UTWO vs. TLT
UTWO (US Treasury 2 Year Note ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both Government Bonds funds - UTWO tracks the ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross while TLT tracks the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 3 years, UTWO returned 3.85%/yr vs -1.89%/yr for TLT. A 0.61 correlation means they provide meaningful diversification when combined. Both charge a 0.15% expense ratio.
Performance
UTWO vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, UTWO achieves a 0.33% return, which is significantly lower than TLT's 0.77% return.
UTWO
- 1D
- 0.09%
- 1M
- 0.15%
- YTD
- 0.33%
- 6M
- 0.51%
- 1Y
- 2.73%
- 3Y*
- 3.85%
- 5Y*
- —
- 10Y*
- —
TLT
- 1D
- 0.13%
- 1M
- 2.20%
- YTD
- 0.77%
- 6M
- 0.38%
- 1Y
- 3.87%
- 3Y*
- -1.89%
- 5Y*
- -6.59%
- 10Y*
- -1.74%
UTWO vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
UTWO US Treasury 2 Year Note ETF | 0.33% | 4.79% | 3.71% | 3.45% | -0.84% |
TLT iShares 20+ Year Treasury Bond ETF | 0.77% | 4.25% | -8.05% | 2.77% | -14.88% |
Correlation
The correlation between UTWO and TLT is 0.63, 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 | 0.63 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.60 |
Correlation (All Time) Calculated using the full available price history since Aug 9, 2022 | 0.61 |
The correlation between UTWO and TLT has been stable across timeframes, ranging from 0.60 to 0.63 - a consistent structural relationship.
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Return for Risk
UTWO vs. TLT — Risk / Return Rank
UTWO
TLT
UTWO vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for US Treasury 2 Year Note ETF (UTWO) and iShares 20+ Year Treasury Bond ETF (TLT). 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.
| UTWO | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.59 | ||
| Sortino ratioReturn per unit of downside risk | +2.50 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.07 | +0.33 |
| Calmar ratioReturn relative to maximum drawdown | 3.05 | 0.51 | +2.53 |
| Martin ratioReturn relative to average drawdown | 10.64 | 1.22 | +9.42 |
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Drawdowns
UTWO vs. TLT - Drawdown Comparison
The maximum UTWO drawdown since its inception was -2.04%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for UTWO and TLT.
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Drawdown Indicators
| UTWO | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -2.04% | -48.35% | +46.31% |
Max Drawdown (1Y)Largest decline over 1 year | -0.90% | -7.58% | +6.68% |
Max Drawdown (3Y)Largest decline over 3 years | -1.08% | -19.18% | +18.10% |
Max Drawdown (5Y)Largest decline over 5 years | — | -43.70% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -48.35% | — |
Current DrawdownCurrent decline from peak | -0.38% | -39.82% | +39.44% |
Average DrawdownAverage peak-to-trough decline | -0.48% | -13.87% | +13.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.26% | 3.18% | -2.92% |
Volatility
UTWO vs. TLT - Volatility Comparison
The current volatility for US Treasury 2 Year Note ETF (UTWO) is 0.48%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.20%. This indicates that UTWO experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| UTWO | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.48% | 2.20% | -1.72% |
Volatility (6M)Calculated over the trailing 6-month period | 1.00% | 6.62% | -5.62% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.37% | 9.48% | -8.11% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.07% | 15.82% | -13.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.07% | 14.88% | -12.81% |
UTWO vs. TLT - Expense Ratio Comparison
Both UTWO and TLT 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
UTWO vs. TLT - Dividend Comparison
UTWO's dividend yield for the trailing twelve months is around 3.50%, less than TLT's 4.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.54% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
UTWO US Treasury 2 Year Note ETF | 3.50% | 3.63% | 4.22% | 4.39% | 1.22% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
UTWO and TLT have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.20%) compared to UTWO (0.48%). In terms of maximum drawdown, UTWO dropped -2.04% vs TLT's -48.35%.
On 3-year performance, UTWO leads with 3.85% vs -1.89% for TLT. Both ETFs have the same 0.15% expense ratio. On volatility, UTWO has been the lower-risk option at 0.48%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, UTWO has performed better with a 3.85% return vs -1.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
UTWO and TLT have the same expense ratio: 0.15% per year.
TLT has the higher dividend yield at 4.54%, compared with 3.50% for UTWO.
UTWO tracks ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. They also come from different issuers: US Benchmark Series and iShares.
UTWO currently has the higher Sharpe Ratio (2.00 vs 0.41), 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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