RAVI vs. TLT
Compare and contrast key facts about FlexShares Ready Access Variable Income Fund (RAVI) and iShares 20+ Year Treasury Bond ETF (TLT).
RAVI and TLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. RAVI is an actively managed fund by Northern Trust. It was launched on Oct 9, 2012. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: RAVI or TLT.
Key characteristics
| RAVI | TLT | |
|---|---|---|
| YTD Return | 1.86% | -9.91% |
| 1Y Return | 5.79% | -11.52% |
| 3Y Return (Ann) | 2.46% | -11.73% |
| 5Y Return (Ann) | 2.28% | -4.37% |
| 10Y Return (Ann) | 1.79% | -0.04% |
| Sharpe Ratio | 11.82 | -0.82 |
| Daily Std Dev | 0.49% | 17.09% |
| Max Drawdown | -3.72% | -48.35% |
| Current Drawdown | -0.04% | -43.86% |
Correlation
The correlation between RAVI and TLT is 0.17, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
RAVI vs. TLT - Performance Comparison
In the year-to-date period, RAVI achieves a 1.86% return, which is significantly higher than TLT's -9.91% return. Over the past 10 years, RAVI has outperformed TLT with an annualized return of 1.79%, while TLT has yielded a comparatively lower -0.04% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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RAVI vs. TLT - Expense Ratio Comparison
RAVI has a 0.25% expense ratio, which is higher than TLT's 0.15% 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%.
Risk-Adjusted Performance
RAVI vs. TLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares Ready Access Variable Income Fund (RAVI) 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.
Dividends
RAVI vs. TLT - Dividend Comparison
RAVI's dividend yield for the trailing twelve months is around 4.54%, more than TLT's 3.63% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
RAVI FlexShares Ready Access Variable Income Fund | 4.54% | 4.55% | 1.70% | 0.90% | 1.29% | 2.52% | 2.22% | 1.28% | 0.90% | 0.66% | 0.67% | 0.41% |
TLT iShares 20+ Year Treasury Bond ETF | 3.63% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
Drawdowns
RAVI vs. TLT - Drawdown Comparison
The maximum RAVI drawdown since its inception was -3.72%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for RAVI and TLT. For additional features, visit the drawdowns tool.
Volatility
RAVI vs. TLT - Volatility Comparison
The current volatility for FlexShares Ready Access Variable Income Fund (RAVI) is 0.12%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 3.98%. This indicates that RAVI experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.