GOVZ vs. TLT
Compare and contrast key facts about iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) and iShares 20+ Year Treasury Bond ETF (TLT).
GOVZ and TLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. GOVZ is a passively managed fund by iShares that tracks the performance of the ICE BofA Long US Treasury Principal STRIPS Index. It was launched on Sep 22, 2020. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002. Both GOVZ and TLT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: GOVZ or TLT.
Key characteristics
| GOVZ | TLT | |
|---|---|---|
| YTD Return | -11.98% | -5.60% |
| 1Y Return | 5.03% | 6.12% |
| 3Y Return (Ann) | -18.54% | -12.04% |
| Sharpe Ratio | 0.12 | 0.31 |
| Sortino Ratio | 0.33 | 0.54 |
| Omega Ratio | 1.04 | 1.06 |
| Calmar Ratio | 0.05 | 0.10 |
| Martin Ratio | 0.27 | 0.76 |
| Ulcer Index | 10.20% | 6.13% |
| Daily Std Dev | 23.08% | 14.86% |
| Max Drawdown | -59.65% | -48.35% |
| Current Drawdown | -52.96% | -41.18% |
Correlation
The correlation between GOVZ and TLT is 0.99, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
GOVZ vs. TLT - Performance Comparison
In the year-to-date period, GOVZ achieves a -11.98% return, which is significantly lower than TLT's -5.60% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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GOVZ vs. TLT - Expense Ratio Comparison
Both GOVZ 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%.
Risk-Adjusted Performance
GOVZ vs. TLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) 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.
Dividends
GOVZ vs. TLT - Dividend Comparison
GOVZ's dividend yield for the trailing twelve months is around 4.41%, more than TLT's 4.07% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 4.41% | 3.85% | 3.70% | 1.76% | 0.39% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
TLT iShares 20+ Year Treasury Bond ETF | 4.07% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
Drawdowns
GOVZ vs. TLT - Drawdown Comparison
The maximum GOVZ drawdown since its inception was -59.65%, which is greater than TLT's maximum drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for GOVZ and TLT. For additional features, visit the drawdowns tool.
Volatility
GOVZ vs. TLT - Volatility Comparison
iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) has a higher volatility of 8.57% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 5.10%. This indicates that GOVZ's price experiences larger fluctuations and is considered to be riskier than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.