PortfoliosLab logoPortfoliosLab logo

Documentation

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

IEF vs. VRP

Last updated Jun 9, 2026

IEF (iShares 7-10 Year Treasury Bond ETF) and VRP (Invesco Variable Rate Preferred ETF) are both exchange-traded funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index, while VRP is a Preferred Stock/Convertible Bonds fund tracking the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index. Both are passively managed. Over the past 10 years, IEF returned 0.53%/yr vs 5.21%/yr for VRP. At a 0.11 correlation, their price movements are largely independent. IEF charges 0.15%/yr vs 0.50%/yr for VRP.

Performance

IEF vs. VRP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 7-10 Year Treasury Bond ETF (IEF) and Invesco Variable Rate Preferred ETF (VRP). 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 -1.16% return, which is significantly lower than VRP's 1.98% return. Over the past 10 years, IEF has underperformed VRP with an annualized return of 0.53%, while VRP has yielded a comparatively higher 5.21% 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%

VRP

1D
-0.04%
1M
0.08%
YTD
1.98%
6M
2.44%
1Y
6.69%
3Y*
9.63%
5Y*
4.33%
10Y*
5.21%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IEF vs. VRP - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
VRP
Invesco Variable Rate Preferred ETF		1.98%7.34%11.10%10.35%-9.00%4.20%5.11%18.84%-6.62%9.26%

Correlation

The correlation between IEF and VRP is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.35

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

0.29

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

0.23

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

0.13

Correlation (All Time)
Calculated using the full available price history since May 1, 2014

0.11

Over the past year, IEF and VRP have become more correlated (0.35) than their long-term average of 0.11, meaning their price movements have been converging.

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

Invesco Variable Rate Preferred ETF

Often compared with IEF:
IEF vs. TLTIEF vs. VGITIEF vs. LQDIEF vs. SHYIEF vs. BNDIEF vs. IEIIEF vs. TIP
Often compared with VRP:
VRP vs. PFFVVRP vs. SPYVRP vs. FPEIVRP vs. JEPIVRP vs. SCHDVRP vs. JBBBVRP vs. PSK

Return for Risk

IEF vs. VRP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IEF
IEF Risk / Return Rank: 2424
Overall Rank
IEF Sharpe Ratio Rank: 2626
Sharpe Ratio Rank
IEF Sortino Ratio Rank: 2525
Sortino Ratio Rank
IEF Omega Ratio Rank: 2323
Omega Ratio Rank
IEF Calmar Ratio Rank: 2323
Calmar Ratio Rank
IEF Martin Ratio Rank: 2323
Martin Ratio Rank
VRP
VRP Risk / Return Rank: 7575
Overall Rank
VRP Sharpe Ratio Rank: 8080
Sharpe Ratio Rank
VRP Sortino Ratio Rank: 8383
Sortino Ratio Rank
VRP Omega Ratio Rank: 8888
Omega Ratio Rank
VRP Calmar Ratio Rank: 5252
Calmar Ratio Rank
VRP Martin Ratio Rank: 7474
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. VRP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 7-10 Year Treasury Bond ETF (IEF) and Invesco Variable Rate Preferred ETF (VRP). 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.

IEFVRPDifference
Sharpe ratioReturn per unit of total volatility
0.84
2.33

-1.49

Sortino ratioReturn per unit of downside risk
1.26
3.37

-2.11

Omega ratioGain probability vs. loss probability

1.14

1.51

-0.36

Calmar ratioReturn relative to maximum drawdown

0.96

2.33

-1.36

Martin ratioReturn relative to average drawdown

2.79

12.52

-9.73

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. VRP - Sharpe Ratio Comparison

The current IEF Sharpe Ratio is 0.84, which is lower than the VRP Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of IEF and VRP, 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

IEFVRPDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.84

2.33

-1.49

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.17

0.66

-0.84

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.08

0.36

-0.28

Sharpe Ratio (All Time)

Calculated using the full available price history

0.50

0.38

+0.11

Drawdowns

IEF vs. VRP - Drawdown Comparison

The maximum IEF drawdown since its inception was -23.93%, smaller than the maximum VRP drawdown of -46.04%. Use the drawdown chart below to compare losses from any high point for IEF and VRP.

Loading charts...

Drawdown Indicators

IEFVRPDifference

Max Drawdown

Largest peak-to-trough decline

-23.93%

-46.04%

+22.11%

Max Drawdown (1Y)

Largest decline over 1 year

-4.07%

-2.89%

-1.18%

Max Drawdown (3Y)

Largest decline over 3 years

-7.74%

-4.26%

-3.48%

Max Drawdown (5Y)

Largest decline over 5 years

-21.40%

-13.76%

-7.64%

Max Drawdown (10Y)

Largest decline over 10 years

-23.93%

-46.04%

+22.11%

Current Drawdown

Current decline from peak

-11.80%

-0.25%

-11.55%

Average Drawdown

Average peak-to-trough decline

-5.35%

-2.31%

-3.04%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.40%

0.54%

+0.86%

Volatility

IEF vs. VRP - Volatility Comparison

iShares 7-10 Year Treasury Bond ETF (IEF) has a higher volatility of 1.51% compared to Invesco Variable Rate Preferred ETF (VRP) at 0.63%. This indicates that IEF's price experiences larger fluctuations and is considered to be riskier than VRP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

IEFVRPDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.51%

0.63%

+0.88%

Volatility (6M)

Calculated over the trailing 6-month period

3.36%

2.33%

+1.03%

Volatility (1Y)

Calculated over the trailing 1-year period

4.69%

2.90%

+1.79%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

7.71%

6.55%

+1.16%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

6.63%

14.53%

-7.90%

IEF vs. VRP - Expense Ratio Comparison

IEF has a 0.15% expense ratio, which is lower than VRP's 0.50% expense ratio.

Dividends

IEF vs. VRP - Dividend Comparison

IEF's dividend yield for the trailing twelve months is around 3.92%, less than VRP's 6.31% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
VRP
Invesco Variable Rate Preferred ETF		6.31%6.53%5.78%6.61%5.38%4.25%4.17%4.71%5.28%4.69%5.10%5.02%

Frequently Asked Questions

IEF and VRP have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IEF has higher volatility (1.51%) compared to VRP (0.63%). In terms of maximum drawdown, IEF dropped -23.93% vs VRP's -46.04%.

On 10-year performance, VRP leads with 5.21% vs 0.53% for IEF. On fees, IEF is cheaper at 0.15% per year. On volatility, VRP has been the lower-risk option at 0.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VRP has performed better with a 5.21% return vs 0.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IEF is cheaper with a 0.15% expense ratio, compared with 0.50% for VRP.

VRP has the higher dividend yield at 6.31%, compared with 3.92% for IEF.

IEF is categorized as Government Bonds, while VRP is Preferred Stock/Convertible Bonds. IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while VRP tracks Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.15% for IEF and 0.50% for VRP.

VRP currently has the higher Sharpe Ratio (2.33 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.

Portfolio Optimizer

Find the right allocation for IEF and VRP

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