IYM vs. TLT
IYM (iShares U.S. Basic Materials ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - IYM is a Materials fund tracking the Dow Jones U.S. Basic Materials Index, 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, IYM returned 10.92%/yr vs -1.56%/yr for TLT. At a correlation of -0.24, they often move in opposite directions. IYM charges 0.42%/yr vs 0.15%/yr for TLT.
Performance
IYM vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, IYM achieves a 22.18% return, which is significantly higher than TLT's -0.05% return. Over the past 10 years, IYM has outperformed TLT with an annualized return of 10.92%, while TLT has yielded a comparatively lower -1.56% annualized return.
IYM
- 1D
- 0.10%
- 1M
- 3.09%
- YTD
- 22.18%
- 6M
- 27.03%
- 1Y
- 37.82%
- 3Y*
- 16.01%
- 5Y*
- 7.84%
- 10Y*
- 10.92%
TLT
- 1D
- 0.22%
- 1M
- 0.48%
- YTD
- -0.05%
- 6M
- -1.27%
- 1Y
- 3.48%
- 3Y*
- -1.67%
- 5Y*
- -6.27%
- 10Y*
- -1.56%
IYM vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYM iShares U.S. Basic Materials ETF | 22.18% | 20.41% | -4.54% | 12.83% | -9.15% | 25.62% | 17.87% | 19.22% | -16.63% | 24.83% |
TLT iShares 20+ Year Treasury Bond ETF | -0.05% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between IYM and TLT is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.19 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.06 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.11 |
Correlation (All Time) Calculated using the full available price history since Jul 29, 2002 | -0.24 |
The correlation between IYM and TLT shifts across timeframes, from -0.24 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
IYM vs. TLT — Risk / Return Rank
IYM
TLT
IYM vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Basic Materials ETF (IYM) 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.
| IYM | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.68 | ||
| Sortino ratioReturn per unit of downside risk | +2.13 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.07 | +0.27 |
| Calmar ratioReturn relative to maximum drawdown | 2.79 | 0.46 | +2.33 |
| Martin ratioReturn relative to average drawdown | 10.62 | 1.14 | +9.48 |
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
| IYM | TLT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.04 | 0.36 | +1.68 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.39 | -0.40 | +0.78 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.50 | -0.11 | +0.61 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.34 | 0.26 | +0.08 |
Drawdowns
IYM vs. TLT - Drawdown Comparison
The maximum IYM drawdown since its inception was -67.78%, which is greater than TLT's maximum drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for IYM and TLT.
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Drawdown Indicators
| IYM | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -67.78% | -48.35% | -19.43% |
Max Drawdown (1Y)Largest decline over 1 year | -13.61% | -7.58% | -6.03% |
Max Drawdown (3Y)Largest decline over 3 years | -23.62% | -19.18% | -4.44% |
Max Drawdown (5Y)Largest decline over 5 years | -29.94% | -43.70% | +13.76% |
Max Drawdown (10Y)Largest decline over 10 years | -42.76% | -48.35% | +5.59% |
Current DrawdownCurrent decline from peak | -0.78% | -40.31% | +39.53% |
Average DrawdownAverage peak-to-trough decline | -11.45% | -13.82% | +2.37% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.57% | 3.05% | +0.52% |
Volatility
IYM vs. TLT - Volatility Comparison
iShares U.S. Basic Materials ETF (IYM) has a higher volatility of 6.34% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.71%. This indicates that IYM'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
| IYM | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.34% | 2.71% | +3.63% |
Volatility (6M)Calculated over the trailing 6-month period | 14.85% | 6.50% | +8.35% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.64% | 9.77% | +8.87% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.37% | 15.86% | +4.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.70% | 14.90% | +6.80% |
IYM vs. TLT - Expense Ratio Comparison
IYM has a 0.42% expense ratio, which is higher than TLT's 0.15% expense ratio.
Dividends
IYM vs. TLT - Dividend Comparison
IYM's dividend yield for the trailing twelve months is around 1.24%, less than TLT's 4.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYM iShares U.S. Basic Materials ETF | 1.24% | 1.51% | 1.65% | 1.77% | 2.14% | 1.48% | 1.39% | 2.08% | 1.68% | 1.43% | 1.47% | 2.04% |
TLT iShares 20+ Year Treasury Bond ETF | 4.58% | 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
IYM and TLT have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYM has higher volatility (6.34%) compared to TLT (2.71%). In terms of maximum drawdown, IYM dropped -67.78% vs TLT's -48.35%.
On 10-year performance, IYM leads with 10.92% vs -1.56% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, TLT has been the lower-risk option at 2.71%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYM has performed better with a 10.92% return vs -1.56%. 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 IYM.
TLT has the higher dividend yield at 4.58%, compared with 1.24% for IYM.
IYM is categorized as Materials, while TLT is Government Bonds. IYM tracks Dow Jones U.S. Basic Materials Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. Their fees differ too: 0.42% for IYM and 0.15% for TLT.
IYM currently has the higher Sharpe Ratio (2.04 vs 0.36), 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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