IEF vs. VBTIX
IEF (iShares 7-10 Year Treasury Bond ETF) and VBTIX (Vanguard Total Bond Market Index Fund Institutional Shares) are both funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index, while VBTIX is a Total Bond Market fund managed by Vanguard. Over the past 10 years, IEF returned 0.53%/yr vs 1.53%/yr for VBTIX. Their correlation of 0.91 suggests significant overlap in exposure. IEF charges 0.15%/yr vs 0.04%/yr for VBTIX.
Performance
IEF vs. VBTIX - Performance Comparison
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Returns By Period
In the year-to-date period, IEF achieves a -1.16% return, which is significantly lower than VBTIX's -0.09% return. Over the past 10 years, IEF has underperformed VBTIX with an annualized return of 0.53%, while VBTIX has yielded a comparatively higher 1.53% annualized return.
IEF
- 1D
- -0.11%
- 1M
- -1.19%
- YTD
- -1.16%
- 6M
- -0.96%
- 1Y
- 3.91%
- 3Y*
- 2.43%
- 5Y*
- -1.34%
- 10Y*
- 0.53%
VBTIX
- 1D
- -0.41%
- 1M
- -0.49%
- YTD
- -0.09%
- 6M
- 0.35%
- 1Y
- 4.92%
- 3Y*
- 3.84%
- 5Y*
- 0.05%
- 10Y*
- 1.53%
IEF vs. VBTIX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | -1.16% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
VBTIX Vanguard Total Bond Market Index Fund Institutional Shares | -0.09% | 7.18% | 1.27% | 5.75% | -13.15% | -1.95% | 7.75% | 8.74% | -0.24% | 3.56% |
Correlation
The correlation between IEF and VBTIX is 0.92, 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 | 0.92 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.94 |
Correlation (All Time) Calculated using the full available price history since Jul 29, 2002 | 0.91 |
The correlation between IEF and VBTIX has been stable across timeframes, ranging from 0.91 to 0.96 - a consistent structural relationship.
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Return for Risk
IEF vs. VBTIX — Risk / Return Rank
IEF
VBTIX
IEF vs. VBTIX - 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 Index Fund Institutional Shares (VBTIX). 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 | VBTIX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.28 | ||
| Sortino ratioReturn per unit of downside risk | -0.40 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.20 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 0.96 | 1.52 | -0.56 |
| Martin ratioReturn relative to average drawdown | 2.79 | 4.51 | -1.72 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| IEF | VBTIX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.84 | 1.12 | -0.28 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.17 | 0.01 | -0.18 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.08 | 0.31 | -0.23 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.94 | -0.44 |
Drawdowns
IEF vs. VBTIX - Drawdown Comparison
The maximum IEF drawdown since its inception was -23.93%, which is greater than VBTIX's maximum drawdown of -18.90%. Use the drawdown chart below to compare losses from any high point for IEF and VBTIX.
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Drawdown Indicators
| IEF | VBTIX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.93% | -18.90% | -5.03% |
Max Drawdown (1Y)Largest decline over 1 year | -4.07% | -2.89% | -1.18% |
Max Drawdown (3Y)Largest decline over 3 years | -7.74% | -5.99% | -1.75% |
Max Drawdown (5Y)Largest decline over 5 years | -21.40% | -18.13% | -3.27% |
Max Drawdown (10Y)Largest decline over 10 years | -23.93% | -18.90% | -5.03% |
Current DrawdownCurrent decline from peak | -11.80% | -2.76% | -9.04% |
Average DrawdownAverage peak-to-trough decline | -5.35% | -2.32% | -3.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.40% | 0.97% | +0.43% |
Volatility
IEF vs. VBTIX - Volatility Comparison
iShares 7-10 Year Treasury Bond ETF (IEF) has a higher volatility of 1.51% compared to Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) at 1.31%. This indicates that IEF's price experiences larger fluctuations and is considered to be riskier than VBTIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEF | VBTIX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.51% | 1.31% | +0.20% |
Volatility (6M)Calculated over the trailing 6-month period | 3.36% | 2.81% | +0.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.69% | 3.94% | +0.75% |
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 | 6.63% | 4.98% | +1.65% |
IEF vs. VBTIX - Expense Ratio Comparison
IEF has a 0.15% expense ratio, which is higher than VBTIX's 0.04% 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. VBTIX - Dividend Comparison
IEF's dividend yield for the trailing twelve months is around 3.92%, less than VBTIX's 4.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.92% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
VBTIX Vanguard Total Bond Market Index Fund Institutional Shares | 4.01% | 3.88% | 3.69% | 3.12% | 2.61% | 1.81% | 2.41% | 2.75% | 2.58% | 2.56% | 2.54% | 2.84% |
Frequently Asked Questions
With a correlation of 0.92, IEF and VBTIX 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 (1.51%) compared to VBTIX (1.31%). In terms of maximum drawdown, IEF dropped -23.93% vs VBTIX's -18.90%.
VBTIX currently has the higher Sharpe Ratio (1.12 vs 0.84), 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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