HEFA vs. TLT
HEFA (iShares Currency Hedged MSCI EAFE ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - HEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE 100% Hedged to USD 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, HEFA returned 12.79%/yr vs -2.33%/yr for TLT. Their -0.20 correlation means they have often moved in opposite directions in the past. HEFA charges 0.35%/yr vs 0.15%/yr for TLT.
Performance
HEFA vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, HEFA achieves a 14.45% return, which is significantly higher than TLT's -3.18% return. Over the past 10 years, HEFA has outperformed TLT with an annualized return of 12.79%, while TLT has yielded a comparatively lower -2.33% annualized return.
HEFA
- 1D
- 0.40%
- 1M
- 0.61%
- 6M
- 9.27%
- YTD
- 14.45%
- 1Y
- 30.94%
- 3Y*
- 19.80%
- 5Y*
- 14.04%
- 10Y*
- 12.79%
- ALL TIME*
- 10.84%
TLT
- 1D
- 0.33%
- 1M
- -3.49%
- 6M
- -2.86%
- YTD
- -3.18%
- 1Y
- -2.12%
- 3Y*
- -1.15%
- 5Y*
- -8.33%
- 10Y*
- -2.33%
- ALL TIME*
- 3.48%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $19.94M | $30.84M | $25.49M | |
| $2.39B | $2.06B | $2.20B |
HEFA vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HEFA iShares Currency Hedged MSCI EAFE ETF | 14.45% | 24.58% | 13.71% | 20.33% | -4.86% | 19.59% | 2.09% | 27.63% | -9.33% | 16.67% |
TLT iShares 20+ Year Treasury Bond ETF | -3.18% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between HEFA and TLT is 0.27, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.27 |
Correlation (3Y) Balances recent behavior with more history. | 0.12 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.03 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.14 |
Correlation (All Time) Calculated using the full available price history since Feb 14, 2014 | -0.20 |
The correlation between HEFA and TLT shifts across timeframes, from -0.20 (all time) to 0.27 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
HEFA vs. TLT — Risk / Return Rank
HEFA
TLT
HEFA vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI EAFE ETF (HEFA) 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.
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.
| HEFA | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.62 | ||
| Sortino ratioReturn per unit of downside risk | +3.55 | ||
| Omega ratioGain probability vs. loss probability | 1.44 | 0.97 | +0.47 |
| Calmar ratioReturn relative to maximum drawdown | 3.27 | -0.28 | +3.54 |
| Martin ratioReturn relative to average drawdown | 13.64 | -0.59 | +14.23 |
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Drawdowns
HEFA vs. TLT - Drawdown Comparison
The maximum HEFA drawdown since its inception was -32.39%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for HEFA and TLT.
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Drawdown Indicators
| HEFA | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -32.39% | -48.35% | +15.96% |
Max Drawdown (1Y)Largest decline over 1 year | -9.52% | -7.74% | -1.78% |
Max Drawdown (3Y)Largest decline over 3 years | -14.28% | -14.79% | +0.51% |
Max Drawdown (5Y)Largest decline over 5 years | -14.79% | -43.70% | +28.91% |
Max Drawdown (10Y)Largest decline over 10 years | -32.39% | -48.35% | +15.96% |
Current DrawdownCurrent decline from peak | -0.35% | -42.17% | +41.82% |
Average DrawdownAverage peak-to-trough decline | -4.13% | -14.00% | +9.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.27% | 3.60% | -1.33% |
Volatility
HEFA vs. TLT - Volatility Comparison
iShares Currency Hedged MSCI EAFE ETF (HEFA) has a higher volatility of 3.48% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.51%. This indicates that HEFA'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
| HEFA | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.48% | 2.51% | +0.97% |
Volatility (6M)Calculated over the trailing 6-month period | 10.86% | 6.84% | +4.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.02% | 9.24% | +3.78% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.85% | 15.74% | -1.89% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.67% | 14.83% | +0.84% |
HEFA vs. TLT - Expense Ratio Comparison
HEFA has a 0.35% expense ratio, which is higher than TLT's 0.15% expense ratio.
Dividends
HEFA vs. TLT - Dividend Comparison
HEFA's dividend yield for the trailing twelve months is around 4.01%, less than TLT's 4.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HEFA iShares Currency Hedged MSCI EAFE ETF | 4.01% | 4.40% | 3.09% | 3.02% | 25.14% | 3.06% | 2.10% | 7.56% | 4.58% | 2.55% | 3.17% | 3.54% |
TLT iShares 20+ Year Treasury Bond ETF | 4.75% | 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
HEFA and TLT have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HEFA has higher volatility (3.48%) compared to TLT (2.51%). In terms of maximum drawdown, HEFA dropped -32.39% vs TLT's -48.35%.
On 10-year performance, HEFA leads with 12.79% vs -2.33% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, TLT has been the lower-risk option at 2.51%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, HEFA has performed better with a 12.79% return vs -2.33%. 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 0.35% for HEFA.
TLT has the higher dividend yield at 4.75%, compared with 4.01% for HEFA.
HEFA is categorized as Foreign Large Cap Equities, while TLT is Government Bonds. HEFA tracks MSCI EAFE 100% Hedged to USD Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. Their fees differ too: 0.35% for HEFA and 0.15% for TLT.
HEFA currently has the higher Sharpe Ratio (2.39 vs -0.23), 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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