IEF vs. VPU
IEF (iShares 7-10 Year Treasury Bond ETF) and VPU (Vanguard Utilities ETF) are both exchange-traded funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index, while VPU is a Utilities Equities fund tracking the MSCI US Investable Market Utilities 25/50 Index. Both are passively managed. Over the past 10 years, IEF returned 0.53%/yr vs 8.85%/yr for VPU. At a 0.00 correlation, their price movements are largely independent. IEF charges 0.15%/yr vs 0.09%/yr for VPU.
Performance
IEF vs. VPU - 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 VPU's 2.68% return. Over the past 10 years, IEF has underperformed VPU with an annualized return of 0.53%, while VPU has yielded a comparatively higher 8.85% 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%
VPU
- 1D
- -1.87%
- 1M
- -2.65%
- YTD
- 2.68%
- 6M
- 3.11%
- 1Y
- 10.68%
- 3Y*
- 12.74%
- 5Y*
- 8.91%
- 10Y*
- 8.85%
IEF vs. VPU - 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% |
VPU Vanguard Utilities ETF | 2.68% | 16.46% | 23.04% | -7.45% | 1.06% | 17.40% | -0.74% | 24.89% | 4.38% | 12.44% |
Correlation
The correlation between IEF and VPU is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.26 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.24 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.19 |
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004 | 0.00 |
Over the past year, IEF and VPU have become more correlated (0.26) than their long-term average of 0.00, meaning their price movements have been converging.
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Return for Risk
IEF vs. VPU — Risk / Return Rank
IEF
VPU
IEF vs. VPU - 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 Utilities ETF (VPU). 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 | VPU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.09 | ||
| Sortino ratioReturn per unit of downside risk | +0.17 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.14 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 0.96 | 1.20 | -0.24 |
| Martin ratioReturn relative to average drawdown | 2.79 | 2.66 | +0.13 |
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 | VPU | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.84 | 0.75 | +0.09 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.17 | 0.52 | -0.70 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.08 | 0.46 | -0.38 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.53 | -0.03 |
Drawdowns
IEF vs. VPU - Drawdown Comparison
The maximum IEF drawdown since its inception was -23.93%, smaller than the maximum VPU drawdown of -46.31%. Use the drawdown chart below to compare losses from any high point for IEF and VPU.
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Drawdown Indicators
| IEF | VPU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.93% | -46.31% | +22.38% |
Max Drawdown (1Y)Largest decline over 1 year | -4.07% | -8.90% | +4.83% |
Max Drawdown (3Y)Largest decline over 3 years | -7.74% | -17.34% | +9.60% |
Max Drawdown (5Y)Largest decline over 5 years | -21.40% | -25.15% | +3.75% |
Max Drawdown (10Y)Largest decline over 10 years | -23.93% | -36.42% | +12.49% |
Current DrawdownCurrent decline from peak | -11.80% | -7.71% | -4.09% |
Average DrawdownAverage peak-to-trough decline | -5.35% | -7.78% | +2.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.40% | 4.02% | -2.62% |
Volatility
IEF vs. VPU - Volatility Comparison
The current volatility for iShares 7-10 Year Treasury Bond ETF (IEF) is 1.51%, while Vanguard Utilities ETF (VPU) has a volatility of 5.56%. This indicates that IEF experiences smaller price fluctuations and is considered to be less risky than VPU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEF | VPU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.51% | 5.56% | -4.05% |
Volatility (6M)Calculated over the trailing 6-month period | 3.36% | 11.53% | -8.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.69% | 14.38% | -9.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.71% | 17.07% | -9.36% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.63% | 19.14% | -12.51% |
IEF vs. VPU - Expense Ratio Comparison
IEF has a 0.15% expense ratio, which is higher than VPU'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. VPU - Dividend Comparison
IEF's dividend yield for the trailing twelve months is around 3.92%, more than VPU's 2.70% 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% |
VPU Vanguard Utilities ETF | 2.70% | 2.73% | 3.02% | 3.49% | 2.98% | 2.70% | 3.17% | 2.83% | 3.23% | 3.18% | 3.19% | 3.63% |
Frequently Asked Questions
IEF and VPU have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VPU has higher volatility (5.56%) compared to IEF (1.51%). In terms of maximum drawdown, IEF dropped -23.93% vs VPU's -46.31%.
On 10-year performance, VPU leads with 8.85% vs 0.53% for IEF. On fees, VPU is cheaper at 0.09% 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, VPU has performed better with a 8.85% return vs 0.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VPU is cheaper with a 0.09% expense ratio, compared with 0.15% for IEF.
IEF has the higher dividend yield at 3.92%, compared with 2.70% for VPU.
IEF is categorized as Government Bonds, while VPU is Utilities Equities. IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while VPU tracks MSCI US Investable Market Utilities 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for IEF and 0.09% for VPU.
IEF currently has the higher Sharpe Ratio (0.84 vs 0.75), 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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