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 -2.23%/yr vs 0.51%/yr for IEF. Their correlation of 0.92 means they have usually moved in the same direction. 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 -2.22% return, which is significantly lower than IEF's -0.72% return. Over the past 10 years, TLT has underperformed IEF with an annualized return of -2.23%, while IEF has yielded a comparatively higher 0.51% annualized return.
TLT
- 1D
- 0.22%
- 1M
- -2.48%
- 6M
- -1.90%
- YTD
- -2.22%
- 1Y
- -1.73%
- 3Y*
- -0.82%
- 5Y*
- -7.75%
- 10Y*
- -2.23%
- ALL TIME*
- 3.52%
IEF
- 1D
- 0.06%
- 1M
- -0.58%
- 6M
- -0.37%
- YTD
- -0.72%
- 1Y
- 1.29%
- 3Y*
- 3.09%
- 5Y*
- -1.56%
- 10Y*
- 0.51%
- ALL TIME*
- 3.37%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $485.39M | $481.31M | $607.14M | |
| $2.70B | $2.15B | $2.23B |
TLT vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | -2.22% | 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 | -0.72% | 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 0.90, 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. | 0.90 |
Correlation (3Y) Balances recent behavior with more history. | 0.93 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.92 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.92 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2002 | 0.92 |
The correlation between TLT and IEF has been stable across timeframes, ranging from 0.90 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.
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 | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.47 | ||
| Sortino ratioReturn per unit of downside risk | -0.63 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 1.05 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | -0.22 | 0.32 | -0.54 |
| Martin ratioReturn relative to average drawdown | -0.48 | 0.72 | -1.20 |
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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 | -7.74% | -4.07% | -3.67% |
Max Drawdown (3Y)Largest decline over 3 years | -14.79% | -6.89% | -7.90% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -21.04% | -22.66% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -23.93% | -24.42% |
Current DrawdownCurrent decline from peak | -41.60% | -11.40% | -30.20% |
Average DrawdownAverage peak-to-trough decline | -14.00% | -5.39% | -8.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.65% | 1.78% | +1.87% |
Volatility
TLT vs. IEF - Volatility Comparison
iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.51% compared to iShares 7-10 Year Treasury Bond ETF (IEF) at 1.21%. 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 | 2.51% | 1.21% | +1.30% |
Volatility (6M)Calculated over the trailing 6-month period | 6.88% | 3.67% | +3.21% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.25% | 4.55% | +4.70% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.74% | 7.70% | +8.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.83% | 6.61% | +8.22% |
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 4.70%, more than IEF's 3.95% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.95% | 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 | 4.70% | 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 0.90, 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 (2.51%) compared to IEF (1.21%). In terms of maximum drawdown, TLT dropped -48.35% vs IEF's -23.93%.
On 10-year performance, IEF leads with 0.51% vs -2.23% for TLT. Both ETFs have the same 0.15% expense ratio. On volatility, IEF has been the lower-risk option at 1.21%. 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 0.51% return vs -2.23%. 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 4.70%, compared with 3.95% 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 (0.28 vs -0.19), 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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