Zero coupon bonds 🚀This is the most extreme US Treasury bond ETF. Basically pay some amount and get back face value in 25 years. Inflation would kill these, whereas deflation and falling interest rates will send this to the moon.
Interestingly this pays a dividend in line with other bonds, I looked it up and it looks
Key stats
About PIMCO 25 Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund
Home page
Inception date
Oct 30, 2009
Structure
Open-Ended Fund
Dividend treatment
Distributes
Distribution tax treatment
Ordinary income
Income tax type
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Primary advisor
Pacific Investment Management Co. LLC
Distributor
PIMCO Investments LLC
ZROZ's high-duration play makes it hypersensitive to every twitch in interest rates. It tracks an index of long-term Treasurys with coupon cash flows removed, leaving only the principal repayment at the end. Called STRIPs, these securities are sold at deep discount to face value and make no interest payments until they mature at par. Since STRIPs are zero coupon bonds, they are particularly sensitive to interest-rate risk. As a result, the fund's effective duration is much higher, which in turn produces volatile results compared with vanilla long-dated Treasurys. Despite the lack of coupons from the underlying zeroes, the fund itself makes quarterly distributions with proceeds from bonds sold at rebalance.
Classification
What's in the fund
Exposure type
Government
Bonds, Cash & Other100.00%
Government99.99%
Cash0.01%
Top 10 holdings
Structural Inflation is an Expired SandwichWe are headed for ✨ deflation ✨ so I am bullish on long-duration treasury bonds, gold, and utilities!
My rationale for my position is I went to Mac Donalds, and I paid for 6 piece shiggen nuggets 6 months ago and it cost me $8.40 and today I went to the same Mac Donald it only costed me $8.37.
PLS
Bull Case for ZROZFollowing a classic "cup and handle" calculation. We could see this behavior, where we have another 20 to 25% increase in ZROZ. (It could also coincide with Fed decisions dates).
This applies to EDV and TLT.
Looking at this going much higher about 45% by late October.... quite bold... but !!!
See all ideas
Summarizing what the indicators are suggesting.
Oscillators
Neutral
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Strong sellSellNeutralBuyStrong buy
Oscillators
Neutral
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Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Moving Averages
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Moving Averages
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Displays a symbol's price movements over previous years to identify recurring trends.
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Frequently Asked Questions
An exchange-traded fund (ETF) is a collection of assets (stocks, bonds, commodities, etc.) that track an underlying index and can be bought on an exchange like individual stocks.
ZROZ trades at 64.51 USD today, its price has fallen −0.32% in the past 24 hours. Track more dynamics on ZROZ price chart.
ZROZ net asset value is 64.78 today — it's fallen 5.32% over the past month. NAV represents the total value of the fund's assets less liabilities and serves as a gauge of the fund's performance.
ZROZ assets under management is 1.50 B USD. AUM is an important metric as it reflects the fund's size and can serve as a gauge of how successful the fund is in attracting investors, which, in its turn, can influence decision-making.
ZROZ price has fallen by −6.60% over the last month, and its yearly performance shows a −10.48% decrease. See more dynamics on ZROZ price chart.
NAV returns, another gauge of an ETF dynamics, have fallen by −5.32% over the last month, showed a −11.79% decrease in three-month performance and has decreased by −5.40% in a year.
NAV returns, another gauge of an ETF dynamics, have fallen by −5.32% over the last month, showed a −11.79% decrease in three-month performance and has decreased by −5.40% in a year.
ZROZ fund flows account for 382.82 M USD (1 year). Many traders use this metric to get insight into investors' sentiment and evaluate whether it's time to buy or sell the fund.
Since ETFs work like an individual stock, they can be bought and sold on exchanges (e.g. NASDAQ, NYSE, EURONEXT). As it happens with stocks, you need to select a brokerage to access trading. Explore our list of available brokers to find the one to help execute your strategies. Don't forget to do your research before getting to trading. Explore ETFs metrics in our ETF screener to find a reliable opportunity.
ZROZ invests in bonds. See more details in our Analysis section.
ZROZ expense ratio is 0.15%. It's an important metric for helping traders understand the fund's operating costs relative to assets and how expensive it would be to hold the fund.
No, ZROZ isn't leveraged, meaning it doesn't use borrowings or financial derivatives to magnify the performance of the underlying assets or index it follows.
In some ways, ETFs are safe investments, but in a broader sense, they're not safer than any other asset, so it's crucial to analyze a fund before investing. But if your research gives a vague answer, you can always refer to technical analysis.
Today, ZROZ technical analysis shows the sell rating and its 1-week rating is sell. Since market conditions are prone to changes, it's worth looking a bit further into the future — according to the 1-month rating ZROZ shows the strong sell signal. See more of ZROZ technicals for a more comprehensive analysis.
Today, ZROZ technical analysis shows the sell rating and its 1-week rating is sell. Since market conditions are prone to changes, it's worth looking a bit further into the future — according to the 1-month rating ZROZ shows the strong sell signal. See more of ZROZ technicals for a more comprehensive analysis.
Yes, ZROZ pays dividends to its holders with the dividend yield of 4.88%.
ZROZ trades at a premium (0.42%).
Premium/discount to NAV expresses the difference between the ETF’s price and its NAV value. A positive percentage indicates a premium, meaning the ETF trades at a higher price than the calculated NAV. Conversely, a negative percentage indicates a discount, suggesting the ETF trades at a lower price than NAV.
Premium/discount to NAV expresses the difference between the ETF’s price and its NAV value. A positive percentage indicates a premium, meaning the ETF trades at a higher price than the calculated NAV. Conversely, a negative percentage indicates a discount, suggesting the ETF trades at a lower price than NAV.
ZROZ shares are issued by Allianz SE
ZROZ follows the ICE BofA Long US Treasury Principal STRIPS. ETFs usually track some benchmark seeking to replicate its performance and guide asset selection and objectives.
The fund started trading on Oct 30, 2009.
The fund's management style is passive, meaning it's aiming to replicate the performance of the underlying index by holding assets in the same proportions as the index. The goal is to match the index's returns.