ETF Evaluator: PIMCO 25+ Year Zero Coupon US Trs ETF (ZROZ) Follow This ETF

PIMCO 25+ Year Zero Coupon US Trs ETF Overview

PIMCO 25+ Year Zero Coupon US Trs ETF (ZROZ) is a passively managed Taxable Bond Long Government exchange-traded fund (ETF). PIMCO launched the ETF in 2009.

The investment seeks to provide total return that closely corresponds, before fees and expenses, to the total return of the ICE BofA Long U.S. Treasury Principal STRIPS Index. The fund invests at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities of the ICE BofA Long U.S. Treasury Principal STRIPS Index (the "underlying index"). The underlying index is an unmanaged index comprised of long maturity Separate Trading of Registered Interest and Principal of Securities ("STRIPS") representing the final principal payment of U.S. Treasury bonds.

About PIMCO 25+ Year Zero Coupon US Trs ETF (ZROZ)

There are 3 members of the management team with an average tenure of 6.89 years: Matthew Dorsten (2015), Tanuj Dora (2021) and Tim Crowley (2021). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA LongUS Ty Princ STRIPS TR USD index with a weighting of 100%. PIMCO 25+ Year Zero Coupon US Trs ETF has 25 securities in its portfolio. The top 10 holdings constitute 53.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

PIMCO 25+ Year Zero Coupon US Trs ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. PIMCO 25+ Year Zero Coupon US Trs ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 100.0% (100.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). PIMCO 25+ Year Zero Coupon US Trs ETF has 0.0% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is below the $4 billion average for the Long Government category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

ZROZ Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The PIMCO 25+ Year Zero Coupon US Trs ETF expense ratio is low compared to funds in the Long Government category. PIMCO 25+ Year Zero Coupon US Trs ETF has an expense ratio of 0.15%, which is 31% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. PIMCO 25+ Year Zero Coupon US Trs ETF has a portfolio turnover rate of 17%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 63% for the Long Government category.

Recently, in the month of June 2026, PIMCO 25+ Year Zero Coupon US Trs ETF returned 2.2%, which earned it a grade of A, as the Long Government category had an average return of 1.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

PIMCO 25+ Year Zero Coupon US Trs ETF has a trailing yield of 5.03%, which is below the 5.10% category average. The fund normally distributes its income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

PIMCO 25+ Year Zero Coupon US Trs ETF Grades

Year to date, the ETF has returned 1.2%, 0.4 percentage points better than the category, which translates into a grade of A. The fund has returned 0.4% over the past year (grade of F), -7.3% over the past three years (grade of F) and -12.1% per year over the past five years (grade of F) and -4.4% per year over the past 10 years (grade of F).

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