At a glance
ZROZ charges 0.15% a year, above the 0.08% average of the 7 funds most like it (the 5th cheapest of 8). It has $1.37B in assets, the 8th largest of that group; it paid 5.21% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −12.5% with distributions reinvested, the weakest of those 8 funds; over three years it returned +0.4% a year. At its worst it fell 39.3% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high. Its ten largest positions make up 53.3% of the fund, out of 20 in all.
The short version
PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ) tracks the ICE BofA Long US Treasury Principal STRIPS Index of zero-coupon US Treasury bonds with 25 or more years to maturity. These bonds pay nothing until they mature, so the fund's price swings sharply with interest rates. Its duration (a gauge of rate sensitivity) was 27.31 years as of September 30, 2026. It charges 0.15% a year, versus 0.03% at SPTL and VGLT.
Price history
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ZROZ -12.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| ZROZ official prospectus, to Dec 31, 2025 | — | -1.96% | — | -14.25% | -2.51% | — |
| ZROZ price data to Oct 27, 2026 | -5.2% | -12.5% | +0.4% | -14.0% | — | -11.1% |
- Over the year to Oct 27, 2026, ZROZ returned -12.5%, 8th of 8 among similar funds.
- Its 5-year annualized return was -14.0%.
- Its worst full calendar year was 2022 (-41.3%); its best was 2023 (+1.2%).
- The deepest fall in its price history was 60.9% (Dec 3, 2021 to Oct 7, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -5.2% | — |
| 2025 | -1.9% | -1.96% |
| 2024 | -16.1% | -15.63% |
| 2023 | +1.2% | +0.80% |
| 2022 | -41.3% | -41.50% |
| 2021 | — | -4.96% |
| 2020 | — | +24.58% |
| 2019 | — | +21.22% |
| 2018 | — | -4.29% |
| 2017 | — | +14.07% |
| 2016 | — | +1.42% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Feb 22, 2021 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 38.1% over that stretch · deepest drop along the way 39.3%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.1800 | |
| 2025 | $3.1900 | +1.6% |
| 2024 | $3.1400 | +4.7% |
| 2023 | $3.0000 | +24.5% |
| 2022 | $2.4100 |
What's inside
As of Jun 30, 2026, the fund held 20 securities; the ten largest made up 53.3% of assets.
| Holding | Weight | |
|---|---|---|
| United States Treasury Bonds and notes | 5.55% | |
| United States Treasury Bonds and notes | 5.48% | |
| United States Treasury Bonds and notes | 5.42% | |
| United States Treasury Bonds and notes | 5.40% | |
| United States Treasury Bonds and notes | 5.29% | |
| United States Treasury Bonds and notes | 5.27% | |
| United States Treasury Bonds and notes | 5.26% | |
| United States Treasury Bonds and notes | 5.26% | |
| United States Treasury Bonds and notes | 5.23% | |
| United States Treasury Bonds and notes | 5.16% | |
| United States Treasury Bonds and notes | 5.15% | |
| United States Treasury Bonds and notes | 5.12% | |
| United States Treasury Bonds and notes | 4.99% | |
| United States Treasury Bonds and notes | 4.91% | |
| United States Treasury Bonds and notes | 4.80% |
By country
United States 100.01%By issuer
US Treasury 100.01%The bonds mature in 27.2 years on average (weighted by size), with an average coupon of 0%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $30.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -2.02%, +1.00%, +2.20%.
How it works
ZROZ follows the ICE BofA Long US Treasury Principal STRIPS Index. STRIPS (Separate Trading of Registered Interest and Principal of Securities) are pieces of Treasury bonds that trade on their own. This index uses only the final principal payment, which works like a zero-coupon bond: it pays no interest along the way and pays its full face value at maturity. To qualify, a STRIPS must have at least 25 years left to maturity and come from a Treasury bond with at least $1 billion outstanding. As of September 30, 2026, the index had 20 issues.
Each issue is weighted by its price times an assumed $1 billion face value. The index rebalances every quarter, on March 31, June 30, September 30 and December 31. A bond that stops qualifying partway through a quarter stays in until the next rebalance. As of June 30, 2026, the fund held 20 Treasury STRIPS. None was much above 5.5% of assets, and the top 10 made up 53.3%.
PIMCO manages the fund using representative sampling. At least 80% of assets go into index securities, but the weights can differ from the index, so tracking may be less exact than a full copy. The fund may use derivatives such as futures or swaps, though it held none as of June 30, 2026. Because STRIPS pay no cash interest, the prospectus says the fund may have to find cash from other sources to pay its distributions.
What it really costs
- ZROZ charges 0.15% a year, versus an average of 0.08% for the similar funds below (5th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| ZROZ | $15 | $48 | $85 | $192 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its very long duration led to a 41.5% loss in 2022 and a 60.9% peak-to-trough drop, so it works more as a small, rate-driven complement to stocks than as a steady bond holding.
