The PIMCO 25 Plus Year Bond ETF (ZROZ) Crushing The S&P Lately

From Chris Kimble: Stocks have done well this year and the past 90-days. Which would you rather have owned the past 90-days and Year to date, the S&P 500 or Bond fund ZROZ?

Below looks at the performance of the S&P and ZROZ over the past 90-days.

Over the past 90-days, bond ETF ZROZ has nearly doubled the returns of the S&P 500. Despite the S&P doing well this year to date, ZROZ has done even better than the S&P 500, gaining around 3% more. Below looks at the Stock/Bond Ratio (SPX/ZROZ) over the past few years.

Does it matter that bonds are stronger than stocks? Do bond traders know something that stock traders don’t?

Maybe it doesn’t matter until it matters applies to stock & bond performance of late! So far, the bond strength the past 90-days, doesn’t seem to matter to the stock market. If the stock/bond ratio would happen to keep heading south, in time I humbly feel it will matter and will send an important message, if it does.

The PIMCO 25 Plus Year Zero Coupon U.S. Treasury Index ETF (NYSE:ZROZ) was trading at $121.82 per share on Monday morning, up $1.01 (+0.84%). Year-to-date, ZROZ has gained 12.14%, versus a 8.93% rise in the benchmark S&P 500 index during the same period.

ZROZ currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #23 of 28 ETFs in the Government Bonds ETFs category.


Full Disclosure- Premium Members have been long bonds since around Christmas of last year.

This article is brought to you courtesy of Kimble Charting Solutions.