ZROZ vs. SCHQ
ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) and SCHQ (Schwab Long-Term U.S. Treasury ETF) are both Government Bonds funds - ZROZ tracks the ICE BofA Long U.S. Treasury Principal STRIPS Index while SCHQ tracks the Bloomberg U.S. Long Treasury Index. Both are passively managed. Over the past 5 years, ZROZ returned -11.62%/yr vs -5.29%/yr for SCHQ. With a 0.98 correlation, they move nearly in lockstep. ZROZ charges 0.15%/yr vs 0.03%/yr for SCHQ.
Performance
ZROZ vs. SCHQ - Performance Comparison
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Returns By Period
In the year-to-date period, ZROZ achieves a -1.07% return, which is significantly lower than SCHQ's -0.43% 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%
SCHQ
- 1D
- -0.45%
- 1M
- 0.65%
- YTD
- -0.43%
- 6M
- -1.74%
- 1Y
- 5.22%
- 3Y*
- -0.72%
- 5Y*
- -5.29%
- 10Y*
- —
ZROZ vs. SCHQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | -1.07% | -1.84% | -16.18% | 1.19% | -41.28% | -5.22% | 24.57% | -5.89% |
SCHQ Schwab Long-Term U.S. Treasury ETF | -0.43% | 5.50% | -6.44% | 3.43% | -29.44% | -4.86% | 17.73% | -4.02% |
Correlation
The correlation between ZROZ and SCHQ 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 (All Time) Calculated using the full available price history since Oct 11, 2019 | 0.98 |
The correlation between ZROZ and SCHQ has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.
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Return for Risk
ZROZ vs. SCHQ — Risk / Return Rank
ZROZ
SCHQ
ZROZ vs. SCHQ - 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 Schwab Long-Term U.S. Treasury ETF (SCHQ). 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 | SCHQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.35 | ||
| Sortino ratioReturn per unit of downside risk | -0.44 | ||
| Omega ratioGain probability vs. loss probability | 1.05 | 1.10 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 0.28 | 0.75 | -0.47 |
| Martin ratioReturn relative to average drawdown | 0.64 | 1.94 | -1.30 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ZROZ | SCHQ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.24 | 0.59 | -0.35 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.49 | -0.37 | -0.12 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.19 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.09 | -0.25 | +0.34 |
Drawdowns
ZROZ vs. SCHQ - Drawdown Comparison
The maximum ZROZ drawdown since its inception was -62.93%, which is greater than SCHQ's maximum drawdown of -46.13%. Use the drawdown chart below to compare losses from any high point for ZROZ and SCHQ.
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Drawdown Indicators
| ZROZ | SCHQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -62.93% | -46.13% | -16.80% |
Max Drawdown (1Y)Largest decline over 1 year | -14.02% | -7.01% | -7.01% |
Max Drawdown (3Y)Largest decline over 3 years | -28.62% | -17.65% | -10.97% |
Max Drawdown (5Y)Largest decline over 5 years | -57.98% | -40.93% | -17.05% |
Max Drawdown (10Y)Largest decline over 10 years | -62.93% | — | — |
Current DrawdownCurrent decline from peak | -59.93% | -36.82% | -23.11% |
Average DrawdownAverage peak-to-trough decline | -24.04% | -26.36% | +2.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.12% | 2.70% | +3.42% |
Volatility
ZROZ vs. SCHQ - Volatility Comparison
PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a higher volatility of 4.46% compared to Schwab Long-Term U.S. Treasury ETF (SCHQ) at 2.57%. This indicates that ZROZ's price experiences larger fluctuations and is considered to be riskier than SCHQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZROZ | SCHQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.46% | 2.57% | +1.89% |
Volatility (6M)Calculated over the trailing 6-month period | 10.54% | 5.94% | +4.60% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.25% | 8.93% | +7.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.90% | 14.54% | +9.36% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.06% | 15.33% | +6.73% |
ZROZ vs. SCHQ - Expense Ratio Comparison
ZROZ has a 0.15% expense ratio, which is higher than SCHQ's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
ZROZ vs. SCHQ - Dividend Comparison
ZROZ's dividend yield for the trailing twelve months is around 5.15%, more than SCHQ's 4.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHQ Schwab Long-Term U.S. Treasury ETF | 4.79% | 4.54% | 4.58% | 3.79% | 2.88% | 1.69% | 1.51% | 0.44% | 0.00% | 0.00% | 0.00% | 0.00% |
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
With a correlation of 0.97, ZROZ and SCHQ 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 (4.46%) compared to SCHQ (2.57%). In terms of maximum drawdown, ZROZ dropped -62.93% vs SCHQ's -46.13%.
On 5-year performance, SCHQ leads with -5.29% vs -11.62% for ZROZ. On fees, SCHQ is cheaper at 0.03% per year. On volatility, SCHQ has been the lower-risk option at 2.57%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, SCHQ has performed better with a -5.29% return vs -11.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHQ is cheaper with a 0.03% expense ratio, compared with 0.15% for ZROZ.
ZROZ has the higher dividend yield at 5.15%, compared with 4.79% for SCHQ.
ZROZ tracks ICE BofA Long U.S. Treasury Principal STRIPS Index, while SCHQ tracks Bloomberg U.S. Long Treasury Index. They also come from different issuers: PIMCO and Charles Schwab. Their fees differ too: 0.15% for ZROZ and 0.03% for SCHQ.
SCHQ currently has the higher Sharpe Ratio (0.59 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.
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