GOVT vs. TLT
GOVT (iShares U.S. Treasury Bond ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both Government Bonds funds from iShares - GOVT tracks the ICE U.S. Treasury Core Bond Index while TLT tracks the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, GOVT returned 0.88%/yr vs -1.62%/yr for TLT. Their correlation of 0.91 suggests significant overlap in exposure. GOVT charges 0.05%/yr vs 0.15%/yr for TLT.
Performance
GOVT vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, GOVT achieves a 0.07% return, which is significantly lower than TLT's 0.13% return. Over the past 10 years, GOVT has outperformed TLT with an annualized return of 0.88%, while TLT has yielded a comparatively lower -1.62% annualized return.
GOVT
- 1D
- 0.04%
- 1M
- -0.02%
- YTD
- 0.07%
- 6M
- -0.03%
- 1Y
- 3.96%
- 3Y*
- 2.89%
- 5Y*
- -0.33%
- 10Y*
- 0.88%
TLT
- 1D
- 0.21%
- 1M
- 0.44%
- YTD
- 0.13%
- 6M
- -1.35%
- 1Y
- 5.16%
- 3Y*
- -1.67%
- 5Y*
- -5.98%
- 10Y*
- -1.62%
GOVT vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 0.07% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
TLT iShares 20+ Year Treasury Bond ETF | 0.13% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between GOVT and TLT is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.93 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.94 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.93 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Feb 27, 2012 | 0.91 |
The correlation between GOVT and TLT has been stable across timeframes, ranging from 0.91 to 0.94 - a consistent structural relationship.
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Return for Risk
GOVT vs. TLT — Risk / Return Rank
GOVT
TLT
GOVT vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Treasury Bond ETF (GOVT) 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.
| GOVT | TLT | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.10 | 0.53 | +0.57 |
Sortino ratioReturn per unit of downside risk | 1.66 | 0.83 | +0.83 |
Omega ratioGain probability vs. loss probability | 1.19 | 1.09 | +0.10 |
Calmar ratioReturn relative to maximum drawdown | 1.27 | 0.55 | +0.72 |
Martin ratioReturn relative to average drawdown | 3.78 | 1.38 | +2.40 |
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
| GOVT | TLT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.10 | 0.53 | +0.57 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.06 | -0.38 | +0.32 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.17 | -0.11 | +0.28 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.26 | 0.26 | +0.01 |
Drawdowns
GOVT vs. TLT - Drawdown Comparison
The maximum GOVT drawdown since its inception was -19.07%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for GOVT and TLT.
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Drawdown Indicators
| GOVT | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.07% | -48.35% | +29.28% |
Max Drawdown (1Y)Largest decline over 1 year | -2.85% | -7.58% | +4.73% |
Max Drawdown (3Y)Largest decline over 3 years | -5.43% | -19.18% | +13.75% |
Max Drawdown (5Y)Largest decline over 5 years | -16.60% | -43.70% | +27.10% |
Max Drawdown (10Y)Largest decline over 10 years | -19.07% | -48.35% | +29.28% |
Current DrawdownCurrent decline from peak | -7.01% | -40.20% | +33.19% |
Average DrawdownAverage peak-to-trough decline | -5.25% | -13.81% | +8.56% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.96% | 3.02% | -2.06% |
Volatility
GOVT vs. TLT - Volatility Comparison
The current volatility for iShares U.S. Treasury Bond ETF (GOVT) is 1.12%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.84%. This indicates that GOVT 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
| GOVT | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.12% | 2.84% | -1.72% |
Volatility (6M)Calculated over the trailing 6-month period | 2.54% | 6.60% | -4.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.64% | 9.81% | -6.17% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.04% | 15.87% | -9.83% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.23% | 14.91% | -9.68% |
GOVT vs. TLT - Expense Ratio Comparison
GOVT has a 0.05% expense ratio, which is lower than TLT's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
GOVT vs. TLT - Dividend Comparison
GOVT's dividend yield for the trailing twelve months is around 3.58%, less than TLT's 4.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
TLT iShares 20+ Year Treasury Bond ETF | 4.57% | 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
With a correlation of 0.93, GOVT and TLT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
TLT has higher volatility (2.84%) compared to GOVT (1.12%). In terms of maximum drawdown, GOVT dropped -19.07% vs TLT's -48.35%.
On 10-year performance, GOVT leads with 0.88% vs -1.62% for TLT. On fees, GOVT is cheaper at 0.05% per year. On volatility, GOVT has been the lower-risk option at 1.12%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, GOVT has performed better with a 0.88% return vs -1.62%. 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 TLT.
TLT has the higher dividend yield at 4.57%, compared with 3.58% for GOVT.
GOVT tracks ICE U.S. Treasury Core Bond Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. Their fees differ too: 0.05% for GOVT and 0.15% for TLT.
GOVT currently has the higher Sharpe Ratio (1.10 vs 0.53), 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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