IEI vs. VUG
IEI (iShares 3-7 Year Treasury Bond ETF) and VUG (Vanguard Growth ETF) are both exchange-traded funds - IEI is a Government Bonds fund tracking the ICE U.S. Treasury 3-7 Year Bond Index, while VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index. Both are passively managed. Over the past 10 years, IEI returned 1.25%/yr vs 17.88%/yr for VUG. At a correlation of -0.22, they often move in opposite directions. IEI charges 0.15%/yr vs 0.03%/yr for VUG.
Performance
IEI vs. VUG - Performance Comparison
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Returns By Period
In the year-to-date period, IEI achieves a -0.18% return, which is significantly lower than VUG's 4.80% return. Over the past 10 years, IEI has underperformed VUG with an annualized return of 1.25%, while VUG has yielded a comparatively higher 17.88% annualized return.
IEI
- 1D
- 0.43%
- 1M
- 0.16%
- YTD
- -0.18%
- 6M
- 0.03%
- 1Y
- 3.35%
- 3Y*
- 3.65%
- 5Y*
- 0.24%
- 10Y*
- 1.25%
VUG
- 1D
- 1.77%
- 1M
- -1.66%
- YTD
- 4.80%
- 6M
- 3.81%
- 1Y
- 21.18%
- 3Y*
- 23.60%
- 5Y*
- 13.74%
- 10Y*
- 17.88%
IEI vs. VUG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | -0.18% | 6.96% | 1.81% | 4.42% | -9.51% | -2.54% | 6.95% | 5.71% | 1.36% | 1.22% |
VUG Vanguard Growth ETF | 4.80% | 19.40% | 32.69% | 46.83% | -33.16% | 27.35% | 40.25% | 37.03% | -3.32% | 27.72% |
Correlation
The correlation between IEI and VUG is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.15 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.09 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.08 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.04 |
Correlation (All Time) Calculated using the full available price history since Jan 11, 2007 | -0.22 |
The correlation between IEI and VUG shifts across timeframes, from -0.22 (all time) to 0.15 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
IEI vs. VUG — Risk / Return Rank
IEI
VUG
IEI vs. VUG - 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 Growth ETF (VUG). 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 | VUG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.17 | ||
| Sortino ratioReturn per unit of downside risk | -0.07 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.23 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.35 | 1.29 | +0.06 |
| Martin ratioReturn relative to average drawdown | 3.80 | 4.44 | -0.64 |
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Drawdowns
IEI vs. VUG - Drawdown Comparison
The maximum IEI drawdown since its inception was -14.60%, smaller than the maximum VUG drawdown of -50.68%. Use the drawdown chart below to compare losses from any high point for IEI and VUG.
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Drawdown Indicators
| IEI | VUG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.60% | -50.68% | +36.08% |
Max Drawdown (1Y)Largest decline over 1 year | -2.50% | -16.53% | +14.03% |
Max Drawdown (3Y)Largest decline over 3 years | -3.66% | -22.85% | +19.19% |
Max Drawdown (5Y)Largest decline over 5 years | -13.88% | -35.61% | +21.73% |
Max Drawdown (10Y)Largest decline over 10 years | -14.60% | -35.61% | +21.01% |
Current DrawdownCurrent decline from peak | -1.62% | -5.73% | +4.11% |
Average DrawdownAverage peak-to-trough decline | -2.67% | -7.09% | +4.42% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.88% | 4.78% | -3.90% |
Volatility
IEI vs. VUG - Volatility Comparison
The current volatility for iShares 3-7 Year Treasury Bond ETF (IEI) is 0.97%, while Vanguard Growth ETF (VUG) has a volatility of 5.86%. This indicates that IEI experiences smaller price fluctuations and is considered to be less risky than VUG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEI | VUG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.97% | 5.86% | -4.89% |
Volatility (6M)Calculated over the trailing 6-month period | 2.19% | 13.00% | -10.81% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.01% | 16.47% | -13.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.78% | 22.31% | -17.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.93% | 21.48% | -17.55% |
IEI vs. VUG - Expense Ratio Comparison
IEI has a 0.15% expense ratio, which is higher than VUG'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. VUG - Dividend Comparison
IEI's dividend yield for the trailing twelve months is around 3.63%, more than VUG's 0.39% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | 3.63% | 3.48% | 3.18% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% |
VUG Vanguard Growth ETF | 0.39% | 0.41% | 0.47% | 0.58% | 0.70% | 0.48% | 0.66% | 0.95% | 1.32% | 1.14% | 1.39% | 1.30% |
Frequently Asked Questions
IEI and VUG have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VUG has higher volatility (5.86%) compared to IEI (0.97%). In terms of maximum drawdown, IEI dropped -14.60% vs VUG's -50.68%.
On 10-year performance, VUG leads with 17.88% vs 1.25% for IEI. On fees, VUG is cheaper at 0.03% per year. On volatility, IEI has been the lower-risk option at 0.97%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VUG has performed better with a 17.88% return vs 1.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VUG is cheaper with a 0.03% expense ratio, compared with 0.15% for IEI.
IEI has the higher dividend yield at 3.63%, compared with 0.39% for VUG.
IEI is categorized as Government Bonds, while VUG is Large Cap Growth Equities. IEI tracks ICE U.S. Treasury 3-7 Year Bond Index, while VUG tracks CRSP US Large Cap Growth Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for IEI and 0.03% for VUG.
VUG currently has the higher Sharpe Ratio (1.29 vs 1.12), 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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