SCHQ vs. ZROZ
SCHQ (Schwab Long-Term U.S. Treasury ETF) and ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) are both Government Bonds funds - SCHQ tracks the Bloomberg U.S. Long Treasury Index while ZROZ tracks the ICE BofA Long U.S. Treasury Principal STRIPS Index. Both are passively managed. Over the past 5 years, SCHQ returned -5.16%/yr vs -11.30%/yr for ZROZ. With a 0.98 correlation, they move nearly in lockstep. SCHQ charges 0.03%/yr vs 0.15%/yr for ZROZ.
Performance
SCHQ vs. ZROZ - Performance Comparison
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Returns By Period
In the year-to-date period, SCHQ achieves a 1.69% return, which is significantly lower than ZROZ's 3.17% return.
SCHQ
- 1D
- -0.06%
- 1M
- 2.69%
- YTD
- 1.69%
- 6M
- 1.02%
- 1Y
- 4.58%
- 3Y*
- -0.40%
- 5Y*
- -5.16%
- 10Y*
- —
ZROZ
- 1D
- -0.20%
- 1M
- 5.75%
- YTD
- 3.17%
- 6M
- 1.28%
- 1Y
- 3.97%
- 3Y*
- -6.88%
- 5Y*
- -11.30%
- 10Y*
- -4.40%
SCHQ vs. ZROZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
SCHQ Schwab Long-Term U.S. Treasury ETF | 1.69% | 5.50% | -6.44% | 3.43% | -29.44% | -4.86% | 17.73% | -4.20% |
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | 3.17% | -1.84% | -16.18% | 1.19% | -41.28% | -5.22% | 24.57% | -7.88% |
Correlation
The correlation between SCHQ and ZROZ is 0.97 - 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 | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since Oct 10, 2019 | 0.98 |
The correlation between SCHQ and ZROZ has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.
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Return for Risk
SCHQ vs. ZROZ — Risk / Return Rank
SCHQ
ZROZ
SCHQ vs. ZROZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Long-Term U.S. Treasury ETF (SCHQ) 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.
| SCHQ | ZROZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.28 | ||
| Sortino ratioReturn per unit of downside risk | +0.35 | ||
| Omega ratioGain probability vs. loss probability | 1.09 | 1.05 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 0.66 | 0.28 | +0.37 |
| Martin ratioReturn relative to average drawdown | 1.61 | 0.62 | +0.99 |
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Drawdowns
SCHQ vs. ZROZ - Drawdown Comparison
The maximum SCHQ drawdown since its inception was -46.13%, smaller than the maximum ZROZ drawdown of -62.93%. Use the drawdown chart below to compare losses from any high point for SCHQ and ZROZ.
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Drawdown Indicators
| SCHQ | ZROZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.13% | -62.93% | +16.80% |
Max Drawdown (1Y)Largest decline over 1 year | -7.01% | -14.02% | +7.01% |
Max Drawdown (3Y)Largest decline over 3 years | -17.65% | -28.62% | +10.97% |
Max Drawdown (5Y)Largest decline over 5 years | -40.93% | -57.98% | +17.05% |
Max Drawdown (10Y)Largest decline over 10 years | — | -62.93% | — |
Current DrawdownCurrent decline from peak | -35.47% | -58.21% | +22.74% |
Average DrawdownAverage peak-to-trough decline | -26.44% | -24.16% | -2.28% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.85% | 6.42% | -3.57% |
Volatility
SCHQ vs. ZROZ - Volatility Comparison
The current volatility for Schwab Long-Term U.S. Treasury ETF (SCHQ) is 2.29%, while PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a volatility of 4.00%. This indicates that SCHQ 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
| SCHQ | ZROZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.29% | 4.00% | -1.71% |
Volatility (6M)Calculated over the trailing 6-month period | 6.17% | 10.93% | -4.76% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.70% | 15.83% | -7.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.49% | 23.84% | -9.35% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.28% | 22.04% | -6.76% |
SCHQ vs. ZROZ - Expense Ratio Comparison
SCHQ has a 0.03% expense ratio, which is lower than ZROZ's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
SCHQ vs. ZROZ - Dividend Comparison
SCHQ's dividend yield for the trailing twelve months is around 4.69%, less than ZROZ's 4.94% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHQ Schwab Long-Term U.S. Treasury ETF | 4.69% | 4.54% | 4.58% | 3.79% | 2.88% | 1.69% | 1.51% | 0.44% | 0.00% | 0.00% | 0.00% | 0.00% |
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | 4.94% | 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
With a correlation of 0.97, SCHQ 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.
ZROZ has higher volatility (4.00%) compared to SCHQ (2.29%). In terms of maximum drawdown, SCHQ dropped -46.13% vs ZROZ's -62.93%.
On 5-year performance, SCHQ leads with -5.16% vs -11.30% for ZROZ. On fees, SCHQ is cheaper at 0.03% per year. On volatility, SCHQ has been the lower-risk option at 2.29%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, SCHQ has performed better with a -5.16% return vs -11.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHQ is cheaper with a 0.03% expense ratio, compared with 0.15% for ZROZ.
ZROZ has the higher dividend yield at 4.94%, compared with 4.69% for SCHQ.
SCHQ tracks Bloomberg U.S. Long Treasury Index, while ZROZ tracks ICE BofA Long U.S. Treasury Principal STRIPS Index. They also come from different issuers: Charles Schwab and PIMCO. Their fees differ too: 0.03% for SCHQ and 0.15% for ZROZ.
SCHQ currently has the higher Sharpe Ratio (0.53 vs 0.25), 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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