VOO vs ZROZ
Vanguard S&P 500 ETF vs PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | VOO | ZROZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.15% | |
| AUM | $997.4B | $1.4B | |
| Dividend Yield | 1.08% | 5.52% | |
| Holdings | 509 | 23 | |
| YTD Return | +12.68% | -6.97% | |
| 1Y Return | +21.87% | -4.97% | |
| 3Y Return (annualized) | +22.06% | -5.56% | |
| 5Y Return (annualized) | +12.95% | -14.69% | |
| Volatility (annualized) | 14.1% | 21.7% | |
| Max Drawdown | -34.3% | -63.7% | |
| Fund Family | Vanguard (US) | PIMCO (US) | |
| Category | Equity | Fixed Income | |
| Inception | Sep 7, 2010 | Oct 30, 2009 |
VOO vs ZROZ Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ) is a ETF from PIMCO (US). Over the past year VOO returned +21.87% while ZROZ returned -4.97%. Year to date, VOO is up 12.68% versus a loss of 6.97% for ZROZ.
Over three years, VOO compounded at +22.06% per year against -5.56% for ZROZ; over five years the annualized figures are +12.95% and -14.69% respectively. Across the full 16-year window we track, VOO has the edge at +13.47% 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 14.1% for VOO. 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 -34.3% for VOO 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 -0.05. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while ZROZ charges 0.15%. On a $10,000 position that is $3 vs $15 annually, a gap of $12 per year that compounds over a long holding period. On income, VOO currently yields 1.08% against 5.52% for ZROZ.
Holdings Overlap
VOO and ZROZ share 0 holdings out of 523 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, VOO or ZROZ?
VOO has an expense ratio of 0.03% while ZROZ charges 0.15%. VOO is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, VOO or ZROZ?
Over the past year VOO returned +21.87% vs -4.97% for ZROZ, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.47% vs -0.31% for ZROZ. Past performance does not guarantee future results.
Which is riskier, VOO or ZROZ?
ZROZ has been the more volatile fund at 21.7% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs ZROZ -63.7%.
Should I hold both VOO and ZROZ?
VOO and ZROZ have a monthly-return correlation of -0.05, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and ZROZ?
VOO and ZROZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 523 unique securities.
Which pays a higher dividend, VOO or ZROZ?
VOO yields 1.08% while ZROZ yields 5.52%, so ZROZ currently pays the higher dividend yield.
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