IEI vs. VGLT
IEI (iShares 3-7 Year Treasury Bond ETF) and VGLT (Vanguard Long-Term Treasury ETF) are both Government Bonds funds - IEI tracks the ICE U.S. Treasury 3-7 Year Bond Index while VGLT tracks the Bloomberg U.S. Long Treasury Index. Both are passively managed. Over the past 10 years, IEI returned 1.28%/yr vs -1.10%/yr for VGLT. Their correlation of 0.82 suggests significant overlap in exposure. IEI charges 0.15%/yr vs 0.03%/yr for VGLT.
Performance
IEI vs. VGLT - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with IEI having a -0.42% return and VGLT slightly higher at -0.41%. Over the past 10 years, IEI has outperformed VGLT with an annualized return of 1.28%, while VGLT has yielded a comparatively lower -1.10% 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%
VGLT
- 1D
- -0.40%
- 1M
- 0.71%
- YTD
- -0.41%
- 6M
- -1.68%
- 1Y
- 5.25%
- 3Y*
- -0.72%
- 5Y*
- -5.30%
- 10Y*
- -1.10%
IEI vs. VGLT - 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% |
VGLT Vanguard Long-Term Treasury ETF | -0.41% | 5.35% | -6.28% | 3.27% | -29.34% | -4.98% | 17.57% | 14.30% | -1.54% | 8.64% |
Correlation
The correlation between IEI and VGLT is 0.83, 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 | 0.83 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.85 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.84 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.83 |
Correlation (All Time) Calculated using the full available price history since Nov 25, 2009 | 0.82 |
The correlation between IEI and VGLT has been stable across timeframes, ranging from 0.82 to 0.85 - a consistent structural relationship.
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Return for Risk
IEI vs. VGLT — Risk / Return Rank
IEI
VGLT
IEI vs. VGLT - 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 Long-Term Treasury ETF (VGLT). 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 | VGLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.49 | ||
| Sortino ratioReturn per unit of downside risk | +0.73 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.10 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.32 | 0.75 | +0.57 |
| Martin ratioReturn relative to average drawdown | 3.96 | 1.96 | +2.00 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| IEI | VGLT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.09 | 0.59 | +0.49 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.05 | -0.37 | +0.41 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.33 | -0.08 | +0.41 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.70 | 0.19 | +0.51 |
Drawdowns
IEI vs. VGLT - Drawdown Comparison
The maximum IEI drawdown since its inception was -14.60%, smaller than the maximum VGLT drawdown of -46.18%. Use the drawdown chart below to compare losses from any high point for IEI and VGLT.
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Drawdown Indicators
| IEI | VGLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.60% | -46.18% | +31.58% |
Max Drawdown (1Y)Largest decline over 1 year | -2.50% | -7.01% | +4.51% |
Max Drawdown (3Y)Largest decline over 3 years | -3.66% | -17.68% | +14.02% |
Max Drawdown (5Y)Largest decline over 5 years | -13.88% | -40.98% | +27.10% |
Max Drawdown (10Y)Largest decline over 10 years | -14.60% | -46.18% | +31.58% |
Current DrawdownCurrent decline from peak | -1.85% | -36.83% | +34.98% |
Average DrawdownAverage peak-to-trough decline | -2.67% | -15.06% | +12.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.83% | 2.68% | -1.85% |
Volatility
IEI vs. VGLT - Volatility Comparison
The current volatility for iShares 3-7 Year Treasury Bond ETF (IEI) is 0.91%, while Vanguard Long-Term Treasury ETF (VGLT) has a volatility of 2.59%. This indicates that IEI experiences smaller price fluctuations and is considered to be less risky than VGLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEI | VGLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.91% | 2.59% | -1.68% |
Volatility (6M)Calculated over the trailing 6-month period | 2.13% | 5.94% | -3.81% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.04% | 8.88% | -5.84% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.77% | 14.58% | -9.81% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.93% | 13.81% | -9.88% |
IEI vs. VGLT - Expense Ratio Comparison
IEI has a 0.15% expense ratio, which is higher than VGLT'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. VGLT - Dividend Comparison
IEI's dividend yield for the trailing twelve months is around 3.64%, less than VGLT's 4.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VGLT Vanguard Long-Term Treasury ETF | 4.61% | 4.44% | 4.33% | 3.33% | 2.84% | 1.82% | 2.15% | 2.46% | 2.71% | 2.55% | 2.69% | 3.21% |
Frequently Asked Questions
IEI and VGLT have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGLT has higher volatility (2.59%) compared to IEI (0.91%). In terms of maximum drawdown, IEI dropped -14.60% vs VGLT's -46.18%.
On 10-year performance, IEI leads with 1.28% vs -1.10% for VGLT. On fees, VGLT is cheaper at 0.03% per year. On volatility, IEI has been the lower-risk option at 0.91%. 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 1.28% return vs -1.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGLT is cheaper with a 0.03% expense ratio, compared with 0.15% for IEI.
VGLT has the higher dividend yield at 4.61%, compared with 3.64% for IEI.
IEI tracks ICE U.S. Treasury 3-7 Year Bond Index, while VGLT tracks Bloomberg U.S. Long Treasury Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for IEI and 0.03% for VGLT.
IEI currently has the higher Sharpe Ratio (1.09 vs 0.59), 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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