IEF vs. SCHR

Last updated Jun 4, 2026

IEF (iShares 7-10 Year Treasury Bond ETF) and SCHR (Schwab Intermediate-Term U.S. Treasury ETF) are both Government Bonds funds - IEF tracks the ICE U.S. Treasury 7-10 Year Bond Index while SCHR tracks the Bloomberg US Treasury 3-10 Year Index. Both are passively managed. Over the past 10 years, IEF returned 0.63%/yr vs 1.23%/yr for SCHR. With a 0.96 correlation, they move nearly in lockstep. IEF charges 0.15%/yr vs 0.05%/yr for SCHR.

Performance

IEF vs. SCHR - 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 Intermediate-Term U.S. Treasury ETF (SCHR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IEF achieves a -0.66% return, which is significantly lower than SCHR's -0.43% return. Over the past 10 years, IEF has underperformed SCHR with an annualized return of 0.63%, while SCHR has yielded a comparatively higher 1.23% 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%

SCHR

• 1D: -0.16%
• 1M: -0.15%
• YTD: -0.43%
• 6M: -0.59%
• 1Y: 3.55%
• 3Y*: 3.41%
• 5Y*: 0.05%
• 10Y*: 1.23%

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

IEF vs. SCHR - 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%
SCHR Schwab Intermediate-Term U.S. Treasury ETF	-0.43%	7.33%	1.42%	4.27%	-10.58%	-2.62%	7.72%	6.18%	1.46%	1.59%

Correlation

The correlation between IEF and SCHR is 0.97 - 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	0.97
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	0.97
Correlation (All Time) Calculated using the full available price history since Aug 6, 2010	0.96

The correlation between IEF and SCHR has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

Return for Risk

IEF vs. SCHR — 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: 24
IEF Sortino Ratio Rank: 23
IEF Omega Ratio Rank: 21
IEF Calmar Ratio Rank: 22
IEF Martin Ratio Rank: 23

SCHR

SCHR Risk / Return Rank: 27
SCHR Sharpe Ratio Rank: 28
SCHR Sortino Ratio Rank: 28
SCHR Omega Ratio Rank: 26
SCHR Calmar Ratio Rank: 26
SCHR Martin Ratio Rank: 27

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. SCHR - 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 Intermediate-Term U.S. Treasury ETF (SCHR). 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	SCHR	Difference
Sharpe ratio Return per unit of total volatility	0.85	1.04	-0.18
Sortino ratio Return per unit of downside risk	1.29	1.57	-0.29
Omega ratio Gain probability vs. loss probability	1.15	1.18	-0.03
Calmar ratio Return relative to maximum drawdown	1.00	1.27	-0.27
Martin ratio Return relative to average drawdown	2.98	3.82	-0.84
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. SCHR - Sharpe Ratio Comparison

The current IEF Sharpe Ratio is 0.85, which is comparable to the SCHR Sharpe Ratio of 1.04. The chart below compares the historical Sharpe Ratios of IEF and SCHR, 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	SCHR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.85	1.04	-0.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.15	0.01	-0.16
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.10	0.28	-0.18
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.44	+0.06

Drawdowns

IEF vs. SCHR - Drawdown Comparison

The maximum IEF drawdown since its inception was -23.93%, which is greater than SCHR's maximum drawdown of -16.11%. Use the drawdown chart below to compare losses from any high point for IEF and SCHR.

Drawdown Indicators

	IEF	SCHR	Difference
Max Drawdown Largest peak-to-trough decline	-23.93%	-16.11%	-7.82%
Max Drawdown (1Y) Largest decline over 1 year	-4.07%	-2.79%	-1.28%
Max Drawdown (3Y) Largest decline over 3 years	-7.74%	-4.35%	-3.39%
Max Drawdown (5Y) Largest decline over 5 years	-21.40%	-15.07%	-6.33%
Max Drawdown (10Y) Largest decline over 10 years	-23.93%	-16.11%	-7.82%
Current Drawdown Current decline from peak	-11.35%	-2.37%	-8.98%
Average Drawdown Average peak-to-trough decline	-5.34%	-3.64%	-1.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.37%	0.93%	+0.44%

Volatility

IEF vs. SCHR - Volatility Comparison

iShares 7-10 Year Treasury Bond ETF (IEF) has a higher volatility of 1.54% compared to Schwab Intermediate-Term U.S. Treasury ETF (SCHR) at 1.08%. This indicates that IEF's price experiences larger fluctuations and is considered to be riskier than SCHR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEF	SCHR	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.54%	1.08%	+0.46%
Volatility (6M) Calculated over the trailing 6-month period	3.34%	2.35%	+0.99%
Volatility (1Y) Calculated over the trailing 1-year period	4.78%	3.43%	+1.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.71%	5.38%	+2.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.62%	4.47%	+2.15%

IEF vs. SCHR - Expense Ratio Comparison

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

IEF's dividend yield for the trailing twelve months is around 3.90%, which matches SCHR's 3.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
SCHR Schwab Intermediate-Term U.S. Treasury ETF	3.92%	3.85%	3.77%	3.16%	2.02%	1.00%	1.62%	2.31%	2.11%	1.65%	1.45%	1.56%

Frequently Asked Questions

Can I hold both IEF and SCHR in my portfolio?

With a correlation of 0.97, IEF and SCHR 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 SCHR?

IEF has higher volatility (1.54%) compared to SCHR (1.08%). In terms of maximum drawdown, IEF dropped -23.93% vs SCHR's -16.11%.

Which ETF is better, IEF or SCHR?

On 10-year performance, SCHR leads with 1.23% vs 0.63% for IEF. On fees, SCHR is cheaper at 0.05% per year. On volatility, SCHR has been the lower-risk option at 1.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEF or SCHR?

Over the 10-year period, SCHR has performed better with a 1.23% return vs 0.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEF or SCHR?

SCHR is cheaper with a 0.05% expense ratio, compared with 0.15% for IEF.

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

SCHR has the higher dividend yield at 3.92%, compared with 3.90% for IEF.

What is the main difference between IEF and SCHR?

IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while SCHR tracks Bloomberg US Treasury 3-10 Year Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.15% for IEF and 0.05% for SCHR.

Which has better risk-adjusted returns?

SCHR currently has the higher Sharpe Ratio (1.04 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.