EEM vs. TLT
EEM (iShares MSCI Emerging Markets ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - EEM is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Index (Net), while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, EEM returned 8.14%/yr vs -2.33%/yr for TLT. Their -0.20 correlation means they have often moved in opposite directions in the past. EEM charges 0.72%/yr vs 0.15%/yr for TLT.
Performance
EEM vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, EEM achieves a 18.18% return, which is significantly higher than TLT's -3.18% return. Over the past 10 years, EEM has outperformed TLT with an annualized return of 8.14%, while TLT has yielded a comparatively lower -2.33% annualized return.
EEM
- 1D
- 0.36%
- 1M
- -2.10%
- 6M
- 9.07%
- YTD
- 18.18%
- 1Y
- 36.06%
- 3Y*
- 19.44%
- 5Y*
- 6.64%
- 10Y*
- 8.14%
- ALL TIME*
- 9.89%
TLT
- 1D
- 0.33%
- 1M
- -3.49%
- 6M
- -2.86%
- YTD
- -3.18%
- 1Y
- -2.12%
- 3Y*
- -1.15%
- 5Y*
- -8.33%
- 10Y*
- -2.33%
- ALL TIME*
- 3.48%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $1.57B | $1.56B | $1.92B | |
| $2.39B | $2.06B | $2.20B |
EEM vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 18.18% | 33.98% | 6.49% | 8.95% | -20.56% | -3.63% | 17.02% | 18.22% | -15.31% | 37.26% |
TLT iShares 20+ Year Treasury Bond ETF | -3.18% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between EEM and TLT is 0.25, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.25 |
Correlation (3Y) Balances recent behavior with more history. | 0.15 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.08 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.05 |
Correlation (All Time) Calculated using the full available price history since Apr 14, 2003 | -0.20 |
The correlation between EEM and TLT shifts across timeframes, from -0.20 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
EEM vs. TLT — Risk / Return Rank
EEM
TLT
EEM vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) and iShares 20+ Year Treasury Bond ETF (TLT). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| EEM | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.71 | ||
| Sortino ratioReturn per unit of downside risk | +2.26 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 0.97 | +0.31 |
| Calmar ratioReturn relative to maximum drawdown | 2.54 | -0.28 | +2.82 |
| Martin ratioReturn relative to average drawdown | 7.75 | -0.59 | +8.34 |
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Drawdowns
EEM vs. TLT - Drawdown Comparison
The maximum EEM drawdown since its inception was -66.43%, which is greater than TLT's maximum drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for EEM and TLT.
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Drawdown Indicators
| EEM | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -66.43% | -48.35% | -18.08% |
Max Drawdown (1Y)Largest decline over 1 year | -14.24% | -7.74% | -6.50% |
Max Drawdown (3Y)Largest decline over 3 years | -17.29% | -14.79% | -2.50% |
Max Drawdown (5Y)Largest decline over 5 years | -35.01% | -43.70% | +8.69% |
Max Drawdown (10Y)Largest decline over 10 years | -39.82% | -48.35% | +8.53% |
Current DrawdownCurrent decline from peak | -9.68% | -42.17% | +32.49% |
Average DrawdownAverage peak-to-trough decline | -15.95% | -14.00% | -1.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.67% | 3.60% | +1.07% |
Volatility
EEM vs. TLT - Volatility Comparison
iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 9.04% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.51%. This indicates that EEM's price experiences larger fluctuations and is considered to be riskier than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| EEM | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.04% | 2.51% | +6.53% |
Volatility (6M)Calculated over the trailing 6-month period | 22.28% | 6.84% | +15.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 24.49% | 9.24% | +15.25% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.84% | 15.74% | +4.10% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.81% | 14.83% | +5.98% |
EEM vs. TLT - Expense Ratio Comparison
EEM has a 0.72% expense ratio, which is higher than TLT's 0.15% expense ratio.
Dividends
EEM vs. TLT - Dividend Comparison
EEM's dividend yield for the trailing twelve months is around 1.73%, less than TLT's 4.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 1.73% | 2.22% | 2.43% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% |
TLT iShares 20+ Year Treasury Bond ETF | 4.75% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
Frequently Asked Questions
EEM and TLT have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EEM has higher volatility (9.04%) compared to TLT (2.51%). In terms of maximum drawdown, EEM dropped -66.43% vs TLT's -48.35%.
On 10-year performance, EEM leads with 8.14% vs -2.33% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, TLT has been the lower-risk option at 2.51%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, EEM has performed better with a 8.14% return vs -2.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT is cheaper with a 0.15% expense ratio, compared with 0.72% for EEM.
TLT has the higher dividend yield at 4.75%, compared with 1.73% for EEM.
EEM is categorized as Emerging Markets Equities, while TLT is Government Bonds. EEM tracks MSCI Emerging Markets Index (Net), while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. Their fees differ too: 0.72% for EEM and 0.15% for TLT.
EEM currently has the higher Sharpe Ratio (1.48 vs -0.23), 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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