# How Zscaler (ZS) compares with the whole market and its popular alternatives

> Source: BetterThanSPY research, https://betterthanspy.com/research/zs
> Data as of October 22, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on ZS alone. It places ZS (Zscaler, Inc.) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where ZS stands in the market, and of the alternatives worth a closer look.

Period covered: ZS's full trading record, from March 2018 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 22, 2026.

## Key findings

- **Right now:** Over the past 3 months, ZS rose 67.1% against 2.5% for the S&P 500. That said, the slide is ZS's own: it is 35.5% below its high, against 1.9% for the S&P 500.
- **Stock or market?:** More than an industry move: ZS rose 67.1% over the past 3 months, against 15.1% for the cybersecurity ETF CIBR (First Trust Nasdaq Cybersecurity ETF). The S&P 500 rose 2.5%. Last month cut against the tape: ZS rose 13.1% while the S&P 500 fell 1.2%.
- **Past 1 to 3 years:** ZS has gone against the market, falling 22.8% over the past year while the S&P 500 rose 15.6%. The same gap shows up over 3 years (46.3% against 88.4%).
- **Long term:** ZS turned $10,000 into $7,720 over the past 5 years, against $18,000 in the S&P 500.
- **In a crash:** In the 2022 bear market, ZS fell 55.3%, against 24.5% for the S&P 500. That was more than CSCO (Cisco Systems, 35.4%) but less than NET (Cloudflare, 69.5%). ZS fell further than the S&P 500 in three of the last three sell-offs, including the 2022 bear market (55.3% against 24.5%).
- **Diversification:** ZS is a real diversifier: a correlation of 0.30 with the S&P 500 over 5 years and 0.31 with the total US market, less closely than 71% of stocks worth at least $300 million. On the flip side, over 5 years, ZS's beta versus the S&P 500 was 0.93: in the S&P 500's rising months it gained 39% as much as the index, and in falling months it lost 1.0 times as much.
- **Better options**
  - **Popular alternatives:** PANW (Palo Alto Networks), CRWD (CrowdStrike) and FTNT (Fortinet) earned more than ZS with less volatility over the past 5 years. PANW returned 33.4% a year at 43.4% volatility, against a loss of 5.0% a year at 58.0%.
  - **Nearby categories and themes:** CVLT (Commvault Systems, enterprise software) and BOX (enterprise software) earned more than ZS with less volatility over the past 5 years. CVLT returned 17.1% a year at 44.2% volatility, against a loss of 5.0% a year at 58.0%.
  - **Whole market:** 2,571 of the 3,641 stocks and funds worth at least $500 million earned more than ZS with less volatility over the past 5 years, among them NVDA (NVIDIA), AAPL (Apple) and GOOG (Alphabet).

## How much would $10,000 in ZS have grown?

This chart tracks a hypothetical $10,000 investment in ZS over the past 8 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of ZS over the same span and ZS's popular alternatives, among those that traded for the entire period.

- $10,000 invested in ZS at the end of September 2018 would have grown to $48,901 by September 2026, more than the $29,568 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of ZS, and DELL finished highest, at $217,228.

## ZS at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- ZS is still 35.5% below its all-time high.
- ZS's deepest decline since it began trading in 2018 was 76.4%, from November 2021 to May 2023. It has not yet climbed back to that peak.
- Over seven full calendar years, ZS's best was 2020, when it returned 329%, and its worst was 2022, when it lost 65.2%. It lost money in two of those years.

- Type: Stock, Technology (Software - Infrastructure)
- Trading since: March 16, 2018
- Market value: $39B
- Volatility (5 years): 58.0%; Sharpe ratio: 0.20
- Worst decline ever: −76.4%, from November 19, 2021 to May 2, 2023; not yet back at its high

| Period | ZS total return |
| --- | --- |
| 1 month | +13.1% |
| 3 months | +67.1% |
| 6 months | +66.7% |
| year to date | +7.8% |
| 1 year | −22.8% |
| 3 years | +46.3% |
| 5 years | −22.8% |

## ZS against the whole market

Where ZS ranks among every stock and fund, and what across the market has done better.

