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HEEM vs. TLT
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HEEM vs. TLT

Last updated Jun 6, 2026

HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - HEEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets 100% USD Hedged 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, HEEM returned 10.40%/yr vs -1.63%/yr for TLT. At a correlation of -0.13, they often move in opposite directions. HEEM charges 0.72%/yr vs 0.15%/yr for TLT.

Performance

HEEM vs. TLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and iShares 20+ Year Treasury Bond ETF (TLT). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, HEEM achieves a 20.85% return, which is significantly higher than TLT's -0.56% return. Over the past 10 years, HEEM has outperformed TLT with an annualized return of 10.40%, while TLT has yielded a comparatively lower -1.63% annualized return.

HEEM

1D
-5.76%
1M
-2.36%
YTD
20.85%
6M
21.68%
1Y
50.37%
3Y*
23.65%
5Y*
8.78%
10Y*
10.40%

TLT

1D
-0.51%
1M
-0.80%
YTD
-0.56%
6M
-1.32%
1Y
2.88%
3Y*
-2.03%
5Y*
-6.37%
10Y*
-1.63%
*Multi-year figures are annualized to reflect compound growth (CAGR)

HEEM vs. TLT - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
HEEM
iShares Currency Hedged MSCI Emerging Markets ETF		20.85%34.02%12.59%10.14%-16.85%-1.82%17.94%18.53%-11.09%27.59%
TLT
iShares 20+ Year Treasury Bond ETF		-0.56%4.25%-8.05%2.77%-31.23%-4.60%18.15%14.12%-1.61%9.18%

Correlation

The correlation between HEEM and TLT is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.16

Correlation (3Y)
Calculated over the trailing 3-year period

0.11

Correlation (5Y)
Calculated over the trailing 5-year period

0.02

Correlation (10Y)
Calculated over the trailing 10-year period

-0.09

Correlation (All Time)
Calculated using the full available price history since Sep 26, 2014

-0.13

The correlation between HEEM and TLT shifts across timeframes, from -0.13 (all time) to 0.16 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Currency Hedged MSCI Emerging Markets ETF

iShares 20+ Year Treasury Bond ETF

Often compared with HEEM:
HEEM vs. HEWJHEEM vs. IEMS.LHEEM vs. VWOHEEM vs. IEMGHEEM vs. AVEMHEEM vs. EDIVHEEM vs. VYMI
Often compared with TLT:
TLT vs. SPYTLT vs. IEFTLT vs. TMFTLT vs. BNDTLT vs. VGLTTLT vs. TLTWTLT vs. EDV

Return for Risk

HEEM vs. TLT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
HEEM
HEEM Risk / Return Rank: 8686
Overall Rank
HEEM Sharpe Ratio Rank: 8686
Sharpe Ratio Rank
HEEM Sortino Ratio Rank: 8181
Sortino Ratio Rank
HEEM Omega Ratio Rank: 8787
Omega Ratio Rank
HEEM Calmar Ratio Rank: 8686
Calmar Ratio Rank
HEEM Martin Ratio Rank: 8888
Martin Ratio Rank
TLT
TLT Risk / Return Rank: 1313
Overall Rank
TLT Sharpe Ratio Rank: 1414
Sharpe Ratio Rank
TLT Sortino Ratio Rank: 1313
Sortino Ratio Rank
TLT Omega Ratio Rank: 1212
Omega Ratio Rank
TLT Calmar Ratio Rank: 1414
Calmar Ratio Rank
TLT Martin Ratio Rank: 1414
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HEEM vs. TLT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) 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.

HEEMTLTDifference
Sharpe ratioReturn per unit of total volatility
2.71
0.30

+2.41

Sortino ratioReturn per unit of downside risk
3.44
0.50

+2.94

Omega ratioGain probability vs. loss probability

1.52

1.06

+0.46

Calmar ratioReturn relative to maximum drawdown

4.67

0.38

+4.29

Martin ratioReturn relative to average drawdown

18.40

0.94

+17.46

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HEEM vs. TLT - Sharpe Ratio Comparison

The current HEEM Sharpe Ratio is 2.71, which is higher than the TLT Sharpe Ratio of 0.30. The chart below compares the historical Sharpe Ratios of HEEM and TLT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

HEEMTLTDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.71

0.30

+2.41

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.51

-0.40

+0.92

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.58

-0.11

+0.69

Sharpe Ratio (All Time)

Calculated using the full available price history

0.45

0.25

+0.20

Drawdowns

HEEM vs. TLT - Drawdown Comparison

The maximum HEEM drawdown since its inception was -33.53%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for HEEM and TLT.

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Drawdown Indicators

HEEMTLTDifference

Max Drawdown

Largest peak-to-trough decline

-33.53%

-48.35%

+14.82%

Max Drawdown (1Y)

Largest decline over 1 year

-10.83%

-7.58%

-3.25%

Max Drawdown (3Y)

Largest decline over 3 years

-14.82%

-19.18%

+4.36%

Max Drawdown (5Y)

Largest decline over 5 years

-30.60%

-43.70%

+13.10%

Max Drawdown (10Y)

Largest decline over 10 years

-33.53%

-48.35%

+14.82%

Current Drawdown

Current decline from peak

-7.80%

-40.61%

+32.81%

Average Drawdown

Average peak-to-trough decline

-11.13%

-13.82%

+2.69%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.75%

3.07%

-0.32%

Volatility

HEEM vs. TLT - Volatility Comparison

iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) has a higher volatility of 9.48% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.65%. This indicates that HEEM'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.

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Volatility by Period

HEEMTLTDifference

Volatility (1M)

Calculated over the trailing 1-month period

9.48%

2.65%

+6.83%

Volatility (6M)

Calculated over the trailing 6-month period

16.57%

6.51%

+10.06%

Volatility (1Y)

Calculated over the trailing 1-year period

18.71%

9.66%

+9.05%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.21%

15.85%

+1.36%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.06%

14.90%

+3.16%

HEEM vs. TLT - Expense Ratio Comparison

HEEM has a 0.72% expense ratio, which is higher than TLT's 0.15% expense ratio.

Dividends

HEEM vs. TLT - Dividend Comparison

HEEM's dividend yield for the trailing twelve months is around 3.29%, less than TLT's 4.60% yield.

PositionTTM20252024202320222021202020192018201720162015
HEEM
iShares Currency Hedged MSCI Emerging Markets ETF		3.29%3.98%2.38%2.75%7.49%1.93%1.49%3.04%2.37%2.05%1.84%6.28%
TLT
iShares 20+ Year Treasury Bond ETF		4.60%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

HEEM and TLT have a correlation of 0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

HEEM has higher volatility (9.48%) compared to TLT (2.65%). In terms of maximum drawdown, HEEM dropped -33.53% vs TLT's -48.35%.

On 10-year performance, HEEM leads with 10.40% vs -1.63% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, TLT has been the lower-risk option at 2.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, HEEM has performed better with a 10.40% return vs -1.63%. 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 0.72% for HEEM.

TLT has the higher dividend yield at 4.60%, compared with 3.29% for HEEM.

HEEM is categorized as Emerging Markets Diversified, while TLT is Government Bonds. HEEM tracks MSCI Emerging Markets 100% USD Hedged Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. Their fees differ too: 0.72% for HEEM and 0.15% for TLT.

HEEM currently has the higher Sharpe Ratio (2.71 vs 0.30), 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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