IEF vs. VHT
IEF (iShares 7-10 Year Treasury Bond ETF) and VHT (Vanguard Health Care ETF) are both exchange-traded funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index, while VHT is a Health & Biotech Equities fund tracking the MSCI US Investable Market Health Care 25/50 Index. Both are passively managed. Over the past 10 years, IEF returned 0.59%/yr vs 9.87%/yr for VHT. At a correlation of -0.16, they often move in opposite directions. IEF charges 0.15%/yr vs 0.09%/yr for VHT.
Performance
IEF vs. VHT - Performance Comparison
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Returns By Period
In the year-to-date period, IEF achieves a -0.47% return, which is significantly lower than VHT's -0.11% return. Over the past 10 years, IEF has underperformed VHT with an annualized return of 0.59%, while VHT has yielded a comparatively higher 9.87% annualized return.
IEF
- 1D
- -0.17%
- 1M
- 1.05%
- YTD
- -0.47%
- 6M
- -0.18%
- 1Y
- 3.78%
- 3Y*
- 2.86%
- 5Y*
- -1.24%
- 10Y*
- 0.59%
VHT
- 1D
- -0.12%
- 1M
- 5.85%
- YTD
- -0.11%
- 6M
- 0.45%
- 1Y
- 16.49%
- 3Y*
- 7.19%
- 5Y*
- 4.78%
- 10Y*
- 9.87%
IEF vs. VHT - 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% |
VHT Vanguard Health Care ETF | -0.11% | 15.46% | 2.66% | 2.52% | -5.60% | 20.57% | 18.29% | 21.87% | 5.58% | 23.26% |
Correlation
The correlation between IEF and VHT is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.32 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.23 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.16 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.00 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004 | -0.16 |
The correlation between IEF and VHT shifts across timeframes, from -0.16 (all time) to 0.32 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
IEF vs. VHT — Risk / Return Rank
IEF
VHT
IEF vs. VHT - 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 Health Care ETF (VHT). 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 | VHT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.36 | ||
| Sortino ratioReturn per unit of downside risk | -0.61 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.19 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 0.84 | 1.53 | -0.70 |
| Martin ratioReturn relative to average drawdown | 2.35 | 3.81 | -1.46 |
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Drawdowns
IEF vs. VHT - Drawdown Comparison
The maximum IEF drawdown since its inception was -23.93%, smaller than the maximum VHT drawdown of -39.12%. Use the drawdown chart below to compare losses from any high point for IEF and VHT.
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Drawdown Indicators
| IEF | VHT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.93% | -39.12% | +15.19% |
Max Drawdown (1Y)Largest decline over 1 year | -4.07% | -10.40% | +6.33% |
Max Drawdown (3Y)Largest decline over 3 years | -7.74% | -16.91% | +9.17% |
Max Drawdown (5Y)Largest decline over 5 years | -21.40% | -17.71% | -3.69% |
Max Drawdown (10Y)Largest decline over 10 years | -23.93% | -28.85% | +4.92% |
Current DrawdownCurrent decline from peak | -11.18% | -3.28% | -7.90% |
Average DrawdownAverage peak-to-trough decline | -5.35% | -5.99% | +0.64% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.45% | 4.19% | -2.74% |
Volatility
IEF vs. VHT - Volatility Comparison
The current volatility for iShares 7-10 Year Treasury Bond ETF (IEF) is 1.62%, while Vanguard Health Care ETF (VHT) has a volatility of 4.88%. This indicates that IEF experiences smaller price fluctuations and is considered to be less risky than VHT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEF | VHT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.62% | 4.88% | -3.26% |
Volatility (6M)Calculated over the trailing 6-month period | 3.42% | 10.46% | -7.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.72% | 14.70% | -9.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.71% | 15.01% | -7.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.63% | 16.97% | -10.34% |
IEF vs. VHT - Expense Ratio Comparison
IEF has a 0.15% expense ratio, which is higher than VHT's 0.09% 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. VHT - Dividend Comparison
IEF's dividend yield for the trailing twelve months is around 3.89%, more than VHT's 1.64% 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% |
VHT Vanguard Health Care ETF | 1.64% | 1.61% | 1.53% | 1.36% | 1.33% | 1.14% | 1.21% | 1.89% | 1.38% | 1.31% | 1.45% | 1.22% |
Frequently Asked Questions
IEF and VHT have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VHT has higher volatility (4.88%) compared to IEF (1.62%). In terms of maximum drawdown, IEF dropped -23.93% vs VHT's -39.12%.
On 10-year performance, VHT leads with 9.87% vs 0.59% for IEF. On fees, VHT is cheaper at 0.09% 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, VHT has performed better with a 9.87% return vs 0.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VHT is cheaper with a 0.09% expense ratio, compared with 0.15% for IEF.
IEF has the higher dividend yield at 3.89%, compared with 1.64% for VHT.
IEF is categorized as Government Bonds, while VHT is Health & Biotech Equities. IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while VHT tracks MSCI US Investable Market Health Care 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for IEF and 0.09% for VHT.
VHT currently has the higher Sharpe Ratio (1.09 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.
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