IVV vs. IEI
IVV (iShares Core S&P 500 ETF) and IEI (iShares 3-7 Year Treasury Bond ETF) are both exchange-traded funds - IVV is a S&P 500 fund tracking the S&P 500 Index, while IEI is a Government Bonds fund tracking the ICE U.S. Treasury 3-7 Year Bond Index. Both are passively managed. Over the past 10 years, IVV returned 15.62%/yr vs 1.29%/yr for IEI. At a correlation of -0.25, they often move in opposite directions. IVV charges 0.03%/yr vs 0.15%/yr for IEI.
Performance
IVV vs. IEI - Performance Comparison
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Returns By Period
In the year-to-date period, IVV achieves a 11.70% return, which is significantly higher than IEI's -0.29% return. Over the past 10 years, IVV has outperformed IEI with an annualized return of 15.62%, while IEI has yielded a comparatively lower 1.29% annualized return.
IVV
- 1D
- 0.14%
- 1M
- 5.39%
- YTD
- 11.70%
- 6M
- 12.12%
- 1Y
- 29.71%
- 3Y*
- 22.74%
- 5Y*
- 14.26%
- 10Y*
- 15.62%
IEI
- 1D
- -0.01%
- 1M
- -0.27%
- YTD
- -0.29%
- 6M
- -0.24%
- 1Y
- 3.33%
- 3Y*
- 3.57%
- 5Y*
- 0.31%
- 10Y*
- 1.29%
IVV vs. IEI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IVV iShares Core S&P 500 ETF | 11.70% | 17.85% | 24.93% | 26.31% | -18.16% | 28.76% | 18.40% | 31.07% | -4.49% | 21.75% |
IEI iShares 3-7 Year Treasury Bond ETF | -0.29% | 6.96% | 1.81% | 4.42% | -9.51% | -2.54% | 6.95% | 5.71% | 1.36% | 1.22% |
Correlation
The correlation between IVV and IEI is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.17 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.13 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.09 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.08 |
Correlation (All Time) Calculated using the full available price history since Jan 12, 2007 | -0.25 |
The correlation between IVV and IEI shifts across timeframes, from -0.25 (all time) to 0.17 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
IVV vs. IEI — Risk / Return Rank
IVV
IEI
IVV vs. IEI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core S&P 500 ETF (IVV) and iShares 3-7 Year Treasury Bond ETF (IEI). 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.
| IVV | IEI | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.54 | 1.10 | +1.43 |
Sortino ratioReturn per unit of downside risk | 3.44 | 1.67 | +1.77 |
Omega ratioGain probability vs. loss probability | 1.46 | 1.19 | +0.27 |
Calmar ratioReturn relative to maximum drawdown | 3.43 | 1.25 | +2.18 |
Martin ratioReturn relative to average drawdown | 15.97 | 3.78 | +12.18 |
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
| IVV | IEI | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.54 | 1.10 | +1.43 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.85 | 0.07 | +0.78 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.87 | 0.33 | +0.54 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.46 | 0.70 | -0.24 |
Drawdowns
IVV vs. IEI - Drawdown Comparison
The maximum IVV drawdown since its inception was -55.25%, which is greater than IEI's maximum drawdown of -14.60%. Use the drawdown chart below to compare losses from any high point for IVV and IEI.
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Drawdown Indicators
| IVV | IEI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -55.25% | -14.60% | -40.65% |
Max Drawdown (1Y)Largest decline over 1 year | -8.89% | -2.50% | -6.39% |
Max Drawdown (3Y)Largest decline over 3 years | -18.75% | -3.66% | -15.09% |
Max Drawdown (5Y)Largest decline over 5 years | -24.53% | -13.88% | -10.65% |
Max Drawdown (10Y)Largest decline over 10 years | -33.90% | -14.60% | -19.30% |
Current DrawdownCurrent decline from peak | 0.00% | -1.73% | +1.73% |
Average DrawdownAverage peak-to-trough decline | -10.78% | -2.67% | -8.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.91% | 0.82% | +1.09% |
Volatility
IVV vs. IEI - Volatility Comparison
iShares Core S&P 500 ETF (IVV) has a higher volatility of 2.75% compared to iShares 3-7 Year Treasury Bond ETF (IEI) at 0.92%. This indicates that IVV's price experiences larger fluctuations and is considered to be riskier than IEI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IVV | IEI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.75% | 0.92% | +1.83% |
Volatility (6M)Calculated over the trailing 6-month period | 8.87% | 2.15% | +6.72% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.78% | 3.04% | +8.74% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.88% | 4.77% | +12.11% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.05% | 3.93% | +14.12% |
IVV vs. IEI - Expense Ratio Comparison
IVV has a 0.03% expense ratio, which is lower than IEI's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
IVV vs. IEI - Dividend Comparison
IVV's dividend yield for the trailing twelve months is around 1.06%, less than IEI's 3.64% 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% |
IVV iShares Core S&P 500 ETF | 1.06% | 1.17% | 1.30% | 1.44% | 1.66% | 1.20% | 1.57% | 1.85% | 2.21% | 1.75% | 2.01% | 2.27% |
Frequently Asked Questions
IVV and IEI have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IVV has higher volatility (2.75%) compared to IEI (0.92%). In terms of maximum drawdown, IVV dropped -55.25% vs IEI's -14.60%.
On 10-year performance, IVV leads with 15.62% vs 1.29% for IEI. On fees, IVV is cheaper at 0.03% per year. On volatility, IEI has been the lower-risk option at 0.92%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IVV has performed better with a 15.62% return vs 1.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IVV is cheaper with a 0.03% expense ratio, compared with 0.15% for IEI.
IEI has the higher dividend yield at 3.64%, compared with 1.06% for IVV.
IVV is categorized as S&P 500, while IEI is Government Bonds. IVV tracks S&P 500 Index, while IEI tracks ICE U.S. Treasury 3-7 Year Bond Index. Their fees differ too: 0.03% for IVV and 0.15% for IEI.
IVV currently has the higher Sharpe Ratio (2.54 vs 1.10), 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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