ZROZ vs. USOY

Last updated Jun 4, 2026

ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Fund) and USOY (Defiance Oil Enhanced Options Income ETF) are both exchange-traded funds - ZROZ is a Government Bonds fund tracking the ICE BofA Long U.S. Treasury Principal STRIPS Index, while USOY is a Derivative Income fund actively managed by Defiance. ZROZ is passively managed, while USOY is actively managed. Over the past year, ZROZ returned 3.89% vs 57.29% for USOY. At a correlation of -0.26, they often move in opposite directions. ZROZ charges 0.15%/yr vs 1.22%/yr for USOY.

Performance

ZROZ vs. USOY - 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 Defiance Oil Enhanced Options Income ETF (USOY). 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 USOY's 62.18% 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%

USOY

• 1D: 1.45%
• 1M: -3.43%
• YTD: 62.18%
• 6M: 59.35%
• 1Y: 57.29%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ZROZ vs. USOY - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Fund	-1.07%	-1.84%	-2.98%
USOY Defiance Oil Enhanced Options Income ETF	62.18%	-7.93%	7.27%

Correlation

The correlation between ZROZ and USOY is -0.34, 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	-0.34
Correlation (All Time) Calculated using the full available price history since May 13, 2024	-0.26

Return for Risk

ZROZ vs. USOY — 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

USOY

USOY Risk / Return Rank: 56
USOY Sharpe Ratio Rank: 55
USOY Sortino Ratio Rank: 46
USOY Omega Ratio Rank: 55
USOY Calmar Ratio Rank: 78
USOY Martin Ratio Rank: 46

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. USOY - 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 Defiance Oil Enhanced Options Income ETF (USOY). 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	USOY	Difference
Sharpe ratio: Return per unit of total volatility	0.24	1.89	-1.65
Sortino ratio: Return per unit of downside risk	0.47	2.30	-1.83
Omega ratio: Gain probability vs. loss probability	1.05	1.35	-0.30
Calmar ratio: Return relative to maximum drawdown	0.28	4.03	-3.75
Martin ratio: Return relative to average drawdown	0.64	7.74	-7.10
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. USOY - Sharpe Ratio Comparison

The current ZROZ Sharpe Ratio is 0.24, which is lower than the USOY Sharpe Ratio of 1.89. The chart below compares the historical Sharpe Ratios of ZROZ and USOY, 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	USOY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.24	1.89	-1.65
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.49	—	—
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	0.99	-0.90

Drawdowns

ZROZ vs. USOY - Drawdown Comparison

The maximum ZROZ drawdown since its inception was -62.93%, which is greater than USOY's maximum drawdown of -17.46%. Use the drawdown chart below to compare losses from any high point for ZROZ and USOY.

Drawdown Indicators

	ZROZ	USOY	Difference
Max Drawdown Largest peak-to-trough decline	-62.93%	-17.46%	-45.47%
Max Drawdown (1Y) Largest decline over 1 year	-14.02%	-14.29%	+0.27%
Max Drawdown (3Y) Largest decline over 3 years	-28.62%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-57.98%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-62.93%	—	—
Current Drawdown Current decline from peak	-59.93%	-5.11%	-54.82%
Average Drawdown Average peak-to-trough decline	-24.04%	-6.47%	-17.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.12%	7.42%	-1.30%

Volatility

ZROZ vs. USOY - Volatility Comparison

The current volatility for PIMCO 25+ Year Zero Coupon US Treasury Index Fund (ZROZ) is 4.46%, while Defiance Oil Enhanced Options Income ETF (USOY) has a volatility of 11.62%. This indicates that ZROZ experiences smaller price fluctuations and is considered to be less risky than USOY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZROZ	USOY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.46%	11.62%	-7.16%
Volatility (6M) Calculated over the trailing 6-month period	10.54%	27.18%	-16.64%
Volatility (1Y) Calculated over the trailing 1-year period	16.25%	30.44%	-14.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.90%	26.13%	-2.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.06%	26.13%	-4.07%

ZROZ vs. USOY - Expense Ratio Comparison

ZROZ has a 0.15% expense ratio, which is lower than USOY's 1.22% expense ratio.

Dividends

ZROZ vs. USOY - Dividend Comparison

ZROZ's dividend yield for the trailing twelve months is around 5.15%, less than USOY's 54.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
USOY Defiance Oil Enhanced Options Income ETF	54.16%	104.32%	48.60%	0.00%	0.00%	0.00%	0.00%	0.00%	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

Can I hold both ZROZ and USOY in my portfolio?

ZROZ and USOY have a correlation of -0.34, 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 USOY?

USOY has higher volatility (11.62%) compared to ZROZ (4.46%). In terms of maximum drawdown, ZROZ dropped -62.93% vs USOY's -17.46%.

Which ETF is better, ZROZ or USOY?

On 1-year performance, USOY leads with 57.29% vs 3.89% for ZROZ. On fees, ZROZ is cheaper at 0.15% per year. On volatility, ZROZ has been the lower-risk option at 4.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ZROZ or USOY?

Over the 1-year period, USOY has performed better with a 57.29% return vs 3.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ZROZ or USOY?

ZROZ is cheaper with a 0.15% expense ratio, compared with 1.22% for USOY.

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

USOY has the higher dividend yield at 54.16%, compared with 5.15% for ZROZ.

What is the main difference between ZROZ and USOY?

ZROZ is categorized as Government Bonds, while USOY is Derivative Income. They also come from different issuers: PIMCO and Defiance. Their fees differ too: 0.15% for ZROZ and 1.22% for USOY.

Which has better risk-adjusted returns?

USOY currently has the higher Sharpe Ratio (1.89 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.