GOVZ vs. ZROZ
GOVZ (iShares 25+ Year Treasury STRIPS Bond ETF) and ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) are both Government Bonds funds - GOVZ tracks the ICE BofA Long US Treasury Principal STRIPS Index while ZROZ tracks the ICE BofA Long U.S. Treasury Principal STRIPS Index. Both are passively managed. Over the past 5 years, GOVZ returned -11.12%/yr vs -11.21%/yr for ZROZ. With a 0.99 correlation, they move nearly in lockstep. Both charge a 0.15% expense ratio.
Performance
GOVZ vs. ZROZ - Performance Comparison
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Returns By Period
In the year-to-date period, GOVZ achieves a -0.44% return, which is significantly higher than ZROZ's -0.59% return.
GOVZ
- 1D
- 0.45%
- 1M
- 0.87%
- YTD
- -0.44%
- 6M
- -3.52%
- 1Y
- 4.32%
- 3Y*
- -7.28%
- 5Y*
- -11.12%
- 10Y*
- —
ZROZ
- 1D
- 0.45%
- 1M
- 0.90%
- YTD
- -0.59%
- 6M
- -3.61%
- 1Y
- 4.38%
- 3Y*
- -7.24%
- 5Y*
- -11.21%
- 10Y*
- -4.11%
GOVZ vs. ZROZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | -0.44% | -1.81% | -16.24% | 0.90% | -41.03% | -4.86% | -5.61% |
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | -0.59% | -1.84% | -16.18% | 1.19% | -41.28% | -5.22% | -5.64% |
Correlation
The correlation between GOVZ and ZROZ is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.99 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.99 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Sep 25, 2020 | 0.99 |
The correlation between GOVZ and ZROZ has been stable across timeframes, ranging from 0.99 to 0.99 - a consistent structural relationship.
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Return for Risk
GOVZ vs. ZROZ — Risk / Return Rank
GOVZ
ZROZ
GOVZ vs. ZROZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) 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.
| GOVZ | ZROZ | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 0.27 | 0.27 | 0.00 |
Sortino ratioReturn per unit of downside risk | 0.50 | 0.51 | -0.01 |
Omega ratioGain probability vs. loss probability | 1.06 | 1.06 | 0.00 |
Calmar ratioReturn relative to maximum drawdown | 0.18 | 0.19 | -0.01 |
Martin ratioReturn relative to average drawdown | 0.42 | 0.44 | -0.01 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| GOVZ | ZROZ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.27 | 0.27 | 0.00 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.47 | -0.47 | 0.00 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | -0.19 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.58 | 0.09 | -0.67 |
Drawdowns
GOVZ vs. ZROZ - Drawdown Comparison
The maximum GOVZ drawdown since its inception was -59.65%, smaller than the maximum ZROZ drawdown of -62.93%. Use the drawdown chart below to compare losses from any high point for GOVZ and ZROZ.
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Drawdown Indicators
| GOVZ | ZROZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.65% | -62.93% | +3.28% |
Max Drawdown (1Y)Largest decline over 1 year | -14.16% | -14.02% | -0.14% |
Max Drawdown (3Y)Largest decline over 3 years | -28.72% | -28.62% | -0.10% |
Max Drawdown (5Y)Largest decline over 5 years | -57.63% | -57.98% | +0.35% |
Max Drawdown (10Y)Largest decline over 10 years | — | -62.93% | — |
Current DrawdownCurrent decline from peak | -56.25% | -59.74% | +3.49% |
Average DrawdownAverage peak-to-trough decline | -39.90% | -24.03% | -15.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.19% | 6.09% | +0.10% |
Volatility
GOVZ vs. ZROZ - Volatility Comparison
iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) and PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) have volatilities of 4.47% and 4.59%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| GOVZ | ZROZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.47% | 4.59% | -0.12% |
Volatility (6M)Calculated over the trailing 6-month period | 10.66% | 10.70% | -0.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.34% | 16.32% | +0.02% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.93% | 23.90% | +0.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.36% | 22.06% | +1.30% |
GOVZ vs. ZROZ - Expense Ratio Comparison
Both GOVZ and ZROZ have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
GOVZ vs. ZROZ - Dividend Comparison
GOVZ's dividend yield for the trailing twelve months is around 5.15%, which matches ZROZ's 5.12% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 5.15% | 5.00% | 4.68% | 3.84% | 3.69% | 1.76% | 0.39% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | 5.12% | 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
With a correlation of 0.99, GOVZ and ZROZ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
ZROZ has higher volatility (4.59%) compared to GOVZ (4.47%). In terms of maximum drawdown, GOVZ dropped -59.65% vs ZROZ's -62.93%.
On 5-year performance, GOVZ leads with -11.12% vs -11.21% for ZROZ. Both ETFs have the same 0.15% expense ratio. On volatility, GOVZ has been the lower-risk option at 4.47%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, GOVZ has performed better with a -11.12% return vs -11.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVZ and ZROZ have the same expense ratio: 0.15% per year.
GOVZ has the higher dividend yield at 5.15%, compared with 5.12% for ZROZ.
GOVZ tracks ICE BofA Long US Treasury Principal STRIPS Index, while ZROZ tracks ICE BofA Long U.S. Treasury Principal STRIPS Index. They also come from different issuers: iShares and PIMCO.
ZROZ currently has the higher Sharpe Ratio (0.27 vs 0.27), 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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