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TLT vs. VGK
Performance
Return for Risk
Drawdowns
Volatility
Dividends

TLT vs. VGK

Last updated Jun 4, 2026

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 -1.66%/yr vs 9.26%/yr for VGK. At a correlation of -0.21, they often move in opposite directions. TLT charges 0.15%/yr vs 0.06%/yr for VGK.

Performance

TLT vs. VGK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard FTSE Europe ETF (VGK). 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 -0.27% return, which is significantly lower than VGK's 5.62% return. Over the past 10 years, TLT has underperformed VGK with an annualized return of -1.66%, while VGK has yielded a comparatively higher 9.26% annualized return.

TLT

1D
-0.40%
1M
0.81%
YTD
-0.27%
6M
-2.02%
1Y
4.93%
3Y*
-1.80%
5Y*
-6.31%
10Y*
-1.66%

VGK

1D
-1.19%
1M
2.79%
YTD
5.62%
6M
8.66%
1Y
18.01%
3Y*
16.32%
5Y*
8.24%
10Y*
9.26%
*Multi-year figures are annualized to reflect compound growth (CAGR)

TLT vs. VGK - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
VGK
Vanguard FTSE Europe ETF		5.62%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 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

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

0.35

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

0.29

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

0.14

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

-0.04

Correlation (All Time)
Calculated using the full available price history since Mar 11, 2005

-0.21

The correlation between TLT and VGK shifts across timeframes, from -0.21 (all time) to 0.35 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

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iShares 20+ Year Treasury Bond ETF

Vanguard FTSE Europe ETF

Often compared with TLT:
TLT vs. SPYTLT vs. IEFTLT vs. TMFTLT vs. BNDTLT vs. VGLTTLT vs. TLTWTLT vs. EDV
Often compared with VGK:
VGK vs. VEAVGK vs. IEURVGK vs. VXUSVGK vs. VOOVGK vs. VEUVGK vs. FEZVGK vs. SPEU

Return for Risk

TLT vs. VGK — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
TLT
TLT Risk / Return Rank: 1616
Overall Rank
TLT Sharpe Ratio Rank: 1616
Sharpe Ratio Rank
TLT Sortino Ratio Rank: 1515
Sortino Ratio Rank
TLT Omega Ratio Rank: 1515
Omega Ratio Rank
TLT Calmar Ratio Rank: 1717
Calmar Ratio Rank
TLT Martin Ratio Rank: 1616
Martin Ratio Rank
VGK
VGK Risk / Return Rank: 3131
Overall Rank
VGK Sharpe Ratio Rank: 3131
Sharpe Ratio Rank
VGK Sortino Ratio Rank: 3131
Sortino Ratio Rank
VGK Omega Ratio Rank: 3030
Omega Ratio Rank
VGK Calmar Ratio Rank: 3030
Calmar Ratio Rank
VGK Martin Ratio Rank: 3535
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. 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.

TLTVGKDifference
Sharpe ratioReturn per unit of total volatility
0.51
1.18

-0.67

Sortino ratioReturn per unit of downside risk
0.80
1.72

-0.92

Omega ratioGain probability vs. loss probability

1.09

1.21

-0.12

Calmar ratioReturn relative to maximum drawdown

0.65

1.50

-0.84

Martin ratioReturn relative to average drawdown

1.63

5.56

-3.94

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. VGK - Sharpe Ratio Comparison

The current TLT Sharpe Ratio is 0.51, which is lower than the VGK Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of TLT and VGK, 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

TLTVGKDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.51

1.18

-0.67

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.40

0.46

-0.86

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

-0.11

0.49

-0.60

Sharpe Ratio (All Time)

Calculated using the full available price history

0.26

0.28

-0.02

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

TLTVGKDifference

Max Drawdown

Largest peak-to-trough decline

-48.35%

-63.61%

+15.26%

Max Drawdown (1Y)

Largest decline over 1 year

-7.58%

-12.09%

+4.51%

Max Drawdown (3Y)

Largest decline over 3 years

-19.18%

-14.31%

-4.87%

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 Drawdown

Current decline from peak

-40.44%

-2.41%

-38.03%

Average Drawdown

Average peak-to-trough decline

-13.82%

-13.34%

-0.48%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.04%

3.25%

-0.21%

Volatility

TLT vs. VGK - Volatility Comparison

The current volatility for iShares 20+ Year Treasury Bond ETF (TLT) is 2.76%, while Vanguard FTSE Europe ETF (VGK) has a volatility of 5.73%. 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

TLTVGKDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.76%

5.73%

-2.97%

Volatility (6M)

Calculated over the trailing 6-month period

6.50%

12.78%

-6.28%

Volatility (1Y)

Calculated over the trailing 1-year period

9.77%

15.40%

-5.63%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.87%

17.90%

-2.03%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.91%

18.96%

-4.05%

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 4.59%, more than VGK's 2.82% yield.

PositionTTM20252024202320222021202020192018201720162015
TLT
iShares 20+ Year Treasury Bond ETF		4.59%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 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VGK has higher volatility (5.73%) compared to TLT (2.76%). In terms of maximum drawdown, TLT dropped -48.35% vs VGK's -63.61%.

On 10-year performance, VGK leads with 9.26% vs -1.66% for TLT. On fees, VGK is cheaper at 0.06% per year. On volatility, TLT has been the lower-risk option at 2.76%. 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 9.26% return vs -1.66%. 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 4.59%, 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 (1.18 vs 0.51), 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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