TLT vs. VGK
TLT (iShares 20+ Year Treasury Bond ETF) and VGK (Vanguard FTSE Europe ETF) are both exchange-traded funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index, while VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, TLT returned -2.33%/yr vs 10.04%/yr for VGK. Their -0.20 correlation means they have often moved in opposite directions in the past. TLT charges 0.15%/yr vs 0.06%/yr for VGK.
Performance
TLT vs. VGK - Performance Comparison
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Returns By Period
In the year-to-date period, TLT achieves a -3.18% return, which is significantly lower than VGK's 10.75% return. Over the past 10 years, TLT has underperformed VGK with an annualized return of -2.33%, while VGK has yielded a comparatively higher 10.04% annualized return.
TLT
- 1D
- 0.33%
- 1M
- -3.49%
- 6M
- -2.86%
- YTD
- -3.18%
- 1Y
- -2.12%
- 3Y*
- -1.15%
- 5Y*
- -8.33%
- 10Y*
- -2.33%
- ALL TIME*
- 3.48%
VGK
- 1D
- 0.38%
- 1M
- 1.77%
- 6M
- 4.99%
- YTD
- 10.75%
- 1Y
- 24.53%
- 3Y*
- 17.52%
- 5Y*
- 9.15%
- 10Y*
- 10.04%
- ALL TIME*
- 6.49%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $2.39B | $2.06B | $2.20B | |
| $216.43M | $182.63M | $227.46M |
TLT vs. VGK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | -3.18% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
VGK Vanguard FTSE Europe ETF | 10.75% | 35.83% | 1.88% | 20.19% | -15.98% | 16.89% | 5.43% | 24.85% | -14.89% | 26.98% |
Correlation
The correlation between TLT and VGK is 0.37, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.37 |
Correlation (3Y) Balances recent behavior with more history. | 0.28 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.16 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.03 |
Correlation (All Time) Calculated using the full available price history since Mar 10, 2005 | -0.20 |
The correlation between TLT and VGK shifts across timeframes, from -0.20 (all time) to 0.37 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
TLT vs. VGK — Risk / Return Rank
TLT
VGK
TLT vs. VGK - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard FTSE Europe ETF (VGK). 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 | VGK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.79 | ||
| Sortino ratioReturn per unit of downside risk | -2.51 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.27 | -0.30 |
| Calmar ratioReturn relative to maximum drawdown | -0.28 | 2.04 | -2.31 |
| Martin ratioReturn relative to average drawdown | -0.59 | 7.76 | -8.35 |
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Drawdowns
TLT vs. VGK - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, smaller than the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for TLT and VGK.
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Drawdown Indicators
| TLT | VGK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -63.61% | +15.26% |
Max Drawdown (1Y)Largest decline over 1 year | -7.74% | -12.09% | +4.35% |
Max Drawdown (3Y)Largest decline over 3 years | -14.79% | -14.31% | -0.48% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -32.74% | -10.96% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -37.24% | -11.11% |
Current DrawdownCurrent decline from peak | -42.17% | -0.07% | -42.10% |
Average DrawdownAverage peak-to-trough decline | -14.00% | -13.25% | -0.75% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.60% | 3.17% | +0.43% |
Volatility
TLT vs. VGK - Volatility Comparison
The current volatility for iShares 20+ Year Treasury Bond ETF (TLT) is 2.51%, while Vanguard FTSE Europe ETF (VGK) has a volatility of 4.11%. This indicates that TLT experiences smaller price fluctuations and is considered to be less risky than VGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLT | VGK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.51% | 4.11% | -1.60% |
Volatility (6M)Calculated over the trailing 6-month period | 6.84% | 13.73% | -6.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.24% | 15.88% | -6.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.74% | 17.98% | -2.24% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.83% | 18.49% | -3.66% |
TLT vs. VGK - Expense Ratio Comparison
TLT has a 0.15% expense ratio, which is higher than VGK's 0.06% 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. VGK - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.75%, more than VGK's 2.82% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.75% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
VGK Vanguard FTSE Europe ETF | 2.82% | 2.86% | 3.61% | 3.15% | 3.25% | 3.05% | 2.11% | 3.27% | 3.95% | 2.70% | 3.52% | 3.25% |
Frequently Asked Questions
TLT and VGK have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGK has higher volatility (4.11%) compared to TLT (2.51%). In terms of maximum drawdown, TLT dropped -48.35% vs VGK's -63.61%.
On 10-year performance, VGK leads with 10.04% vs -2.33% for TLT. On fees, VGK is cheaper at 0.06% per year. On volatility, TLT has been the lower-risk option at 2.51%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VGK has performed better with a 10.04% return vs -2.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGK is cheaper with a 0.06% expense ratio, compared with 0.15% for TLT.
TLT has the higher dividend yield at 4.75%, compared with 2.82% for VGK.
TLT is categorized as Government Bonds, while VGK is Europe Equities. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while VGK tracks FTSE Developed Europe All Cap Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for TLT and 0.06% for VGK.
VGK currently has the higher Sharpe Ratio (1.55 vs -0.23), 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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