PIMCO Treasury ETF Closes at $54.65 as 30-Year Yield Stands at 5.59%
ZROZ tracks long-term, zero-coupon U.S. Treasury securities whose values are sensitive to changes in interest rates.
PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF (ZROZ) closed at $54.65 on Sept. 29, while the U.S. Treasury’s 30-year par yield stood at 5.59%. The fund is exposed to long-term government debt whose value can change sharply as interest rates move.
ZROZ is designed to track the ICE BofA Long U.S. Treasury Principal STRIPS Index before fees and expenses. PIMCO lists the fund with a 0.15% expense ratio and an Oct. 30, 2009, launch date.
The ETF provides exposure to zero-coupon U.S. Treasury STRIPS maturing in 25 years or more. These securities do not make periodic interest payments. Instead, their values depend largely on the discounted value of their final principal payments.
When long-term yields rise, the present value of those future payments generally falls. ZROZ shares can also trade above or below the value of the fund’s underlying holdings because ETF shares trade at market prices rather than net asset value.
