TLT vs. TMF
Compare and contrast key facts about iShares 20+ Year Treasury Bond ETF (TLT) and Direxion Daily 20-Year Treasury Bull 3X (TMF).
TLT and TMF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002. TMF is a passively managed fund by Direxion that tracks the performance of the NYSE 20 Year Plus Treasury Bond Index (300%). It was launched on Apr 16, 2009. Both TLT and TMF are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TLT or TMF.
Key characteristics
| TLT | TMF | |
|---|---|---|
| YTD Return | -9.72% | -31.05% |
| 1Y Return | -14.30% | -49.42% |
| 3Y Return (Ann) | -11.96% | -42.44% |
| 5Y Return (Ann) | -4.37% | -25.49% |
| 10Y Return (Ann) | 0.13% | -10.40% |
| Sharpe Ratio | -0.76 | -0.94 |
| Daily Std Dev | 17.24% | 50.36% |
| Max Drawdown | -48.35% | -92.18% |
| Current Drawdown | -43.75% | -90.98% |
Correlation
The correlation between TLT and TMF is 1.00, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
TLT vs. TMF - Performance Comparison
In the year-to-date period, TLT achieves a -9.72% return, which is significantly higher than TMF's -31.05% return. Over the past 10 years, TLT has outperformed TMF with an annualized return of 0.13%, while TMF has yielded a comparatively lower -10.40% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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TLT vs. TMF - Expense Ratio Comparison
TLT has a 0.15% expense ratio, which is lower than TMF's 1.09% expense ratio.
Risk-Adjusted Performance
TLT vs. TMF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and Direxion Daily 20-Year Treasury Bull 3X (TMF). 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.
Dividends
TLT vs. TMF - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 3.92%, less than TMF's 4.06% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 3.92% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
TMF Direxion Daily 20-Year Treasury Bull 3X | 4.06% | 2.82% | 1.62% | 0.13% | 0.48% | 0.94% | 1.49% | 0.41% | 0.00% | 0.00% | 0.00% | 0.57% |
Drawdowns
TLT vs. TMF - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, smaller than the maximum TMF drawdown of -92.18%. Use the drawdown chart below to compare losses from any high point for TLT and TMF. For additional features, visit the drawdowns tool.
Volatility
TLT vs. TMF - Volatility Comparison
The current volatility for iShares 20+ Year Treasury Bond ETF (TLT) is 4.26%, while Direxion Daily 20-Year Treasury Bull 3X (TMF) has a volatility of 12.63%. This indicates that TLT experiences smaller price fluctuations and is considered to be less risky than TMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.