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TLT vs. PCY
Performance
Return for Risk
Drawdowns
Volatility
Dividends

TLT vs. PCY

Last updated Jun 9, 2026

TLT (iShares 20+ Year Treasury Bond ETF) and PCY (Invesco Emerging Markets Sovereign Debt ETF) are both exchange-traded funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index, while PCY is a Emerging Markets Bonds fund tracking the DB Emerging Market USD Liquid Balanced Index. Both are passively managed. Over the past 10 years, TLT returned -1.85%/yr vs 2.55%/yr for PCY. At a 0.24 correlation, their price movements are largely independent. TLT charges 0.15%/yr vs 0.50%/yr for PCY.

Performance

TLT vs. PCY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 20+ Year Treasury Bond ETF (TLT) and Invesco Emerging Markets Sovereign Debt ETF (PCY). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, TLT achieves a -1.08% return, which is significantly lower than PCY's 1.26% return. Over the past 10 years, TLT has underperformed PCY with an annualized return of -1.85%, while PCY has yielded a comparatively higher 2.55% 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%

PCY

1D
-0.33%
1M
-0.74%
YTD
1.26%
6M
1.62%
1Y
13.56%
3Y*
10.81%
5Y*
0.99%
10Y*
2.55%
*Multi-year figures are annualized to reflect compound growth (CAGR)

TLT vs. PCY - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
PCY
Invesco Emerging Markets Sovereign Debt ETF		1.26%16.31%2.55%18.48%-24.47%-4.30%2.29%17.66%-6.16%9.71%

Correlation

The correlation between TLT and PCY is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.71

Correlation (3Y)
Calculated over the trailing 3-year period

0.75

Correlation (5Y)
Calculated over the trailing 5-year period

0.63

Correlation (10Y)
Calculated over the trailing 10-year period

0.46

Correlation (All Time)
Calculated using the full available price history since Oct 11, 2007

0.24

Over the past year, TLT and PCY have become more correlated (0.71) than their long-term average of 0.24, meaning their price movements have been converging.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares 20+ Year Treasury Bond ETF

Invesco Emerging Markets Sovereign Debt ETF

Often compared with TLT:
TLT vs. SPYTLT vs. IEFTLT vs. TMFTLT vs. BNDTLT vs. VGLTTLT vs. TLTWTLT vs. EDV
Often compared with PCY:
PCY vs. EMBPCY vs. VWOBPCY vs. ELDPCY vs. EMHYPCY vs. DFEMXPCY vs. CMFPCY vs. FEMB

Return for Risk

TLT vs. PCY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
TLT
TLT Risk / Return Rank: 1515
Overall Rank
TLT Sharpe Ratio Rank: 1616
Sharpe Ratio Rank
TLT Sortino Ratio Rank: 1515
Sortino Ratio Rank
TLT Omega Ratio Rank: 1414
Omega Ratio Rank
TLT Calmar Ratio Rank: 1515
Calmar Ratio Rank
TLT Martin Ratio Rank: 1515
Martin Ratio Rank
PCY
PCY Risk / Return Rank: 5959
Overall Rank
PCY Sharpe Ratio Rank: 6161
Sharpe Ratio Rank
PCY Sortino Ratio Rank: 6262
Sortino Ratio Rank
PCY Omega Ratio Rank: 6161
Omega Ratio Rank
PCY Calmar Ratio Rank: 5252
Calmar Ratio Rank
PCY Martin Ratio Rank: 5858
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TLT vs. PCY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and Invesco Emerging Markets Sovereign Debt ETF (PCY). 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.

TLTPCYDifference
Sharpe ratioReturn per unit of total volatility
0.38
1.83

-1.44

Sortino ratioReturn per unit of downside risk
0.62
2.61

-1.99

Omega ratioGain probability vs. loss probability

1.07

1.34

-0.27

Calmar ratioReturn relative to maximum drawdown

0.49

2.31

-1.82

Martin ratioReturn relative to average drawdown

1.19

9.34

-8.14

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TLT vs. PCY - Sharpe Ratio Comparison

The current TLT Sharpe Ratio is 0.38, which is lower than the PCY Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of TLT and PCY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

TLTPCYDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.38

1.83

-1.44

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.42

0.08

-0.50

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

-0.12

0.20

-0.32

Sharpe Ratio (All Time)

Calculated using the full available price history

0.25

0.29

-0.04

Drawdowns

TLT vs. PCY - Drawdown Comparison

The maximum TLT drawdown since its inception was -48.35%, roughly equal to the maximum PCY drawdown of -49.13%. Use the drawdown chart below to compare losses from any high point for TLT and PCY.

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Drawdown Indicators

TLTPCYDifference

Max Drawdown

Largest peak-to-trough decline

-48.35%

-49.13%

+0.78%

Max Drawdown (1Y)

Largest decline over 1 year

-7.58%

-5.91%

-1.67%

Max Drawdown (3Y)

Largest decline over 3 years

-19.18%

-11.52%

-7.66%

Max Drawdown (5Y)

Largest decline over 5 years

-43.70%

-37.17%

-6.53%

Max Drawdown (10Y)

Largest decline over 10 years

-48.35%

-37.78%

-10.57%

Current Drawdown

Current decline from peak

-40.92%

-1.23%

-39.69%

Average Drawdown

Average peak-to-trough decline

-13.83%

-6.97%

-6.86%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.08%

1.46%

+1.62%

Volatility

TLT vs. PCY - Volatility Comparison

iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.65% compared to Invesco Emerging Markets Sovereign Debt ETF (PCY) at 2.20%. This indicates that TLT's price experiences larger fluctuations and is considered to be riskier than PCY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

TLTPCYDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.65%

2.20%

+0.45%

Volatility (6M)

Calculated over the trailing 6-month period

6.51%

5.83%

+0.68%

Volatility (1Y)

Calculated over the trailing 1-year period

9.60%

7.46%

+2.14%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.85%

13.17%

+2.68%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.91%

12.95%

+1.96%

TLT vs. PCY - Expense Ratio Comparison

TLT has a 0.15% expense ratio, which is lower than PCY's 0.50% expense ratio.

Dividends

TLT vs. PCY - Dividend Comparison

TLT's dividend yield for the trailing twelve months is around 4.63%, less than PCY's 5.91% yield.

PositionTTM20252024202320222021202020192018201720162015
PCY
Invesco Emerging Markets Sovereign Debt ETF		5.91%5.93%6.65%6.48%6.81%4.80%4.45%4.78%4.93%4.80%5.19%5.46%
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 PCY have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

TLT has higher volatility (2.65%) compared to PCY (2.20%). In terms of maximum drawdown, TLT dropped -48.35% vs PCY's -49.13%.

On 10-year performance, PCY leads with 2.55% vs -1.85% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, PCY has been the lower-risk option at 2.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, PCY has performed better with a 2.55% return vs -1.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

TLT is cheaper with a 0.15% expense ratio, compared with 0.50% for PCY.

PCY has the higher dividend yield at 5.91%, compared with 4.63% for TLT.

TLT is categorized as Government Bonds, while PCY is Emerging Markets Bonds. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while PCY tracks DB Emerging Market USD Liquid Balanced Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.15% for TLT and 0.50% for PCY.

PCY currently has the higher Sharpe Ratio (1.83 vs 0.38), 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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