IEI vs. BSV

Last updated Jun 4, 2026

IEI (iShares 3-7 Year Treasury Bond ETF) and BSV (Vanguard Short-Term Bond Index Fund ETF Shares) are both exchange-traded funds - IEI is a Government Bonds fund tracking the ICE U.S. Treasury 3-7 Year Bond Index, while BSV is a Short-Term Bond fund tracking the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. Both are passively managed. Over the past 10 years, IEI returned 1.28%/yr vs 1.95%/yr for BSV. Their correlation of 0.84 suggests significant overlap in exposure. IEI charges 0.15%/yr vs 0.03%/yr for BSV.

Performance

IEI vs. BSV - 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 Short-Term Bond Index Fund ETF Shares (BSV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IEI achieves a -0.42% return, which is significantly lower than BSV's 0.29% return. Over the past 10 years, IEI has underperformed BSV with an annualized return of 1.28%, while BSV has yielded a comparatively higher 1.95% annualized return.

IEI

• 1D: -0.13%
• 1M: -0.17%
• YTD: -0.42%
• 6M: -0.49%
• 1Y: 3.28%
• 3Y*: 3.52%
• 5Y*: 0.23%
• 10Y*: 1.28%

BSV

• 1D: -0.08%
• 1M: 0.06%
• YTD: 0.29%
• 6M: 0.52%
• 1Y: 3.68%
• 3Y*: 4.41%
• 5Y*: 1.62%
• 10Y*: 1.95%

*Multi-year figures are annualized to reflect compound growth (CAGR)

IEI vs. BSV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEI iShares 3-7 Year Treasury Bond ETF	-0.42%	6.96%	1.81%	4.42%	-9.51%	-2.54%	6.95%	5.71%	1.36%	1.22%
BSV Vanguard Short-Term Bond Index Fund ETF Shares	0.29%	6.00%	3.78%	4.90%	-5.49%	-1.09%	4.70%	4.98%	1.34%	1.20%

Correlation

The correlation between IEI and BSV is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007	0.84

The correlation between IEI and BSV shifts across timeframes, from 0.84 (all time) to 0.97 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

IEI vs. BSV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IEI

IEI Risk / Return Rank: 28
IEI Sharpe Ratio Rank: 29
IEI Sortino Ratio Rank: 30
IEI Omega Ratio Rank: 27
IEI Calmar Ratio Rank: 27
IEI Martin Ratio Rank: 27

BSV

BSV Risk / Return Rank: 61
BSV Sharpe Ratio Rank: 59
BSV Sortino Ratio Rank: 71
BSV Omega Ratio Rank: 63
BSV Calmar Ratio Rank: 57
BSV Martin Ratio Rank: 57

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. BSV - 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 Short-Term Bond Index Fund ETF Shares (BSV). 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.

	IEI	BSV	Difference
Sharpe ratio Return per unit of total volatility	1.09	2.05	-0.96
Sortino ratio Return per unit of downside risk	1.65	3.29	-1.64
Omega ratio Gain probability vs. loss probability	1.19	1.39	-0.20
Calmar ratio Return relative to maximum drawdown	1.32	2.87	-1.55
Martin ratio Return relative to average drawdown	3.96	10.07	-6.11
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. BSV - Sharpe Ratio Comparison

The current IEI Sharpe Ratio is 1.09, which is lower than the BSV Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of IEI and BSV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IEI	BSV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.09	2.05	-0.96
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.05	0.60	-0.55
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.33	0.83	-0.50
Sharpe Ratio (All Time) Calculated using the full available price history	0.70	0.85	-0.16

Drawdowns

IEI vs. BSV - Drawdown Comparison

The maximum IEI drawdown since its inception was -14.60%, which is greater than BSV's maximum drawdown of -8.54%. Use the drawdown chart below to compare losses from any high point for IEI and BSV.

Drawdown Indicators

	IEI	BSV	Difference
Max Drawdown Largest peak-to-trough decline	-14.60%	-8.54%	-6.06%
Max Drawdown (1Y) Largest decline over 1 year	-2.50%	-1.29%	-1.21%
Max Drawdown (3Y) Largest decline over 3 years	-3.66%	-1.53%	-2.13%
Max Drawdown (5Y) Largest decline over 5 years	-13.88%	-8.54%	-5.34%
Max Drawdown (10Y) Largest decline over 10 years	-14.60%	-8.54%	-6.06%
Current Drawdown Current decline from peak	-1.85%	-0.63%	-1.22%
Average Drawdown Average peak-to-trough decline	-2.67%	-0.97%	-1.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.83%	0.37%	+0.46%

Volatility

IEI vs. BSV - Volatility Comparison

iShares 3-7 Year Treasury Bond ETF (IEI) has a higher volatility of 0.91% compared to Vanguard Short-Term Bond Index Fund ETF Shares (BSV) at 0.52%. This indicates that IEI's price experiences larger fluctuations and is considered to be riskier than BSV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEI	BSV	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.91%	0.52%	+0.39%
Volatility (6M) Calculated over the trailing 6-month period	2.13%	1.26%	+0.87%
Volatility (1Y) Calculated over the trailing 1-year period	3.04%	1.81%	+1.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.77%	2.72%	+2.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.93%	2.37%	+1.56%

IEI vs. BSV - Expense Ratio Comparison

IEI has a 0.15% expense ratio, which is higher than BSV'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. BSV - Dividend Comparison

IEI's dividend yield for the trailing twelve months is around 3.64%, less than BSV's 4.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BSV Vanguard Short-Term Bond Index Fund ETF Shares	4.00%	3.83%	3.38%	2.46%	1.50%	1.45%	1.79%	2.29%	1.99%	1.65%	1.48%	1.40%
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

Can I hold both IEI and BSV in my portfolio?

With a correlation of 0.97, IEI and BSV 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.

Which is riskier, IEI or BSV?

IEI has higher volatility (0.91%) compared to BSV (0.52%). In terms of maximum drawdown, IEI dropped -14.60% vs BSV's -8.54%.

Which ETF is better, IEI or BSV?

On 10-year performance, BSV leads with 1.95% vs 1.28% for IEI. On fees, BSV is cheaper at 0.03% per year. On volatility, BSV has been the lower-risk option at 0.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEI or BSV?

Over the 10-year period, BSV has performed better with a 1.95% return vs 1.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEI or BSV?

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

Which ETF pays a higher dividend yield, IEI or BSV?

BSV has the higher dividend yield at 4.00%, compared with 3.64% for IEI.

What is the main difference between IEI and BSV?

IEI is categorized as Government Bonds, while BSV is Short-Term Bond. IEI tracks ICE U.S. Treasury 3-7 Year Bond Index, while BSV tracks Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for IEI and 0.03% for BSV.

Which has better risk-adjusted returns?

BSV currently has the higher Sharpe Ratio (2.05 vs 1.09), 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.