IEI vs. BND
Compare and contrast key facts about iShares 3-7 Year Treasury Bond ETF (IEI) and Vanguard Total Bond Market ETF (BND).
IEI and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IEI is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 3-7 Year Treasury Bond Index. It was launched on Jan 11, 2007. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both IEI and BND are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IEI or BND.
Performance
IEI vs. BND - Performance Comparison
Returns By Period
The year-to-date returns for both investments are quite close, with IEI having a 1.62% return and BND slightly higher at 1.70%. Over the past 10 years, IEI has underperformed BND with an annualized return of 1.10%, while BND has yielded a comparatively higher 1.36% annualized return.
IEI
1.62%
-0.74%
2.90%
4.68%
-0.02%
1.10%
BND
1.70%
-0.67%
3.15%
6.62%
-0.34%
1.36%
Key characteristics
| IEI | BND | |
|---|---|---|
| Sharpe Ratio | 1.07 | 1.08 |
| Sortino Ratio | 1.58 | 1.58 |
| Omega Ratio | 1.19 | 1.19 |
| Calmar Ratio | 0.42 | 0.42 |
| Martin Ratio | 3.14 | 3.46 |
| Ulcer Index | 1.49% | 1.76% |
| Daily Std Dev | 4.37% | 5.65% |
| Max Drawdown | -14.60% | -18.84% |
| Current Drawdown | -6.87% | -9.07% |
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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%.
Correlation
The correlation between IEI and BND is 0.87, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
IEI vs. BND - Risk-Adjusted Performance 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.
Dividends
IEI vs. BND - Dividend Comparison
IEI's dividend yield for the trailing twelve months is around 3.11%, less than BND's 3.57% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | 3.11% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% | 1.23% | 0.77% |
BND Vanguard Total Bond Market ETF | 3.57% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
IEI vs. BND - Drawdown Comparison
The maximum IEI drawdown since its inception was -14.60%, smaller than the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for IEI and BND. For additional features, visit the drawdowns tool.
Volatility
IEI vs. BND - Volatility Comparison
The current volatility for iShares 3-7 Year Treasury Bond ETF (IEI) is 1.00%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.50%. 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.