### How does ZS rank among all stocks?

This section ranks ZS on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- ZS's 1-year return ranks in the bottom 17% of the 3,282 stocks worth at least $300 million with 1 year of history.

| Measure | ZS | Rank |
| --- | --- | --- |
| 1-year return | −22.8% | 2,734 of 3,282 (top 84%) |
| 3-year return | +46.3% | 1,634 of 3,016 (top 55%) |
| 5-year return | −22.8% | 2,062 of 2,897 (top 72%) |
| Volatility, 5 years | 58.0% | 2,221 of 2,897 (top 77%) |
| Sharpe ratio, 5 years | 0.20 | 1,846 of 2,897 (top 64%) |

### What has beaten ZS on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 1,587 stocks and 984 ETFs worth at least $500 million sit in the green region: each earned more than ZS over the past 5 years with smaller price swings. That is 71% of the 3,641 screened.
- Among those with at least half ZS's swings, FIX has the best return for its risk: 73.0% a year at 46.9% volatility, 19% less than ZS's 58.0%, and a Sharpe ratio (return above cash per unit of volatility) of 1.41 against 0.20 for ZS. BELFB earned the most, 75.9% a year, while still swinging less than ZS (52.3% against 58.0%).
- Among ZS's popular alternatives, PANW, CSCO and CRWD are in the region. PANW earned 33.4% a year against a loss of 5.0% a year for ZS, at 43.4% volatility, 25% less than ZS's 58.0%.

### Is there a better investment than ZS?

The table below lists investments that beat ZS over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among ZS's popular alternatives, PANW, CRWD and FTNT earned more than ZS with less volatility over the past 5 years. PANW returned 33.4% a year at 43.4% volatility, against a loss of 5.0% a year at 58.0%.
- Looking beyond its popular alternatives, CVLT (enterprise software) and BOX (enterprise software) earned more than ZS with less volatility over the past 5 years. CVLT returned 17.1% a year at 44.2% volatility, against a loss of 5.0% a year at 58.0%.
- Across the whole market, 2,571 of the 3,641 stocks and funds worth at least $500 million earned more than ZS with less volatility over the past 5 years, among them NVDA, AAPL and GOOG.

The 15 strongest of 2,571 investments that beat ZS over the past 5 years, out of 3,641 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 5Y return | Correlation with ZS | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ZS: Zscaler, Inc. (this page) |  | −5.0% | 58.0% | 0.20 | −76.4% | −22.8% |  |  |
| [BIL](https://betterthanspy.com/research/bil): State Street SPDR Bloomberg 1-3 Month T-Bill ETF | Treasury Bills | +3.7% | 0.3% | 14.07 | −0.2% | +20.0% | 0.18 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| [DELL](https://betterthanspy.com/research/dell): Dell Technologies Inc. | Computer Hardware | +53.8% | 54.5% | 1.06 | −59.6% | +761% | 0.10 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [PSX](https://betterthanspy.com/research/psx): Phillips 66 | Oil Refining | +32.7% | 32.9% | 1.03 | −64.2% | +312% | -0.03 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [LLY](https://betterthanspy.com/research/lly): Eli Lilly and Company | Pharmaceuticals | +41.2% | 32.8% | 1.22 | −34.5% | +461% | 0.01 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| [HPE](https://betterthanspy.com/research/hpe): Hewlett Packard Enterprise Company | Computer Hardware | +32.8% | 42.3% | 0.89 | −56.9% | +313% | 0.16 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VTI](https://betterthanspy.com/research/vti): Vanguard Morningstar Total Stock Market ETF | US Total Market | +11.4% | 17.5% | 0.71 | −35.0% | +71.5% | 0.31 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| [VOO](https://betterthanspy.com/research/voo): Vanguard S&P 500 ETF | US Large-Cap Equity | +12.6% | 16.9% | 0.79 | −34.0% | +80.8% | 0.30 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| [WMT](https://betterthanspy.com/research/wmt): Walmart Inc. | Discount Retail | +21.1% | 22.6% | 0.97 | −25.7% | +161% | 0.01 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| [BRK-A](https://betterthanspy.com/research/brk-a): Berkshire Hathaway Inc. | Insurance | +13.5% | 17.2% | 0.83 | −30.4% | +88.5% | -0.07 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| [NTAP](https://betterthanspy.com/research/ntap): NetApp, Inc. | Computer Hardware | +20.6% | 35.3% | 0.71 | −58.1% | +155% | 0.28 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [ABBV](https://betterthanspy.com/research/abbv): AbbVie Inc. | Specialty Pharmaceuticals | +25.5% | 23.4% | 1.09 | −45.1% | +212% | -0.11 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| [JNJ](https://betterthanspy.com/research/jnj): Johnson & Johnson | Pharmaceuticals | +13.5% | 18.0% | 0.80 | −27.4% | +88.0% | -0.20 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| [HSBC](https://betterthanspy.com/research/hsbc): HSBC Holdings plc | Banks | +32.8% | 25.9% | 1.23 | −62.3% | +313% | -0.08 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| [V](https://betterthanspy.com/research/v): Visa Inc. | Payment Processing | +13.2% | 22.9% | 0.66 | −36.4% | +86.1% | 0.05 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| DXJ: WisdomTree Japan Hedged Equity Fund | Japan Equity | +26.6% | 19.1% | 1.34 | −39.1% | +225% | -0.03 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |

