TLT vs. IEI
TLT (iShares 20+ Year Treasury Bond ETF) and IEI (iShares 3-7 Year Treasury Bond ETF) are both Government Bonds funds from iShares - TLT tracks the ICE U.S. Treasury 20+ Year Bond Index while IEI tracks the ICE U.S. Treasury 3-7 Year Bond Index. Both are passively managed. Over the past 10 years, TLT returned -1.75%/yr vs 1.24%/yr for IEI. Their correlation of 0.82 suggests significant overlap in exposure. Both charge a 0.15% expense ratio.
Performance
TLT vs. IEI - Performance Comparison
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Returns By Period
In the year-to-date period, TLT achieves a 0.27% return, which is significantly higher than IEI's -0.30% return. Over the past 10 years, TLT has underperformed IEI with an annualized return of -1.75%, while IEI has yielded a comparatively higher 1.24% 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%
IEI
- 1D
- -0.12%
- 1M
- -0.00%
- YTD
- -0.30%
- 6M
- -0.00%
- 1Y
- 2.97%
- 3Y*
- 3.77%
- 5Y*
- 0.21%
- 10Y*
- 1.24%
TLT vs. IEI - 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% |
IEI iShares 3-7 Year Treasury Bond ETF | -0.30% | 6.96% | 1.81% | 4.42% | -9.51% | -2.54% | 6.95% | 5.71% | 1.36% | 1.22% |
Correlation
The correlation between TLT and IEI is 0.80, 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 | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.83 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.82 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.82 |
Correlation (All Time) Calculated using the full available price history since Jan 11, 2007 | 0.82 |
The correlation between TLT and IEI has been stable across timeframes, ranging from 0.80 to 0.83 - a consistent structural relationship.
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Return for Risk
TLT vs. IEI — Risk / Return Rank
TLT
IEI
TLT vs. IEI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and iShares 3-7 Year Treasury Bond ETF (IEI). 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 | IEI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.70 | ||
| Sortino ratioReturn per unit of downside risk | -1.02 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.17 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 0.38 | 1.19 | -0.81 |
| Martin ratioReturn relative to average drawdown | 0.92 | 3.35 | -2.43 |
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Drawdowns
TLT vs. IEI - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, which is greater than IEI's maximum drawdown of -14.60%. Use the drawdown chart below to compare losses from any high point for TLT and IEI.
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Drawdown Indicators
| TLT | IEI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -14.60% | -33.75% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -2.50% | -5.08% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -3.66% | -15.52% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -13.88% | -29.82% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -14.60% | -33.75% |
Current DrawdownCurrent decline from peak | -40.12% | -1.74% | -38.38% |
Average DrawdownAverage peak-to-trough decline | -13.84% | -2.67% | -11.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.14% | 0.89% | +2.25% |
Volatility
TLT vs. IEI - Volatility Comparison
iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.83% compared to iShares 3-7 Year Treasury Bond ETF (IEI) at 0.98%. This indicates that TLT's price experiences larger fluctuations and is considered to be riskier than IEI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLT | IEI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.83% | 0.98% | +1.85% |
Volatility (6M)Calculated over the trailing 6-month period | 6.64% | 2.18% | +4.46% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.68% | 3.00% | +6.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.85% | 4.78% | +11.07% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.91% | 3.93% | +10.98% |
TLT vs. IEI - Expense Ratio Comparison
Both TLT and IEI 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. IEI - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.56%, more than IEI's 3.64% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | 3.64% | 3.48% | 3.18% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% |
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 IEI have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.83%) compared to IEI (0.98%). In terms of maximum drawdown, TLT dropped -48.35% vs IEI's -14.60%.
On 10-year performance, IEI leads with 1.24% vs -1.75% for TLT. Both ETFs have the same 0.15% expense ratio. On volatility, IEI has been the lower-risk option at 0.98%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IEI has performed better with a 1.24% return vs -1.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT and IEI have the same expense ratio: 0.15% per year.
TLT has the higher dividend yield at 4.56%, compared with 3.64% for IEI.
TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while IEI tracks ICE U.S. Treasury 3-7 Year Bond Index.
IEI currently has the higher Sharpe Ratio (1.00 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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