IEF vs. ZROZ
IEF (iShares 7-10 Year Treasury Bond ETF) and ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) are both Government Bonds funds - IEF tracks the ICE U.S. Treasury 7-10 Year Bond Index while ZROZ tracks the ICE BofA Long U.S. Treasury Principal STRIPS Index. Both are passively managed. Over the past 10 years, IEF returned 0.59%/yr vs -3.96%/yr for ZROZ. Their correlation of 0.87 suggests significant overlap in exposure. Both charge a 0.15% expense ratio.
Performance
IEF vs. ZROZ - Performance Comparison
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Returns By Period
In the year-to-date period, IEF achieves a 0.11% return, which is significantly lower than ZROZ's 3.38% return. Over the past 10 years, IEF has outperformed ZROZ with an annualized return of 0.59%, while ZROZ has yielded a comparatively lower -3.96% annualized return.
IEF
- 1D
- 0.65%
- 1M
- 1.24%
- YTD
- 0.11%
- 6M
- -0.08%
- 1Y
- 3.32%
- 3Y*
- 2.81%
- 5Y*
- -1.00%
- 10Y*
- 0.59%
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%
IEF vs. ZROZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 0.11% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
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 IEF and ZROZ is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.82 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.87 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.87 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.88 |
Correlation (All Time) Calculated using the full available price history since Nov 4, 2009 | 0.87 |
The correlation between IEF and ZROZ has been stable across timeframes, ranging from 0.82 to 0.88 - a consistent structural relationship.
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Return for Risk
IEF vs. ZROZ — Risk / Return Rank
IEF
ZROZ
IEF vs. ZROZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 7-10 Year Treasury Bond ETF (IEF) 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.
| IEF | ZROZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.44 | ||
| Sortino ratioReturn per unit of downside risk | +0.58 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.05 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | 0.82 | 0.29 | +0.52 |
| Martin ratioReturn relative to average drawdown | 2.20 | 0.64 | +1.56 |
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Drawdowns
IEF vs. ZROZ - Drawdown Comparison
The maximum IEF drawdown since its inception was -23.93%, smaller than the maximum ZROZ drawdown of -62.93%. Use the drawdown chart below to compare losses from any high point for IEF and ZROZ.
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Drawdown Indicators
| IEF | ZROZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.93% | -62.93% | +39.00% |
Max Drawdown (1Y)Largest decline over 1 year | -4.07% | -14.02% | +9.95% |
Max Drawdown (3Y)Largest decline over 3 years | -7.74% | -28.62% | +20.88% |
Max Drawdown (5Y)Largest decline over 5 years | -21.40% | -57.98% | +36.58% |
Max Drawdown (10Y)Largest decline over 10 years | -23.93% | -62.93% | +39.00% |
Current DrawdownCurrent decline from peak | -10.66% | -58.13% | +47.47% |
Average DrawdownAverage peak-to-trough decline | -5.36% | -24.16% | +18.80% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.51% | 6.41% | -4.90% |
Volatility
IEF vs. ZROZ - Volatility Comparison
The current volatility for iShares 7-10 Year Treasury Bond ETF (IEF) is 1.54%, while PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a volatility of 4.01%. This indicates that IEF 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
| IEF | ZROZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.54% | 4.01% | -2.47% |
Volatility (6M)Calculated over the trailing 6-month period | 3.54% | 10.93% | -7.39% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.75% | 15.88% | -11.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.72% | 23.85% | -16.13% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.62% | 22.04% | -15.42% |
IEF vs. ZROZ - Expense Ratio Comparison
Both IEF 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
IEF vs. ZROZ - Dividend Comparison
IEF's dividend yield for the trailing twelve months is around 3.87%, less than ZROZ's 4.93% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.87% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
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
IEF and ZROZ have a correlation of 0.82, 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 IEF (1.54%). In terms of maximum drawdown, IEF dropped -23.93% vs ZROZ's -62.93%.
On 10-year performance, IEF leads with 0.59% vs -3.96% for ZROZ. Both ETFs have the same 0.15% expense ratio. On volatility, IEF has been the lower-risk option at 1.54%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IEF has performed better with a 0.59% return vs -3.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEF and ZROZ have the same expense ratio: 0.15% per year.
ZROZ has the higher dividend yield at 4.93%, compared with 3.87% for IEF.
IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while ZROZ tracks ICE BofA Long U.S. Treasury Principal STRIPS Index. They also come from different issuers: iShares and PIMCO.
IEF currently has the higher Sharpe Ratio (0.70 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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