TLT vs. DGS
TLT (iShares 20+ Year Treasury Bond ETF) and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) are both exchange-traded funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index, while DGS is a Emerging Markets Diversified fund tracking the WisdomTree Emerging Markets SmallCap Dividend Index. Both are passively managed. Over the past 10 years, TLT returned -1.75%/yr vs 10.14%/yr for DGS. At a correlation of -0.20, they often move in opposite directions. TLT charges 0.15%/yr vs 0.58%/yr for DGS.
Performance
TLT vs. DGS - Performance Comparison
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Returns By Period
In the year-to-date period, TLT achieves a 0.27% return, which is significantly lower than DGS's 14.94% return. Over the past 10 years, TLT has underperformed DGS with an annualized return of -1.75%, while DGS has yielded a comparatively higher 10.14% annualized return.
TLT
- 1D
- -0.24%
- 1M
- 1.40%
- YTD
- 0.27%
- 6M
- 0.45%
- 1Y
- 3.88%
- 3Y*
- -1.38%
- 5Y*
- -6.53%
- 10Y*
- -1.75%
DGS
- 1D
- 0.65%
- 1M
- 1.51%
- YTD
- 14.94%
- 6M
- 17.07%
- 1Y
- 25.61%
- 3Y*
- 15.36%
- 5Y*
- 8.06%
- 10Y*
- 10.14%
TLT vs. DGS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 0.27% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 14.94% | 21.18% | 1.13% | 19.08% | -12.35% | 15.33% | 4.06% | 18.90% | -16.52% | 37.47% |
Correlation
The correlation between TLT and DGS is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.26 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.13 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since Oct 30, 2007 | -0.20 |
The correlation between TLT and DGS shifts across timeframes, from -0.20 (all time) to 0.37 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
TLT vs. DGS — Risk / Return Rank
TLT
DGS
TLT vs. DGS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS). 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.
| TLT | DGS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.14 | ||
| Sortino ratioReturn per unit of downside risk | -1.52 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.27 | -0.21 |
| Calmar ratioReturn relative to maximum drawdown | 0.38 | 2.38 | -2.00 |
| Martin ratioReturn relative to average drawdown | 0.92 | 7.84 | -6.92 |
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Drawdowns
TLT vs. DGS - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, smaller than the maximum DGS drawdown of -61.83%. Use the drawdown chart below to compare losses from any high point for TLT and DGS.
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Drawdown Indicators
| TLT | DGS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -61.83% | +13.48% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -10.06% | +2.48% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -19.31% | +0.13% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -24.86% | -18.84% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -44.08% | -4.27% |
Current DrawdownCurrent decline from peak | -40.12% | -1.05% | -39.07% |
Average DrawdownAverage peak-to-trough decline | -13.84% | -12.57% | -1.27% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.14% | 3.05% | +0.09% |
Volatility
TLT vs. DGS - Volatility Comparison
The current volatility for iShares 20+ Year Treasury Bond ETF (TLT) is 2.83%, while WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) has a volatility of 7.30%. This indicates that TLT experiences smaller price fluctuations and is considered to be less risky than DGS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLT | DGS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.83% | 7.30% | -4.47% |
Volatility (6M)Calculated over the trailing 6-month period | 6.64% | 14.27% | -7.63% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.68% | 16.60% | -6.92% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.85% | 15.08% | +0.77% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.91% | 17.39% | -2.48% |
TLT vs. DGS - Expense Ratio Comparison
TLT has a 0.15% expense ratio, which is lower than DGS's 0.58% expense ratio.
Dividends
TLT vs. DGS - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.56%, more than DGS's 3.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 3.20% | 3.45% | 3.36% | 4.55% | 5.34% | 3.98% | 3.69% | 3.95% | 4.24% | 2.81% | 3.42% | 3.28% |
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
TLT and DGS have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DGS has higher volatility (7.30%) compared to TLT (2.83%). In terms of maximum drawdown, TLT dropped -48.35% vs DGS's -61.83%.
On 10-year performance, DGS leads with 10.14% vs -1.75% 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.
Over the 10-year period, DGS has performed better with a 10.14% return vs -1.75%. 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 0.58% for DGS.
TLT has the higher dividend yield at 4.56%, compared with 3.20% for DGS.
TLT is categorized as Government Bonds, while DGS is Emerging Markets Diversified. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.15% for TLT and 0.58% for DGS.
DGS currently has the higher Sharpe Ratio (1.44 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.
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