IEF vs. GOVT
IEF (iShares 7-10 Year Treasury Bond ETF) and GOVT (iShares U.S. Treasury Bond ETF) are both Government Bonds funds from iShares - IEF tracks the ICE U.S. Treasury 7-10 Year Bond Index while GOVT tracks the ICE U.S. Treasury Core Bond Index. Both are passively managed. Over the past 10 years, IEF returned 0.51%/yr vs 0.79%/yr for GOVT. Their correlation of 0.95 suggests significant overlap in exposure. IEF charges 0.15%/yr vs 0.05%/yr for GOVT.
Performance
IEF vs. GOVT - Performance Comparison
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Returns By Period
In the year-to-date period, IEF achieves a -0.66% return, which is significantly lower than GOVT's -0.02% return. Over the past 10 years, IEF has underperformed GOVT with an annualized return of 0.51%, while GOVT has yielded a comparatively higher 0.79% annualized return.
IEF
- 1D
- -0.38%
- 1M
- 0.46%
- YTD
- -0.66%
- 6M
- -0.64%
- 1Y
- 3.24%
- 3Y*
- 2.55%
- 5Y*
- -1.20%
- 10Y*
- 0.51%
GOVT
- 1D
- -0.29%
- 1M
- 0.45%
- YTD
- -0.02%
- 6M
- 0.07%
- 1Y
- 3.26%
- 3Y*
- 2.88%
- 5Y*
- -0.49%
- 10Y*
- 0.79%
IEF vs. GOVT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | -0.66% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
GOVT iShares U.S. Treasury Bond ETF | -0.02% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
Correlation
The correlation between IEF and GOVT 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 | 0.97 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.96 |
Correlation (All Time) Calculated using the full available price history since Feb 24, 2012 | 0.95 |
The correlation between IEF and GOVT has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.
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Return for Risk
IEF vs. GOVT — Risk / Return Rank
IEF
GOVT
IEF vs. GOVT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 7-10 Year Treasury Bond ETF (IEF) and iShares U.S. Treasury Bond ETF (GOVT). 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.
| IEF | GOVT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.23 | ||
| Sortino ratioReturn per unit of downside risk | -0.34 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.16 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 0.80 | 1.15 | -0.35 |
| Martin ratioReturn relative to average drawdown | 2.17 | 3.13 | -0.96 |
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Drawdowns
IEF vs. GOVT - Drawdown Comparison
The maximum IEF drawdown since its inception was -23.93%, which is greater than GOVT's maximum drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for IEF and GOVT.
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Drawdown Indicators
| IEF | GOVT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.93% | -19.07% | -4.86% |
Max Drawdown (1Y)Largest decline over 1 year | -4.07% | -2.85% | -1.22% |
Max Drawdown (3Y)Largest decline over 3 years | -7.74% | -5.43% | -2.31% |
Max Drawdown (5Y)Largest decline over 5 years | -21.40% | -16.60% | -4.80% |
Max Drawdown (10Y)Largest decline over 10 years | -23.93% | -19.07% | -4.86% |
Current DrawdownCurrent decline from peak | -11.35% | -7.09% | -4.26% |
Average DrawdownAverage peak-to-trough decline | -5.36% | -5.26% | -0.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.49% | 1.04% | +0.45% |
Volatility
IEF vs. GOVT - Volatility Comparison
iShares 7-10 Year Treasury Bond ETF (IEF) has a higher volatility of 1.41% compared to iShares U.S. Treasury Bond ETF (GOVT) at 0.97%. This indicates that IEF's price experiences larger fluctuations and is considered to be riskier than GOVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEF | GOVT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.41% | 0.97% | +0.44% |
Volatility (6M)Calculated over the trailing 6-month period | 3.49% | 2.60% | +0.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.73% | 3.58% | +1.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.71% | 6.04% | +1.67% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.63% | 5.23% | +1.40% |
IEF vs. GOVT - Expense Ratio Comparison
IEF has a 0.15% expense ratio, which is higher than GOVT's 0.05% 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. GOVT - Dividend Comparison
IEF's dividend yield for the trailing twelve months is around 3.90%, more than GOVT's 3.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 3.58% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
IEF iShares 7-10 Year Treasury Bond ETF | 3.90% | 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
With a correlation of 0.98, IEF and GOVT 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.
IEF has higher volatility (1.41%) compared to GOVT (0.97%). In terms of maximum drawdown, IEF dropped -23.93% vs GOVT's -19.07%.
On 10-year performance, GOVT leads with 0.79% vs 0.51% for IEF. On fees, GOVT is cheaper at 0.05% per year. On volatility, GOVT has been the lower-risk option at 0.97%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, GOVT has performed better with a 0.79% return vs 0.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVT is cheaper with a 0.05% expense ratio, compared with 0.15% for IEF.
IEF has the higher dividend yield at 3.90%, compared with 3.58% for GOVT.
IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while GOVT tracks ICE U.S. Treasury Core Bond Index. Their fees differ too: 0.15% for IEF and 0.05% for GOVT.
GOVT currently has the higher Sharpe Ratio (0.92 vs 0.69), 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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