ZROZ vs. MUNI

Last updated Jun 4, 2026

ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) and MUNI (PIMCO Intermediate Municipal Bond Active ETF) are both exchange-traded funds - ZROZ is a Government Bonds fund tracking the ICE BofA Long U.S. Treasury Principal STRIPS Index, while MUNI is a Municipal Bonds fund actively managed by PIMCO. ZROZ is passively managed, while MUNI is actively managed. Over the past 10 years, ZROZ returned -4.15%/yr vs 2.16%/yr for MUNI. At a 0.49 correlation, their price movements are largely independent. ZROZ charges 0.15%/yr vs 0.35%/yr for MUNI.

Performance

ZROZ vs. MUNI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) and PIMCO Intermediate Municipal Bond Active ETF (MUNI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZROZ achieves a -1.07% return, which is significantly lower than MUNI's 1.24% return. Over the past 10 years, ZROZ has underperformed MUNI with an annualized return of -4.15%, while MUNI has yielded a comparatively higher 2.16% annualized return.

ZROZ

• 1D: -0.48%
• 1M: 1.55%
• YTD: -1.07%
• 6M: -4.36%
• 1Y: 3.89%
• 3Y*: -7.39%
• 5Y*: -11.62%
• 10Y*: -4.15%

MUNI

• 1D: -0.04%
• 1M: 0.42%
• YTD: 1.24%
• 6M: 1.44%
• 1Y: 6.52%
• 3Y*: 3.96%
• 5Y*: 1.27%
• 10Y*: 2.16%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ZROZ vs. MUNI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund	-1.07%	-1.84%	-16.18%	1.19%	-41.28%	-5.22%	24.57%	21.22%	-5.43%	14.77%
MUNI PIMCO Intermediate Municipal Bond Active ETF	1.24%	4.72%	1.43%	6.07%	-6.62%	0.67%	4.83%	7.09%	0.84%	4.86%

Correlation

The correlation between ZROZ and MUNI is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Dec 16, 2009	0.49

The correlation between ZROZ and MUNI shifts across timeframes, from 0.49 (all time) to 0.73 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

ZROZ vs. MUNI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ZROZ

ZROZ Risk / Return Rank: 12
ZROZ Sharpe Ratio Rank: 12
ZROZ Sortino Ratio Rank: 12
ZROZ Omega Ratio Rank: 11
ZROZ Calmar Ratio Rank: 12
ZROZ Martin Ratio Rank: 12

MUNI

MUNI Risk / Return Rank: 76
MUNI Sharpe Ratio Rank: 86
MUNI Sortino Ratio Rank: 91
MUNI Omega Ratio Rank: 93
MUNI Calmar Ratio Rank: 57
MUNI Martin Ratio Rank: 54

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ZROZ vs. MUNI - 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 PIMCO Intermediate Municipal Bond Active ETF (MUNI). 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.

	ZROZ	MUNI	Difference
Sharpe ratio: Return per unit of total volatility	0.24	2.89	-2.65
Sortino ratio: Return per unit of downside risk	0.47	4.33	-3.87
Omega ratio: Gain probability vs. loss probability	1.05	1.65	-0.60
Calmar ratio: Return relative to maximum drawdown	0.28	2.86	-2.58
Martin ratio: Return relative to average drawdown	0.64	9.39	-8.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZROZ vs. MUNI - Sharpe Ratio Comparison

The current ZROZ Sharpe Ratio is 0.24, which is lower than the MUNI Sharpe Ratio of 2.89. The chart below compares the historical Sharpe Ratios of ZROZ and MUNI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ZROZ	MUNI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.24	2.89	-2.65
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.49	0.38	-0.87
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.19	0.56	-0.75
Sharpe Ratio (All Time) Calculated using the full available price history	0.09	0.78	-0.69

Drawdowns

ZROZ vs. MUNI - Drawdown Comparison

The maximum ZROZ drawdown since its inception was -62.93%, which is greater than MUNI's maximum drawdown of -11.15%. Use the drawdown chart below to compare losses from any high point for ZROZ and MUNI.

Drawdown Indicators

	ZROZ	MUNI	Difference
Max Drawdown Largest peak-to-trough decline	-62.93%	-11.15%	-51.78%
Max Drawdown (1Y) Largest decline over 1 year	-14.02%	-2.29%	-11.73%
Max Drawdown (3Y) Largest decline over 3 years	-28.62%	-4.09%	-24.53%
Max Drawdown (5Y) Largest decline over 5 years	-57.98%	-11.15%	-46.83%
Max Drawdown (10Y) Largest decline over 10 years	-62.93%	-11.15%	-51.78%
Current Drawdown Current decline from peak	-59.93%	-0.79%	-59.14%
Average Drawdown Average peak-to-trough decline	-24.04%	-1.73%	-22.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.12%	0.70%	+5.42%

Volatility

ZROZ vs. MUNI - Volatility Comparison

PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a higher volatility of 4.46% compared to PIMCO Intermediate Municipal Bond Active ETF (MUNI) at 0.77%. This indicates that ZROZ's price experiences larger fluctuations and is considered to be riskier than MUNI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZROZ	MUNI	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.46%	0.77%	+3.69%
Volatility (6M) Calculated over the trailing 6-month period	10.54%	1.60%	+8.94%
Volatility (1Y) Calculated over the trailing 1-year period	16.25%	2.27%	+13.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.90%	3.31%	+20.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.06%	3.85%	+18.21%

ZROZ vs. MUNI - Expense Ratio Comparison

ZROZ has a 0.15% expense ratio, which is lower than MUNI's 0.35% expense ratio.

Dividends

ZROZ vs. MUNI - Dividend Comparison

ZROZ's dividend yield for the trailing twelve months is around 5.15%, more than MUNI's 3.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MUNI PIMCO Intermediate Municipal Bond Active ETF	3.29%	3.26%	3.50%	3.09%	2.13%	1.62%	1.92%	2.44%	2.38%	2.37%	2.37%	2.20%
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund	5.15%	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

Can I hold both ZROZ and MUNI in my portfolio?

ZROZ and MUNI have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ZROZ or MUNI?

ZROZ has higher volatility (4.46%) compared to MUNI (0.77%). In terms of maximum drawdown, ZROZ dropped -62.93% vs MUNI's -11.15%.

Which ETF is better, ZROZ or MUNI?

On 10-year performance, MUNI leads with 2.16% vs -4.15% for ZROZ. On fees, ZROZ is cheaper at 0.15% per year. On volatility, MUNI has been the lower-risk option at 0.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ZROZ or MUNI?

Over the 10-year period, MUNI has performed better with a 2.16% return vs -4.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ZROZ or MUNI?

ZROZ is cheaper with a 0.15% expense ratio, compared with 0.35% for MUNI.

Which ETF pays a higher dividend yield, ZROZ or MUNI?

ZROZ has the higher dividend yield at 5.15%, compared with 3.29% for MUNI.

What is the main difference between ZROZ and MUNI?

ZROZ is categorized as Government Bonds, while MUNI is Municipal Bonds. Their fees differ too: 0.15% for ZROZ and 0.35% for MUNI.

Which has better risk-adjusted returns?

MUNI currently has the higher Sharpe Ratio (2.89 vs 0.24), 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.