VGLT vs. ZROZ
VGLT (Vanguard Long-Term Treasury ETF) and ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) are both Government Bonds funds - VGLT 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 10 years, VGLT returned -1.32%/yr vs -4.40%/yr for ZROZ. With a 0.96 correlation, they move nearly in lockstep. VGLT charges 0.03%/yr vs 0.15%/yr for ZROZ.
Performance
VGLT vs. ZROZ - Performance Comparison
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Returns By Period
In the year-to-date period, VGLT achieves a 1.69% return, which is significantly lower than ZROZ's 3.17% return. Over the past 10 years, VGLT has outperformed ZROZ with an annualized return of -1.32%, while ZROZ has yielded a comparatively lower -4.40% annualized return.
VGLT
- 1D
- -0.05%
- 1M
- 2.68%
- YTD
- 1.69%
- 6M
- 1.06%
- 1Y
- 4.60%
- 3Y*
- -0.39%
- 5Y*
- -5.17%
- 10Y*
- -1.32%
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%
VGLT vs. ZROZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGLT Vanguard Long-Term Treasury ETF | 1.69% | 5.35% | -6.28% | 3.27% | -29.34% | -4.98% | 17.57% | 14.30% | -1.54% | 8.64% |
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | 3.17% | -1.84% | -16.18% | 1.19% | -41.28% | -5.22% | 24.57% | 21.22% | -5.43% | 14.77% |
Correlation
The correlation between VGLT 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 (10Y) Calculated over the trailing 10-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.96 |
The correlation between VGLT and ZROZ has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.
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Return for Risk
VGLT vs. ZROZ — Risk / Return Rank
VGLT
ZROZ
VGLT vs. ZROZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Treasury ETF (VGLT) 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.
| VGLT | 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 | 1.63 | 0.62 | +1.01 |
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Drawdowns
VGLT vs. ZROZ - Drawdown Comparison
The maximum VGLT drawdown since its inception was -46.18%, smaller than the maximum ZROZ drawdown of -62.93%. Use the drawdown chart below to compare losses from any high point for VGLT and ZROZ.
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Drawdown Indicators
| VGLT | ZROZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.18% | -62.93% | +16.75% |
Max Drawdown (1Y)Largest decline over 1 year | -7.01% | -14.02% | +7.01% |
Max Drawdown (3Y)Largest decline over 3 years | -17.68% | -28.62% | +10.94% |
Max Drawdown (5Y)Largest decline over 5 years | -40.98% | -57.98% | +17.00% |
Max Drawdown (10Y)Largest decline over 10 years | -46.18% | -62.93% | +16.75% |
Current DrawdownCurrent decline from peak | -35.50% | -58.21% | +22.71% |
Average DrawdownAverage peak-to-trough decline | -15.13% | -24.16% | +9.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.83% | 6.42% | -3.59% |
Volatility
VGLT vs. ZROZ - Volatility Comparison
The current volatility for Vanguard Long-Term Treasury ETF (VGLT) is 2.32%, while PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a volatility of 4.00%. This indicates that VGLT 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
| VGLT | ZROZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.32% | 4.00% | -1.68% |
Volatility (6M)Calculated over the trailing 6-month period | 6.18% | 10.93% | -4.75% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.67% | 15.83% | -7.16% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.54% | 23.84% | -9.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 13.80% | 22.04% | -8.24% |
VGLT vs. ZROZ - Expense Ratio Comparison
VGLT 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
VGLT vs. ZROZ - Dividend Comparison
VGLT's dividend yield for the trailing twelve months is around 4.51%, less than ZROZ's 4.94% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGLT Vanguard Long-Term Treasury ETF | 4.51% | 4.44% | 4.33% | 3.33% | 2.84% | 1.82% | 2.15% | 2.46% | 2.71% | 2.55% | 2.69% | 3.21% |
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, VGLT 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 VGLT (2.32%). In terms of maximum drawdown, VGLT dropped -46.18% vs ZROZ's -62.93%.
On 10-year performance, VGLT leads with -1.32% vs -4.40% for ZROZ. On fees, VGLT is cheaper at 0.03% per year. On volatility, VGLT has been the lower-risk option at 2.32%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VGLT has performed better with a -1.32% return vs -4.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGLT 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 4.51% for VGLT.
VGLT 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: Vanguard and PIMCO. Their fees differ too: 0.03% for VGLT and 0.15% for ZROZ.
VGLT 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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