UTRE vs. GOVZ

Last updated Jun 23, 2026

UTRE (US Treasury 3 Year Note ETF) and GOVZ (iShares 25+ Year Treasury STRIPS Bond ETF) are both Government Bonds funds - UTRE tracks the ICE BofA Current 3-Year US Treasury Index - Benchmark TR Gross while GOVZ tracks the ICE BofA Long US Treasury Principal STRIPS Index. Both are passively managed. Over the past 3 years, UTRE returned 3.74%/yr vs -7.62%/yr for GOVZ. A 0.63 correlation means they provide meaningful diversification when combined. Both charge a 0.15% expense ratio.

Performance

UTRE vs. GOVZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in US Treasury 3 Year Note ETF (UTRE) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, UTRE achieves a -0.21% return, which is significantly lower than GOVZ's 1.03% return.

UTRE

• 1D: -0.14%
• 1M: 0.06%
• YTD: -0.21%
• 6M: -0.08%
• 1Y: 2.49%
• 3Y*: 3.74%
• 5Y*: —
• 10Y*: —

GOVZ

• 1D: -1.16%
• 1M: 4.15%
• YTD: 1.03%
• 6M: 0.48%
• 1Y: 3.35%
• 3Y*: -7.62%
• 5Y*: -11.84%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

UTRE vs. GOVZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
UTRE US Treasury 3 Year Note ETF	-0.21%	5.68%	2.96%	2.34%
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF	1.03%	-1.81%	-16.24%	-5.11%

Correlation

The correlation between UTRE and GOVZ is 0.59, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (All Time) Calculated using the full available price history since Mar 28, 2023	0.63

The correlation between UTRE and GOVZ has been stable across timeframes, ranging from 0.59 to 0.63 - a consistent structural relationship.

Return for Risk

UTRE vs. GOVZ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

UTRE

UTRE Risk / Return Rank: 35
UTRE Sharpe Ratio Rank: 35
UTRE Sortino Ratio Rank: 37
UTRE Omega Ratio Rank: 33
UTRE Calmar Ratio Rank: 35
UTRE Martin Ratio Rank: 33

GOVZ

GOVZ Risk / Return Rank: 11
GOVZ Sharpe Ratio Rank: 11
GOVZ Sortino Ratio Rank: 11
GOVZ Omega Ratio Rank: 10
GOVZ Calmar Ratio Rank: 11
GOVZ Martin Ratio Rank: 11

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.

UTRE vs. GOVZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for US Treasury 3 Year Note ETF (UTRE) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ). 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.

	UTRE	GOVZ	Difference
Sharpe ratio: Return per unit of total volatility	1.23	0.21	+1.01
Sortino ratio: Return per unit of downside risk	1.88	0.42	+1.46
Omega ratio: Gain probability vs. loss probability	1.22	1.05	+0.18
Calmar ratio: Return relative to maximum drawdown	1.74	0.24	+1.50
Martin ratio: Return relative to average drawdown	4.68	0.52	+4.16

UTRE vs. GOVZ - Sharpe Ratio Comparison

The current UTRE Sharpe Ratio is 1.23, which is higher than the GOVZ Sharpe Ratio of 0.21. The chart below compares the historical Sharpe Ratios of UTRE and GOVZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

UTRE vs. GOVZ - Drawdown Comparison

The maximum UTRE drawdown since its inception was -2.80%, smaller than the maximum GOVZ drawdown of -59.65%. Use the drawdown chart below to compare losses from any high point for UTRE and GOVZ.

Drawdown Indicators

	UTRE	GOVZ	Difference
Max Drawdown Largest peak-to-trough decline	-2.80%	-59.65%	+56.85%
Max Drawdown (1Y) Largest decline over 1 year	-1.44%	-14.16%	+12.72%
Max Drawdown (3Y) Largest decline over 3 years	-1.86%	-28.72%	+26.86%
Max Drawdown (5Y) Largest decline over 5 years	—	-57.63%	—
Current Drawdown Current decline from peak	-1.19%	-55.61%	+54.42%
Average Drawdown Average peak-to-trough decline	-0.78%	-40.02%	+39.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.53%	6.48%	-5.95%

Volatility

UTRE vs. GOVZ - Volatility Comparison

The current volatility for US Treasury 3 Year Note ETF (UTRE) is 0.68%, while iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) has a volatility of 3.62%. This indicates that UTRE experiences smaller price fluctuations and is considered to be less risky than GOVZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UTRE	GOVZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.68%	3.62%	-2.94%
Volatility (6M) Calculated over the trailing 6-month period	1.50%	10.72%	-9.22%
Volatility (1Y) Calculated over the trailing 1-year period	2.04%	15.76%	-13.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.71%	23.86%	-21.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.71%	23.29%	-20.58%

UTRE vs. GOVZ - Expense Ratio Comparison

Both UTRE and GOVZ have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

UTRE vs. GOVZ - Dividend Comparison

UTRE's dividend yield for the trailing twelve months is around 3.50%, less than GOVZ's 5.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF	5.08%	5.00%	4.68%	3.84%	3.69%	1.76%	0.39%
UTRE US Treasury 3 Year Note ETF	3.50%	3.60%	4.01%	3.14%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both UTRE and GOVZ in my portfolio?

UTRE and GOVZ have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, UTRE or GOVZ?

GOVZ has higher volatility (3.62%) compared to UTRE (0.68%). In terms of maximum drawdown, UTRE dropped -2.80% vs GOVZ's -59.65%.

Which ETF is better, UTRE or GOVZ?

On 3-year performance, UTRE leads with 3.74% vs -7.62% for GOVZ. Both ETFs have the same 0.15% expense ratio. On volatility, UTRE has been the lower-risk option at 0.68%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UTRE or GOVZ?

Over the 3-year period, UTRE has performed better with a 3.74% return vs -7.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UTRE or GOVZ?

UTRE and GOVZ have the same expense ratio: 0.15% per year.

Which ETF pays a higher dividend yield, UTRE or GOVZ?

GOVZ has the higher dividend yield at 5.08%, compared with 3.50% for UTRE.

What is the main difference between UTRE and GOVZ?

UTRE tracks ICE BofA Current 3-Year US Treasury Index - Benchmark TR Gross, while GOVZ tracks ICE BofA Long US Treasury Principal STRIPS Index. They also come from different issuers: US Benchmark Series and iShares.

Which has better risk-adjusted returns?

UTRE currently has the higher Sharpe Ratio (1.23 vs 0.21), 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.