IEI vs. TLT
Compare and contrast key facts about iShares 3-7 Year Treasury Bond ETF (IEI) and iShares 20+ Year Treasury Bond ETF (TLT).
IEI and TLT 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. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002. Both IEI and TLT 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 TLT.
Performance
IEI vs. TLT - Performance Comparison
Returns By Period
In the year-to-date period, IEI achieves a 1.79% return, which is significantly higher than TLT's -5.20% return. Over the past 10 years, IEI has outperformed TLT with an annualized return of 1.14%, while TLT has yielded a comparatively lower -0.32% annualized return.
IEI
1.79%
-1.23%
2.73%
4.94%
0.01%
1.14%
TLT
-5.20%
-3.05%
1.00%
4.14%
-6.00%
-0.32%
Key characteristics
| IEI | TLT | |
|---|---|---|
| Sharpe Ratio | 1.15 | 0.32 |
| Sortino Ratio | 1.69 | 0.56 |
| Omega Ratio | 1.20 | 1.06 |
| Calmar Ratio | 0.44 | 0.11 |
| Martin Ratio | 3.44 | 0.77 |
| Ulcer Index | 1.45% | 6.23% |
| Daily Std Dev | 4.37% | 14.74% |
| Max Drawdown | -14.60% | -48.35% |
| Current Drawdown | -6.71% | -40.93% |
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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%.
Correlation
The correlation between IEI and TLT is 0.82, 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. TLT - Risk-Adjusted Performance 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.
Dividends
IEI vs. TLT - Dividend Comparison
IEI's dividend yield for the trailing twelve months is around 3.10%, less than TLT's 4.06% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | 3.10% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% | 1.23% | 0.77% |
TLT iShares 20+ Year Treasury Bond ETF | 4.06% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
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. For additional features, visit the drawdowns tool.
Volatility
IEI vs. TLT - Volatility Comparison
The current volatility for iShares 3-7 Year Treasury Bond ETF (IEI) is 1.01%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 4.65%. 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.