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 -4.18%/yr vs -1.75%/yr for TLT. With a 0.97 correlation, they move nearly in lockstep. Both charge a 0.15% expense ratio.
Performance
ZROZ vs. TLT - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, ZROZ achieves a 0.97% return, which is significantly higher than TLT's 0.64% return. Over the past 10 years, ZROZ has underperformed TLT with an annualized return of -4.18%, while TLT has yielded a comparatively higher -1.75% annualized return.
ZROZ
- 1D
- -1.20%
- 1M
- 4.33%
- YTD
- 0.97%
- 6M
- 0.53%
- 1Y
- 3.18%
- 3Y*
- -7.55%
- 5Y*
- -11.93%
- 10Y*
- -4.18%
TLT
- 1D
- -0.76%
- 1M
- 2.06%
- YTD
- 0.64%
- 6M
- 0.41%
- 1Y
- 4.08%
- 3Y*
- -1.93%
- 5Y*
- -6.59%
- 10Y*
- -1.75%
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 | 0.97% | -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 | 0.64% | 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 - 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 | 0.98 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.99 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.99 |
Correlation (10Y) Calculated over the trailing 10-year period | 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.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
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 | -0.23 | ||
| Sortino ratioReturn per unit of downside risk | -0.28 | ||
| Omega ratioGain probability vs. loss probability | 1.04 | 1.08 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 0.23 | 0.54 | -0.31 |
| Martin ratioReturn relative to average drawdown | 0.50 | 1.29 | -0.79 |
Loading charts...
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.
Loading charts...
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 | -14.02% | -7.58% | -6.44% |
Max Drawdown (3Y)Largest decline over 3 years | -28.62% | -19.18% | -9.44% |
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 | -59.10% | -39.89% | -19.21% |
Average DrawdownAverage peak-to-trough decline | -24.14% | -13.87% | -10.27% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.39% | 3.17% | +3.22% |
Volatility
ZROZ vs. TLT - Volatility Comparison
PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a higher volatility of 3.60% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.21%. 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.
Loading charts...
Volatility by Period
| ZROZ | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.60% | 2.21% | +1.39% |
Volatility (6M)Calculated over the trailing 6-month period | 10.77% | 6.63% | +4.14% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.76% | 9.50% | +6.26% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.83% | 15.82% | +8.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.06% | 14.91% | +7.15% |
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 5.04%, more than TLT's 4.55% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.55% | 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 | 5.04% | 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 (3.60%) compared to TLT (2.21%). In terms of maximum drawdown, ZROZ dropped -62.93% vs TLT's -48.35%.
On 10-year performance, TLT leads with -1.75% vs -4.18% for ZROZ. Both ETFs have the same 0.15% expense ratio. On volatility, TLT has been the lower-risk option at 2.21%. 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 -1.75% return vs -4.18%. 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 5.04%, compared with 4.55% 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 (0.43 vs 0.20), 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.
Find the right allocation for ZROZ and TLT
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer