IEF vs. VCLT
IEF (iShares 7-10 Year Treasury Bond ETF) and VCLT (Vanguard Long-Term Corporate Bond ETF) are both exchange-traded funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index, while VCLT is a Corporate Bonds fund tracking the Barclays U.S. 10+ Year Corporate Index. Both are passively managed. Over the past 10 years, IEF returned 0.53%/yr vs 2.14%/yr for VCLT. A 0.79 correlation means they provide meaningful diversification when combined. IEF charges 0.15%/yr vs 0.04%/yr for VCLT.
Performance
IEF vs. VCLT - 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 VCLT's 0.19% return. Over the past 10 years, IEF has underperformed VCLT with an annualized return of 0.53%, while VCLT has yielded a comparatively higher 2.14% 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%
VCLT
- 1D
- -0.30%
- 1M
- -0.62%
- YTD
- 0.19%
- 6M
- -0.19%
- 1Y
- 6.74%
- 3Y*
- 4.19%
- 5Y*
- -2.13%
- 10Y*
- 2.14%
IEF vs. VCLT - 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% |
VCLT Vanguard Long-Term Corporate Bond ETF | 0.19% | 7.18% | -1.90% | 11.17% | -25.50% | -1.73% | 13.27% | 23.89% | -7.04% | 11.70% |
Correlation
The correlation between IEF and VCLT is 0.86, 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 | 0.86 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.86 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.79 |
The correlation between IEF and VCLT shifts across timeframes, from 0.79 (all time) to 0.89 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
IEF vs. VCLT — Risk / Return Rank
IEF
VCLT
IEF vs. VCLT - 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 Long-Term Corporate Bond ETF (VCLT). 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 | VCLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.02 | ||
| Sortino ratioReturn per unit of downside risk | +0.01 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.15 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 0.96 | 1.29 | -0.33 |
| Martin ratioReturn relative to average drawdown | 2.79 | 3.15 | -0.37 |
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 | VCLT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.84 | 0.86 | -0.02 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.17 | -0.17 | -0.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.08 | 0.17 | -0.09 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.39 | +0.11 |
Drawdowns
IEF vs. VCLT - Drawdown Comparison
The maximum IEF drawdown since its inception was -23.93%, smaller than the maximum VCLT drawdown of -34.31%. Use the drawdown chart below to compare losses from any high point for IEF and VCLT.
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Drawdown Indicators
| IEF | VCLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.93% | -34.31% | +10.38% |
Max Drawdown (1Y)Largest decline over 1 year | -4.07% | -5.25% | +1.18% |
Max Drawdown (3Y)Largest decline over 3 years | -7.74% | -13.03% | +5.29% |
Max Drawdown (5Y)Largest decline over 5 years | -21.40% | -34.31% | +12.91% |
Max Drawdown (10Y)Largest decline over 10 years | -23.93% | -34.31% | +10.38% |
Current DrawdownCurrent decline from peak | -11.80% | -15.03% | +3.23% |
Average DrawdownAverage peak-to-trough decline | -5.35% | -8.16% | +2.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.40% | 2.14% | -0.74% |
Volatility
IEF vs. VCLT - Volatility Comparison
The current volatility for iShares 7-10 Year Treasury Bond ETF (IEF) is 1.51%, while Vanguard Long-Term Corporate Bond ETF (VCLT) has a volatility of 2.27%. This indicates that IEF experiences smaller price fluctuations and is considered to be less risky than VCLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEF | VCLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.51% | 2.27% | -0.76% |
Volatility (6M)Calculated over the trailing 6-month period | 3.36% | 5.80% | -2.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.69% | 7.88% | -3.19% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.71% | 12.77% | -5.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.63% | 12.85% | -6.22% |
IEF vs. VCLT - Expense Ratio Comparison
IEF has a 0.15% expense ratio, which is higher than VCLT'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. VCLT - Dividend Comparison
IEF's dividend yield for the trailing twelve months is around 3.92%, less than VCLT's 5.59% 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% |
VCLT Vanguard Long-Term Corporate Bond ETF | 5.59% | 5.51% | 5.19% | 4.67% | 4.44% | 3.07% | 3.16% | 3.81% | 4.55% | 4.01% | 4.33% | 4.68% |
Frequently Asked Questions
IEF and VCLT have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCLT has higher volatility (2.27%) compared to IEF (1.51%). In terms of maximum drawdown, IEF dropped -23.93% vs VCLT's -34.31%.
On 10-year performance, VCLT leads with 2.14% vs 0.53% for IEF. On fees, VCLT is cheaper at 0.04% per year. On volatility, IEF has been the lower-risk option at 1.51%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VCLT has performed better with a 2.14% return vs 0.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCLT is cheaper with a 0.04% expense ratio, compared with 0.15% for IEF.
VCLT has the higher dividend yield at 5.59%, compared with 3.92% for IEF.
IEF is categorized as Government Bonds, while VCLT is Corporate Bonds. IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while VCLT tracks Barclays U.S. 10+ Year Corporate Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for IEF and 0.04% for VCLT.
VCLT currently has the higher Sharpe Ratio (0.86 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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