IBTO vs. TAGG

Last updated Jun 4, 2026

IBTO (iShares iBonds Dec 2033 Term Treasury ETF) and TAGG (T. Rowe Price QM U.S. Bond ETF) are both Intermediate Core Bond funds. IBTO is passively managed, while TAGG is actively managed. Over the past year, IBTO returned 4.04% vs 5.22% for TAGG. Their correlation of 0.94 suggests significant overlap in exposure. IBTO charges 0.07%/yr vs 0.08%/yr for TAGG.

Performance

IBTO vs. TAGG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Dec 2033 Term Treasury ETF (IBTO) and T. Rowe Price QM U.S. Bond ETF (TAGG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IBTO achieves a -0.58% return, which is significantly lower than TAGG's 0.18% return.

IBTO

• 1D: -0.21%
• 1M: -0.17%
• YTD: -0.58%
• 6M: -1.02%
• 1Y: 4.04%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAGG

• 1D: -0.17%
• 1M: 0.18%
• YTD: 0.18%
• 6M: 0.16%
• 1Y: 5.22%
• 3Y*: 4.26%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

IBTO vs. TAGG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
IBTO iShares iBonds Dec 2033 Term Treasury ETF	-0.58%	8.23%	-0.87%	1.71%
TAGG T. Rowe Price QM U.S. Bond ETF	0.18%	7.40%	1.73%	3.18%

Correlation

The correlation between IBTO and TAGG is 0.92, 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	0.92
Correlation (All Time) Calculated using the full available price history since Jun 30, 2023	0.94

The correlation between IBTO and TAGG has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.

Return for Risk

IBTO vs. TAGG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IBTO

IBTO Risk / Return Rank: 25
IBTO Sharpe Ratio Rank: 26
IBTO Sortino Ratio Rank: 26
IBTO Omega Ratio Rank: 24
IBTO Calmar Ratio Rank: 24
IBTO Martin Ratio Rank: 25

TAGG

TAGG Risk / Return Rank: 36
TAGG Sharpe Ratio Rank: 39
TAGG Sortino Ratio Rank: 40
TAGG Omega Ratio Rank: 38
TAGG Calmar Ratio Rank: 33
TAGG Martin Ratio Rank: 32

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.

IBTO vs. TAGG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2033 Term Treasury ETF (IBTO) and T. Rowe Price QM U.S. Bond ETF (TAGG). 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.

	IBTO	TAGG	Difference
Sharpe ratio: Return per unit of total volatility	0.91	1.37	-0.46
Sortino ratio: Return per unit of downside risk	1.38	2.04	-0.66
Omega ratio: Gain probability vs. loss probability	1.16	1.25	-0.09
Calmar ratio: Return relative to maximum drawdown	1.11	1.64	-0.53
Martin ratio: Return relative to average drawdown	3.21	4.86	-1.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IBTO vs. TAGG - Sharpe Ratio Comparison

The current IBTO Sharpe Ratio is 0.91, which is lower than the TAGG Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of IBTO and TAGG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IBTO	TAGG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.91	1.37	-0.46
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.04	+0.39

Drawdowns

IBTO vs. TAGG - Drawdown Comparison

The maximum IBTO drawdown since its inception was -8.36%, smaller than the maximum TAGG drawdown of -17.26%. Use the drawdown chart below to compare losses from any high point for IBTO and TAGG.

Drawdown Indicators

	IBTO	TAGG	Difference
Max Drawdown Largest peak-to-trough decline	-8.36%	-17.26%	+8.90%
Max Drawdown (1Y) Largest decline over 1 year	-3.66%	-3.19%	-0.47%
Max Drawdown (3Y) Largest decline over 3 years	—	-6.40%	—
Current Drawdown Current decline from peak	-2.63%	-2.03%	-0.60%
Average Drawdown Average peak-to-trough decline	-2.37%	-6.87%	+4.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.26%	1.08%	+0.18%

Volatility

IBTO vs. TAGG - Volatility Comparison

iShares iBonds Dec 2033 Term Treasury ETF (IBTO) has a higher volatility of 1.32% compared to T. Rowe Price QM U.S. Bond ETF (TAGG) at 1.19%. This indicates that IBTO's price experiences larger fluctuations and is considered to be riskier than TAGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IBTO	TAGG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.32%	1.19%	+0.13%
Volatility (6M) Calculated over the trailing 6-month period	3.02%	2.69%	+0.33%
Volatility (1Y) Calculated over the trailing 1-year period	4.46%	3.83%	+0.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.61%	6.53%	+0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.61%	6.53%	+0.08%

IBTO vs. TAGG - Expense Ratio Comparison

IBTO has a 0.07% expense ratio, which is lower than TAGG's 0.08% 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

IBTO vs. TAGG - Dividend Comparison

IBTO's dividend yield for the trailing twelve months is around 4.15%, less than TAGG's 4.58% yield.

Position	TTM	2025	2024	2023	2022	2021
IBTO iShares iBonds Dec 2033 Term Treasury ETF	4.15%	4.05%	4.23%	1.66%	0.00%	0.00%
TAGG T. Rowe Price QM U.S. Bond ETF	4.58%	4.36%	4.36%	3.48%	3.67%	0.33%

Frequently Asked Questions

Can I hold both IBTO and TAGG in my portfolio?

With a correlation of 0.92, IBTO and TAGG 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.

Which is riskier, IBTO or TAGG?

IBTO has higher volatility (1.32%) compared to TAGG (1.19%). In terms of maximum drawdown, IBTO dropped -8.36% vs TAGG's -17.26%.

Which ETF is better, IBTO or TAGG?

On 1-year performance, TAGG leads with 5.22% vs 4.04% for IBTO. On fees, IBTO is cheaper at 0.07% per year. On volatility, TAGG has been the lower-risk option at 1.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBTO or TAGG?

Over the 1-year period, TAGG has performed better with a 5.22% return vs 4.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBTO or TAGG?

IBTO is cheaper with a 0.07% expense ratio, compared with 0.08% for TAGG.

Which ETF pays a higher dividend yield, IBTO or TAGG?

TAGG has the higher dividend yield at 4.58%, compared with 4.15% for IBTO.

What is the main difference between IBTO and TAGG?

They also come from different issuers: iShares and T. Rowe Price. Their fees differ too: 0.07% for IBTO and 0.08% for TAGG.

Which has better risk-adjusted returns?

TAGG currently has the higher Sharpe Ratio (1.37 vs 0.91), 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.