ABNDX vs. IEF
ABNDX (American Funds The Bond Fund of America) and IEF (iShares 7-10 Year Treasury Bond ETF) are both funds - ABNDX is a Intermediate Core Bond fund managed by American Funds, while IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index. Over the past 10 years, ABNDX returned 1.68%/yr vs 0.63%/yr for IEF. Their correlation of 0.86 suggests significant overlap in exposure. ABNDX charges 0.55%/yr vs 0.15%/yr for IEF.
Performance
ABNDX vs. IEF - Performance Comparison
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Returns By Period
In the year-to-date period, ABNDX achieves a 0.10% return, which is significantly higher than IEF's -0.66% return. Over the past 10 years, ABNDX has outperformed IEF with an annualized return of 1.68%, while IEF has yielded a comparatively lower 0.63% annualized return.
ABNDX
- 1D
- 0.00%
- 1M
- 0.44%
- YTD
- 0.10%
- 6M
- 0.00%
- 1Y
- 5.03%
- 3Y*
- 3.67%
- 5Y*
- -0.20%
- 10Y*
- 1.68%
IEF
- 1D
- -0.25%
- 1M
- -0.08%
- YTD
- -0.66%
- 6M
- -1.17%
- 1Y
- 4.06%
- 3Y*
- 2.47%
- 5Y*
- -1.14%
- 10Y*
- 0.63%
ABNDX vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ABNDX American Funds The Bond Fund of America | 0.10% | 7.16% | 1.17% | 4.34% | -13.24% | -1.33% | 10.72% | 7.83% | -0.12% | 3.21% |
IEF iShares 7-10 Year Treasury Bond ETF | -0.66% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
Correlation
The correlation between ABNDX and IEF is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.93 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Jul 29, 2002 | 0.86 |
The correlation between ABNDX and IEF has been stable across timeframes, ranging from 0.86 to 0.95 - a consistent structural relationship.
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Return for Risk
ABNDX vs. IEF — Risk / Return Rank
ABNDX
IEF
ABNDX vs. IEF - Risk-Adjusted Trends 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.
| ABNDX | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.43 | ||
| Sortino ratioReturn per unit of downside risk | +0.66 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 1.15 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.61 | 1.00 | +0.61 |
| Martin ratioReturn relative to average drawdown | 4.83 | 2.98 | +1.85 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ABNDX | IEF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.29 | 0.85 | +0.43 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.03 | -0.15 | +0.11 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.34 | 0.10 | +0.25 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.00 | 0.50 | +0.50 |
Drawdowns
ABNDX vs. IEF - Drawdown Comparison
The maximum ABNDX drawdown since its inception was -18.18%, 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.
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Drawdown Indicators
| ABNDX | IEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.18% | -23.93% | +5.75% |
Max Drawdown (1Y)Largest decline over 1 year | -3.13% | -4.07% | +0.94% |
Max Drawdown (3Y)Largest decline over 3 years | -6.19% | -7.74% | +1.55% |
Max Drawdown (5Y)Largest decline over 5 years | -18.15% | -21.40% | +3.25% |
Max Drawdown (10Y)Largest decline over 10 years | -18.18% | -23.93% | +5.75% |
Current DrawdownCurrent decline from peak | -3.07% | -11.35% | +8.28% |
Average DrawdownAverage peak-to-trough decline | -3.22% | -5.34% | +2.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.04% | 1.37% | -0.33% |
Volatility
ABNDX vs. IEF - Volatility Comparison
The current volatility for American Funds The Bond Fund of America (ABNDX) is 1.39%, while iShares 7-10 Year Treasury Bond ETF (IEF) has a volatility of 1.54%. 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.
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Volatility by Period
| ABNDX | IEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.39% | 1.54% | -0.15% |
Volatility (6M)Calculated over the trailing 6-month period | 2.81% | 3.34% | -0.53% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.93% | 4.78% | -0.85% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.95% | 7.71% | -1.76% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.88% | 6.62% | -1.74% |
ABNDX vs. IEF - Expense Ratio Comparison
ABNDX has a 0.55% expense ratio, which is higher than IEF's 0.15% expense ratio.
Dividends
ABNDX vs. IEF - Dividend Comparison
ABNDX's dividend yield for the trailing twelve months is around 4.14%, more than IEF's 3.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ABNDX American Funds The Bond Fund of America | 4.14% | 4.13% | 4.30% | 3.24% | 2.17% | 1.62% | 5.03% | 3.49% | 2.38% | 1.84% | 1.77% | 2.00% |
IEF iShares 7-10 Year Treasury Bond ETF | 3.90% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
Frequently Asked Questions
With a correlation of 0.93, ABNDX and IEF move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
IEF has higher volatility (1.54%) compared to ABNDX (1.39%). In terms of maximum drawdown, ABNDX dropped -18.18% vs IEF's -23.93%.
ABNDX currently has the higher Sharpe Ratio (1.29 vs 0.85), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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