ZROZ vs. USFR

Last updated Jun 4, 2026

ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) and USFR (WisdomTree Floating Rate Treasury Fund) are both Government Bonds funds - ZROZ tracks the ICE BofA Long U.S. Treasury Principal STRIPS Index while USFR tracks the Bloomberg U.S. Treasury Floating Rate Bond Index. Both are passively managed. Over the past 10 years, ZROZ returned -4.15%/yr vs 2.47%/yr for USFR. At a correlation of -0.01, they often move in opposite directions. Both charge a 0.15% expense ratio.

Performance

ZROZ vs. USFR - 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 WisdomTree Floating Rate Treasury Fund (USFR). 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 USFR's 1.60% return. Over the past 10 years, ZROZ has underperformed USFR with an annualized return of -4.15%, while USFR has yielded a comparatively higher 2.47% 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%

USFR

• 1D: 0.02%
• 1M: 0.29%
• YTD: 1.60%
• 6M: 1.98%
• 1Y: 4.03%
• 3Y*: 4.76%
• 5Y*: 3.66%
• 10Y*: 2.47%

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

ZROZ vs. USFR - 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%
USFR WisdomTree Floating Rate Treasury Fund	1.60%	4.23%	5.47%	5.18%	1.98%	-0.03%	0.56%	2.02%	2.01%	1.03%

Correlation

The correlation between ZROZ and USFR is -0.13, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.13
Correlation (3Y) Calculated over the trailing 3-year period	-0.12
Correlation (5Y) Calculated over the trailing 5-year period	-0.00
Correlation (10Y) Calculated over the trailing 10-year period	-0.01
Correlation (All Time) Calculated using the full available price history since Feb 5, 2014	-0.01

The correlation between ZROZ and USFR shifts across timeframes, from -0.13 (1 year) to -0.00 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

ZROZ vs. USFR — 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

USFR

USFR Risk / Return Rank: 100
USFR Sharpe Ratio Rank: 100
USFR Sortino Ratio Rank: 100
USFR Omega Ratio Rank: 100
USFR Calmar Ratio Rank: 100
USFR Martin Ratio Rank: 100

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. USFR - 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 WisdomTree Floating Rate Treasury Fund (USFR). 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	USFR	Difference
Sharpe ratio: Return per unit of total volatility	0.24	15.11	-14.87
Sortino ratio: Return per unit of downside risk	0.47	50.64	-50.17
Omega ratio: Gain probability vs. loss probability	1.05	13.43	-12.38
Calmar ratio: Return relative to maximum drawdown	0.28	203.42	-203.14
Martin ratio: Return relative to average drawdown	0.64	787.84	-787.20
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. USFR - Sharpe Ratio Comparison

The current ZROZ Sharpe Ratio is 0.24, which is lower than the USFR Sharpe Ratio of 15.11. The chart below compares the historical Sharpe Ratios of ZROZ and USFR, 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	USFR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.24	15.11	-14.87
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.49	9.26	-9.75
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.19	3.07	-3.26
Sharpe Ratio (All Time) Calculated using the full available price history	0.09	1.60	-1.51

Drawdowns

ZROZ vs. USFR - Drawdown Comparison

The maximum ZROZ drawdown since its inception was -62.93%, which is greater than USFR's maximum drawdown of -1.36%. Use the drawdown chart below to compare losses from any high point for ZROZ and USFR.

Drawdown Indicators

	ZROZ	USFR	Difference
Max Drawdown Largest peak-to-trough decline	-62.93%	-1.36%	-61.57%
Max Drawdown (1Y) Largest decline over 1 year	-14.02%	-0.02%	-14.00%
Max Drawdown (3Y) Largest decline over 3 years	-28.62%	-0.06%	-28.56%
Max Drawdown (5Y) Largest decline over 5 years	-57.98%	-0.18%	-57.80%
Max Drawdown (10Y) Largest decline over 10 years	-62.93%	-0.80%	-62.13%
Current Drawdown Current decline from peak	-59.93%	0.00%	-59.93%
Average Drawdown Average peak-to-trough decline	-24.04%	-0.16%	-23.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.12%	0.01%	+6.11%

Volatility

ZROZ vs. USFR - Volatility Comparison

PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) has a higher volatility of 4.46% compared to WisdomTree Floating Rate Treasury Fund (USFR) at 0.06%. This indicates that ZROZ's price experiences larger fluctuations and is considered to be riskier than USFR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZROZ	USFR	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.46%	0.06%	+4.40%
Volatility (6M) Calculated over the trailing 6-month period	10.54%	0.18%	+10.36%
Volatility (1Y) Calculated over the trailing 1-year period	16.25%	0.27%	+15.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.90%	0.40%	+23.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.06%	0.81%	+21.25%

ZROZ vs. USFR - Expense Ratio Comparison

Both ZROZ and USFR 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. USFR - Dividend Comparison

ZROZ's dividend yield for the trailing twelve months is around 5.15%, more than USFR's 3.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
USFR WisdomTree Floating Rate Treasury Fund	3.91%	4.15%	5.17%	5.12%	1.78%	0.01%	0.40%	2.08%	1.67%	1.03%	0.29%	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

Can I hold both ZROZ and USFR in my portfolio?

ZROZ and USFR have a correlation of -0.13, 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 USFR?

ZROZ has higher volatility (4.46%) compared to USFR (0.06%). In terms of maximum drawdown, ZROZ dropped -62.93% vs USFR's -1.36%.

Which ETF is better, ZROZ or USFR?

On 10-year performance, USFR leads with 2.47% vs -4.15% for ZROZ. Both ETFs have the same 0.15% expense ratio. On volatility, USFR has been the lower-risk option at 0.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ZROZ or USFR?

Over the 10-year period, USFR has performed better with a 2.47% 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 USFR?

ZROZ and USFR have the same expense ratio: 0.15% per year.

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

ZROZ has the higher dividend yield at 5.15%, compared with 3.91% for USFR.

What is the main difference between ZROZ and USFR?

ZROZ tracks ICE BofA Long U.S. Treasury Principal STRIPS Index, while USFR tracks Bloomberg U.S. Treasury Floating Rate Bond Index. They also come from different issuers: PIMCO and WisdomTree.

Which has better risk-adjusted returns?

USFR currently has the higher Sharpe Ratio (15.11 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.