TLT vs. IEFA
TLT (iShares 20+ Year Treasury Bond ETF) and IEFA (iShares Core 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 IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net). Both are passively managed. Over the past 10 years, TLT returned -1.75%/yr vs 9.90%/yr for IEFA. At a correlation of -0.11, they often move in opposite directions. TLT charges 0.15%/yr vs 0.07%/yr for IEFA.
Performance
TLT vs. IEFA - 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 IEFA's 9.51% return. Over the past 10 years, TLT has underperformed IEFA with an annualized return of -1.75%, while IEFA has yielded a comparatively higher 9.90% annualized return.
TLT
- 1D
- -0.24%
- 1M
- 1.54%
- YTD
- 0.27%
- 6M
- 0.45%
- 1Y
- 2.88%
- 3Y*
- -1.38%
- 5Y*
- -6.53%
- 10Y*
- -1.75%
IEFA
- 1D
- 0.18%
- 1M
- 0.85%
- YTD
- 9.51%
- 6M
- 11.08%
- 1Y
- 20.89%
- 3Y*
- 16.31%
- 5Y*
- 8.10%
- 10Y*
- 9.90%
TLT vs. IEFA - 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% |
IEFA iShares Core MSCI EAFE ETF | 9.51% | 32.08% | 3.26% | 17.95% | -15.24% | 11.63% | 8.18% | 22.64% | -14.14% | 26.57% |
Correlation
The correlation between TLT and IEFA is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.36 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.29 |
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 Oct 24, 2012 | -0.11 |
The correlation between TLT and IEFA shifts across timeframes, from -0.11 (all time) to 0.36 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
TLT vs. IEFA — Risk / Return Rank
TLT
IEFA
TLT vs. IEFA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and iShares Core MSCI EAFE ETF (IEFA). 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 | IEFA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.05 | ||
| Sortino ratioReturn per unit of downside risk | -1.46 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.25 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | 0.38 | 1.83 | -1.44 |
| Martin ratioReturn relative to average drawdown | 0.92 | 6.93 | -6.01 |
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Drawdowns
TLT vs. IEFA - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, which is greater than IEFA's maximum drawdown of -34.78%. Use the drawdown chart below to compare losses from any high point for TLT and IEFA.
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Drawdown Indicators
| TLT | IEFA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -34.78% | -13.57% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -11.50% | +3.92% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -13.76% | -5.42% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -30.41% | -13.29% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -34.78% | -13.57% |
Current DrawdownCurrent decline from peak | -40.12% | -0.60% | -39.52% |
Average DrawdownAverage peak-to-trough decline | -13.84% | -6.68% | -7.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.14% | 3.03% | +0.11% |
Volatility
TLT vs. IEFA - Volatility Comparison
The current volatility for iShares 20+ Year Treasury Bond ETF (TLT) is 2.83%, while iShares Core MSCI EAFE ETF (IEFA) has a volatility of 5.50%. This indicates that TLT experiences smaller price fluctuations and is considered to be less risky than IEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLT | IEFA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.83% | 5.50% | -2.67% |
Volatility (6M)Calculated over the trailing 6-month period | 6.64% | 13.11% | -6.47% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.68% | 15.54% | -5.86% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.85% | 16.61% | -0.76% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.91% | 17.31% | -2.40% |
TLT vs. IEFA - Expense Ratio Comparison
TLT has a 0.15% expense ratio, which is higher than IEFA's 0.07% 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. IEFA - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.56%, more than IEFA's 3.24% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEFA iShares Core MSCI EAFE ETF | 3.24% | 3.55% | 3.47% | 3.20% | 2.70% | 3.32% | 1.90% | 3.18% | 3.46% | 2.57% | 2.96% | 2.63% |
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 IEFA have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEFA has higher volatility (5.50%) compared to TLT (2.83%). In terms of maximum drawdown, TLT dropped -48.35% vs IEFA's -34.78%.
On 10-year performance, IEFA leads with 9.90% vs -1.75% for TLT. On fees, IEFA is cheaper at 0.07% 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, IEFA has performed better with a 9.90% return vs -1.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEFA is cheaper with a 0.07% expense ratio, compared with 0.15% for TLT.
TLT has the higher dividend yield at 4.56%, compared with 3.24% for IEFA.
TLT is categorized as Government Bonds, while IEFA is Foreign Large Cap Equities. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while IEFA tracks MSCI EAFE IMI Index (Net). Their fees differ too: 0.15% for TLT and 0.07% for IEFA.
IEFA currently has the higher Sharpe Ratio (1.35 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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