IEF vs. VGK
IEF (iShares 7-10 Year Treasury Bond ETF) and VGK (Vanguard FTSE Europe ETF) are both exchange-traded funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index, while VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, IEF returned 0.59%/yr vs 10.28%/yr for VGK. At a correlation of -0.19, they often move in opposite directions. IEF charges 0.15%/yr vs 0.06%/yr for VGK.
Performance
IEF vs. VGK - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, IEF achieves a -0.47% return, which is significantly lower than VGK's 7.69% return. Over the past 10 years, IEF has underperformed VGK with an annualized return of 0.59%, while VGK has yielded a comparatively higher 10.28% annualized return.
IEF
- 1D
- -0.17%
- 1M
- 0.19%
- YTD
- -0.47%
- 6M
- -0.18%
- 1Y
- 3.39%
- 3Y*
- 2.86%
- 5Y*
- -1.24%
- 10Y*
- 0.59%
VGK
- 1D
- 0.18%
- 1M
- 2.31%
- YTD
- 7.69%
- 6M
- 9.92%
- 1Y
- 17.91%
- 3Y*
- 16.69%
- 5Y*
- 8.50%
- 10Y*
- 10.28%
IEF vs. VGK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | -0.47% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
VGK Vanguard FTSE Europe ETF | 7.69% | 35.83% | 1.88% | 20.19% | -15.98% | 16.89% | 5.43% | 24.85% | -14.89% | 26.98% |
Correlation
The correlation between IEF and VGK is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.41 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.30 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.17 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since Mar 10, 2005 | -0.19 |
The correlation between IEF and VGK shifts across timeframes, from -0.19 (all time) to 0.41 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
IEF vs. VGK — Risk / Return Rank
IEF
VGK
IEF vs. VGK - 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 FTSE Europe ETF (VGK). 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 | VGK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.41 | ||
| Sortino ratioReturn per unit of downside risk | -0.57 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.20 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 0.84 | 1.49 | -0.65 |
| Martin ratioReturn relative to average drawdown | 2.35 | 5.52 | -3.17 |
Loading charts...
Drawdowns
IEF vs. VGK - Drawdown Comparison
The maximum IEF drawdown since its inception was -23.93%, smaller than the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for IEF and VGK.
Loading charts...
Drawdown Indicators
| IEF | VGK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.93% | -63.61% | +39.68% |
Max Drawdown (1Y)Largest decline over 1 year | -4.07% | -12.09% | +8.02% |
Max Drawdown (3Y)Largest decline over 3 years | -7.74% | -14.31% | +6.57% |
Max Drawdown (5Y)Largest decline over 5 years | -21.40% | -32.74% | +11.34% |
Max Drawdown (10Y)Largest decline over 10 years | -23.93% | -37.24% | +13.31% |
Current DrawdownCurrent decline from peak | -11.18% | -0.50% | -10.68% |
Average DrawdownAverage peak-to-trough decline | -5.35% | -13.33% | +7.98% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.45% | 3.27% | -1.82% |
Volatility
IEF vs. VGK - Volatility Comparison
The current volatility for iShares 7-10 Year Treasury Bond ETF (IEF) is 1.62%, while Vanguard FTSE Europe ETF (VGK) has a volatility of 5.82%. This indicates that IEF experiences smaller price fluctuations and is considered to be less risky than VGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| IEF | VGK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.62% | 5.82% | -4.20% |
Volatility (6M)Calculated over the trailing 6-month period | 3.42% | 13.36% | -9.94% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.72% | 15.92% | -11.20% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.71% | 17.98% | -10.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.63% | 18.95% | -12.32% |
IEF vs. VGK - Expense Ratio Comparison
IEF has a 0.15% expense ratio, which is higher than VGK's 0.06% 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. VGK - Dividend Comparison
IEF's dividend yield for the trailing twelve months is around 3.89%, more than VGK's 2.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.89% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
VGK Vanguard FTSE Europe ETF | 2.76% | 2.86% | 3.61% | 3.15% | 3.25% | 3.05% | 2.11% | 3.27% | 3.95% | 2.70% | 3.52% | 3.25% |
Frequently Asked Questions
IEF and VGK have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGK has higher volatility (5.82%) compared to IEF (1.62%). In terms of maximum drawdown, IEF dropped -23.93% vs VGK's -63.61%.
On 10-year performance, VGK leads with 10.28% vs 0.59% for IEF. On fees, VGK is cheaper at 0.06% per year. On volatility, IEF has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VGK has performed better with a 10.28% return vs 0.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGK is cheaper with a 0.06% expense ratio, compared with 0.15% for IEF.
IEF has the higher dividend yield at 3.89%, compared with 2.76% for VGK.
IEF is categorized as Government Bonds, while VGK is Europe Equities. IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while VGK tracks FTSE Developed Europe All Cap Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for IEF and 0.06% for VGK.
VGK currently has the higher Sharpe Ratio (1.13 vs 0.72), 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.
Find the right allocation for IEF and VGK
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer