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 -13.79%/yr vs -13.67%/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 -4.35% return, which is significantly lower than GOVZ's -4.10% return.
ZROZ
- 1D
- -0.30%
- 1M
- -5.27%
- 6M
- -4.38%
- YTD
- -4.35%
- 1Y
- -1.96%
- 3Y*
- -8.67%
- 5Y*
- -13.79%
- 10Y*
- -5.13%
- ALL TIME*
- 1.88%
GOVZ
- 1D
- -0.22%
- 1M
- -5.08%
- 6M
- -4.31%
- YTD
- -4.10%
- 1Y
- -1.87%
- 3Y*
- -8.70%
- 5Y*
- -13.67%
- 10Y*
- —
- ALL TIME*
- -13.79%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $6.09M | $5.79M | $8.68M | |
| $47.36M | $45.66M | $38.49M |
ZROZ vs. GOVZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | -4.35% | -1.84% | -16.18% | 1.19% | -41.28% | -5.22% | -5.18% |
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | -4.10% | -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 | 0.98 |
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 0.98 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 | 0.99 | 0.99 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | -0.14 | -0.13 | -0.01 |
| Martin ratioReturn relative to average drawdown | -0.29 | -0.27 | -0.02 |
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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 | -26.73% | -26.79% | +0.06% |
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 | -61.26% | -57.86% | -3.40% |
Average DrawdownAverage peak-to-trough decline | -24.32% | -40.25% | +15.93% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.85% | 6.95% | -0.10% |
Volatility
ZROZ vs. GOVZ - Volatility Comparison
The current volatility for PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) is 3.86%, while iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) has a volatility of 4.07%. This indicates that ZROZ experiences smaller price fluctuations and is considered to be less risky than GOVZ based on this measure. 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 | 3.86% | 4.07% | -0.21% |
Volatility (6M)Calculated over the trailing 6-month period | 10.74% | 10.69% | +0.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.47% | 15.50% | -0.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.73% | 23.76% | -0.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.95% | 23.18% | -1.23% |
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 5.43%, more than GOVZ's 5.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 5.36% | 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 | 5.43% | 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.
GOVZ has higher volatility (4.07%) compared to ZROZ (3.86%). In terms of maximum drawdown, ZROZ dropped -62.93% vs GOVZ's -59.65%.
On 5-year performance, GOVZ leads with -13.67% vs -13.79% for ZROZ. Both ETFs have the same 0.15% expense ratio. On volatility, ZROZ has been the lower-risk option at 3.86%. 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 -13.67% return vs -13.79%. 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.
ZROZ has the higher dividend yield at 5.43%, compared with 5.36% for GOVZ.
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 (-0.12 vs -0.13), 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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