TLT vs. IEF
TLT (iShares 20+ Year Treasury Bond ETF) and IEF (iShares 7-10 Year Treasury Bond ETF) are both Government Bonds funds from iShares - TLT tracks the ICE U.S. Treasury 20+ Year Bond Index while IEF tracks the ICE U.S. Treasury 7-10 Year Bond Index. Both are passively managed. Over the past 10 years, TLT returned -1.63%/yr vs 0.60%/yr for IEF. Their correlation of 0.92 suggests significant overlap in exposure. Both charge a 0.15% expense ratio.
Performance
TLT vs. IEF - Performance Comparison
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Returns By Period
In the year-to-date period, TLT achieves a -0.56% return, which is significantly higher than IEF's -1.06% return. Over the past 10 years, TLT has underperformed IEF with an annualized return of -1.63%, while IEF has yielded a comparatively higher 0.60% annualized return.
TLT
- 1D
- -0.51%
- 1M
- -0.80%
- YTD
- -0.56%
- 6M
- -1.32%
- 1Y
- 2.88%
- 3Y*
- -2.03%
- 5Y*
- -6.37%
- 10Y*
- -1.63%
IEF
- 1D
- -0.53%
- 1M
- -1.12%
- YTD
- -1.06%
- 6M
- -1.06%
- 1Y
- 3.19%
- 3Y*
- 2.32%
- 5Y*
- -1.22%
- 10Y*
- 0.60%
TLT vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | -0.56% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
IEF iShares 7-10 Year Treasury Bond ETF | -1.06% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
Correlation
The correlation between TLT and IEF is 0.91, 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 | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.93 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.92 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.92 |
Correlation (All Time) Calculated using the full available price history since Jul 29, 2002 | 0.92 |
The correlation between TLT and IEF 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. IEF — Risk / Return Rank
TLT
IEF
TLT vs. IEF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and iShares 7-10 Year Treasury Bond ETF (IEF). 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 | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.38 | ||
| Sortino ratioReturn per unit of downside risk | -0.51 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.12 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | 0.38 | 0.79 | -0.41 |
| Martin ratioReturn relative to average drawdown | 0.94 | 2.30 | -1.36 |
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 | IEF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.30 | 0.68 | -0.38 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.40 | -0.16 | -0.24 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.11 | 0.09 | -0.20 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.25 | 0.50 | -0.24 |
Drawdowns
TLT vs. IEF - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, which is greater than IEF's maximum drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for TLT and IEF.
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Drawdown Indicators
| TLT | IEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -23.93% | -24.42% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -4.07% | -3.51% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -7.74% | -11.44% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -21.40% | -22.30% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -23.93% | -24.42% |
Current DrawdownCurrent decline from peak | -40.61% | -11.70% | -28.91% |
Average DrawdownAverage peak-to-trough decline | -13.82% | -5.35% | -8.47% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.07% | 1.39% | +1.68% |
Volatility
TLT vs. IEF - Volatility Comparison
iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.65% compared to iShares 7-10 Year Treasury Bond ETF (IEF) at 1.53%. This indicates that TLT's price experiences larger fluctuations and is considered to be riskier than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLT | IEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.65% | 1.53% | +1.12% |
Volatility (6M)Calculated over the trailing 6-month period | 6.51% | 3.38% | +3.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.66% | 4.76% | +4.90% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.85% | 7.71% | +8.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.90% | 6.62% | +8.28% |
TLT vs. IEF - Expense Ratio Comparison
Both TLT and IEF have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
TLT vs. IEF - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.60%, more than IEF's 3.92% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.92% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
TLT iShares 20+ Year Treasury Bond ETF | 4.60% | 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 0.91, TLT and IEF 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 (2.65%) compared to IEF (1.53%). In terms of maximum drawdown, TLT dropped -48.35% vs IEF's -23.93%.
On 10-year performance, IEF leads with 0.60% vs -1.63% for TLT. Both ETFs have the same 0.15% expense ratio. On volatility, IEF has been the lower-risk option at 1.53%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IEF has performed better with a 0.60% return vs -1.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT and IEF have the same expense ratio: 0.15% per year.
TLT has the higher dividend yield at 4.60%, compared with 3.92% for IEF.
TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while IEF tracks ICE U.S. Treasury 7-10 Year Bond Index.
IEF currently has the higher Sharpe Ratio (0.68 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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