AGZ vs. ZROZ
AGZ (iShares Agency Bond ETF) and ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) are both Government Bonds funds - AGZ tracks the Bloomberg U.S. Agency Bond Index (USD) while ZROZ tracks the ICE BofA Long U.S. Treasury Principal STRIPS Index. Both are passively managed. Over the past 10 years, AGZ returned 1.82%/yr vs -3.96%/yr for ZROZ. A 0.65 correlation means they provide meaningful diversification when combined. AGZ charges 0.20%/yr vs 0.15%/yr for ZROZ.
Performance
AGZ vs. ZROZ - Performance Comparison
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Returns By Period
In the year-to-date period, AGZ achieves a 0.66% return, which is significantly lower than ZROZ's 3.38% return. Over the past 10 years, AGZ has outperformed ZROZ with an annualized return of 1.82%, while ZROZ has yielded a comparatively lower -3.96% annualized return.
AGZ
- 1D
- 0.26%
- 1M
- 0.62%
- YTD
- 0.66%
- 6M
- 0.66%
- 1Y
- 3.65%
- 3Y*
- 4.29%
- 5Y*
- 1.29%
- 10Y*
- 1.82%
ZROZ
- 1D
- 2.17%
- 1M
- 6.83%
- YTD
- 3.38%
- 6M
- 1.48%
- 1Y
- 4.12%
- 3Y*
- -6.82%
- 5Y*
- -11.27%
- 10Y*
- -3.96%
AGZ vs. ZROZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AGZ iShares Agency Bond ETF | 0.66% | 6.05% | 3.08% | 5.18% | -7.77% | -1.05% | 5.77% | 5.51% | 1.32% | 2.01% |
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | 3.38% | -1.84% | -16.18% | 1.19% | -41.28% | -5.22% | 24.57% | 21.22% | -5.43% | 14.77% |
Correlation
The correlation between AGZ and ZROZ is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.65 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.70 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.71 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.72 |
Correlation (All Time) Calculated using the full available price history since Nov 4, 2009 | 0.65 |
The correlation between AGZ and ZROZ has been stable across timeframes, ranging from 0.65 to 0.72 - a consistent structural relationship.
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Return for Risk
AGZ vs. ZROZ — Risk / Return Rank
AGZ
ZROZ
AGZ vs. ZROZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Agency Bond ETF (AGZ) and PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| AGZ | ZROZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.17 | ||
| Sortino ratioReturn per unit of downside risk | +1.69 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.05 | +0.21 |
| Calmar ratioReturn relative to maximum drawdown | 2.71 | 0.29 | +2.41 |
| Martin ratioReturn relative to average drawdown | 8.49 | 0.64 | +7.85 |
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Drawdowns
AGZ vs. ZROZ - Drawdown Comparison
The maximum AGZ drawdown since its inception was -11.01%, smaller than the maximum ZROZ drawdown of -62.93%. Use the drawdown chart below to compare losses from any high point for AGZ and ZROZ.
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Drawdown Indicators
| AGZ | ZROZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -11.01% | -62.93% | +51.92% |
Max Drawdown (1Y)Largest decline over 1 year | -1.35% | -14.02% | +12.67% |
Max Drawdown (3Y)Largest decline over 3 years | -1.85% | -28.62% | +26.77% |
Max Drawdown (5Y)Largest decline over 5 years | -10.66% | -57.98% | +47.32% |
Max Drawdown (10Y)Largest decline over 10 years | -11.01% | -62.93% | +51.92% |
Current DrawdownCurrent decline from peak | -0.29% | -58.13% | +57.84% |
Average DrawdownAverage peak-to-trough decline | -1.61% | -24.16% | +22.55% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.43% | 6.41% | -5.98% |
Volatility
AGZ vs. ZROZ - Volatility Comparison
The current volatility for iShares Agency Bond ETF (AGZ) is 0.70%, while PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a volatility of 4.01%. This indicates that AGZ experiences smaller price fluctuations and is considered to be less risky than ZROZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AGZ | ZROZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.70% | 4.01% | -3.31% |
Volatility (6M)Calculated over the trailing 6-month period | 1.97% | 10.93% | -8.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.55% | 15.88% | -13.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.55% | 23.85% | -20.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.03% | 22.04% | -19.01% |
AGZ vs. ZROZ - Expense Ratio Comparison
AGZ has a 0.20% expense ratio, which is higher than ZROZ's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
AGZ vs. ZROZ - Dividend Comparison
AGZ's dividend yield for the trailing twelve months is around 3.71%, less than ZROZ's 4.93% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGZ iShares Agency Bond ETF | 3.71% | 3.75% | 3.48% | 3.14% | 1.56% | 0.96% | 2.25% | 2.32% | 2.15% | 1.58% | 1.52% | 1.30% |
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | 4.93% | 4.96% | 4.58% | 3.52% | 2.76% | 1.60% | 1.68% | 2.22% | 2.06% | 2.53% | 3.00% | 2.98% |
Frequently Asked Questions
AGZ and ZROZ have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ZROZ has higher volatility (4.01%) compared to AGZ (0.70%). In terms of maximum drawdown, AGZ dropped -11.01% vs ZROZ's -62.93%.
On 10-year performance, AGZ leads with 1.82% vs -3.96% for ZROZ. On fees, ZROZ is cheaper at 0.15% per year. On volatility, AGZ has been the lower-risk option at 0.70%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, AGZ has performed better with a 1.82% return vs -3.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ZROZ is cheaper with a 0.15% expense ratio, compared with 0.20% for AGZ.
ZROZ has the higher dividend yield at 4.93%, compared with 3.71% for AGZ.
AGZ tracks Bloomberg U.S. Agency Bond Index (USD), while ZROZ tracks ICE BofA Long U.S. Treasury Principal STRIPS Index. They also come from different issuers: iShares and PIMCO. Their fees differ too: 0.20% for AGZ and 0.15% for ZROZ.
AGZ currently has the higher Sharpe Ratio (1.44 vs 0.26), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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