IEI vs. TLT
IEI (iShares 3-7 Year Treasury Bond ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both Government Bonds funds from iShares - IEI tracks the ICE U.S. Treasury 3-7 Year Bond Index while TLT tracks the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, IEI returned 1.16%/yr vs -2.38%/yr for TLT. Their correlation of 0.82 means they have usually moved in the same direction. Both charge a 0.15% expense ratio.
Performance
IEI vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, IEI achieves a -0.62% return, which is significantly higher than TLT's -3.49% return. Over the past 10 years, IEI has outperformed TLT with an annualized return of 1.16%, while TLT has yielded a comparatively lower -2.38% annualized return.
IEI
- 1D
- -0.14%
- 1M
- -0.54%
- 6M
- -0.62%
- YTD
- -0.62%
- 1Y
- 1.16%
- 3Y*
- 3.83%
- 5Y*
- 0.05%
- 10Y*
- 1.16%
- ALL TIME*
- 2.82%
TLT
- 1D
- -0.66%
- 1M
- -3.81%
- 6M
- -3.46%
- YTD
- -3.49%
- 1Y
- -2.45%
- 3Y*
- -1.80%
- 5Y*
- -8.18%
- 10Y*
- -2.38%
- ALL TIME*
- 3.47%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $154.98M | $144.96M | $146.28M | |
| $2.33B | $2.02B | $2.19B |
IEI vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | -0.62% | 6.96% | 1.81% | 4.42% | -9.51% | -2.54% | 6.95% | 5.71% | 1.36% | 1.22% |
TLT iShares 20+ Year Treasury Bond ETF | -3.49% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between IEI and TLT is 0.79, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.79 |
Correlation (3Y) Balances recent behavior with more history. | 0.82 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.82 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.82 |
Correlation (All Time) Calculated using the full available price history since Jan 11, 2007 | 0.82 |
The correlation between IEI and TLT has been stable across timeframes, ranging from 0.79 to 0.82 - a consistent structural relationship.
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Return for Risk
IEI vs. TLT — Risk / Return Rank
IEI
TLT
IEI vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 3-7 Year Treasury Bond ETF (IEI) and iShares 20+ Year Treasury Bond ETF (TLT). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| IEI | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.80 | ||
| Sortino ratioReturn per unit of downside risk | +1.12 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 0.99 | +0.13 |
| Calmar ratioReturn relative to maximum drawdown | 0.83 | -0.14 | +0.97 |
| Martin ratioReturn relative to average drawdown | 1.90 | -0.30 | +2.20 |
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Drawdowns
IEI vs. TLT - Drawdown Comparison
The maximum IEI drawdown since its inception was -14.60%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for IEI and TLT.
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Drawdown Indicators
| IEI | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.60% | -48.35% | +33.75% |
Max Drawdown (1Y)Largest decline over 1 year | -2.50% | -7.74% | +5.24% |
Max Drawdown (3Y)Largest decline over 3 years | -3.66% | -14.79% | +11.13% |
Max Drawdown (5Y)Largest decline over 5 years | -13.82% | -43.70% | +29.88% |
Max Drawdown (10Y)Largest decline over 10 years | -14.60% | -48.35% | +33.75% |
Current DrawdownCurrent decline from peak | -2.05% | -42.36% | +40.31% |
Average DrawdownAverage peak-to-trough decline | -2.67% | -13.99% | +11.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.09% | 3.57% | -2.48% |
Volatility
IEI vs. TLT - Volatility Comparison
The current volatility for iShares 3-7 Year Treasury Bond ETF (IEI) is 0.77%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.46%. This indicates that IEI experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEI | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.77% | 2.46% | -1.69% |
Volatility (6M)Calculated over the trailing 6-month period | 2.36% | 6.85% | -4.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.02% | 9.32% | -6.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.78% | 15.74% | -10.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.93% | 14.83% | -10.90% |
IEI vs. TLT - Expense Ratio Comparison
Both IEI and TLT have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
IEI vs. TLT - Dividend Comparison
IEI's dividend yield for the trailing twelve months is around 3.68%, less than TLT's 4.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | 3.38% | 3.48% | 3.18% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% |
TLT iShares 20+ Year Treasury Bond ETF | 4.34% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
Frequently Asked Questions
IEI and TLT have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.46%) compared to IEI (0.77%). In terms of maximum drawdown, IEI dropped -14.60% vs TLT's -48.35%.
On 10-year performance, IEI leads with 1.16% vs -2.38% for TLT. Both ETFs have the same 0.15% expense ratio. On volatility, IEI has been the lower-risk option at 0.77%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IEI has performed better with a 1.16% return vs -2.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEI and TLT have the same expense ratio: 0.15% per year.
TLT has the higher dividend yield at 4.34%, compared with 3.38% for IEI.
IEI tracks ICE U.S. Treasury 3-7 Year Bond Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index.
IEI currently has the higher Sharpe Ratio (0.69 vs -0.11), 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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