LFAO vs. ZROZ

Last updated Jul 11, 2026

LFAO (LifeX 2055 Longevity Income ETF) and ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) are both Government Bonds funds. LFAO is actively managed, while ZROZ is passively managed. Over the past year, LFAO returned 2.89% vs 1.16% for ZROZ. Their correlation of 0.94 suggests significant overlap in exposure. LFAO charges 0.25%/yr vs 0.15%/yr for ZROZ.

Performance

LFAO vs. ZROZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LifeX 2055 Longevity Income ETF (LFAO) and PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LFAO achieves a -0.78% return, which is significantly higher than ZROZ's -2.28% return.

LFAO

• 1D: -0.07%
• 1M: -0.66%
• 6M: -1.26%
• YTD: -0.78%
• 1Y: 2.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

ZROZ

• 1D: 0.02%
• 1M: -2.17%
• 6M: -3.43%
• YTD: -2.28%
• 1Y: 1.16%
• 3Y*: -7.12%
• 5Y*: -13.08%
• 10Y*: -5.05%

*Multi-year figures are annualized to reflect compound growth (CAGR)

LFAO vs. ZROZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
LFAO LifeX 2055 Longevity Income ETF	-0.78%	5.65%	-8.36%
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund	-2.28%	-1.84%	-17.95%

Correlation

The correlation between LFAO and ZROZ is 0.94, 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	0.94
Correlation (All Time) Calculated using the full available price history since Sep 16, 2024	0.94

The correlation between LFAO and ZROZ has been stable across timeframes, ranging from 0.94 to 0.94 - a consistent structural relationship.

Return for Risk

LFAO vs. ZROZ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LFAO

LFAO Risk / Return Rank: 13
LFAO Sharpe Ratio Rank: 14
LFAO Sortino Ratio Rank: 13
LFAO Omega Ratio Rank: 12
LFAO Calmar Ratio Rank: 14
LFAO Martin Ratio Rank: 14

ZROZ

ZROZ Risk / Return Rank: 8
ZROZ Sharpe Ratio Rank: 9
ZROZ Sortino Ratio Rank: 8
ZROZ Omega Ratio Rank: 8
ZROZ Calmar Ratio Rank: 9
ZROZ Martin Ratio Rank: 8

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LFAO vs. ZROZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LifeX 2055 Longevity Income ETF (LFAO) 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.

	LFAO	ZROZ	Difference
Sharpe ratio: Return per unit of total volatility	0.29	-0.08	+0.37
Sortino ratio: Return per unit of downside risk	0.46	-0.00	+0.46
Omega ratio: Gain probability vs. loss probability	1.05	1.00	+0.05
Calmar ratio: Return relative to maximum drawdown	0.34	-0.09	+0.43
Martin ratio: Return relative to average drawdown	0.85	-0.19	+1.04

LFAO vs. ZROZ - Sharpe Ratio Comparison

The current LFAO Sharpe Ratio is 0.29, which is higher than the ZROZ Sharpe Ratio of -0.08. The chart below compares the historical Sharpe Ratios of LFAO and ZROZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LFAO vs. ZROZ - Drawdown Comparison

The maximum LFAO drawdown since its inception was -10.12%, smaller than the maximum ZROZ drawdown of -62.93%. Use the drawdown chart below to compare losses from any high point for LFAO and ZROZ.

Drawdown Indicators

	LFAO	ZROZ	Difference
Max Drawdown Largest peak-to-trough decline	-10.12%	-62.93%	+52.81%
Max Drawdown (1Y) Largest decline over 1 year	-5.86%	-14.02%	+8.16%
Max Drawdown (3Y) Largest decline over 3 years	—	-28.21%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-57.98%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-62.93%	—
Current Drawdown Current decline from peak	-4.01%	-60.42%	+56.41%
Average Drawdown Average peak-to-trough decline	-4.50%	-24.25%	+19.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.34%	6.57%	-4.23%

Volatility

LFAO vs. ZROZ - Volatility Comparison

The current volatility for LifeX 2055 Longevity Income ETF (LFAO) is 2.15%, while PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a volatility of 4.74%. This indicates that LFAO 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.

Volatility by Period

	LFAO	ZROZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.15%	4.74%	-2.59%
Volatility (6M) Calculated over the trailing 6-month period	5.18%	11.10%	-5.92%
Volatility (1Y) Calculated over the trailing 1-year period	6.89%	15.67%	-8.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.02%	23.81%	-15.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.02%	21.98%	-13.96%

LFAO vs. ZROZ - Expense Ratio Comparison

LFAO has a 0.25% 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

LFAO vs. ZROZ - Dividend Comparison

LFAO's dividend yield for the trailing twelve months is around 11.00%, more than ZROZ's 5.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LFAO LifeX 2055 Longevity Income ETF	11.00%	14.33%	1.64%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund	5.31%	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

Can I hold both LFAO and ZROZ in my portfolio?

With a correlation of 0.94, LFAO 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.

Which is riskier, LFAO or ZROZ?

ZROZ has higher volatility (4.74%) compared to LFAO (2.15%). In terms of maximum drawdown, LFAO dropped -10.12% vs ZROZ's -62.93%.

Which ETF is better, LFAO or ZROZ?

On 1-year performance, LFAO leads with 2.89% vs 1.16% for ZROZ. On fees, ZROZ is cheaper at 0.15% per year. On volatility, LFAO has been the lower-risk option at 2.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LFAO or ZROZ?

Over the 1-year period, LFAO has performed better with a 2.89% return vs 1.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LFAO or ZROZ?

ZROZ is cheaper with a 0.15% expense ratio, compared with 0.25% for LFAO.

Which ETF pays a higher dividend yield, LFAO or ZROZ?

LFAO has the higher dividend yield at 11.00%, compared with 5.31% for ZROZ.

What is the main difference between LFAO and ZROZ?

They also come from different issuers: Stone Ridge and PIMCO. Their fees differ too: 0.25% for LFAO and 0.15% for ZROZ.

Which has better risk-adjusted returns?

LFAO currently has the higher Sharpe Ratio (0.29 vs -0.08), 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.