ZROZ vs. TLT
ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) and TLT (iShares 20+ Year Treasury Bond ETF) are both Government Bonds funds - ZROZ tracks the ICE BofA Long U.S. Treasury Principal STRIPS Index while TLT tracks the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, ZROZ returned -5.40%/yr vs -2.38%/yr for TLT. Their 0.97 correlation means they have historically moved very closely together. Both charge a 0.15% expense ratio.
Performance
ZROZ vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, ZROZ achieves a -7.23% return, which is significantly lower than TLT's -3.49% return. Over the past 10 years, ZROZ has underperformed TLT with an annualized return of -5.40%, while TLT has yielded a comparatively higher -2.38% annualized return.
ZROZ
- 1D
- -1.24%
- 1M
- -7.20%
- 6M
- -6.41%
- YTD
- -7.23%
- 1Y
- -7.54%
- 3Y*
- -8.06%
- 5Y*
- -14.47%
- 10Y*
- -5.40%
- ALL TIME*
- 1.69%
TLT
- 1D
- -0.66%
- 1M
- -3.81%
- 6M
- -3.46%
- YTD
- -3.49%
- 1Y
- -2.45%
- 3Y*
- -1.80%
- 5Y*
- -8.18%
- 10Y*
- -2.38%
- ALL TIME*
- 3.47%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $2.33B | $2.02B | $2.19B | |
| $41.31M | $45.82M | $40.38M |
ZROZ vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | -7.23% | -1.84% | -16.18% | 1.19% | -41.28% | -5.22% | 24.57% | 21.22% | -5.43% | 14.77% |
TLT iShares 20+ Year Treasury Bond ETF | -3.49% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between ZROZ and TLT is 0.98 - they have historically moved very closely together. At this level, their price movements offset little of one another.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.98 |
Correlation (3Y) Balances recent behavior with more history. | 0.99 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.99 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.98 |
Correlation (All Time) Calculated using the full available price history since Nov 4, 2009 | 0.97 |
The correlation between ZROZ and TLT has been stable across timeframes, ranging from 0.97 to 0.99 - a consistent structural relationship.
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Return for Risk
ZROZ vs. TLT — Risk / Return Rank
ZROZ
TLT
ZROZ vs. TLT - 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 20+ Year Treasury Bond ETF (TLT). 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 | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.27 | ||
| Sortino ratioReturn per unit of downside risk | -0.34 | ||
| Omega ratioGain probability vs. loss probability | 0.95 | 0.99 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | -0.39 | -0.14 | -0.26 |
| Martin ratioReturn relative to average drawdown | -0.82 | -0.30 | -0.52 |
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Drawdowns
ZROZ vs. TLT - Drawdown Comparison
The maximum ZROZ drawdown since its inception was -62.93%, which is greater than TLT's maximum drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for ZROZ and TLT.
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Drawdown Indicators
| ZROZ | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -62.93% | -48.35% | -14.58% |
Max Drawdown (1Y)Largest decline over 1 year | -14.90% | -7.74% | -7.16% |
Max Drawdown (3Y)Largest decline over 3 years | -26.42% | -14.79% | -11.63% |
Max Drawdown (5Y)Largest decline over 5 years | -57.98% | -43.70% | -14.28% |
Max Drawdown (10Y)Largest decline over 10 years | -62.93% | -48.35% | -14.58% |
Current DrawdownCurrent decline from peak | -62.42% | -42.36% | -20.06% |
Average DrawdownAverage peak-to-trough decline | -24.38% | -13.99% | -10.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 7.18% | 3.57% | +3.61% |
Volatility
ZROZ vs. TLT - Volatility Comparison
PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a higher volatility of 4.20% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.46%. This indicates that ZROZ's price experiences larger fluctuations and is considered to be riskier than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZROZ | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.20% | 2.46% | +1.74% |
Volatility (6M)Calculated over the trailing 6-month period | 11.11% | 6.85% | +4.26% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.45% | 9.32% | +6.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.76% | 15.74% | +8.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.96% | 14.83% | +7.13% |
ZROZ vs. TLT - Expense Ratio Comparison
Both ZROZ and TLT 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. TLT - Dividend Comparison
ZROZ's dividend yield for the trailing twelve months is around 5.59%, more than TLT's 4.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.34% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund | 5.59% | 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 0.98, ZROZ and TLT 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 (4.20%) compared to TLT (2.46%). In terms of maximum drawdown, ZROZ dropped -62.93% vs TLT's -48.35%.
On 10-year performance, TLT leads with -2.38% vs -5.40% for ZROZ. Both ETFs have the same 0.15% expense ratio. On volatility, TLT has been the lower-risk option at 2.46%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TLT has performed better with a -2.38% return vs -5.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ZROZ and TLT have the same expense ratio: 0.15% per year.
ZROZ has the higher dividend yield at 5.59%, compared with 4.34% for TLT.
ZROZ tracks ICE BofA Long U.S. Treasury Principal STRIPS Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. They also come from different issuers: PIMCO and iShares.
TLT currently has the higher Sharpe Ratio (-0.11 vs -0.38), 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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