STPZ vs. ZROZ

Last updated Jun 4, 2026

STPZ (PIMCO 1-5 Year US TIPS Index ETF) and ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) are both exchange-traded funds - STPZ is a Inflation-Protected Bonds fund tracking the ICE BofA US Inflation-Linked Treasury (1-5 Y), 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 10 years, STPZ returned 2.89%/yr vs -4.15%/yr for ZROZ. At a 0.36 correlation, their price movements are largely independent. STPZ charges 0.20%/yr vs 0.15%/yr for ZROZ.

Performance

STPZ vs. ZROZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO 1-5 Year US TIPS Index ETF (STPZ) 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, STPZ achieves a 1.79% return, which is significantly higher than ZROZ's -1.07% return. Over the past 10 years, STPZ has outperformed ZROZ with an annualized return of 2.89%, while ZROZ has yielded a comparatively lower -4.15% annualized return.

STPZ

• 1D: -0.00%
• 1M: -0.09%
• YTD: 1.79%
• 6M: 1.77%
• 1Y: 4.51%
• 3Y*: 5.03%
• 5Y*: 2.90%
• 10Y*: 2.89%

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)

STPZ vs. ZROZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
STPZ PIMCO 1-5 Year US TIPS Index ETF	1.79%	6.40%	4.30%	4.28%	-4.49%	5.64%	5.44%	4.83%	0.04%	0.51%
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%	14.77%

Correlation

The correlation between STPZ and ZROZ is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.42
Correlation (10Y) Calculated over the trailing 10-year period	0.40
Correlation (All Time) Calculated using the full available price history since Nov 5, 2009	0.36

The correlation between STPZ and ZROZ shifts across timeframes, from 0.36 (all time) to 0.51 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

STPZ vs. ZROZ — Risk / Return Rank

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

STPZ

STPZ Risk / Return Rank: 82
STPZ Sharpe Ratio Rank: 76
STPZ Sortino Ratio Rank: 86
STPZ Omega Ratio Rank: 80
STPZ Calmar Ratio Rank: 86
STPZ Martin Ratio Rank: 81

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.

STPZ vs. ZROZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO 1-5 Year US TIPS Index ETF (STPZ) 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.

	STPZ	ZROZ	Difference
Sharpe ratio: Return per unit of total volatility	2.49	0.24	+2.24
Sortino ratio: Return per unit of downside risk	3.94	0.47	+3.48
Omega ratio: Gain probability vs. loss probability	1.49	1.05	+0.43
Calmar ratio: Return relative to maximum drawdown	4.87	0.28	+4.59
Martin ratio: Return relative to average drawdown	16.28	0.64	+15.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

STPZ vs. ZROZ - Sharpe Ratio Comparison

The current STPZ Sharpe Ratio is 2.49, which is higher than the ZROZ Sharpe Ratio of 0.24. The chart below compares the historical Sharpe Ratios of STPZ 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

	STPZ	ZROZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.49	0.24	+2.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.89	-0.49	+1.38
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.97	-0.19	+1.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.90	0.09	+0.81

Drawdowns

STPZ vs. ZROZ - Drawdown Comparison

The maximum STPZ drawdown since its inception was -6.77%, smaller than the maximum ZROZ drawdown of -62.93%. Use the drawdown chart below to compare losses from any high point for STPZ and ZROZ.

Drawdown Indicators

	STPZ	ZROZ	Difference
Max Drawdown Largest peak-to-trough decline	-6.77%	-62.93%	+56.16%
Max Drawdown (1Y) Largest decline over 1 year	-0.93%	-14.02%	+13.09%
Max Drawdown (3Y) Largest decline over 3 years	-1.35%	-28.62%	+27.27%
Max Drawdown (5Y) Largest decline over 5 years	-6.70%	-57.98%	+51.28%
Max Drawdown (10Y) Largest decline over 10 years	-6.77%	-62.93%	+56.16%
Current Drawdown Current decline from peak	-0.11%	-59.93%	+59.82%
Average Drawdown Average peak-to-trough decline	-1.31%	-24.04%	+22.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.28%	6.12%	-5.84%

Volatility

STPZ vs. ZROZ - Volatility Comparison

The current volatility for PIMCO 1-5 Year US TIPS Index ETF (STPZ) is 0.46%, while PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a volatility of 4.46%. This indicates that STPZ 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

	STPZ	ZROZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.46%	4.46%	-4.00%
Volatility (6M) Calculated over the trailing 6-month period	1.20%	10.54%	-9.34%
Volatility (1Y) Calculated over the trailing 1-year period	1.83%	16.25%	-14.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.29%	23.90%	-20.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.98%	22.06%	-19.08%

STPZ vs. ZROZ - Expense Ratio Comparison

STPZ has a 0.20% 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

STPZ vs. ZROZ - Dividend Comparison

STPZ's dividend yield for the trailing twelve months is around 4.10%, less than ZROZ's 5.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
STPZ PIMCO 1-5 Year US TIPS Index ETF	4.10%	3.65%	1.97%	1.63%	5.88%	3.65%	1.86%	1.76%	2.23%	1.51%	0.65%	0.49%
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 STPZ and ZROZ in my portfolio?

STPZ and ZROZ have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, STPZ or ZROZ?

ZROZ has higher volatility (4.46%) compared to STPZ (0.46%). In terms of maximum drawdown, STPZ dropped -6.77% vs ZROZ's -62.93%.

Which ETF is better, STPZ or ZROZ?

On 10-year performance, STPZ leads with 2.89% vs -4.15% for ZROZ. On fees, ZROZ is cheaper at 0.15% per year. On volatility, STPZ has been the lower-risk option at 0.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, STPZ or ZROZ?

Over the 10-year period, STPZ has performed better with a 2.89% return vs -4.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, STPZ or ZROZ?

ZROZ is cheaper with a 0.15% expense ratio, compared with 0.20% for STPZ.

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

ZROZ has the higher dividend yield at 5.15%, compared with 4.10% for STPZ.

What is the main difference between STPZ and ZROZ?

STPZ is categorized as Inflation-Protected Bonds, while ZROZ is Government Bonds. STPZ tracks ICE BofA US Inflation-Linked Treasury (1-5 Y), while ZROZ tracks ICE BofA Long U.S. Treasury Principal STRIPS Index. Their fees differ too: 0.20% for STPZ and 0.15% for ZROZ.

Which has better risk-adjusted returns?

STPZ currently has the higher Sharpe Ratio (2.49 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.