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ABNDX vs. IEF

Last updated Feb 24, 2024

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


ABNDXIEF
YTD Return-1.93%-2.20%
1Y Return2.28%1.02%
3Y Return (Ann)-3.44%-5.06%
5Y Return (Ann)0.90%-0.36%
10Y Return (Ann)1.53%1.05%
Sharpe Ratio0.350.15
Daily Std Dev7.58%9.15%
Max Drawdown-17.75%-23.93%
Current Drawdown-11.62%-18.70%

Correlation

0.85
-1.001.00

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.

ABNDX vs. IEF - Performance Comparison

In the year-to-date period, ABNDX achieves a -1.93% return, which is significantly higher than IEF's -2.20% return. Over the past 10 years, ABNDX has outperformed IEF with an annualized return of 1.53%, while IEF has yielded a comparatively lower 1.05% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.


-4.00%-2.00%0.00%2.00%4.00%6.00%SeptemberOctoberNovemberDecember2024February
3.42%
1.99%
ABNDX
IEF

Compare stocks, funds, or ETFs


American Funds The Bond Fund of America

iShares 7-10 Year Treasury Bond ETF

ABNDX vs. IEF - Dividend Comparison

ABNDX's dividend yield for the trailing twelve months is around 3.76%, more than IEF's 3.01% yield.


TTM20232022202120202019201820172016201520142013
ABNDX
American Funds The Bond Fund of America
3.76%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
3.01%2.91%1.96%0.83%1.08%2.08%2.24%1.82%1.81%1.90%2.05%1.77%

ABNDX vs. IEF - Expense Ratio Comparison

ABNDX has a 0.55% expense ratio, which is higher than IEF's 0.15% expense ratio.

0.55%
0.00%2.15%
0.15%
0.00%2.15%

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.


Sharpe ratioSortino ratioOmega ratioCalmar ratioUlcer Index
ABNDX
American Funds The Bond Fund of America
0.35
IEF
iShares 7-10 Year Treasury Bond ETF
0.15

ABNDX vs. IEF - Sharpe Ratio Comparison

The current ABNDX Sharpe Ratio is 0.35, which is higher than the IEF Sharpe Ratio of 0.15. The chart below compares the 12-month rolling Sharpe Ratio of ABNDX and IEF.


Rolling 12-month Sharpe Ratio-0.60-0.40-0.200.000.200.400.60SeptemberOctoberNovemberDecember2024February
0.35
0.15
ABNDX
IEF

ABNDX vs. IEF - Drawdown Comparison

The maximum ABNDX drawdown since its inception was -17.75%, smaller than the maximum IEF drawdown of -23.93%. The drawdown chart below compares losses from any high point along the way for ABNDX and IEF


-20.00%-15.00%-10.00%SeptemberOctoberNovemberDecember2024February
-11.62%
-18.70%
ABNDX
IEF

ABNDX vs. IEF - Volatility Comparison

The current volatility for American Funds The Bond Fund of America (ABNDX) is 2.32%, while iShares 7-10 Year Treasury Bond ETF (IEF) has a volatility of 2.67%. 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.


1.50%2.00%2.50%3.00%SeptemberOctoberNovemberDecember2024February
2.32%
2.67%
ABNDX
IEF