SPY vs ZROZ
State Street SPDR S&P 500 ETF Trust vs PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | ZROZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.15% | |
| AUM | $821.1B | $1.4B | |
| Dividend Yield | 1.01% | 5.52% | |
| Holdings | 505 | 23 | |
| YTD Return | +12.68% | -6.97% | |
| 1Y Return | +21.82% | -4.97% | |
| 3Y Return (annualized) | +21.98% | -5.56% | |
| 5Y Return (annualized) | +12.89% | -14.69% | |
| Volatility (annualized) | 15.3% | 21.7% | |
| Max Drawdown | -56.5% | -63.7% | |
| Fund Family | State Street Investment Management | PIMCO (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Oct 30, 2009 |
SPY vs ZROZ Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ) is a ETF from PIMCO (US). Over the past year SPY returned +21.82% while ZROZ returned -4.97%. Year to date, SPY is up 12.68% versus a loss of 6.97% for ZROZ.
Over three years, SPY compounded at +21.98% per year against -5.56% for ZROZ; over five years the annualized figures are +12.89% and -14.69% respectively. Across the full 17-year window we track, SPY has the edge at +8.81% annualized vs -0.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ZROZ has been the more volatile fund, with annualized monthly volatility of 21.7% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for SPY and -63.7% for ZROZ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while ZROZ charges 0.15%. On a $10,000 position that is $9 vs $15 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 5.52% for ZROZ.
Holdings Overlap
SPY and ZROZ share 0 holdings out of 522 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or ZROZ?
SPY has an expense ratio of 0.09% while ZROZ charges 0.15%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or ZROZ?
Over the past year SPY returned +21.82% vs -4.97% for ZROZ, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.81% vs -0.31% for ZROZ. Past performance does not guarantee future results.
Which is riskier, SPY or ZROZ?
ZROZ has been the more volatile fund at 21.7% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs ZROZ -63.7%.
Should I hold both SPY and ZROZ?
SPY and ZROZ have a monthly-return correlation of -0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and ZROZ?
SPY and ZROZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 522 unique securities.
Which pays a higher dividend, SPY or ZROZ?
SPY yields 1.01% while ZROZ yields 5.52%, so ZROZ currently pays the higher dividend yield.
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