IEF vs. BND

Last updated Jun 3, 2026

IEF (iShares 7-10 Year Treasury Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 10 years, IEF returned 0.66%/yr vs 1.60%/yr for BND. Their correlation of 0.91 suggests significant overlap in exposure. IEF charges 0.15%/yr vs 0.03%/yr for BND.

Performance

IEF vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 7-10 Year Treasury Bond ETF (IEF) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IEF achieves a -0.40% return, which is significantly lower than BND's 0.46% return. Over the past 10 years, IEF has underperformed BND with an annualized return of 0.66%, while BND has yielded a comparatively higher 1.60% annualized return.

IEF

• 1D: 0.07%
• 1M: -0.19%
• YTD: -0.40%
• 6M: -0.71%
• 1Y: 4.23%
• 3Y*: 2.56%
• 5Y*: -0.98%
• 10Y*: 0.66%

BND

• 1D: 0.03%
• 1M: 0.12%
• YTD: 0.46%
• 6M: 0.46%
• 1Y: 5.19%
• 3Y*: 4.03%
• 5Y*: 0.20%
• 10Y*: 1.60%

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

IEF vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEF iShares 7-10 Year Treasury Bond ETF	-0.40%	8.03%	-0.63%	3.64%	-15.15%	-3.33%	10.01%	8.03%	0.99%	2.55%
BND Vanguard Total Bond Market ETF	0.46%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	8.84%	-0.12%	3.57%

Correlation

The correlation between IEF and BND is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007	0.91

The correlation between IEF and BND has been stable across timeframes, ranging from 0.91 to 0.98 - a consistent structural relationship.

Return for Risk

IEF vs. BND — Risk / Return Rank

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

IEF

IEF Risk / Return Rank: 23
IEF Sharpe Ratio Rank: 25
IEF Sortino Ratio Rank: 25
IEF Omega Ratio Rank: 23
IEF Calmar Ratio Rank: 21
IEF Martin Ratio Rank: 22

BND

BND Risk / Return Rank: 38
BND Sharpe Ratio Rank: 38
BND Sortino Ratio Rank: 40
BND Omega Ratio Rank: 36
BND Calmar Ratio Rank: 37
BND Martin Ratio Rank: 36

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.

IEF vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 7-10 Year Treasury Bond ETF (IEF) and Vanguard Total Bond Market ETF (BND). 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.

	IEF	BND	Difference
Sharpe ratio Return per unit of total volatility	0.89	1.38	-0.49
Sortino ratio Return per unit of downside risk	1.34	2.07	-0.73
Omega ratio Gain probability vs. loss probability	1.15	1.24	-0.09
Calmar ratio Return relative to maximum drawdown	0.95	1.85	-0.90
Martin ratio Return relative to average drawdown	2.86	5.66	-2.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEF vs. BND - Sharpe Ratio Comparison

The current IEF Sharpe Ratio is 0.89, which is lower than the BND Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of IEF and BND, 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

	IEF	BND	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.89	1.38	-0.49
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.13	0.03	-0.16
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.10	0.29	-0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.59	-0.09

Drawdowns

IEF vs. BND - Drawdown Comparison

The maximum IEF drawdown since its inception was -23.93%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for IEF and BND.

Drawdown Indicators

	IEF	BND	Difference
Max Drawdown Largest peak-to-trough decline	-23.93%	-18.58%	-5.35%
Max Drawdown (1Y) Largest decline over 1 year	-4.07%	-2.68%	-1.39%
Max Drawdown (3Y) Largest decline over 3 years	-7.74%	-5.92%	-1.82%
Max Drawdown (5Y) Largest decline over 5 years	-21.40%	-17.91%	-3.49%
Max Drawdown (10Y) Largest decline over 10 years	-23.93%	-18.58%	-5.35%
Current Drawdown Current decline from peak	-11.12%	-2.18%	-8.94%
Average Drawdown Average peak-to-trough decline	-5.34%	-3.06%	-2.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.36%	0.88%	+0.48%

Volatility

IEF vs. BND - Volatility Comparison

iShares 7-10 Year Treasury Bond ETF (IEF) has a higher volatility of 1.57% compared to Vanguard Total Bond Market ETF (BND) at 1.26%. This indicates that IEF's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEF	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.57%	1.26%	+0.31%
Volatility (6M) Calculated over the trailing 6-month period	3.37%	2.68%	+0.69%
Volatility (1Y) Calculated over the trailing 1-year period	4.79%	3.78%	+1.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.71%	6.02%	+1.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.62%	5.53%	+1.09%

IEF vs. BND - Expense Ratio Comparison

IEF has a 0.15% expense ratio, which is higher than BND's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IEF vs. BND - Dividend Comparison

IEF's dividend yield for the trailing twelve months is around 3.89%, less than BND's 3.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	3.96%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
IEF iShares 7-10 Year Treasury Bond ETF	3.89%	3.77%	3.62%	2.91%	1.96%	0.83%	1.08%	2.08%	2.24%	1.82%	1.81%	1.90%

Frequently Asked Questions

Can I hold both IEF and BND in my portfolio?

With a correlation of 0.98, IEF and BND 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, IEF or BND?

IEF has higher volatility (1.57%) compared to BND (1.26%). In terms of maximum drawdown, IEF dropped -23.93% vs BND's -18.58%.

Which ETF is better, IEF or BND?

On 10-year performance, BND leads with 1.60% vs 0.66% for IEF. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEF or BND?

Over the 10-year period, BND has performed better with a 1.60% return vs 0.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEF or BND?

BND is cheaper with a 0.03% expense ratio, compared with 0.15% for IEF.

Which ETF pays a higher dividend yield, IEF or BND?

BND has the higher dividend yield at 3.96%, compared with 3.89% for IEF.

What is the main difference between IEF and BND?

IEF is categorized as Government Bonds, while BND is Total Bond Market. IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for IEF and 0.03% for BND.

Which has better risk-adjusted returns?

BND currently has the higher Sharpe Ratio (1.38 vs 0.89), 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.