TLT vs. EFA
TLT (iShares 20+ Year Treasury Bond ETF) and EFA (iShares MSCI EAFE ETF) are both exchange-traded funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index, while EFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE Index (Net). Both are passively managed. Over the past 10 years, TLT returned -1.85%/yr vs 9.28%/yr for EFA. At a correlation of -0.20, they often move in opposite directions. TLT charges 0.15%/yr vs 0.32%/yr for EFA.
Performance
TLT vs. EFA - Performance Comparison
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Returns By Period
In the year-to-date period, TLT achieves a -1.08% return, which is significantly lower than EFA's 7.13% return. Over the past 10 years, TLT has underperformed EFA with an annualized return of -1.85%, while EFA has yielded a comparatively higher 9.28% annualized return.
TLT
- 1D
- -0.52%
- 1M
- -1.31%
- YTD
- -1.08%
- 6M
- -1.51%
- 1Y
- 3.67%
- 3Y*
- -2.05%
- 5Y*
- -6.70%
- 10Y*
- -1.85%
EFA
- 1D
- 0.61%
- 1M
- -1.04%
- YTD
- 7.13%
- 6M
- 9.67%
- 1Y
- 18.74%
- 3Y*
- 15.87%
- 5Y*
- 8.03%
- 10Y*
- 9.28%
TLT vs. EFA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | -1.08% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
EFA iShares MSCI EAFE ETF | 7.13% | 31.55% | 3.49% | 18.36% | -14.39% | 11.45% | 7.60% | 22.04% | -13.82% | 25.07% |
Correlation
The correlation between TLT and EFA is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.34 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.28 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.14 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.04 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2002 | -0.20 |
The correlation between TLT and EFA shifts across timeframes, from -0.20 (all time) to 0.34 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
TLT vs. EFA — Risk / Return Rank
TLT
EFA
TLT vs. EFA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and iShares MSCI EAFE ETF (EFA). 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.
| TLT | EFA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.85 | ||
| Sortino ratioReturn per unit of downside risk | -1.17 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.23 | -0.16 |
| Calmar ratioReturn relative to maximum drawdown | 0.49 | 1.65 | -1.16 |
| Martin ratioReturn relative to average drawdown | 1.19 | 6.15 | -4.96 |
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
| TLT | EFA | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.38 | 1.23 | -0.85 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.42 | 0.49 | -0.91 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.12 | 0.54 | -0.66 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.25 | 0.31 | -0.06 |
Drawdowns
TLT vs. EFA - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, smaller than the maximum EFA drawdown of -61.04%. Use the drawdown chart below to compare losses from any high point for TLT and EFA.
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Drawdown Indicators
| TLT | EFA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -61.04% | +12.69% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -11.42% | +3.84% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -14.05% | -5.13% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -29.53% | -14.17% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -34.19% | -14.16% |
Current DrawdownCurrent decline from peak | -40.92% | -2.63% | -38.29% |
Average DrawdownAverage peak-to-trough decline | -13.83% | -11.93% | -1.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.08% | 3.05% | +0.03% |
Volatility
TLT vs. EFA - Volatility Comparison
The current volatility for iShares 20+ Year Treasury Bond ETF (TLT) is 2.65%, while iShares MSCI EAFE ETF (EFA) has a volatility of 4.54%. This indicates that TLT experiences smaller price fluctuations and is considered to be less risky than EFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLT | EFA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.65% | 4.54% | -1.89% |
Volatility (6M)Calculated over the trailing 6-month period | 6.51% | 12.82% | -6.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.60% | 15.31% | -5.71% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.85% | 16.52% | -0.67% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.91% | 17.28% | -2.37% |
TLT vs. EFA - Expense Ratio Comparison
TLT has a 0.15% expense ratio, which is lower than EFA's 0.32% expense ratio.
Dividends
TLT vs. EFA - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.63%, more than EFA's 3.16% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EFA iShares MSCI EAFE ETF | 3.16% | 3.38% | 3.24% | 2.98% | 2.69% | 3.33% | 2.13% | 3.10% | 3.39% | 2.57% | 3.07% | 2.76% |
TLT iShares 20+ Year Treasury Bond ETF | 4.63% | 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 EFA have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EFA has higher volatility (4.54%) compared to TLT (2.65%). In terms of maximum drawdown, TLT dropped -48.35% vs EFA's -61.04%.
On 10-year performance, EFA leads with 9.28% vs -1.85% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, TLT has been the lower-risk option at 2.65%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, EFA has performed better with a 9.28% return vs -1.85%. 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 0.32% for EFA.
TLT has the higher dividend yield at 4.63%, compared with 3.16% for EFA.
TLT is categorized as Government Bonds, while EFA is Foreign Large Cap Equities. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while EFA tracks MSCI EAFE Index (Net). Their fees differ too: 0.15% for TLT and 0.32% for EFA.
EFA currently has the higher Sharpe Ratio (1.23 vs 0.38), 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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