ABNDX vs. IEF
Compare and contrast key facts about American Funds The Bond Fund of America (ABNDX) and iShares 7-10 Year Treasury Bond ETF (IEF).
ABNDX is managed by American Funds. It was launched on May 28, 1974. IEF is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 7-10 Year Treasury Bond Index. It was launched on Jul 26, 2002.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ABNDX or IEF.
Key characteristics
| ABNDX | IEF | |
|---|---|---|
| YTD Return | -3.28% | -4.00% |
| 1Y Return | -1.92% | -5.14% |
| 3Y Return (Ann) | -3.77% | -5.02% |
| 5Y Return (Ann) | 0.26% | -1.02% |
| 10Y Return (Ann) | 1.23% | 0.77% |
| Sharpe Ratio | -0.15 | -0.48 |
| Daily Std Dev | 7.06% | 8.21% |
| Max Drawdown | -17.75% | -23.93% |
| Current Drawdown | -12.85% | -20.19% |
Correlation
The correlation between ABNDX and IEF is 0.85, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
ABNDX vs. IEF - Performance Comparison
In the year-to-date period, ABNDX achieves a -3.28% return, which is significantly higher than IEF's -4.00% return. Over the past 10 years, ABNDX has outperformed IEF with an annualized return of 1.23%, while IEF has yielded a comparatively lower 0.77% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ABNDX vs. IEF - Expense Ratio Comparison
ABNDX has a 0.55% expense ratio, which is higher than IEF's 0.15% expense ratio.
Risk-Adjusted Performance
ABNDX vs. IEF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds The Bond Fund of America (ABNDX) and iShares 7-10 Year Treasury Bond ETF (IEF). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
ABNDX vs. IEF - Dividend Comparison
ABNDX's dividend yield for the trailing twelve months is around 3.69%, more than IEF's 3.27% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ABNDX American Funds The Bond Fund of America | 3.69% | 3.57% | 2.71% | 1.62% | 5.03% | 3.66% | 2.38% | 1.84% | 1.55% | 2.01% | 2.13% | 2.38% |
IEF iShares 7-10 Year Treasury Bond ETF | 3.27% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% | 2.05% | 1.77% |
Drawdowns
ABNDX vs. IEF - Drawdown Comparison
The maximum ABNDX drawdown since its inception was -17.75%, smaller than the maximum IEF drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for ABNDX and IEF. For additional features, visit the drawdowns tool.
Volatility
ABNDX vs. IEF - Volatility Comparison
The current volatility for American Funds The Bond Fund of America (ABNDX) is 1.95%, while iShares 7-10 Year Treasury Bond ETF (IEF) has a volatility of 2.20%. This indicates that ABNDX experiences smaller price fluctuations and is considered to be less risky than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.