FALN vs. TLT
FALN (iShares Fallen Angels USD Bond ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - FALN is a High Yield Bonds fund tracking the Bloomberg US High Yield Fallen Angel 3% Capped Index, 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, FALN returned 6.60%/yr vs -1.74%/yr for TLT. At a 0.21 correlation, their price movements are largely independent. FALN charges 0.25%/yr vs 0.15%/yr for TLT.
Performance
FALN vs. TLT - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, FALN achieves a 2.24% return, which is significantly higher than TLT's 0.77% return. Over the past 10 years, FALN has outperformed TLT with an annualized return of 6.60%, while TLT has yielded a comparatively lower -1.74% annualized return.
FALN
- 1D
- 0.00%
- 1M
- 1.07%
- YTD
- 2.24%
- 6M
- 2.42%
- 1Y
- 7.88%
- 3Y*
- 9.39%
- 5Y*
- 3.74%
- 10Y*
- 6.60%
TLT
- 1D
- 0.13%
- 1M
- 2.20%
- YTD
- 0.77%
- 6M
- 0.38%
- 1Y
- 3.87%
- 3Y*
- -1.89%
- 5Y*
- -6.59%
- 10Y*
- -1.74%
FALN vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 2.24% | 8.92% | 7.68% | 13.47% | -13.79% | 5.40% | 14.85% | 17.42% | -4.97% | 8.70% |
TLT iShares 20+ Year Treasury Bond ETF | 0.77% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between FALN and TLT is 0.53, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.53 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.57 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.47 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.22 |
Correlation (All Time) Calculated using the full available price history since Jun 17, 2016 | 0.21 |
Over the past year, FALN and TLT have become more correlated (0.53) than their long-term average of 0.21, meaning their price movements have been converging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
FALN vs. TLT — Risk / Return Rank
FALN
TLT
FALN vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Fallen Angels USD Bond ETF (FALN) 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.
| FALN | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.31 | ||
| Sortino ratioReturn per unit of downside risk | +1.84 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.07 | +0.26 |
| Calmar ratioReturn relative to maximum drawdown | 2.00 | 0.51 | +1.48 |
| Martin ratioReturn relative to average drawdown | 8.32 | 1.22 | +7.10 |
Loading charts...
Drawdowns
FALN vs. TLT - Drawdown Comparison
The maximum FALN drawdown since its inception was -29.22%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for FALN and TLT.
Loading charts...
Drawdown Indicators
| FALN | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.22% | -48.35% | +19.13% |
Max Drawdown (1Y)Largest decline over 1 year | -3.96% | -7.58% | +3.62% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -19.18% | +13.26% |
Max Drawdown (5Y)Largest decline over 5 years | -18.78% | -43.70% | +24.92% |
Max Drawdown (10Y)Largest decline over 10 years | -29.22% | -48.35% | +19.13% |
Current DrawdownCurrent decline from peak | -0.11% | -39.82% | +39.71% |
Average DrawdownAverage peak-to-trough decline | -3.31% | -13.87% | +10.56% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.95% | 3.18% | -2.23% |
Volatility
FALN vs. TLT - Volatility Comparison
The current volatility for iShares Fallen Angels USD Bond ETF (FALN) is 1.18%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.20%. This indicates that FALN experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| FALN | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.18% | 2.20% | -1.02% |
Volatility (6M)Calculated over the trailing 6-month period | 3.72% | 6.62% | -2.90% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.60% | 9.48% | -4.88% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.33% | 15.82% | -8.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.92% | 14.88% | -5.96% |
FALN vs. TLT - Expense Ratio Comparison
FALN has a 0.25% expense ratio, which is higher than TLT's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
FALN vs. TLT - Dividend Comparison
FALN's dividend yield for the trailing twelve months is around 6.42%, more than TLT's 4.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 6.42% | 6.31% | 6.24% | 5.37% | 5.08% | 3.40% | 5.14% | 5.35% | 5.97% | 6.98% | 3.55% | 0.00% |
TLT iShares 20+ Year Treasury Bond ETF | 4.54% | 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
FALN and TLT have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.20%) compared to FALN (1.18%). In terms of maximum drawdown, FALN dropped -29.22% vs TLT's -48.35%.
On 10-year performance, FALN leads with 6.60% vs -1.74% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, FALN has been the lower-risk option at 1.18%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FALN has performed better with a 6.60% return vs -1.74%. 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 0.25% for FALN.
FALN has the higher dividend yield at 6.42%, compared with 4.54% for TLT.
FALN is categorized as High Yield Bonds, while TLT is Government Bonds. FALN tracks Bloomberg US High Yield Fallen Angel 3% Capped Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. Their fees differ too: 0.25% for FALN and 0.15% for TLT.
FALN currently has the higher Sharpe Ratio (1.72 vs 0.41), 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.
Find the right allocation for FALN and TLT
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer