TAGG vs. IBTO

Last updated Aug 2, 2026

TAGG (T. Rowe Price QM U.S. Bond ETF) and IBTO (iShares iBonds Dec 2033 Term Treasury ETF) are both Intermediate Core Bond funds. TAGG is actively managed, while IBTO is passively managed. Over the past 3 years, TAGG returned 4.25%/yr vs 2.95%/yr for IBTO. Their correlation of 0.94 means they have usually moved in the same direction. TAGG charges 0.08%/yr vs 0.07%/yr for IBTO.

Performance

TAGG vs. IBTO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price QM U.S. Bond ETF (TAGG) and iShares iBonds Dec 2033 Term Treasury ETF (IBTO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAGG achieves a -0.52% return, which is significantly higher than IBTO's -1.17% return.

TAGG

• 1D: -0.28%
• 1M: -1.22%
• 6M: -0.79%
• YTD: -0.52%
• 1Y: 2.12%
• 3Y*: 4.25%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 0.08%

IBTO

• 1D: -0.27%
• 1M: -1.06%
• 6M: -0.99%
• YTD: -1.17%
• 1Y: 0.84%
• 3Y*: 2.95%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 2.48%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
IBTO iShares iBonds Dec 2033 Term Treasury ETF	$4.47M	$2.89M	$2.06M
TAGG T. Rowe Price QM U.S. Bond ETF	$5.57M	$5.24M	$10.21M

TAGG vs. IBTO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
TAGG T. Rowe Price QM U.S. Bond ETF	-0.52%	7.40%	1.73%	2.41%
IBTO iShares iBonds Dec 2033 Term Treasury ETF	-1.17%	8.23%	-0.87%	1.71%

Correlation

The correlation between TAGG and IBTO is 0.92, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.92
Correlation (3Y) Balances recent behavior with more history.	0.94
Correlation (All Time) Calculated using the full available price history since Jun 29, 2023	0.94

The correlation between TAGG and IBTO has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.

Return for Risk

TAGG vs. IBTO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

TAGG

TAGG Risk / Return Rank: 30
TAGG Sharpe Ratio Rank: 33
TAGG Sortino Ratio Rank: 31
TAGG Omega Ratio Rank: 30
TAGG Calmar Ratio Rank: 29
TAGG Martin Ratio Rank: 27

IBTO

IBTO Risk / Return Rank: 20
IBTO Sharpe Ratio Rank: 22
IBTO Sortino Ratio Rank: 20
IBTO Omega Ratio Rank: 19
IBTO Calmar Ratio Rank: 21
IBTO Martin Ratio Rank: 20

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

TAGG vs. IBTO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price QM U.S. Bond ETF (TAGG) and iShares iBonds Dec 2033 Term Treasury ETF (IBTO). 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.

	TAGG	IBTO	Difference
Sharpe ratio: Return per unit of total volatility	0.81	0.47	+0.34
Sortino ratio: Return per unit of downside risk	1.19	0.71	+0.48
Omega ratio: Gain probability vs. loss probability	1.14	1.08	+0.06
Calmar ratio: Return relative to maximum drawdown	0.94	0.55	+0.39
Martin ratio: Return relative to average drawdown	2.27	1.25	+1.02

TAGG vs. IBTO - Sharpe Ratio Comparison

The current TAGG Sharpe Ratio is 0.81, which is higher than the IBTO Sharpe Ratio of 0.47. The chart below compares the historical Sharpe Ratios of TAGG and IBTO, 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

TAGG vs. IBTO - Drawdown Comparison

The maximum TAGG drawdown since its inception was -17.26%, which is greater than IBTO's maximum drawdown of -8.36%. Use the drawdown chart below to compare losses from any high point for TAGG and IBTO.

Drawdown Indicators

	TAGG	IBTO	Difference
Max Drawdown Largest peak-to-trough decline	-17.26%	-8.36%	-8.90%
Max Drawdown (1Y) Largest decline over 1 year	-3.19%	-3.66%	+0.47%
Max Drawdown (3Y) Largest decline over 3 years	-4.97%	-6.91%	+1.94%
Current Drawdown Current decline from peak	-2.71%	-3.22%	+0.51%
Average Drawdown Average peak-to-trough decline	-6.70%	-2.37%	-4.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.32%	1.61%	-0.29%

Volatility

TAGG vs. IBTO - Volatility Comparison

T. Rowe Price QM U.S. Bond ETF (TAGG) and iShares iBonds Dec 2033 Term Treasury ETF (IBTO) have volatilities of 1.00% and 1.04%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAGG	IBTO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.00%	1.04%	-0.04%
Volatility (6M) Calculated over the trailing 6-month period	2.91%	3.28%	-0.37%
Volatility (1Y) Calculated over the trailing 1-year period	3.70%	4.31%	-0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.46%	6.51%	-0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.46%	6.51%	-0.05%

TAGG vs. IBTO - Expense Ratio Comparison

TAGG has a 0.08% expense ratio, which is higher than IBTO's 0.07% 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%.

Dividends

TAGG vs. IBTO - Dividend Comparison

TAGG's dividend yield for the trailing twelve months is around 4.59%, more than IBTO's 4.18% yield.

Position	TTM	2025	2024	2023	2022	2021
IBTO iShares iBonds Dec 2033 Term Treasury ETF	3.83%	4.05%	4.23%	1.66%	0.00%	0.00%
TAGG T. Rowe Price QM U.S. Bond ETF	4.59%	4.36%	4.36%	3.48%	3.67%	0.33%

Frequently Asked Questions

Can I hold both TAGG and IBTO in my portfolio?

With a correlation of 0.92, TAGG and IBTO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, TAGG or IBTO?

IBTO has higher volatility (1.04%) compared to TAGG (1.00%). In terms of maximum drawdown, TAGG dropped -17.26% vs IBTO's -8.36%.

Which ETF is better, TAGG or IBTO?

On 3-year performance, TAGG leads with 4.25% vs 2.95% for IBTO. On fees, IBTO is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAGG or IBTO?

Over the 3-year period, TAGG has performed better with a 4.25% return vs 2.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAGG or IBTO?

IBTO is cheaper with a 0.07% expense ratio, compared with 0.08% for TAGG.

Which ETF pays a higher dividend yield, TAGG or IBTO?

TAGG has the higher dividend yield at 4.59%, compared with 3.83% for IBTO.

What is the main difference between TAGG and IBTO?

They also come from different issuers: T. Rowe Price and iShares. Their fees differ too: 0.08% for TAGG and 0.07% for IBTO.

Which has better risk-adjusted returns?

TAGG currently has the higher Sharpe Ratio (0.81 vs 0.47), 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.