EDV - ZROZ Vs. EDV: Which Zero Coupon Treasury ETF Is Better?
2024-04-25 07:57:06 ET
Summary
- Zero coupon treasury bonds are considered to be a better way to benefit from rate cuts in the US compared to ordinary treasury bonds.
- While the bond market is getting repriced for a "higher for longer" scenario, I expect interest rate cuts sooner rather than later.
- Both ZROZ and EDV are fine if you expect interest rate cuts in the foreseeable future, though one of these two ETFs is slightly better.
A month ago, I published an article about the EDV ETF, which is a peer fund relative to PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF ( ZROZ ). Initially, I compared the EDV ETF to the TLT , but I got a request to compare it with the ZROZ. Now it's time to fulfill that request and compare two major zero coupon treasury ETFs and define a winner....
ZROZ Vs. EDV: Which Zero Coupon Treasury ETF Is Better?