IYG vs. TLT
IYG (iShares U.S. Financial Services ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - IYG is a Financials Equities fund tracking the Dow Jones U.S. Financial Services TR, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, IYG returned 14.64%/yr vs -2.25%/yr for TLT. Their -0.29 correlation means they have often moved in opposite directions in the past. IYG charges 0.42%/yr vs 0.15%/yr for TLT.
Performance
IYG vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, IYG achieves a 6.15% return, which is significantly higher than TLT's -2.43% return. Over the past 10 years, IYG has outperformed TLT with an annualized return of 14.64%, while TLT has yielded a comparatively lower -2.25% annualized return.
IYG
- 1D
- 0.96%
- 1M
- 4.27%
- 6M
- 7.93%
- YTD
- 6.15%
- 1Y
- 14.31%
- 3Y*
- 22.26%
- 5Y*
- 10.92%
- 10Y*
- 14.64%
- ALL TIME*
- 6.76%
TLT
- 1D
- 0.77%
- 1M
- -2.76%
- 6M
- -2.36%
- YTD
- -2.43%
- 1Y
- -1.64%
- 3Y*
- -0.90%
- 5Y*
- -8.10%
- 10Y*
- -2.25%
- ALL TIME*
- 3.51%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $7.02M | $11.44M | $10.05M | |
| $2.59B | $2.11B | $2.22B |
IYG vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYG iShares U.S. Financial Services ETF | 6.15% | 19.85% | 31.94% | 16.07% | -16.76% | 30.36% | 0.99% | 37.62% | -12.56% | 24.47% |
TLT iShares 20+ Year Treasury Bond ETF | -2.43% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between IYG and TLT is 0.18, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.18 |
Correlation (3Y) Balances recent behavior with more history. | 0.14 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.04 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.20 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2002 | -0.29 |
The correlation between IYG and TLT shifts across timeframes, from -0.29 (all time) to 0.18 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
IYG vs. TLT — Risk / Return Rank
IYG
TLT
IYG vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Financial Services ETF (IYG) 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.
| IYG | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.09 | ||
| Sortino ratioReturn per unit of downside risk | +1.50 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 0.98 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 0.90 | -0.21 | +1.12 |
| Martin ratioReturn relative to average drawdown | 2.30 | -0.45 | +2.75 |
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Drawdowns
IYG vs. TLT - Drawdown Comparison
The maximum IYG drawdown since its inception was -81.84%, which is greater than TLT's maximum drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for IYG and TLT.
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Drawdown Indicators
| IYG | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -81.84% | -48.35% | -33.49% |
Max Drawdown (1Y)Largest decline over 1 year | -15.90% | -7.74% | -8.16% |
Max Drawdown (3Y)Largest decline over 3 years | -18.54% | -14.79% | -3.75% |
Max Drawdown (5Y)Largest decline over 5 years | -29.62% | -43.70% | +14.08% |
Max Drawdown (10Y)Largest decline over 10 years | -44.32% | -48.35% | +4.03% |
Current DrawdownCurrent decline from peak | 0.00% | -41.73% | +41.73% |
Average DrawdownAverage peak-to-trough decline | -20.63% | -14.00% | -6.63% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.25% | 3.63% | +2.62% |
Volatility
IYG vs. TLT - Volatility Comparison
iShares U.S. Financial Services ETF (IYG) has a higher volatility of 4.49% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.67%. This indicates that IYG's price experiences larger fluctuations and is considered to be riskier 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
| IYG | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.49% | 2.67% | +1.82% |
Volatility (6M)Calculated over the trailing 6-month period | 12.00% | 6.88% | +5.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.75% | 9.25% | +6.50% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.34% | 15.75% | +4.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.38% | 14.83% | +8.55% |
IYG vs. TLT - Expense Ratio Comparison
IYG has a 0.42% expense ratio, which is higher than TLT's 0.15% expense ratio.
Dividends
IYG vs. TLT - Dividend Comparison
IYG's dividend yield for the trailing twelve months is around 1.01%, less than TLT's 4.71% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYG iShares U.S. Financial Services ETF | 1.01% | 1.00% | 1.16% | 1.77% | 2.07% | 1.25% | 1.71% | 1.59% | 1.81% | 1.24% | 1.28% | 1.33% |
TLT iShares 20+ Year Treasury Bond ETF | 4.71% | 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
IYG and TLT have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYG has higher volatility (4.49%) compared to TLT (2.67%). In terms of maximum drawdown, IYG dropped -81.84% vs TLT's -48.35%.
On 10-year performance, IYG leads with 14.64% vs -2.25% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, TLT has been the lower-risk option at 2.67%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYG has performed better with a 14.64% return vs -2.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT is cheaper with a 0.15% expense ratio, compared with 0.42% for IYG.
TLT has the higher dividend yield at 4.71%, compared with 1.01% for IYG.
IYG is categorized as Financials Equities, while TLT is Government Bonds. IYG tracks Dow Jones U.S. Financial Services TR, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. Their fees differ too: 0.42% for IYG and 0.15% for TLT.
IYG currently has the higher Sharpe Ratio (0.91 vs -0.18), 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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