ZROZ may help in some stock-market panics: it gained 32.78% in the quarter ended March 31, 2020. But it can fall as hard as stocks when interest rates climb. It lost 41.5% in 2022. Its price history starts in 2021, so it doesn't cover 2008. Its deepest drop in that history was 60.9%, from December 3, 2021 to October 7, 2026, and it had not recovered as of October 27, 2026. Someone who has to cash out shares in a year like 2022 could lock in a steep loss. The trailing yield was 5.21% as of October 27, 2026, paid quarterly. Costs run 0.15% a year, or $15 in year one on $10,000 under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a pure bet on long-term Treasury interest rates, with a duration of 27.31 years as of September 30, 2026.
- Those who want only US government credit: all 20 holdings were Treasury STRIPS principal as of June 30, 2026, with no derivatives held.
- People holding a small slice as possible ballast in a stock crash; it gained 32.78% in the quarter ended March 31, 2020.
Look elsewhere if
- Anyone uncomfortable with deep losses: it fell 41.5% in 2022 and was as much as 60.9% below its December 2021 peak by October 2026.
- Cost-focused investors: SPTL and VGLT, which also hold long-term Treasuries, charge 0.03% a year versus 0.15% for ZROZ.
- People who may need the money within a few years: its five-year average annual return was -14.25% through December 31, 2025.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| ZROZ this fund | 27.2 yrs | 0.15% | $1.37B | -12.5% | +0.4% |
| TLT iShares 20+ Year Treasury Bond ETF | 26 yrs | 0.15% | $47.05B | -5.3% | +2.1% |
| SPTL SPDR Portfolio Long Term Treasury ETF | 21.8 yrs | 0.03% | $10.47B | -6.0% | +3.9% |
| VGLT Vanguard Long-Term Treasury ETF | 21.7 yrs | 0.03% | $15.13B | -4.4% | +4.2% |
| IEF iShares 7-10 Year Treasury Bond ETF | 8.4 yrs | 0.15% | $41.82B | -1.7% | +4.0% |
| GOVT iShares U.S. Treasury Bond ETF | 7.4 yrs | 0.05% | $43.55B | -0.5% | +3.8% |
| VGIT Vanguard Intermediate-Term Treasury ETF | 5.5 yrs | 0.03% | $48.41B | -0.2% | +4.5% |
| IEI iShares 3-7 Year Treasury Bond ETF | 4.7 yrs | 0.15% | $17.68B | -0.4% | +4.0% |
Questions investors ask
What's the difference between ZROZ and TLT?
Both charge 0.15% a year and hold long-term US Treasuries. The difference is what they own: ZROZ holds only zero-coupon STRIPS with 25 or more years to maturity, while TLT holds 20+ year Treasury bonds. ZROZ gets no interest payments to soften its moves, so it tends to swing more. Over one year, ZROZ returned -12.5% (as of October 27, 2026), versus -6.4% for TLT (as of October 29, 2026). TLT is also far larger: about $47 billion in net assets (August 31, 2026), against $1.37 billion for ZROZ (June 30, 2026).
Does ZROZ pay dividends?
Yes. ZROZ makes distributions every quarter. They totaled $3.06 per share over the trailing year, a 5.21% yield as of October 27, 2026. That may seem odd, since zero-coupon bonds pay no cash interest. The bonds build up value as they near maturity, and the fund pays that accrued income out to holders. The prospectus warns that because the fund receives no cash from these bonds, it may have to fund the payouts from other assets.
Why did ZROZ lose so much in 2022?
ZROZ is built to be extremely sensitive to interest rates. When long-term rates climb, its price falls hard. Bond prices move opposite to rates, and zero-coupon bonds move the most because all their value arrives at maturity. Its duration was 27.31 years as of September 30, 2026. As a rough rule, that means each percentage-point rise in long-term rates would cut its price by about 27%. The fund lost 41.5% in 2022, its worst year from 2016 through 2025.
Is ZROZ a good hedge against a stock market crash?
Sometimes, but not reliably. In the quarter ended March 31, 2020, during the COVID crash, ZROZ gained 32.78%, and it returned 24.58% for 2020. In the 2022 bear market, though, it fell 39.3% from January 13 to October 10 while stocks also slid. It had not returned to that peak by October 27, 2026. Its one-year beta to the stock market was 0.31 as of that date, meaning its moves have been only loosely tied to stocks.
What is ZROZ's expense ratio?
ZROZ charges 0.15% a year, all of it a management fee, with no fee waiver. Under the SEC's standard example, $10,000 earning 5% a year would cost about $15 after one year, $85 after five years and $192 after ten. That matches TLT's 0.15%. It is higher than SPTL and VGLT, which charge 0.03%, and above the 0.08% average for similar funds. It ranked 5th of 8 on cost in its peer group.