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TLT vs. GOVT
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

TLT vs. GOVT - Performance Comparison

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

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Returns By Period

In the year-to-date period, TLT achieves a 2.15% return, which is significantly higher than GOVT's 0.60% return. Over the past 10 years, TLT has underperformed GOVT with an annualized return of -1.61%, while GOVT has yielded a comparatively higher 0.85% annualized return.


TLT

1D
1.37%
1M
3.59%
YTD
2.15%
6M
1.14%
1Y
4.54%
3Y*
-1.45%
5Y*
-6.14%
10Y*
-1.61%

GOVT

1D
0.48%
1M
1.07%
YTD
0.60%
6M
0.51%
1Y
3.37%
3Y*
3.09%
5Y*
-0.32%
10Y*
0.85%
*Multi-year figures are annualized to reflect compound growth (CAGR)

TLT vs. GOVT - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
TLT
iShares 20+ Year Treasury Bond ETF
2.15%4.25%-8.05%2.77%-31.23%-4.60%18.15%14.12%-1.61%9.18%
GOVT
iShares U.S. Treasury Bond ETF
0.60%3.77%2.95%4.17%-13.39%-1.11%7.28%7.36%0.26%2.19%

Correlation

The correlation between TLT and GOVT is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.


Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.93

Correlation (3Y)
Calculated over the trailing 3-year period

0.93

Correlation (5Y)
Calculated over the trailing 5-year period

0.93

Correlation (10Y)
Calculated over the trailing 10-year period

0.93

Correlation (All Time)
Calculated using the full available price history since Feb 24, 2012

0.91

The correlation between TLT and GOVT has been stable across timeframes, ranging from 0.91 to 0.93 - a consistent structural relationship.

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Return for Risk

TLT vs. GOVT — Risk / Return Rank

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

TLT
TLT Risk / Return Rank: 1616
Overall Rank
TLT Sharpe Ratio Rank: 1616
Sharpe Ratio Rank
TLT Sortino Ratio Rank: 1515
Sortino Ratio Rank
TLT Omega Ratio Rank: 1414
Omega Ratio Rank
TLT Calmar Ratio Rank: 1616
Calmar Ratio Rank
TLT Martin Ratio Rank: 1616
Martin Ratio Rank

GOVT
GOVT Risk / Return Rank: 2727
Overall Rank
GOVT Sharpe Ratio Rank: 2828
Sharpe Ratio Rank
GOVT Sortino Ratio Rank: 2828
Sortino Ratio Rank
GOVT Omega Ratio Rank: 2525
Omega Ratio Rank
GOVT Calmar Ratio Rank: 2626
Calmar Ratio Rank
GOVT Martin Ratio Rank: 2626
Martin Ratio Rank
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.

TLT vs. GOVT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and iShares U.S. Treasury Bond ETF (GOVT). 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.


TLTGOVTDifference
Sharpe ratioReturn per unit of total volatility

-0.47

Sortino ratioReturn per unit of downside risk

-0.67

Omega ratioGain probability vs. loss probability

1.08

1.16

-0.08

Calmar ratioReturn relative to maximum drawdown

0.60

1.19

-0.58

Martin ratioReturn relative to average drawdown

1.43

3.22

-1.79

TLT vs. GOVT - Sharpe Ratio Comparison

The current TLT Sharpe Ratio is 0.48, which is lower than the GOVT Sharpe Ratio of 0.94. The chart below compares the historical Sharpe Ratios of TLT and GOVT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.


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Drawdowns

TLT vs. GOVT - Drawdown Comparison

The maximum TLT drawdown since its inception was -48.35%, which is greater than GOVT's maximum drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for TLT and GOVT.


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Drawdown Indicators


TLTGOVTDifference

Max Drawdown

Largest peak-to-trough decline

-48.35%

-19.07%

-29.28%

Max Drawdown (1Y)

Largest decline over 1 year

-7.58%

-2.85%

-4.73%

Max Drawdown (3Y)

Largest decline over 3 years

-19.18%

-5.43%

-13.75%

Max Drawdown (5Y)

Largest decline over 5 years

-43.70%

-16.60%

-27.10%

Max Drawdown (10Y)

Largest decline over 10 years

-48.35%

-19.07%

-29.28%

Current Drawdown

Current decline from peak

-38.99%

-6.52%

-32.47%

Average Drawdown

Average peak-to-trough decline

-13.87%

-5.26%

-8.61%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.19%

1.05%

+2.14%

Volatility

TLT vs. GOVT - Volatility Comparison

iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.49% compared to iShares U.S. Treasury Bond ETF (GOVT) at 1.07%. This indicates that TLT's price experiences larger fluctuations and is considered to be riskier than GOVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


TLTGOVTDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.49%

1.07%

+1.42%

Volatility (6M)

Calculated over the trailing 6-month period

6.74%

2.64%

+4.10%

Volatility (1Y)

Calculated over the trailing 1-year period

9.57%

3.60%

+5.97%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.83%

6.05%

+9.78%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.89%

5.22%

+9.67%

TLT vs. GOVT - Expense Ratio Comparison

TLT has a 0.15% expense ratio, which is higher than GOVT's 0.05% 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

TLT vs. GOVT - Dividend Comparison

TLT's dividend yield for the trailing twelve months is around 4.48%, more than GOVT's 3.56% yield.


PositionTTM20252024202320222021202020192018201720162015
GOVT
iShares U.S. Treasury Bond ETF
3.56%3.49%3.14%2.65%1.77%0.96%2.17%1.98%1.97%1.57%1.40%1.25%
TLT
iShares 20+ Year Treasury Bond ETF
4.48%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


With a correlation of 0.93, TLT and GOVT 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.

TLT has higher volatility (2.49%) compared to GOVT (1.07%). In terms of maximum drawdown, TLT dropped -48.35% vs GOVT's -19.07%.

On 10-year performance, GOVT leads with 0.85% vs -1.61% for TLT. On fees, GOVT is cheaper at 0.05% per year. On volatility, GOVT has been the lower-risk option at 1.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, GOVT has performed better with a 0.85% return vs -1.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

GOVT is cheaper with a 0.05% expense ratio, compared with 0.15% for TLT.

TLT has the higher dividend yield at 4.48%, compared with 3.56% for GOVT.

TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while GOVT tracks ICE U.S. Treasury Core Bond Index. Their fees differ too: 0.15% for TLT and 0.05% for GOVT.

GOVT currently has the higher Sharpe Ratio (0.94 vs 0.48), 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.

Portfolio Optimizer

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