IBTQ vs. GOVZ

Last updated Jun 25, 2026

IBTQ (iShares iBonds Dec 2035 Term Treasury ETF) and GOVZ (iShares 25+ Year Treasury STRIPS Bond ETF) are both Government Bonds funds from iShares - IBTQ tracks the ICE 2035 Maturity US Treasury Index while GOVZ tracks the ICE BofA Long US Treasury Principal STRIPS Index. Both are passively managed. Over the past year, IBTQ returned 3.59% vs 4.27% for GOVZ. Their correlation of 0.84 suggests significant overlap in exposure. IBTQ charges 0.07%/yr vs 0.15%/yr for GOVZ.

Performance

IBTQ vs. GOVZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Dec 2035 Term Treasury ETF (IBTQ) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IBTQ achieves a 0.16% return, which is significantly lower than GOVZ's 3.57% return.

IBTQ

• 1D: 0.66%
• 1M: 1.25%
• YTD: 0.16%
• 6M: -0.02%
• 1Y: 3.59%
• 3Y*: —
• 5Y*: —
• 10Y*: —

GOVZ

• 1D: 2.29%
• 1M: 6.77%
• YTD: 3.57%
• 6M: 1.48%
• 1Y: 4.27%
• 3Y*: -6.85%
• 5Y*: -11.18%
• 10Y*: —

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

IBTQ vs. GOVZ - Yearly Performance Comparison

	2026 (YTD)	2025
IBTQ iShares iBonds Dec 2035 Term Treasury ETF	0.16%	5.09%
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF	3.57%	-4.37%

Correlation

The correlation between IBTQ and GOVZ is 0.85, 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	0.85
Correlation (All Time) Calculated using the full available price history since Mar 26, 2025	0.84

The correlation between IBTQ and GOVZ has been stable across timeframes, ranging from 0.84 to 0.85 - a consistent structural relationship.

Return for Risk

IBTQ vs. GOVZ — Risk / Return Rank

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

IBTQ

IBTQ Risk / Return Rank: 21
IBTQ Sharpe Ratio Rank: 22
IBTQ Sortino Ratio Rank: 21
IBTQ Omega Ratio Rank: 19
IBTQ Calmar Ratio Rank: 20
IBTQ Martin Ratio Rank: 21

GOVZ

GOVZ Risk / Return Rank: 12
GOVZ Sharpe Ratio Rank: 13
GOVZ Sortino Ratio Rank: 12
GOVZ Omega Ratio Rank: 11
GOVZ Calmar Ratio Rank: 12
GOVZ Martin Ratio Rank: 12

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.

IBTQ vs. GOVZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2035 Term Treasury ETF (IBTQ) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ). 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.

	IBTQ	GOVZ	Difference
Sharpe ratio: Return per unit of total volatility	0.73	0.27	+0.46
Sortino ratio: Return per unit of downside risk	1.10	0.51	+0.60
Omega ratio: Gain probability vs. loss probability	1.12	1.06	+0.07
Calmar ratio: Return relative to maximum drawdown	0.85	0.30	+0.54
Martin ratio: Return relative to average drawdown	2.30	0.66	+1.64

IBTQ vs. GOVZ - Sharpe Ratio Comparison

The current IBTQ Sharpe Ratio is 0.73, which is higher than the GOVZ Sharpe Ratio of 0.27. The chart below compares the historical Sharpe Ratios of IBTQ and GOVZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IBTQ vs. GOVZ - Drawdown Comparison

The maximum IBTQ drawdown since its inception was -4.27%, smaller than the maximum GOVZ drawdown of -59.65%. Use the drawdown chart below to compare losses from any high point for IBTQ and GOVZ.

Drawdown Indicators

	IBTQ	GOVZ	Difference
Max Drawdown Largest peak-to-trough decline	-4.27%	-59.65%	+55.38%
Max Drawdown (1Y) Largest decline over 1 year	-4.27%	-14.16%	+9.89%
Max Drawdown (3Y) Largest decline over 3 years	—	-28.72%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-57.63%	—
Current Drawdown Current decline from peak	-2.10%	-54.49%	+52.39%
Average Drawdown Average peak-to-trough decline	-1.46%	-40.04%	+38.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.57%	6.51%	-4.94%

Volatility

IBTQ vs. GOVZ - Volatility Comparison

The current volatility for iShares iBonds Dec 2035 Term Treasury ETF (IBTQ) is 1.55%, while iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) has a volatility of 4.06%. This indicates that IBTQ experiences smaller price fluctuations and is considered to be less risky than GOVZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IBTQ	GOVZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.55%	4.06%	-2.51%
Volatility (6M) Calculated over the trailing 6-month period	3.66%	10.91%	-7.25%
Volatility (1Y) Calculated over the trailing 1-year period	4.98%	15.89%	-10.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.63%	23.88%	-18.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.63%	23.29%	-17.66%

IBTQ vs. GOVZ - Expense Ratio Comparison

IBTQ has a 0.07% expense ratio, which is lower than GOVZ'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

IBTQ vs. GOVZ - Dividend Comparison

IBTQ's dividend yield for the trailing twelve months is around 3.69%, less than GOVZ's 4.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF	4.95%	5.00%	4.68%	3.84%	3.69%	1.76%	0.39%
IBTQ iShares iBonds Dec 2035 Term Treasury ETF	3.69%	2.80%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IBTQ and GOVZ in my portfolio?

IBTQ and GOVZ have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IBTQ or GOVZ?

GOVZ has higher volatility (4.06%) compared to IBTQ (1.55%). In terms of maximum drawdown, IBTQ dropped -4.27% vs GOVZ's -59.65%.

Which ETF is better, IBTQ or GOVZ?

On 1-year performance, GOVZ leads with 4.27% vs 3.59% for IBTQ. On fees, IBTQ is cheaper at 0.07% per year. On volatility, IBTQ has been the lower-risk option at 1.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBTQ or GOVZ?

Over the 1-year period, GOVZ has performed better with a 4.27% return vs 3.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBTQ or GOVZ?

IBTQ is cheaper with a 0.07% expense ratio, compared with 0.15% for GOVZ.

Which ETF pays a higher dividend yield, IBTQ or GOVZ?

GOVZ has the higher dividend yield at 4.95%, compared with 3.69% for IBTQ.

What is the main difference between IBTQ and GOVZ?

IBTQ tracks ICE 2035 Maturity US Treasury Index, while GOVZ tracks ICE BofA Long US Treasury Principal STRIPS Index. Their fees differ too: 0.07% for IBTQ and 0.15% for GOVZ.

Which has better risk-adjusted returns?

IBTQ currently has the higher Sharpe Ratio (0.73 vs 0.27), 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.