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IEI vs. BND
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEI vs. BND

Last updated Jun 3, 2026

IEI (iShares 3-7 Year Treasury Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - IEI is a Government Bonds fund tracking the ICE U.S. Treasury 3-7 Year Bond Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 10 years, IEI returned 1.29%/yr vs 1.60%/yr for BND. Their correlation of 0.87 suggests significant overlap in exposure. IEI charges 0.15%/yr vs 0.03%/yr for BND.

Performance

IEI vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 3-7 Year Treasury Bond ETF (IEI) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IEI achieves a -0.29% return, which is significantly lower than BND's 0.46% return. Over the past 10 years, IEI has underperformed BND with an annualized return of 1.29%, while BND has yielded a comparatively higher 1.60% annualized return.

IEI

1D
-0.01%
1M
-0.27%
YTD
-0.29%
6M
-0.24%
1Y
3.33%
3Y*
3.57%
5Y*
0.31%
10Y*
1.29%

BND

1D
0.03%
1M
0.12%
YTD
0.46%
6M
0.46%
1Y
5.19%
3Y*
4.03%
5Y*
0.20%
10Y*
1.60%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IEI vs. BND - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IEI
iShares 3-7 Year Treasury Bond ETF		-0.29%6.96%1.81%4.42%-9.51%-2.54%6.95%5.71%1.36%1.22%
BND
Vanguard Total Bond Market ETF		0.46%7.08%1.38%5.65%-13.11%-1.86%7.71%8.84%-0.12%3.57%

Correlation

The correlation between IEI and BND 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

0.94

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

0.91

Correlation (All Time)
Calculated using the full available price history since Apr 11, 2007

0.87

The correlation between IEI and BND has been stable across timeframes, ranging from 0.87 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 3-7 Year Treasury Bond ETF

Vanguard Total Bond Market ETF

Often compared with IEI:
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Often compared with BND:
BND vs. BNDXBND vs. FXNAXBND vs. AGGBND vs. FBNDBND vs. BNDWBND vs. TLTBND vs. VBTLX

Return for Risk

IEI vs. BND — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IEI
IEI Risk / Return Rank: 2929
Overall Rank
IEI Sharpe Ratio Rank: 3131
Sharpe Ratio Rank
IEI Sortino Ratio Rank: 3131
Sortino Ratio Rank
IEI Omega Ratio Rank: 2929
Omega Ratio Rank
IEI Calmar Ratio Rank: 2626
Calmar Ratio Rank
IEI Martin Ratio Rank: 2626
Martin Ratio Rank
BND
BND Risk / Return Rank: 3838
Overall Rank
BND Sharpe Ratio Rank: 3838
Sharpe Ratio Rank
BND Sortino Ratio Rank: 4040
Sortino Ratio Rank
BND Omega Ratio Rank: 3636
Omega Ratio Rank
BND Calmar Ratio Rank: 3737
Calmar Ratio Rank
BND Martin Ratio Rank: 3636
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.

IEI vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 3-7 Year Treasury Bond ETF (IEI) and Vanguard Total Bond Market ETF (BND). 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.

IEIBNDDifference

Sharpe ratio

Return per unit of total volatility

1.10

1.38

-0.28

Sortino ratio

Return per unit of downside risk

1.67

2.07

-0.40

Omega ratio

Gain probability vs. loss probability

1.19

1.24

-0.05

Calmar ratio

Return relative to maximum drawdown

1.25

1.85

-0.61

Martin ratio

Return relative to average drawdown

3.78

5.66

-1.88

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEI vs. BND - Sharpe Ratio Comparison

The current IEI Sharpe Ratio is 1.10, which is comparable to the BND Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of IEI and BND, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

IEIBNDDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.10

1.38

-0.28

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.07

0.03

+0.03

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.33

0.29

+0.04

Sharpe Ratio (All Time)

Calculated using the full available price history

0.70

0.59

+0.11

Drawdowns

IEI vs. BND - Drawdown Comparison

The maximum IEI drawdown since its inception was -14.60%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for IEI and BND.

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Drawdown Indicators

IEIBNDDifference

Max Drawdown

Largest peak-to-trough decline

-14.60%

-18.58%

+3.98%

Max Drawdown (1Y)

Largest decline over 1 year

-2.50%

-2.68%

+0.18%

Max Drawdown (3Y)

Largest decline over 3 years

-3.66%

-5.92%

+2.26%

Max Drawdown (5Y)

Largest decline over 5 years

-13.88%

-17.91%

+4.03%

Max Drawdown (10Y)

Largest decline over 10 years

-14.60%

-18.58%

+3.98%

Current Drawdown

Current decline from peak

-1.73%

-2.18%

+0.45%

Average Drawdown

Average peak-to-trough decline

-2.67%

-3.06%

+0.39%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.82%

0.88%

-0.06%

Volatility

IEI vs. BND - Volatility Comparison

The current volatility for iShares 3-7 Year Treasury Bond ETF (IEI) is 0.92%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.26%. This indicates that IEI experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IEIBNDDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.92%

1.26%

-0.34%

Volatility (6M)

Calculated over the trailing 6-month period

2.15%

2.68%

-0.53%

Volatility (1Y)

Calculated over the trailing 1-year period

3.04%

3.78%

-0.74%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

4.77%

6.02%

-1.25%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

3.93%

5.53%

-1.60%

IEI vs. BND - Expense Ratio Comparison

IEI has a 0.15% expense ratio, which is higher than BND'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

IEI vs. BND - Dividend Comparison

IEI's dividend yield for the trailing twelve months is around 3.64%, less than BND's 3.96% yield.

PositionTTM20252024202320222021202020192018201720162015
BND
Vanguard Total Bond Market ETF		3.96%3.86%3.67%3.09%2.60%2.12%2.38%2.72%2.81%2.54%2.51%2.57%
IEI
iShares 3-7 Year Treasury Bond ETF		3.64%3.48%3.18%2.36%1.37%0.73%1.12%2.01%1.95%1.51%1.33%1.39%

Frequently Asked Questions

With a correlation of 0.93, IEI and BND 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.

BND has higher volatility (1.26%) compared to IEI (0.92%). In terms of maximum drawdown, IEI dropped -14.60% vs BND's -18.58%.

On 10-year performance, BND leads with 1.60% vs 1.29% for IEI. On fees, BND is cheaper at 0.03% per year. On volatility, IEI has been the lower-risk option at 0.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, BND has performed better with a 1.60% return vs 1.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

BND is cheaper with a 0.03% expense ratio, compared with 0.15% for IEI.

BND has the higher dividend yield at 3.96%, compared with 3.64% for IEI.

IEI is categorized as Government Bonds, while BND is Total Bond Market. IEI tracks ICE U.S. Treasury 3-7 Year Bond Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for IEI and 0.03% for BND.

BND currently has the higher Sharpe Ratio (1.38 vs 1.10), 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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