost reflexive: put municipal bonds in your taxable account, put Treasuries and corporates in your IRA.

A $75,000 salary sits at the top of the U.S. median household range, but for a retiree in a high federal and state bracket, replacing it with taxable income means earning much more before Uncle Sam takes his cut.

High-bracket retirees face a math problem that taxable bond funds cannot solve: every dollar of interest income gets taxed at the federal marginal rate, often layered with a state tax bite.

For investors in the top federal tax bracket, the Invesco National AMT-Free Municipal Bond ETF (NYSEARCA:PZA | PZA Price Prediction) offers something rare: a monthly paycheck the IRS cannot touch.

Pizza Pizza Royalty Corp. (PZA:CA) Q1 2026 Earnings Call Transcript

For investors in higher federal tax brackets, the headline yield on a municipal bond fund understates the real value of the income.

Pizza Pizza Royalty Corp. (PZA:CA) Q4 2025 Earnings Call Transcript

Invesco National AMT-Free Municipal Bond ETF (NYSEARCA:PZA) generates income by collecting interest from municipal bonds it holds.