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IEF vs. SCHO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEF vs. SCHO

Last updated Jun 4, 2026

IEF (iShares 7-10 Year Treasury Bond ETF) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both Government Bonds funds - IEF tracks the ICE U.S. Treasury 7-10 Year Bond Index while SCHO tracks the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, IEF returned 0.63%/yr vs 1.71%/yr for SCHO. A 0.71 correlation means they provide meaningful diversification when combined. IEF charges 0.15%/yr vs 0.03%/yr for SCHO.

Performance

IEF vs. SCHO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 7-10 Year Treasury Bond ETF (IEF) and Schwab Short-Term U.S. Treasury ETF (SCHO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IEF achieves a -0.66% return, which is significantly lower than SCHO's 0.42% return. Over the past 10 years, IEF has underperformed SCHO with an annualized return of 0.63%, while SCHO has yielded a comparatively higher 1.71% annualized return.

IEF

1D
-0.25%
1M
-0.08%
YTD
-0.66%
6M
-1.17%
1Y
4.06%
3Y*
2.47%
5Y*
-1.14%
10Y*
0.63%

SCHO

1D
-0.04%
1M
0.06%
YTD
0.42%
6M
0.78%
1Y
3.39%
3Y*
4.15%
5Y*
1.80%
10Y*
1.71%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IEF vs. SCHO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
SCHO
Schwab Short-Term U.S. Treasury ETF		0.42%5.49%3.65%4.31%-3.87%-0.64%3.11%3.47%1.37%0.33%

Correlation

The correlation between IEF and SCHO is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.78

Correlation (3Y)
Calculated over the trailing 3-year period

0.80

Correlation (5Y)
Calculated over the trailing 5-year period

0.80

Correlation (10Y)
Calculated over the trailing 10-year period

0.75

Correlation (All Time)
Calculated using the full available price history since Aug 6, 2010

0.71

The correlation between IEF and SCHO has been stable across timeframes, ranging from 0.71 to 0.80 - a consistent structural relationship.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares 7-10 Year Treasury Bond ETF

Schwab Short-Term U.S. Treasury ETF

Often compared with IEF:
IEF vs. TLTIEF vs. VGITIEF vs. LQDIEF vs. BNDIEF vs. SHYIEF vs. IEIIEF vs. TIP
Often compared with SCHO:
SCHO vs. SGOVSCHO vs. VGSHSCHO vs. BSVSCHO vs. SHVSCHO vs. BILSCHO vs. SCHQSCHO vs. SPTS

Return for Risk

IEF vs. SCHO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IEF
IEF Risk / Return Rank: 2323
Overall Rank
IEF Sharpe Ratio Rank: 2424
Sharpe Ratio Rank
IEF Sortino Ratio Rank: 2323
Sortino Ratio Rank
IEF Omega Ratio Rank: 2121
Omega Ratio Rank
IEF Calmar Ratio Rank: 2222
Calmar Ratio Rank
IEF Martin Ratio Rank: 2323
Martin Ratio Rank
SCHO
SCHO Risk / Return Rank: 8181
Overall Rank
SCHO Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
SCHO Sortino Ratio Rank: 8888
Sortino Ratio Rank
SCHO Omega Ratio Rank: 8181
Omega Ratio Rank
SCHO Calmar Ratio Rank: 7777
Calmar Ratio Rank
SCHO Martin Ratio Rank: 8383
Martin Ratio Rank
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. SCHO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 7-10 Year Treasury Bond ETF (IEF) and Schwab Short-Term U.S. Treasury ETF (SCHO). 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.

IEFSCHODifference
Sharpe ratioReturn per unit of total volatility
0.85
2.48

-1.63

Sortino ratioReturn per unit of downside risk
1.29
4.06

-2.78

Omega ratioGain probability vs. loss probability

1.15

1.50

-0.35

Calmar ratioReturn relative to maximum drawdown

1.00

3.96

-2.96

Martin ratioReturn relative to average drawdown

2.98

17.03

-14.05

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. SCHO - Sharpe Ratio Comparison

The current IEF Sharpe Ratio is 0.85, which is lower than the SCHO Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of IEF and SCHO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

IEFSCHODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.85

2.48

-1.63

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.15

0.91

-1.06

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.10

1.10

-1.01

Sharpe Ratio (All Time)

Calculated using the full available price history

0.50

0.99

-0.49

Drawdowns

IEF vs. SCHO - Drawdown Comparison

The maximum IEF drawdown since its inception was -23.93%, which is greater than SCHO's maximum drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for IEF and SCHO.

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Drawdown Indicators

IEFSCHODifference

Max Drawdown

Largest peak-to-trough decline

-23.93%

-5.69%

-18.24%

Max Drawdown (1Y)

Largest decline over 1 year

-4.07%

-0.86%

-3.21%

Max Drawdown (3Y)

Largest decline over 3 years

-7.74%

-0.98%

-6.76%

Max Drawdown (5Y)

Largest decline over 5 years

-21.40%

-5.69%

-15.71%

Max Drawdown (10Y)

Largest decline over 10 years

-23.93%

-5.69%

-18.24%

Current Drawdown

Current decline from peak

-11.35%

-0.27%

-11.08%

Average Drawdown

Average peak-to-trough decline

-5.34%

-0.61%

-4.73%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.37%

0.20%

+1.17%

Volatility

IEF vs. SCHO - Volatility Comparison

iShares 7-10 Year Treasury Bond ETF (IEF) has a higher volatility of 1.54% compared to Schwab Short-Term U.S. Treasury ETF (SCHO) at 0.41%. This indicates that IEF's price experiences larger fluctuations and is considered to be riskier than SCHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IEFSCHODifference

Volatility (1M)

Calculated over the trailing 1-month period

1.54%

0.41%

+1.13%

Volatility (6M)

Calculated over the trailing 6-month period

3.34%

0.90%

+2.44%

Volatility (1Y)

Calculated over the trailing 1-year period

4.78%

1.37%

+3.41%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

7.71%

1.98%

+5.73%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

6.62%

1.56%

+5.06%

IEF vs. SCHO - Expense Ratio Comparison

IEF has a 0.15% expense ratio, which is higher than SCHO'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. SCHO - Dividend Comparison

IEF's dividend yield for the trailing twelve months is around 3.90%, which matches SCHO's 3.91% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
SCHO
Schwab Short-Term U.S. Treasury ETF		3.91%4.06%4.29%3.76%1.34%0.41%1.27%2.27%1.60%1.12%0.82%0.68%

Frequently Asked Questions

IEF and SCHO have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IEF has higher volatility (1.54%) compared to SCHO (0.41%). In terms of maximum drawdown, IEF dropped -23.93% vs SCHO's -5.69%.

On 10-year performance, SCHO leads with 1.71% vs 0.63% for IEF. On fees, SCHO is cheaper at 0.03% per year. On volatility, SCHO has been the lower-risk option at 0.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, SCHO has performed better with a 1.71% return vs 0.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

SCHO has the higher dividend yield at 3.91%, compared with 3.90% for IEF.

IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.15% for IEF and 0.03% for SCHO.

SCHO currently has the higher Sharpe Ratio (2.48 vs 0.85), 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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