GNMA vs. TLT
GNMA (iShares GNMA Bond ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - GNMA is a Mortgage Backed Securities fund tracking the Barclays Capital GNMA 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, GNMA returned 1.23%/yr vs -1.66%/yr for TLT. A 0.56 correlation means they provide meaningful diversification when combined. Both charge a 0.15% expense ratio.
Performance
GNMA vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, GNMA achieves a 0.56% return, which is significantly higher than TLT's -0.27% return. Over the past 10 years, GNMA has outperformed TLT with an annualized return of 1.23%, while TLT has yielded a comparatively lower -1.66% annualized return.
GNMA
- 1D
- -0.19%
- 1M
- -0.07%
- YTD
- 0.56%
- 6M
- 0.81%
- 1Y
- 6.56%
- 3Y*
- 4.20%
- 5Y*
- 0.53%
- 10Y*
- 1.23%
TLT
- 1D
- -0.40%
- 1M
- 0.81%
- YTD
- -0.27%
- 6M
- -2.02%
- 1Y
- 4.93%
- 3Y*
- -1.80%
- 5Y*
- -6.31%
- 10Y*
- -1.66%
GNMA vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GNMA iShares GNMA Bond ETF | 0.56% | 8.25% | 1.07% | 5.34% | -10.83% | -1.86% | 3.51% | 5.85% | 0.85% | 1.74% |
TLT iShares 20+ Year Treasury Bond ETF | -0.27% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between GNMA and TLT is 0.76, 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 | 0.76 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.82 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.79 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.64 |
Correlation (All Time) Calculated using the full available price history since Feb 22, 2012 | 0.56 |
Over the past year, GNMA and TLT have become more correlated (0.76) than their long-term average of 0.56, meaning their price movements have been converging.
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Return for Risk
GNMA vs. TLT — Risk / Return Rank
GNMA
TLT
GNMA vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares GNMA Bond ETF (GNMA) 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.
| GNMA | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.03 | ||
| Sortino ratioReturn per unit of downside risk | +1.55 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.09 | +0.18 |
| Calmar ratioReturn relative to maximum drawdown | 2.52 | 0.65 | +1.87 |
| Martin ratioReturn relative to average drawdown | 8.05 | 1.63 | +6.43 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| GNMA | TLT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.53 | 0.51 | +1.03 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.08 | -0.40 | +0.48 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.24 | -0.11 | +0.35 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.25 | 0.26 | -0.01 |
Drawdowns
GNMA vs. TLT - Drawdown Comparison
The maximum GNMA drawdown since its inception was -17.09%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for GNMA and TLT.
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Drawdown Indicators
| GNMA | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.09% | -48.35% | +31.26% |
Max Drawdown (1Y)Largest decline over 1 year | -2.61% | -7.58% | +4.97% |
Max Drawdown (3Y)Largest decline over 3 years | -7.13% | -19.18% | +12.05% |
Max Drawdown (5Y)Largest decline over 5 years | -15.83% | -43.70% | +27.87% |
Max Drawdown (10Y)Largest decline over 10 years | -17.09% | -48.35% | +31.26% |
Current DrawdownCurrent decline from peak | -1.41% | -40.44% | +39.03% |
Average DrawdownAverage peak-to-trough decline | -3.66% | -13.82% | +10.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.82% | 3.04% | -2.22% |
Volatility
GNMA vs. TLT - Volatility Comparison
The current volatility for iShares GNMA Bond ETF (GNMA) is 1.54%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.76%. This indicates that GNMA 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
| GNMA | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.54% | 2.76% | -1.22% |
Volatility (6M)Calculated over the trailing 6-month period | 3.14% | 6.50% | -3.36% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.30% | 9.77% | -5.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.61% | 15.87% | -9.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.13% | 14.91% | -9.78% |
GNMA vs. TLT - Expense Ratio Comparison
Both GNMA and TLT have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
GNMA vs. TLT - Dividend Comparison
GNMA's dividend yield for the trailing twelve months is around 4.24%, less than TLT's 4.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GNMA iShares GNMA Bond ETF | 4.24% | 4.19% | 4.15% | 3.43% | 2.01% | 0.64% | 1.89% | 2.61% | 2.41% | 2.15% | 1.89% | 1.50% |
TLT iShares 20+ Year Treasury Bond ETF | 4.59% | 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
GNMA and TLT have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.76%) compared to GNMA (1.54%). In terms of maximum drawdown, GNMA dropped -17.09% vs TLT's -48.35%.
On 10-year performance, GNMA leads with 1.23% vs -1.66% for TLT. Both ETFs have the same 0.15% expense ratio. On volatility, GNMA has been the lower-risk option at 1.54%. 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 1.23% return vs -1.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GNMA and TLT have the same expense ratio: 0.15% per year.
TLT has the higher dividend yield at 4.59%, compared with 4.24% for GNMA.
GNMA is categorized as Mortgage Backed Securities, while TLT is Government Bonds. GNMA tracks Barclays Capital GNMA Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index.
GNMA currently has the higher Sharpe Ratio (1.53 vs 0.51), 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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