GNMA vs. GOVT
GNMA (iShares GNMA Bond ETF) and GOVT (iShares U.S. Treasury Bond ETF) are both exchange-traded funds - GNMA is a Mortgage Backed Securities fund tracking the Barclays Capital GNMA Index, while GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index. Both are passively managed. Over the past 10 years, GNMA returned 1.22%/yr vs 0.80%/yr for GOVT. A 0.61 correlation means they provide meaningful diversification when combined. GNMA charges 0.15%/yr vs 0.05%/yr for GOVT.
Performance
GNMA vs. GOVT - Performance Comparison
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Returns By Period
In the year-to-date period, GNMA achieves a 0.92% return, which is significantly higher than GOVT's 0.11% return. Over the past 10 years, GNMA has outperformed GOVT with an annualized return of 1.22%, while GOVT has yielded a comparatively lower 0.80% annualized return.
GNMA
- 1D
- 0.19%
- 1M
- 1.00%
- YTD
- 0.92%
- 6M
- 1.04%
- 1Y
- 5.77%
- 3Y*
- 4.27%
- 5Y*
- 0.64%
- 10Y*
- 1.22%
GOVT
- 1D
- 0.13%
- 1M
- 0.58%
- YTD
- 0.11%
- 6M
- 0.22%
- 1Y
- 3.14%
- 3Y*
- 2.92%
- 5Y*
- -0.48%
- 10Y*
- 0.80%
GNMA vs. GOVT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GNMA iShares GNMA Bond ETF | 0.92% | 8.25% | 1.07% | 5.34% | -10.83% | -1.86% | 3.51% | 5.85% | 0.85% | 1.74% |
GOVT iShares U.S. Treasury Bond ETF | 0.11% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
Correlation
The correlation between GNMA and GOVT is 0.80, 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 | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.88 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.85 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Feb 24, 2012 | 0.61 |
The correlation between GNMA and GOVT shifts across timeframes, from 0.61 (all time) to 0.88 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
GNMA vs. GOVT — Risk / Return Rank
GNMA
GOVT
GNMA vs. GOVT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares GNMA Bond ETF (GNMA) and iShares U.S. Treasury Bond ETF (GOVT). 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.
| GNMA | GOVT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.48 | ||
| Sortino ratioReturn per unit of downside risk | +0.74 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.15 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 2.22 | 1.11 | +1.11 |
| Martin ratioReturn relative to average drawdown | 6.66 | 3.01 | +3.65 |
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Drawdowns
GNMA vs. GOVT - Drawdown Comparison
The maximum GNMA drawdown since its inception was -17.09%, smaller than the maximum GOVT drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for GNMA and GOVT.
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Drawdown Indicators
| GNMA | GOVT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.09% | -19.07% | +1.98% |
Max Drawdown (1Y)Largest decline over 1 year | -2.61% | -2.85% | +0.24% |
Max Drawdown (3Y)Largest decline over 3 years | -7.13% | -5.43% | -1.70% |
Max Drawdown (5Y)Largest decline over 5 years | -15.83% | -16.60% | +0.77% |
Max Drawdown (10Y)Largest decline over 10 years | -17.09% | -19.07% | +1.98% |
Current DrawdownCurrent decline from peak | -1.05% | -6.97% | +5.92% |
Average DrawdownAverage peak-to-trough decline | -3.65% | -5.26% | +1.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.87% | 1.05% | -0.18% |
Volatility
GNMA vs. GOVT - Volatility Comparison
iShares GNMA Bond ETF (GNMA) has a higher volatility of 1.38% compared to iShares U.S. Treasury Bond ETF (GOVT) at 0.97%. This indicates that GNMA's price experiences larger fluctuations and is considered to be riskier than GOVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| GNMA | GOVT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.38% | 0.97% | +0.41% |
Volatility (6M)Calculated over the trailing 6-month period | 3.27% | 2.60% | +0.67% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.26% | 3.57% | +0.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.63% | 6.04% | +0.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.14% | 5.22% | -0.08% |
GNMA vs. GOVT - Expense Ratio Comparison
GNMA has a 0.15% expense ratio, which is higher than GOVT's 0.05% 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
GNMA vs. GOVT - Dividend Comparison
GNMA's dividend yield for the trailing twelve months is around 4.22%, more than GOVT's 3.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GNMA iShares GNMA Bond ETF | 4.22% | 4.19% | 4.15% | 3.43% | 2.01% | 0.64% | 1.89% | 2.61% | 2.41% | 2.15% | 1.89% | 1.50% |
GOVT iShares U.S. Treasury Bond ETF | 3.58% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
Frequently Asked Questions
GNMA and GOVT have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GNMA has higher volatility (1.38%) compared to GOVT (0.97%). In terms of maximum drawdown, GNMA dropped -17.09% vs GOVT's -19.07%.
On 10-year performance, GNMA leads with 1.22% vs 0.80% for GOVT. On fees, GOVT is cheaper at 0.05% per year. On volatility, GOVT has been the lower-risk option at 0.97%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, GNMA has performed better with a 1.22% return vs 0.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVT is cheaper with a 0.05% expense ratio, compared with 0.15% for GNMA.
GNMA has the higher dividend yield at 4.22%, compared with 3.58% for GOVT.
GNMA is categorized as Mortgage Backed Securities, while GOVT is Government Bonds. GNMA tracks Barclays Capital GNMA Index, while GOVT tracks ICE U.S. Treasury Core Bond Index. Their fees differ too: 0.15% for GNMA and 0.05% for GOVT.
GNMA currently has the higher Sharpe Ratio (1.36 vs 0.89), 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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