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 6.24%/yr vs -2.38%/yr for TLT. Their 0.21 correlation means their historical movements had little consistent relationship. FALN charges 0.25%/yr vs 0.15%/yr for TLT.
Performance
FALN vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, FALN achieves a 1.86% return, which is significantly higher than TLT's -3.49% return. Over the past 10 years, FALN has outperformed TLT with an annualized return of 6.24%, while TLT has yielded a comparatively lower -2.38% annualized return.
FALN
- 1D
- -0.11%
- 1M
- -0.92%
- 6M
- 0.86%
- YTD
- 1.86%
- 1Y
- 6.24%
- 3Y*
- 8.53%
- 5Y*
- 3.39%
- 10Y*
- 6.24%
- ALL TIME*
- 6.52%
TLT
- 1D
- -0.66%
- 1M
- -3.81%
- 6M
- -3.46%
- YTD
- -3.49%
- 1Y
- -2.45%
- 3Y*
- -1.80%
- 5Y*
- -8.18%
- 10Y*
- -2.38%
- ALL TIME*
- 3.47%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $23.72M | $18.39M | $26.66M | |
| $2.33B | $2.02B | $2.19B |
FALN vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 1.86% | 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 | -3.49% | 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 have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.53 |
Correlation (3Y) Balances recent behavior with more history. | 0.56 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.48 |
Correlation (10Y) Provides a long-term view across more market conditions. | 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.
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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 | +1.47 | ||
| Sortino ratioReturn per unit of downside risk | +2.07 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 0.99 | +0.27 |
| Calmar ratioReturn relative to maximum drawdown | 1.57 | -0.14 | +1.71 |
| Martin ratioReturn relative to average drawdown | 6.42 | -0.30 | +6.71 |
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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.
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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% | -7.74% | +3.78% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -14.79% | +8.87% |
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 | -1.07% | -42.36% | +41.29% |
Average DrawdownAverage peak-to-trough decline | -3.28% | -13.99% | +10.71% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.97% | 3.57% | -2.60% |
Volatility
FALN vs. TLT - Volatility Comparison
The current volatility for iShares Fallen Angels USD Bond ETF (FALN) is 0.99%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.46%. 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.
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Volatility by Period
| FALN | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.99% | 2.46% | -1.47% |
Volatility (6M)Calculated over the trailing 6-month period | 3.79% | 6.85% | -3.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.59% | 9.32% | -4.73% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.33% | 15.74% | -8.41% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.86% | 14.83% | -5.97% |
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 6.51%, more than TLT's 4.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 5.98% | 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 | 4.34% | 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 (2.46%) compared to FALN (0.99%). In terms of maximum drawdown, FALN dropped -29.22% vs TLT's -48.35%.
On 10-year performance, FALN leads with 6.24% vs -2.38% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, FALN has been the lower-risk option at 0.99%. 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 6.24% return vs -2.38%. 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 5.98%, compared with 4.34% 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 (1.36 vs -0.11), 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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