MFDX vs. ZROZ

Last updated Jun 4, 2026

MFDX (PIMCO RAFI Dynamic Multi-Factor International Equity ETF) and ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) are both exchange-traded funds - MFDX is a Foreign Large Cap Equities fund tracking the RAFI Dynamic Multi-Factor Developed Ex-U.S. Index, while ZROZ is a Government Bonds fund tracking the ICE BofA Long U.S. Treasury Principal STRIPS Index. Both are passively managed. Over the past 5 years, MFDX returned 9.92%/yr vs -11.62%/yr for ZROZ. At a correlation of -0.04, they often move in opposite directions. MFDX charges 0.39%/yr vs 0.15%/yr for ZROZ.

Performance

MFDX vs. ZROZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO RAFI Dynamic Multi-Factor International Equity ETF (MFDX) 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, MFDX achieves a 9.73% return, which is significantly higher than ZROZ's -1.07% return.

MFDX

• 1D: -0.55%
• 1M: 2.31%
• YTD: 9.73%
• 6M: 12.33%
• 1Y: 23.13%
• 3Y*: 18.62%
• 5Y*: 9.92%
• 10Y*: —

ZROZ

• 1D: -0.48%
• 1M: 1.55%
• YTD: -1.07%
• 6M: -4.36%
• 1Y: 3.89%
• 3Y*: -7.39%
• 5Y*: -11.62%
• 10Y*: -4.15%

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

MFDX vs. ZROZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MFDX PIMCO RAFI Dynamic Multi-Factor International Equity ETF	9.73%	34.27%	4.40%	17.54%	-10.27%	11.07%	6.90%	19.88%	-14.88%	7.02%
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund	-1.07%	-1.84%	-16.18%	1.19%	-41.28%	-5.22%	24.57%	21.22%	-5.43%	2.12%

Correlation

The correlation between MFDX and ZROZ is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.12
Correlation (All Time) Calculated using the full available price history since Sep 7, 2017	-0.04

The correlation between MFDX and ZROZ shifts across timeframes, from -0.04 (all time) to 0.31 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

MFDX vs. ZROZ — Risk / Return Rank

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

MFDX

MFDX Risk / Return Rank: 48
MFDX Sharpe Ratio Rank: 48
MFDX Sortino Ratio Rank: 48
MFDX Omega Ratio Rank: 48
MFDX Calmar Ratio Rank: 44
MFDX Martin Ratio Rank: 51

ZROZ

ZROZ Risk / Return Rank: 12
ZROZ Sharpe Ratio Rank: 12
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.

MFDX vs. ZROZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO RAFI Dynamic Multi-Factor International Equity ETF (MFDX) 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.

	MFDX	ZROZ	Difference
Sharpe ratio: Return per unit of total volatility	1.70	0.24	+1.46
Sortino ratio: Return per unit of downside risk	2.38	0.47	+1.91
Omega ratio: Gain probability vs. loss probability	1.31	1.05	+0.26
Calmar ratio: Return relative to maximum drawdown	2.18	0.28	+1.90
Martin ratio: Return relative to average drawdown	8.66	0.64	+8.02
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MFDX vs. ZROZ - Sharpe Ratio Comparison

The current MFDX Sharpe Ratio is 1.70, which is higher than the ZROZ Sharpe Ratio of 0.24. The chart below compares the historical Sharpe Ratios of MFDX 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.

Sharpe Ratios by Period

	MFDX	ZROZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.70	0.24	+1.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.66	-0.49	+1.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	-0.19	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.09	+0.45

Drawdowns

MFDX vs. ZROZ - Drawdown Comparison

The maximum MFDX drawdown since its inception was -36.05%, smaller than the maximum ZROZ drawdown of -62.93%. Use the drawdown chart below to compare losses from any high point for MFDX and ZROZ.

Drawdown Indicators

	MFDX	ZROZ	Difference
Max Drawdown Largest peak-to-trough decline	-36.05%	-62.93%	+26.88%
Max Drawdown (1Y) Largest decline over 1 year	-10.66%	-14.02%	+3.36%
Max Drawdown (3Y) Largest decline over 3 years	-11.62%	-28.62%	+17.00%
Max Drawdown (5Y) Largest decline over 5 years	-25.58%	-57.98%	+32.40%
Max Drawdown (10Y) Largest decline over 10 years	—	-62.93%	—
Current Drawdown Current decline from peak	-1.84%	-59.93%	+58.09%
Average Drawdown Average peak-to-trough decline	-6.50%	-24.04%	+17.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.68%	6.12%	-3.44%

Volatility

MFDX vs. ZROZ - Volatility Comparison

PIMCO RAFI Dynamic Multi-Factor International Equity ETF (MFDX) and PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) have volatilities of 4.45% and 4.46%, 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.

Volatility by Period

	MFDX	ZROZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.45%	4.46%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	11.34%	10.54%	+0.80%
Volatility (1Y) Calculated over the trailing 1-year period	13.73%	16.25%	-2.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.03%	23.90%	-8.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.41%	22.06%	-5.65%

MFDX vs. ZROZ - Expense Ratio Comparison

MFDX has a 0.39% expense ratio, which is higher than ZROZ's 0.15% expense ratio.

Dividends

MFDX vs. ZROZ - Dividend Comparison

MFDX's dividend yield for the trailing twelve months is around 2.79%, less than ZROZ's 5.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MFDX PIMCO RAFI Dynamic Multi-Factor International Equity ETF	2.79%	2.97%	3.16%	3.12%	2.85%	2.99%	1.58%	2.88%	2.13%	0.71%	0.00%	0.00%
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund	5.15%	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 MFDX and ZROZ in my portfolio?

MFDX and ZROZ have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MFDX or ZROZ?

ZROZ has higher volatility (4.46%) compared to MFDX (4.45%). In terms of maximum drawdown, MFDX dropped -36.05% vs ZROZ's -62.93%.

Which ETF is better, MFDX or ZROZ?

On 5-year performance, MFDX leads with 9.92% vs -11.62% for ZROZ. On fees, ZROZ is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MFDX or ZROZ?

Over the 5-year period, MFDX has performed better with a 9.92% return vs -11.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MFDX or ZROZ?

ZROZ is cheaper with a 0.15% expense ratio, compared with 0.39% for MFDX.

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

ZROZ has the higher dividend yield at 5.15%, compared with 2.79% for MFDX.

What is the main difference between MFDX and ZROZ?

MFDX is categorized as Foreign Large Cap Equities, while ZROZ is Government Bonds. MFDX tracks RAFI Dynamic Multi-Factor Developed Ex-U.S. Index, while ZROZ tracks ICE BofA Long U.S. Treasury Principal STRIPS Index. Their fees differ too: 0.39% for MFDX and 0.15% for ZROZ.

Which has better risk-adjusted returns?

MFDX currently has the higher Sharpe Ratio (1.70 vs 0.24), 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.