ZROZ vs. GOVZ
ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) and GOVZ (iShares 25+ Year Treasury STRIPS Bond ETF) are both Government Bonds funds - ZROZ tracks the ICE BofA Long U.S. Treasury Principal STRIPS Index while GOVZ tracks the ICE BofA Long US Treasury Principal STRIPS Index. Both are passively managed. Over the past 5 years, ZROZ returned -11.84%/yr vs -11.72%/yr for GOVZ. With a 0.99 correlation, they move nearly in lockstep. Both charge a 0.15% expense ratio.
Performance
ZROZ vs. GOVZ - Performance Comparison
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Returns By Period
In the year-to-date period, ZROZ achieves a 0.21% return, which is significantly lower than GOVZ's 0.47% return.
ZROZ
- 1D
- 2.10%
- 1M
- 2.91%
- YTD
- 0.21%
- 6M
- -1.53%
- 1Y
- 3.09%
- 3Y*
- -7.13%
- 5Y*
- -11.84%
- 10Y*
- -4.26%
GOVZ
- 1D
- 2.08%
- 1M
- 3.07%
- YTD
- 0.47%
- 6M
- -1.51%
- 1Y
- 3.23%
- 3Y*
- -7.17%
- 5Y*
- -11.72%
- 10Y*
- —
ZROZ vs. GOVZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | 0.21% | -1.84% | -16.18% | 1.19% | -41.28% | -5.22% | -5.18% |
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 0.47% | -1.81% | -16.24% | 0.90% | -41.03% | -4.86% | -5.61% |
Correlation
The correlation between ZROZ and GOVZ is 0.99 - 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 | 0.99 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.99 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Sep 24, 2020 | 0.99 |
The correlation between ZROZ and GOVZ has been stable across timeframes, ranging from 0.99 to 0.99 - a consistent structural relationship.
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Return for Risk
ZROZ vs. GOVZ — Risk / Return Rank
ZROZ
GOVZ
ZROZ vs. GOVZ - Risk-Adjusted Trends 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.
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.
| ZROZ | GOVZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.01 | ||
| Sortino ratioReturn per unit of downside risk | -0.01 | ||
| Omega ratioGain probability vs. loss probability | 1.04 | 1.05 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 0.22 | 0.23 | -0.01 |
| Martin ratioReturn relative to average drawdown | 0.49 | 0.51 | -0.01 |
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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.
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Drawdown Indicators
| ZROZ | GOVZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -62.93% | -59.65% | -3.28% |
Max Drawdown (1Y)Largest decline over 1 year | -14.02% | -14.16% | +0.14% |
Max Drawdown (3Y)Largest decline over 3 years | -28.62% | -28.72% | +0.10% |
Max Drawdown (5Y)Largest decline over 5 years | -57.98% | -57.63% | -0.35% |
Max Drawdown (10Y)Largest decline over 10 years | -62.93% | — | — |
Current DrawdownCurrent decline from peak | -59.41% | -55.85% | -3.56% |
Average DrawdownAverage peak-to-trough decline | -24.09% | -39.95% | +15.86% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.29% | 6.38% | -0.09% |
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 4.63% and 4.46%, 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.
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Volatility by Period
| ZROZ | GOVZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.63% | 4.46% | +0.17% |
Volatility (6M)Calculated over the trailing 6-month period | 10.79% | 10.76% | +0.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.12% | 16.12% | 0.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.90% | 23.93% | -0.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.06% | 23.32% | -1.26% |
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%.
Dividends
ZROZ vs. GOVZ - Dividend Comparison
ZROZ's dividend yield for the trailing twelve months is around 5.08%, which matches GOVZ's 5.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 5.11% | 5.00% | 4.68% | 3.84% | 3.69% | 1.76% | 0.39% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | 5.08% | 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 0.99, ZROZ and GOVZ 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 (4.63%) compared to GOVZ (4.46%). In terms of maximum drawdown, ZROZ dropped -62.93% vs GOVZ's -59.65%.
On 5-year performance, GOVZ leads with -11.72% vs -11.84% for ZROZ. Both ETFs have the same 0.15% expense ratio. On volatility, GOVZ has been the lower-risk option at 4.46%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, GOVZ has performed better with a -11.72% return vs -11.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ZROZ and GOVZ have the same expense ratio: 0.15% per year.
GOVZ has the higher dividend yield at 5.11%, compared with 5.08% for ZROZ.
ZROZ tracks ICE BofA Long U.S. Treasury Principal STRIPS Index, while GOVZ tracks ICE BofA Long US Treasury Principal STRIPS Index. They also come from different issuers: PIMCO and iShares.
GOVZ currently has the higher Sharpe Ratio (0.20 vs 0.19), 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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