PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
IEF vs. VGLT
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEF vs. VGLT

Last updated Jun 4, 2026

IEF (iShares 7-10 Year Treasury Bond ETF) and VGLT (Vanguard Long-Term Treasury ETF) are both Government Bonds funds - IEF tracks the ICE U.S. Treasury 7-10 Year Bond Index while VGLT tracks the Bloomberg U.S. Long Treasury Index. Both are passively managed. Over the past 10 years, IEF returned 0.63%/yr vs -1.10%/yr for VGLT. Their correlation of 0.92 suggests significant overlap in exposure. IEF charges 0.15%/yr vs 0.03%/yr for VGLT.

Performance

IEF vs. VGLT - Performance Comparison

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

Loading charts...

Returns By Period

In the year-to-date period, IEF achieves a -0.66% return, which is significantly lower than VGLT's -0.41% return. Over the past 10 years, IEF has outperformed VGLT with an annualized return of 0.63%, while VGLT has yielded a comparatively lower -1.10% 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%

VGLT

1D
-0.40%
1M
0.71%
YTD
-0.41%
6M
-1.68%
1Y
5.25%
3Y*
-0.72%
5Y*
-5.30%
10Y*
-1.10%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IEF vs. VGLT - 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%
VGLT
Vanguard Long-Term Treasury ETF		-0.41%5.35%-6.28%3.27%-29.34%-4.98%17.57%14.30%-1.54%8.64%

Correlation

The correlation between IEF and VGLT is 0.93, 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

0.93

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

0.94

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

0.93

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

0.93

Correlation (All Time)
Calculated using the full available price history since Nov 25, 2009

0.92

The correlation between IEF and VGLT has been stable across timeframes, ranging from 0.92 to 0.94 - 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

Vanguard Long-Term Treasury ETF

Often compared with IEF:
IEF vs. TLTIEF vs. VGITIEF vs. LQDIEF vs. SHYIEF vs. BNDIEF vs. IEIIEF vs. TIP
Often compared with VGLT:
VGLT vs. TLTVGLT vs. VGITVGLT vs. EDVVGLT vs. BNDVGLT vs. VCLTVGLT vs. BLVVGLT vs. SPTL

Return for Risk

IEF vs. VGLT — 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
VGLT
VGLT Risk / Return Rank: 1818
Overall Rank
VGLT Sharpe Ratio Rank: 1818
Sharpe Ratio Rank
VGLT Sortino Ratio Rank: 1717
Sortino Ratio Rank
VGLT Omega Ratio Rank: 1616
Omega Ratio Rank
VGLT Calmar Ratio Rank: 1818
Calmar Ratio Rank
VGLT Martin Ratio Rank: 1818
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. VGLT - 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 Treasury ETF (VGLT). 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.

IEFVGLTDifference
Sharpe ratioReturn per unit of total volatility
0.85
0.59

+0.26

Sortino ratioReturn per unit of downside risk
1.29
0.92

+0.37

Omega ratioGain probability vs. loss probability

1.15

1.10

+0.04

Calmar ratioReturn relative to maximum drawdown

1.00

0.75

+0.25

Martin ratioReturn relative to average drawdown

2.98

1.96

+1.02

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. VGLT - Sharpe Ratio Comparison

The current IEF Sharpe Ratio is 0.85, which is higher than the VGLT Sharpe Ratio of 0.59. The chart below compares the historical Sharpe Ratios of IEF and VGLT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Sharpe Ratios by Period

IEFVGLTDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.85

0.59

+0.26

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.15

-0.37

+0.22

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.10

-0.08

+0.18

Sharpe Ratio (All Time)

Calculated using the full available price history

0.50

0.19

+0.31

Drawdowns

IEF vs. VGLT - Drawdown Comparison

The maximum IEF drawdown since its inception was -23.93%, smaller than the maximum VGLT drawdown of -46.18%. Use the drawdown chart below to compare losses from any high point for IEF and VGLT.

Loading charts...

Drawdown Indicators

IEFVGLTDifference

Max Drawdown

Largest peak-to-trough decline

-23.93%

-46.18%

+22.25%

Max Drawdown (1Y)

Largest decline over 1 year

-4.07%

-7.01%

+2.94%

Max Drawdown (3Y)

Largest decline over 3 years

-7.74%

-17.68%

+9.94%

Max Drawdown (5Y)

Largest decline over 5 years

-21.40%

-40.98%

+19.58%

Max Drawdown (10Y)

Largest decline over 10 years

-23.93%

-46.18%

+22.25%

Current Drawdown

Current decline from peak

-11.35%

-36.83%

+25.48%

Average Drawdown

Average peak-to-trough decline

-5.34%

-15.06%

+9.72%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.37%

2.68%

-1.31%

Volatility

IEF vs. VGLT - Volatility Comparison

The current volatility for iShares 7-10 Year Treasury Bond ETF (IEF) is 1.54%, while Vanguard Long-Term Treasury ETF (VGLT) has a volatility of 2.59%. This indicates that IEF experiences smaller price fluctuations and is considered to be less risky than VGLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

IEFVGLTDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.54%

2.59%

-1.05%

Volatility (6M)

Calculated over the trailing 6-month period

3.34%

5.94%

-2.60%

Volatility (1Y)

Calculated over the trailing 1-year period

4.78%

8.88%

-4.10%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

7.71%

14.58%

-6.87%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

6.62%

13.81%

-7.19%

IEF vs. VGLT - Expense Ratio Comparison

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

IEF's dividend yield for the trailing twelve months is around 3.90%, less than VGLT's 4.61% 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%
VGLT
Vanguard Long-Term Treasury ETF		4.61%4.44%4.33%3.33%2.84%1.82%2.15%2.46%2.71%2.55%2.69%3.21%

Frequently Asked Questions

With a correlation of 0.93, IEF and VGLT 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.

VGLT has higher volatility (2.59%) compared to IEF (1.54%). In terms of maximum drawdown, IEF dropped -23.93% vs VGLT's -46.18%.

On 10-year performance, IEF leads with 0.63% vs -1.10% for VGLT. On fees, VGLT is cheaper at 0.03% per year. On volatility, IEF has been the lower-risk option at 1.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IEF has performed better with a 0.63% return vs -1.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

VGLT has the higher dividend yield at 4.61%, compared with 3.90% for IEF.

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

IEF currently has the higher Sharpe Ratio (0.85 vs 0.59), 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.

Portfolio Optimizer

Find the right allocation for IEF and VGLT

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