UTWO vs. TLT
Compare and contrast key facts about US Treasury 2 Year Note ETF (UTWO) and iShares 20+ Year Treasury Bond ETF (TLT).
UTWO and TLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. UTWO is a passively managed fund by US Benchmark Series that tracks the performance of the ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross. It was launched on Aug 8, 2022. 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. Both UTWO and TLT 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: UTWO or TLT.
Key characteristics
| UTWO | TLT | |
|---|---|---|
| YTD Return | 3.12% | -3.33% |
| 1Y Return | 5.09% | 9.94% |
| Sharpe Ratio | 2.54 | 0.49 |
| Sortino Ratio | 4.13 | 0.79 |
| Omega Ratio | 1.54 | 1.09 |
| Calmar Ratio | 4.82 | 0.16 |
| Martin Ratio | 13.27 | 1.23 |
| Ulcer Index | 0.37% | 6.00% |
| Daily Std Dev | 1.95% | 15.09% |
| Max Drawdown | -2.04% | -48.35% |
| Current Drawdown | -0.93% | -39.77% |
Correlation
The correlation between UTWO and TLT is 0.62, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
UTWO vs. TLT - Performance Comparison
In the year-to-date period, UTWO achieves a 3.12% return, which is significantly higher than TLT's -3.33% 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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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%.
Risk-Adjusted Performance
UTWO vs. TLT - Risk-Adjusted Performance 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.
Dividends
UTWO vs. TLT - Dividend Comparison
UTWO's dividend yield for the trailing twelve months is around 4.34%, more than TLT's 3.98% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
UTWO US Treasury 2 Year Note ETF | 4.34% | 4.39% | 1.22% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
TLT iShares 20+ Year Treasury Bond ETF | 3.98% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
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. For additional features, visit the drawdowns tool.
Volatility
UTWO vs. TLT - Volatility Comparison
The current volatility for US Treasury 2 Year Note ETF (UTWO) is 0.38%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 5.01%. 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.