## ZS against its popular alternatives

The investments people most often weigh against ZS, compared period by period and year by year.

### How do ZS's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- 15 of the 21 popular alternatives, led by PANW, CRWD and FTNT, were both more rewarding and calmer than ZS over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, ZS returned -5.0% a year, less than the S&P 500's 12.5%, with higher volatility (58.0% against 17.2%).

### Has ZS consistently beaten its popular alternatives?

This section compares ZS with the investments people most often weigh against it, checking each one over seven periods from one month to five years.

- Five of the 21 popular alternatives, led by PANW, CRWD and FTNT, outperformed ZS in at least 3 of 5 short-term and 2 of 2 long-term timeframes.
- PANW, CSCO and CRWD earned more for the risk they took than ZS (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.
- GOOG outperformed ZS over all two long-term periods but in only one of the five short-term ones, so ZS has had the better of it lately.

| Investment | 1Y return | 3Y return | 5Y return | Periods ahead of ZS | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- |
| ZS: Zscaler, Inc. (this page) | −22.8% | +46.3% | −22.8% |  |  | 0.20 |
| [PANW](https://betterthanspy.com/research/panw): Palo Alto Networks, Inc. | +67.1% | +188% | +322% | 3/5 short-term, 2/2 long-term | consistent | 0.89 |
| [CRWD](https://betterthanspy.com/research/crwd): CrowdStrike Holdings, Inc. | +90.3% | +431% | +236% | 3/5 short-term, 2/2 long-term | consistent | 0.72 |
| [FTNT](https://betterthanspy.com/research/ftnt): Fortinet, Inc. | +104% | +208% | +158% | 3/5 short-term, 2/2 long-term | consistent | 0.65 |
| [DDOG](https://betterthanspy.com/research/ddog): Datadog, Inc. | +67.1% | +201% | +58.7% | 3/5 short-term, 2/2 long-term | consistent | 0.45 |
| [SNOW](https://betterthanspy.com/research/snow): Snowflake Inc. | +29.9% | +111% | −7.6% | 3/5 short-term, 2/2 long-term | consistent | 0.28 |
| [CSCO](https://betterthanspy.com/research/csco): Cisco Systems, Inc. | +51.2% | +117% | +118% | 2/5 short-term, 2/2 long-term |  | 0.73 |
| FFIV: F5, Inc. | +51.1% | +207% | +116% | 2/5 short-term, 2/2 long-term |  | 0.66 |
| [MSFT](https://betterthanspy.com/research/msft): Microsoft Corporation | +0.9% | +61.9% | +75.6% | 2/5 short-term, 2/2 long-term |  | 0.54 |
| [NET](https://betterthanspy.com/research/net): Cloudflare, Inc. | +44.1% | +417% | +67.4% | 2/5 short-term, 2/2 long-term |  | 0.49 |
| [AMZN](https://betterthanspy.com/research/amzn): Amazon.com, Inc. | +14.9% | +97.8% | +50.1% | 2/5 short-term, 2/2 long-term |  | 0.41 |
