LFDR vs. ZROZ

Last updated Jun 24, 2026

LFDR (LifeX Durable Income ETF) and ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) are both Government Bonds funds. LFDR is actively managed, while ZROZ is passively managed. Over the past year, LFDR returned 3.55% vs 4.12% for ZROZ. With a 0.96 correlation, they move nearly in lockstep. LFDR charges 0.25%/yr vs 0.15%/yr for ZROZ.

Performance

LFDR vs. ZROZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LifeX Durable Income ETF (LFDR) 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, LFDR achieves a 0.50% return, which is significantly lower than ZROZ's 3.38% return.

LFDR

• 1D: 0.14%
• 1M: 1.95%
• YTD: 0.50%
• 6M: 0.33%
• 1Y: 3.55%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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%

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

LFDR vs. ZROZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
LFDR LifeX Durable Income ETF	0.50%	4.82%	-1.64%
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund	3.38%	-1.84%	-4.61%

Correlation

The correlation between LFDR and ZROZ is 0.96 - 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	0.96
Correlation (All Time) Calculated using the full available price history since Dec 16, 2024	0.96

The correlation between LFDR and ZROZ has been stable across timeframes, ranging from 0.96 to 0.96 - a consistent structural relationship.

Return for Risk

LFDR vs. ZROZ — Risk / Return Rank

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

LFDR

LFDR Risk / Return Rank: 15
LFDR Sharpe Ratio Rank: 16
LFDR Sortino Ratio Rank: 14
LFDR Omega Ratio Rank: 14
LFDR Calmar Ratio Rank: 15
LFDR Martin Ratio Rank: 15

ZROZ

ZROZ Risk / Return Rank: 12
ZROZ Sharpe Ratio Rank: 13
ZROZ Sortino Ratio Rank: 12
ZROZ Omega Ratio Rank: 11
ZROZ Calmar Ratio Rank: 12
ZROZ Martin Ratio Rank: 12

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.

LFDR vs. ZROZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LifeX Durable Income ETF (LFDR) 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.

	LFDR	ZROZ	Difference
Sharpe ratio: Return per unit of total volatility	0.44	0.26	+0.18
Sortino ratio: Return per unit of downside risk	0.69	0.49	+0.20
Omega ratio: Gain probability vs. loss probability	1.08	1.05	+0.02
Calmar ratio: Return relative to maximum drawdown	0.53	0.29	+0.23
Martin ratio: Return relative to average drawdown	1.32	0.64	+0.67

LFDR vs. ZROZ - Sharpe Ratio Comparison

The current LFDR Sharpe Ratio is 0.44, which is higher than the ZROZ Sharpe Ratio of 0.26. The chart below compares the historical Sharpe Ratios of LFDR 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

LFDR vs. ZROZ - Drawdown Comparison

The maximum LFDR drawdown since its inception was -7.77%, smaller than the maximum ZROZ drawdown of -62.93%. Use the drawdown chart below to compare losses from any high point for LFDR and ZROZ.

Drawdown Indicators

	LFDR	ZROZ	Difference
Max Drawdown Largest peak-to-trough decline	-7.77%	-62.93%	+55.16%
Max Drawdown (1Y) Largest decline over 1 year	-6.75%	-14.02%	+7.27%
Max Drawdown (3Y) Largest decline over 3 years	—	-28.62%	—
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	-3.27%	-58.13%	+54.86%
Average Drawdown Average peak-to-trough decline	-2.97%	-24.16%	+21.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.70%	6.41%	-3.71%

Volatility

LFDR vs. ZROZ - Volatility Comparison

The current volatility for LifeX Durable Income ETF (LFDR) is 1.93%, while PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a volatility of 4.01%. This indicates that LFDR 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

	LFDR	ZROZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.93%	4.01%	-2.08%
Volatility (6M) Calculated over the trailing 6-month period	5.83%	10.93%	-5.10%
Volatility (1Y) Calculated over the trailing 1-year period	8.15%	15.88%	-7.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.53%	23.85%	-14.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.53%	22.04%	-12.51%

LFDR vs. ZROZ - Expense Ratio Comparison

LFDR 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

LFDR vs. ZROZ - Dividend Comparison

LFDR's dividend yield for the trailing twelve months is around 8.20%, more than ZROZ's 4.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LFDR LifeX Durable Income ETF	8.20%	13.10%	0.00%	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	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

Can I hold both LFDR and ZROZ in my portfolio?

With a correlation of 0.96, LFDR 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, LFDR or ZROZ?

ZROZ has higher volatility (4.01%) compared to LFDR (1.93%). In terms of maximum drawdown, LFDR dropped -7.77% vs ZROZ's -62.93%.

Which ETF is better, LFDR or ZROZ?

On 1-year performance, ZROZ leads with 4.12% vs 3.55% for LFDR. On fees, ZROZ is cheaper at 0.15% per year. On volatility, LFDR has been the lower-risk option at 1.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LFDR or ZROZ?

Over the 1-year period, ZROZ has performed better with a 4.12% return vs 3.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LFDR or ZROZ?

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

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

LFDR has the higher dividend yield at 8.20%, compared with 4.93% for ZROZ.

What is the main difference between LFDR and ZROZ?

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

Which has better risk-adjusted returns?

LFDR currently has the higher Sharpe Ratio (0.44 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.