TLT vs. MSFT
TLT (iShares 20+ Year Treasury Bond ETF) is Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, TLT returned -1.85%/yr vs 24.64%/yr for MSFT. At a correlation of -0.17, they often move in opposite directions.
Performance
TLT vs. MSFT - Performance Comparison
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Returns By Period
In the year-to-date period, TLT achieves a -1.08% return, which is significantly higher than MSFT's -14.48% return. Over the past 10 years, TLT has underperformed MSFT with an annualized return of -1.85%, while MSFT has yielded a comparatively higher 24.64% annualized return.
TLT
- 1D
- -0.52%
- 1M
- -1.31%
- YTD
- -1.08%
- 6M
- -1.51%
- 1Y
- 3.67%
- 3Y*
- -2.05%
- 5Y*
- -6.70%
- 10Y*
- -1.85%
MSFT
- 1D
- -1.18%
- 1M
- -0.60%
- YTD
- -14.48%
- 6M
- -15.77%
- 1Y
- -11.77%
- 3Y*
- 8.85%
- 5Y*
- 11.09%
- 10Y*
- 24.64%
TLT vs. MSFT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | -1.08% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
MSFT Microsoft Corporation | -14.48% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
Correlation
The correlation between TLT and MSFT is 0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.08 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.04 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.05 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.03 |
Correlation (All Time) Calculated using the full available price history since Jul 29, 2002 | -0.17 |
The correlation between TLT and MSFT shifts across timeframes, from -0.17 (all time) to 0.08 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
TLT vs. MSFT — Risk / Return Rank
TLT
MSFT
TLT vs. MSFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and Microsoft Corporation (MSFT). 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 | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.85 | ||
| Sortino ratioReturn per unit of downside risk | +1.11 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 0.94 | +0.13 |
| Calmar ratioReturn relative to maximum drawdown | 0.49 | -0.35 | +0.83 |
| Martin ratioReturn relative to average drawdown | 1.19 | -0.73 | +1.92 |
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 | MSFT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.38 | -0.47 | +0.85 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.42 | 0.42 | -0.84 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.12 | 0.91 | -1.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.25 | 0.74 | -0.49 |
Drawdowns
TLT vs. MSFT - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for TLT and MSFT.
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Drawdown Indicators
| TLT | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -69.38% | +21.03% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -33.91% | +26.33% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -33.91% | +14.73% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -37.15% | -6.55% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -37.15% | -11.20% |
Current DrawdownCurrent decline from peak | -40.92% | -23.56% | -17.36% |
Average DrawdownAverage peak-to-trough decline | -13.83% | -21.78% | +7.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.08% | 16.13% | -13.05% |
Volatility
TLT vs. MSFT - Volatility Comparison
The current volatility for iShares 20+ Year Treasury Bond ETF (TLT) is 2.65%, while Microsoft Corporation (MSFT) has a volatility of 10.25%. This indicates that TLT experiences smaller price fluctuations and is considered to be less risky than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLT | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.65% | 10.25% | -7.60% |
Volatility (6M)Calculated over the trailing 6-month period | 6.51% | 22.36% | -15.85% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.60% | 25.31% | -15.71% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.85% | 26.64% | -10.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.91% | 27.06% | -12.15% |
Dividends
TLT vs. MSFT - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.63%, more than MSFT's 0.86% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | 0.86% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
TLT iShares 20+ Year Treasury Bond ETF | 4.63% | 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 MSFT have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFT has higher volatility (10.25%) compared to TLT (2.65%). In terms of maximum drawdown, TLT dropped -48.35% vs MSFT's -69.38%.
TLT currently has the higher Sharpe Ratio (0.38 vs -0.47), 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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