| RDWR: Radware Ltd. | +15.9% | +92.0% | −16.5% | 2/5 short-term, 2/2 long-term |  | 0.10 |
| [GOOG](https://betterthanspy.com/research/goog): Alphabet Inc. | +27.4% | +135% | +134% | 1/5 short-term, 2/2 long-term |  | 0.69 |
| GEN: Gen Digital Inc. | −6.7% | +56.2% | +3.5% | 1/5 short-term, 2/2 long-term |  | 0.18 |
| TENB: Tenable Holdings, Inc. | +39.5% | −0.6% | −19.0% | 4/5 short-term, 1/2 long-term |  | 0.15 |
| QLYS: Qualys, Inc. | +62.4% | +35.0% | +77.4% | 3/5 short-term, 1/2 long-term |  | 0.48 |
| VRNS: Varonis Systems, Inc. | −20.2% | +53.4% | −22.7% | 3/5 short-term, 1/2 long-term |  | 0.20 |
| OKTA: Okta, Inc. | +131% | +190% | −22.7% | 3/5 short-term, 1/2 long-term |  | 0.21 |
| CHKP: Check Point Software Technologies Ltd. | −22.0% | +14.8% | +22.7% | 1/5 short-term, 1/2 long-term |  | 0.29 |
| AKAM: Akamai Technologies, Inc. | +22.0% | −11.9% | −15.6% | 1/5 short-term, 1/2 long-term |  | 0.11 |
| S: SentinelOne, Inc. | +30.1% | +40.2% | −64.7% | 2/5 short-term, 0/2 long-term |  | -0.01 |
| RPD: Rapid7, Inc. | −23.2% | −69.7% | −88.3% | 2/5 short-term, 0/2 long-term |  | -0.44 |

### How did ZS do year by year?

This table shows each investment's total return in every full calendar year since 2019, along with where ZS ranked among its popular alternatives each year.

- Ranked against its popular alternatives each year, ZS finished in the top quarter in four of seven years and in the bottom quarter in one. In 2025, it ranked 6 of 22.
- ZS finished ahead of the S&P 500 in four of its seven full calendar years.
- Among its popular alternatives, GOOG came out ahead of ZS most often, in five of the seven years both traded.

| Year | ZS | SPY |
| --- | --- | --- |
| 2025 | +24.7% | +17.7% |
| 2024 | −18.6% | +24.9% |
| 2023 | +98.0% | +26.2% |
| 2022 | −65.2% | −18.2% |
| 2021 | +60.9% | +28.7% |
| 2020 | +329% | +18.3% |
| 2019 | +18.6% | +31.2% |

## Risk and diversification

How ZS has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were ZS's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all five of ZS's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: ZS fell 28.9% from February to May 2021, while the S&P 500 rose 4.8%.
- None of these declines kept ZS below its old high for long; the longest climb back took two months.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −76.4% | November 19, 2021 | May 2, 2023 | not yet | −10.3% | 2022 bear market |
| −55.2% | July 26, 2019 | March 12, 2020 | May 29, 2020 | −17.1% | Covid crash |
| −31.8% | August 27, 2018 | November 20, 2018 | January 31, 2019 | −8.4% | late-2018 sell-off |
| −28.9% | February 12, 2021 | May 13, 2021 | July 7, 2021 | +4.8% |  |
| −24.4% | March 16, 2018 | May 25, 2018 | June 7, 2018 | −0.8% |  |

