TLT vs. ZROZ
TLT (iShares 20+ Year Treasury Bond ETF) and ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) are both Government Bonds funds - TLT tracks the ICE U.S. Treasury 20+ Year Bond Index while ZROZ tracks the ICE BofA Long U.S. Treasury Principal STRIPS Index. Both are passively managed. Over the past 10 years, TLT returned -2.29%/yr vs -5.18%/yr for ZROZ. Their 0.97 correlation means they have historically moved very closely together. Both charge a 0.15% expense ratio.
Performance
TLT vs. ZROZ - Performance Comparison
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Returns By Period
In the year-to-date period, TLT achieves a -2.32% return, which is significantly higher than ZROZ's -4.54% return. Over the past 10 years, TLT has outperformed ZROZ with an annualized return of -2.29%, while ZROZ has yielded a comparatively lower -5.18% annualized return.
TLT
- 1D
- 0.10%
- 1M
- -4.34%
- 6M
- -3.18%
- YTD
- -2.32%
- 1Y
- 0.71%
- 3Y*
- -2.31%
- 5Y*
- -7.83%
- 10Y*
- -2.29%
- ALL TIME*
- 3.52%
ZROZ
- 1D
- -0.08%
- 1M
- -7.48%
- 6M
- -5.79%
- YTD
- -4.54%
- 1Y
- -2.09%
- 3Y*
- -8.48%
- 5Y*
- -13.83%
- 10Y*
- -5.18%
- ALL TIME*
- 1.87%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $1.69B | $1.83B | $2.10B | |
| $43.12M | $46.45M | $39.14M |
TLT vs. ZROZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | -2.32% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | -4.54% | -1.84% | -16.18% | 1.19% | -41.28% | -5.22% | 24.57% | 21.22% | -5.43% | 14.77% |
Correlation
The correlation between TLT and ZROZ is 0.98 - they have historically moved very closely together. At this level, their price movements offset little of one another.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.98 |
Correlation (3Y) Balances recent behavior with more history. | 0.99 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.99 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.98 |
Correlation (All Time) Calculated using the full available price history since Nov 4, 2009 | 0.97 |
The correlation between TLT and ZROZ has been stable across timeframes, ranging from 0.97 to 0.99 - a consistent structural relationship.
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Return for Risk
TLT vs. ZROZ — Risk / Return Rank
TLT
ZROZ
TLT vs. ZROZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) 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.
| TLT | ZROZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.22 | ||
| Sortino ratioReturn per unit of downside risk | +0.28 | ||
| Omega ratioGain probability vs. loss probability | 1.03 | 1.00 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 0.18 | -0.08 | +0.26 |
| Martin ratioReturn relative to average drawdown | 0.39 | -0.17 | +0.56 |
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Drawdowns
TLT vs. ZROZ - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, smaller than the maximum ZROZ drawdown of -62.93%. Use the drawdown chart below to compare losses from any high point for TLT and ZROZ.
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Drawdown Indicators
| TLT | ZROZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -62.93% | +14.58% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -14.02% | +6.44% |
Max Drawdown (3Y)Largest decline over 3 years | -16.53% | -26.10% | +9.57% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -57.98% | +14.28% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -62.93% | +14.58% |
Current DrawdownCurrent decline from peak | -41.66% | -61.34% | +19.68% |
Average DrawdownAverage peak-to-trough decline | -13.97% | -24.34% | +10.37% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.44% | 6.94% | -3.50% |
Volatility
TLT vs. ZROZ - Volatility Comparison
The current volatility for iShares 20+ Year Treasury Bond ETF (TLT) is 1.91%, while PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a volatility of 2.89%. This indicates that TLT 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
| TLT | ZROZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.91% | 2.89% | -0.98% |
Volatility (6M)Calculated over the trailing 6-month period | 6.62% | 10.61% | -3.99% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.33% | 15.41% | -6.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.73% | 23.72% | -7.99% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.83% | 21.95% | -7.12% |
TLT vs. ZROZ - Expense Ratio Comparison
Both TLT and ZROZ have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
TLT vs. ZROZ - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.69%, less than ZROZ's 5.44% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.69% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | 5.44% | 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 0.98, TLT 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 (2.89%) compared to TLT (1.91%). In terms of maximum drawdown, TLT dropped -48.35% vs ZROZ's -62.93%.
On 10-year performance, TLT leads with -2.29% vs -5.18% for ZROZ. Both ETFs have the same 0.15% expense ratio. On volatility, TLT has been the lower-risk option at 1.91%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TLT has performed better with a -2.29% return vs -5.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT and ZROZ have the same expense ratio: 0.15% per year.
ZROZ has the higher dividend yield at 5.44%, compared with 4.69% for TLT.
TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while ZROZ tracks ICE BofA Long U.S. Treasury Principal STRIPS Index. They also come from different issuers: iShares and PIMCO.
TLT currently has the higher Sharpe Ratio (0.14 vs -0.08), 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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