PRFD vs. ZROZ

Last updated Jun 4, 2026

PRFD (PIMCO Preferred And Capital Securities Active Exchange-Traded Fund) and ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) are both exchange-traded funds - PRFD is a Preferred Stock/Convertible Bonds fund actively managed by PIMCO, while ZROZ is a Government Bonds fund tracking the ICE BofA Long U.S. Treasury Principal STRIPS Index. PRFD is actively managed, while ZROZ is passively managed. Over the past 3 years, PRFD returned 9.23%/yr vs -7.39%/yr for ZROZ. A 0.52 correlation means they provide meaningful diversification when combined. PRFD charges 0.74%/yr vs 0.15%/yr for ZROZ.

Performance

PRFD vs. ZROZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO Preferred And Capital Securities Active Exchange-Traded Fund (PRFD) 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, PRFD achieves a 1.40% return, which is significantly higher than ZROZ's -1.07% return.

PRFD

• 1D: -0.20%
• 1M: 0.36%
• YTD: 1.40%
• 6M: 1.56%
• 1Y: 8.04%
• 3Y*: 9.23%
• 5Y*: —
• 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)

PRFD vs. ZROZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PRFD PIMCO Preferred And Capital Securities Active Exchange-Traded Fund	1.40%	8.45%	9.92%	1.83%
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund	-1.07%	-1.84%	-16.18%	-9.50%

Correlation

The correlation between PRFD and ZROZ is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.49
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (All Time) Calculated using the full available price history since Jan 20, 2023	0.52

The correlation between PRFD and ZROZ has been stable across timeframes, ranging from 0.49 to 0.57 - a consistent structural relationship.

Return for Risk

PRFD vs. ZROZ — Risk / Return Rank

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

PRFD

PRFD Risk / Return Rank: 69
PRFD Sharpe Ratio Rank: 77
PRFD Sortino Ratio Rank: 78
PRFD Omega Ratio Rank: 84
PRFD Calmar Ratio Rank: 50
PRFD Martin Ratio Rank: 58

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.

PRFD vs. ZROZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO Preferred And Capital Securities Active Exchange-Traded Fund (PRFD) 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.

	PRFD	ZROZ	Difference
Sharpe ratio Return per unit of total volatility	2.51	0.24	+2.27
Sortino ratio Return per unit of downside risk	3.51	0.47	+3.04
Omega ratio Gain probability vs. loss probability	1.51	1.05	+0.46
Calmar ratio Return relative to maximum drawdown	2.46	0.28	+2.18
Martin ratio Return relative to average drawdown	10.14	0.64	+9.50
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PRFD vs. ZROZ - Sharpe Ratio Comparison

The current PRFD Sharpe Ratio is 2.51, which is higher than the ZROZ Sharpe Ratio of 0.24. The chart below compares the historical Sharpe Ratios of PRFD 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

	PRFD	ZROZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.51	0.24	+2.27
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	-0.49	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	-0.19	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.31	0.09	+1.22

Drawdowns

PRFD vs. ZROZ - Drawdown Comparison

The maximum PRFD drawdown since its inception was -11.93%, smaller than the maximum ZROZ drawdown of -62.93%. Use the drawdown chart below to compare losses from any high point for PRFD and ZROZ.

Drawdown Indicators

	PRFD	ZROZ	Difference
Max Drawdown Largest peak-to-trough decline	-11.93%	-62.93%	+51.00%
Max Drawdown (1Y) Largest decline over 1 year	-3.28%	-14.02%	+10.74%
Max Drawdown (3Y) Largest decline over 3 years	-6.28%	-28.62%	+22.34%
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	-0.61%	-59.93%	+59.32%
Average Drawdown Average peak-to-trough decline	-2.23%	-24.04%	+21.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	6.12%	-5.33%

Volatility

PRFD vs. ZROZ - Volatility Comparison

The current volatility for PIMCO Preferred And Capital Securities Active Exchange-Traded Fund (PRFD) is 1.19%, while PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a volatility of 4.46%. This indicates that PRFD 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

	PRFD	ZROZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.19%	4.46%	-3.27%
Volatility (6M) Calculated over the trailing 6-month period	2.68%	10.54%	-7.86%
Volatility (1Y) Calculated over the trailing 1-year period	3.21%	16.25%	-13.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.88%	23.90%	-19.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.88%	22.06%	-17.18%

PRFD vs. ZROZ - Expense Ratio Comparison

PRFD has a 0.74% expense ratio, which is higher than ZROZ's 0.15% expense ratio.

Dividends

PRFD vs. ZROZ - Dividend Comparison

PRFD's dividend yield for the trailing twelve months is around 5.77%, more than ZROZ's 5.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PRFD PIMCO Preferred And Capital Securities Active Exchange-Traded Fund	5.77%	5.63%	5.53%	5.04%	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	5.15%	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 PRFD and ZROZ in my portfolio?

PRFD and ZROZ have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PRFD or ZROZ?

ZROZ has higher volatility (4.46%) compared to PRFD (1.19%). In terms of maximum drawdown, PRFD dropped -11.93% vs ZROZ's -62.93%.

Which ETF is better, PRFD or ZROZ?

On 3-year performance, PRFD leads with 9.23% vs -7.39% for ZROZ. On fees, ZROZ is cheaper at 0.15% per year. On volatility, PRFD has been the lower-risk option at 1.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PRFD or ZROZ?

Over the 3-year period, PRFD has performed better with a 9.23% return vs -7.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PRFD or ZROZ?

ZROZ is cheaper with a 0.15% expense ratio, compared with 0.74% for PRFD.

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

PRFD has the higher dividend yield at 5.77%, compared with 5.15% for ZROZ.

What is the main difference between PRFD and ZROZ?

PRFD is categorized as Preferred Stock/Convertible Bonds, while ZROZ is Government Bonds. Their fees differ too: 0.74% for PRFD and 0.15% for ZROZ.

Which has better risk-adjusted returns?

PRFD currently has the higher Sharpe Ratio (2.51 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.