### How did ZS do in stock market crashes?

This section measures how far ZS, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- ZS fell further than the S&P 500 in all four crashes it has traded through. The clearest case was the 2022 bear market, when ZS fell 55.3% and the S&P 500 fell 24.5%.
- Among its popular alternatives, CSCO held up best, falling less than ZS in all four crashes they both traded through.
- ZS began trading after the 2008 financial crisis, but nine of its popular alternatives lived through it. The mildest fall among them was CHKP's 34.4%, against 55.2% for the S&P 500.

| Crash | Dates | ZS fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | not trading | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | not trading | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | not trading | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | not trading | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | not trading | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −24.4% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −39.4% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −55.3% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −8.3% | −3.4% |

### How closely does ZS move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- 17 of the 20 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than ZS's 0.37, led by CRWD, NET and FTNT.
- PANW took just -13% of the S&P 500's losses, against 105% for ZS, while still keeping 104% of its gains.
- Over the past 5 years, ZS captured 39% of the S&P 500's gains in rising months and 105% of its losses in falling months, with a beta of 0.93. Its share of the market's losses was larger than its share of the gains.

Measured over the past 5 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| ZS: Zscaler, Inc. (this page) | 39.0% | 105% | 0.93 |
| [PANW](https://betterthanspy.com/research/panw): Palo Alto Networks, Inc. | 104% | −13.0% | 0.93 |
| [CRWD](https://betterthanspy.com/research/crwd): CrowdStrike Holdings, Inc. | 122% | 38.0% | 1.19 |
| [FTNT](https://betterthanspy.com/research/ftnt): Fortinet, Inc. | 119% | 75.0% | 1.03 |
| [DDOG](https://betterthanspy.com/research/ddog): Datadog, Inc. | 112% | 119% | 1.51 |
| [SNOW](https://betterthanspy.com/research/snow): Snowflake Inc. | 83.0% | 134% | 1.35 |
| [CSCO](https://betterthanspy.com/research/csco): Cisco Systems, Inc. | 98.0% | 75.0% | 0.99 |
| FFIV: F5, Inc. | 102% | 83.0% | 1.03 |
| [MSFT](https://betterthanspy.com/research/msft): Microsoft Corporation | 115% | 126% | 1.10 |
| [NET](https://betterthanspy.com/research/net): Cloudflare, Inc. | 118% | 72.0% | 1.64 |
| [AMZN](https://betterthanspy.com/research/amzn): Amazon.com, Inc. | 125% | 170% | 1.45 |
| RDWR: Radware Ltd. | 55.0% | 114% | 0.87 |
| [GOOG](https://betterthanspy.com/research/goog): Alphabet Inc. | 140% | 132% | 1.20 |
| GEN: Gen Digital Inc. | 97.0% | 177% | 1.26 |
| TENB: Tenable Holdings, Inc. | 48.0% | 116% | 1.00 |
| QLYS: Qualys, Inc. | 65.0% | 53.0% | 0.61 |
| VRNS: Varonis Systems, Inc. | 23.0% | 74.0% | 0.77 |
| OKTA: Okta, Inc. | 39.0% | 87.0% | 0.74 |
| CHKP: Check Point Software Technologies Ltd. | 53.0% | 80.0% | 0.47 |
| AKAM: Akamai Technologies, Inc. | 66.0% | 117% | 0.62 |
| S: SentinelOne, Inc. | 16.0% | 129% | 0.70 |
| RPD: Rapid7, Inc. | −17.0% | 238% | 1.02 |

