ZROZ vs. GOVZ
Compare and contrast key facts about PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ).
ZROZ and GOVZ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ZROZ is a passively managed fund by PIMCO that tracks the performance of the BofA Merrill Lynch Long Treasury Principal STRIPS Index. It was launched on Oct 30, 2009. GOVZ is a passively managed fund by iShares that tracks the performance of the ICE BofA Long US Treasury Principal STRIPS Index. It was launched on Sep 22, 2020. Both ZROZ and GOVZ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ZROZ or GOVZ.
Key characteristics
| ZROZ | GOVZ | |
|---|---|---|
| YTD Return | -12.98% | -12.86% |
| 1Y Return | 1.84% | 1.72% |
| 3Y Return (Ann) | -19.49% | -19.36% |
| Sharpe Ratio | 0.22 | 0.21 |
| Sortino Ratio | 0.47 | 0.47 |
| Omega Ratio | 1.05 | 1.05 |
| Calmar Ratio | 0.09 | 0.09 |
| Martin Ratio | 0.50 | 0.49 |
| Ulcer Index | 10.18% | 10.16% |
| Daily Std Dev | 23.32% | 23.28% |
| Max Drawdown | -62.93% | -59.65% |
| Current Drawdown | -57.16% | -53.43% |
Correlation
The correlation between ZROZ and GOVZ is 0.99, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
ZROZ vs. GOVZ - Performance Comparison
The year-to-date returns for both investments are quite close, with ZROZ having a -12.98% return and GOVZ slightly higher at -12.86%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ZROZ vs. GOVZ - Expense Ratio Comparison
Both ZROZ and GOVZ 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%.
Risk-Adjusted Performance
ZROZ vs. GOVZ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ). 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.
Dividends
ZROZ vs. GOVZ - Dividend Comparison
ZROZ's dividend yield for the trailing twelve months is around 4.27%, less than GOVZ's 4.45% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | 4.27% | 3.52% | 2.76% | 1.60% | 1.68% | 2.22% | 2.91% | 2.53% | 3.00% | 2.98% | 2.00% | 4.28% |
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 4.45% | 3.85% | 3.70% | 1.76% | 0.39% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
ZROZ vs. GOVZ - Drawdown Comparison
The maximum ZROZ drawdown since its inception was -62.93%, which is greater than GOVZ's maximum drawdown of -59.65%. Use the drawdown chart below to compare losses from any high point for ZROZ and GOVZ. For additional features, visit the drawdowns tool.
Volatility
ZROZ vs. GOVZ - Volatility Comparison
PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) have volatilities of 8.57% and 8.50%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.