KDEF vs. TLT

Last updated Jun 14, 2026

KDEF (PLUS Korea Defense Industry Index ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - KDEF is a Aerospace & Defense fund tracking the The Korea Defence Industry 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 year, KDEF returned 23.84% vs 3.88% for TLT. At a 0.10 correlation, their price movements are largely independent. KDEF charges 0.65%/yr vs 0.15%/yr for TLT.

Performance

KDEF vs. TLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PLUS Korea Defense Industry Index ETF (KDEF) and iShares 20+ Year Treasury Bond ETF (TLT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KDEF achieves a 10.00% return, which is significantly higher than TLT's 0.27% return.

KDEF

• 1D: 1.61%
• 1M: -9.85%
• YTD: 10.00%
• 6M: 13.24%
• 1Y: 23.84%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TLT

• 1D: -0.24%
• 1M: 2.93%
• YTD: 0.27%
• 6M: 0.45%
• 1Y: 3.88%
• 3Y*: -1.38%
• 5Y*: -6.53%
• 10Y*: -1.75%

*Multi-year figures are annualized to reflect compound growth (CAGR)

KDEF vs. TLT - Yearly Performance Comparison

	2026 (YTD)	2025
KDEF PLUS Korea Defense Industry Index ETF	10.00%	116.28%
TLT iShares 20+ Year Treasury Bond ETF	0.27%	2.58%

Correlation

The correlation between KDEF and TLT is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.14
Correlation (All Time) Calculated using the full available price history since Feb 5, 2025	0.10

Return for Risk

KDEF vs. TLT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

KDEF

KDEF Risk / Return Rank: 21
KDEF Sharpe Ratio Rank: 20
KDEF Sortino Ratio Rank: 22
KDEF Omega Ratio Rank: 22
KDEF Calmar Ratio Rank: 20
KDEF Martin Ratio Rank: 22

TLT

TLT Risk / Return Rank: 14
TLT Sharpe Ratio Rank: 14
TLT Sortino Ratio Rank: 13
TLT Omega Ratio Rank: 13
TLT Calmar Ratio Rank: 14
TLT Martin Ratio Rank: 14

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

KDEF vs. TLT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PLUS Korea Defense Industry Index ETF (KDEF) 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.

	KDEF	TLT	Difference
Sharpe ratio: Return per unit of total volatility	0.60	0.30	+0.29
Sortino ratio: Return per unit of downside risk	1.10	0.50	+0.60
Omega ratio: Gain probability vs. loss probability	1.13	1.06	+0.07
Calmar ratio: Return relative to maximum drawdown	0.78	0.38	+0.39
Martin ratio: Return relative to average drawdown	2.48	0.92	+1.56

KDEF vs. TLT - Sharpe Ratio Comparison

The current KDEF Sharpe Ratio is 0.60, which is higher than the TLT Sharpe Ratio of 0.30. The chart below compares the historical Sharpe Ratios of KDEF and TLT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

KDEF vs. TLT - Drawdown Comparison

The maximum KDEF drawdown since its inception was -35.55%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for KDEF and TLT.

Drawdown Indicators

	KDEF	TLT	Difference
Max Drawdown Largest peak-to-trough decline	-35.55%	-48.35%	+12.80%
Max Drawdown (1Y) Largest decline over 1 year	-35.55%	-7.58%	-27.97%
Max Drawdown (3Y) Largest decline over 3 years	—	-19.18%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-43.70%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-48.35%	—
Current Drawdown Current decline from peak	-26.83%	-40.12%	+13.29%
Average Drawdown Average peak-to-trough decline	-6.96%	-13.84%	+6.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.09%	3.14%	+7.95%

Volatility

KDEF vs. TLT - Volatility Comparison

PLUS Korea Defense Industry Index ETF (KDEF) has a higher volatility of 18.52% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.83%. This indicates that KDEF'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.

Volatility by Period

	KDEF	TLT	Difference
Volatility (1M) Calculated over the trailing 1-month period	18.52%	2.83%	+15.69%
Volatility (6M) Calculated over the trailing 6-month period	38.55%	6.64%	+31.91%
Volatility (1Y) Calculated over the trailing 1-year period	46.43%	9.68%	+36.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	47.55%	15.85%	+31.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	47.55%	14.91%	+32.64%

KDEF vs. TLT - Expense Ratio Comparison

KDEF has a 0.65% expense ratio, which is higher than TLT's 0.15% expense ratio.

Dividends

KDEF vs. TLT - Dividend Comparison

KDEF's dividend yield for the trailing twelve months is around 6.25%, more than TLT's 4.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KDEF PLUS Korea Defense Industry Index ETF	6.25%	5.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TLT iShares 20+ Year Treasury Bond ETF	4.56%	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

Can I hold both KDEF and TLT in my portfolio?

KDEF and TLT have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KDEF or TLT?

KDEF has higher volatility (18.52%) compared to TLT (2.83%). In terms of maximum drawdown, KDEF dropped -35.55% vs TLT's -48.35%.

Which ETF is better, KDEF or TLT?

On 1-year performance, KDEF leads with 23.84% vs 3.88% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, TLT has been the lower-risk option at 2.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KDEF or TLT?

Over the 1-year period, KDEF has performed better with a 23.84% return vs 3.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KDEF or TLT?

TLT is cheaper with a 0.15% expense ratio, compared with 0.65% for KDEF.

Which ETF pays a higher dividend yield, KDEF or TLT?

KDEF has the higher dividend yield at 6.25%, compared with 4.56% for TLT.

What is the main difference between KDEF and TLT?

KDEF is categorized as Aerospace & Defense, while TLT is Government Bonds. KDEF tracks The Korea Defence Industry Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. They also come from different issuers: PLUS and iShares. Their fees differ too: 0.65% for KDEF and 0.15% for TLT.

Which has better risk-adjusted returns?

KDEF currently has the higher Sharpe Ratio (0.60 vs 0.30), 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.