### What diversifies ZS?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in ZS into XLE would have cut the portfolio's volatility by 22% over the past 5 years and raised its annual return (-5.3% for ZS alone, +2.8% for the mix).
- XLE made money in two of the two calendar years in which ZS lost money.
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of ZS over the past 5 years, with correlations of -0.03 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with ZS | 5Y return | Volatility | Sharpe | Rose in ZS's 2 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | -0.23 | +119% | 11.1% | 1.48 | 2 of 2 |
| DXJ: WisdomTree Japan Hedged Equity Fund | -0.03 | +225% | 19.1% | 1.34 | 2 of 2 |
| EMLP: First Trust North American Energy Infrastructure Fund | -0.12 | +103% | 14.5% | 1.06 | 2 of 2 |
| HDV: iShares Core High Dividend ETF | -0.19 | +86.8% | 13.0% | 1.03 | 2 of 2 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | 0.05 | +83.6% | 13.8% | 0.95 | 1 of 2 |
| [SMH](https://betterthanspy.com/research/smh): VanEck Semiconductor ETF | 0.32 | +304% | 37.0% | 0.94 | 1 of 2 |
| [XLE](https://betterthanspy.com/research/xle): State Street Energy Select Sector SPDR ETF | -0.26 | +178% | 25.5% | 0.94 | 2 of 2 |
| [GLD](https://betterthanspy.com/research/gld): SPDR Gold Shares | -0.11 | +120% | 19.0% | 0.93 | 1 of 2 |

## Common questions

### What was ZS's worst drawdown?

ZS's deepest decline since it began trading in 2018 was 76.4%, from November 2021 to May 2023. It has not yet climbed back to that peak. Because ZS launched in March 2018, that record does not include the dot-com bust, the 2008 financial crisis or four other sell-offs.

### What were ZS's best and worst years?

Over seven full calendar years, ZS's best year was 2020, when it returned 329%. Its worst was 2022, with a return of -65.2%.

### Is there a better investment than ZS?

Among ZS's popular alternatives, PANW, CRWD and FTNT earned more than ZS with less volatility over the past 5 years. PANW returned 33.4% a year at 43.4% volatility, against a loss of 5.0% a year at 58.0%. Looking beyond its popular alternatives, CVLT (enterprise software) and BOX (enterprise software) earned more than ZS with less volatility over the past 5 years. CVLT returned 17.1% a year at 44.2% volatility, against a loss of 5.0% a year at 58.0%.

### Is ZS more volatile than the S&P 500?

Yes. ZS's volatility over the past 5 years was 58.0%, 3.4 times the S&P 500's 17.2%. Volatility measures how widely returns swing around their average: in roughly two years out of three, ZS's return lands within 58.0% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is ZS's Sharpe ratio?

ZS's Sharpe ratio over the past 5 years was 0.20, against 0.78 for the S&P 500, so ZS earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is ZS with the S&P 500?

Over the past 5 years, ZS's monthly returns had a correlation of 0.30 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They are only loosely linked, which makes it a real diversifier next to an index fund. In the table, the correlation column measures each option against ZS instead: the lower it is, the more that option would diversify a ZS holding.

### What are the best alternatives to ZS?

Of the 21 popular alternatives we compared, five outperformed ZS in at least 3 of 5 short-term and 2 of 2 long-term timeframes, with dividends reinvested: PANW, CRWD and FTNT.

### Did ZS outperform the S&P 500?

ZS finished ahead of the S&P 500 (SPY) in four of seven full calendar years. In 2025, it returned +24.7%, against +17.7% for the index.

### How did ZS do in stock market crashes?

ZS fell less than the S&P 500 (SPY) in none of the four major crashes it has traded through, and further in four. The clearest case was the 2022 bear market, when ZS fell 55.3% and the S&P 500 fell 24.5%.

### What diversifies ZS?

These had a low correlation with ZS over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation -0.23), DXJ (correlation -0.03) and EMLP (correlation -0.12); among large stocks, CAH (correlation 0.14), CLS (correlation 0.32) and MCK (correlation 0.08). A correlation near zero means the two have moved largely independently.

## More research

- [Palo Alto Networks (PANW) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/panw)
- [CrowdStrike (CRWD) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/crwd)
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## Explore further

- Full page with charts: https://betterthanspy.com/research/zs
- All research pages: https://betterthanspy.com/llms.txt
- Compare the entire market against ZS live: https://betterthanspy.com/?b=ZS