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 3.96%/yr vs -1.80%/yr for TLT. Their 0.61 correlation means they have sometimes moved together and sometimes differently. 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 0.61% return, which is significantly higher than TLT's -3.49% return.
UTWO
- 1D
- -0.07%
- 1M
- 0.01%
- 6M
- 0.44%
- YTD
- 0.61%
- 1Y
- 2.33%
- 3Y*
- 3.96%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 2.93%
TLT
- 1D
- -0.66%
- 1M
- -3.81%
- 6M
- -3.46%
- YTD
- -3.49%
- 1Y
- -2.45%
- 3Y*
- -1.80%
- 5Y*
- -8.18%
- 10Y*
- -2.38%
- ALL TIME*
- 3.47%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $2.33B | $2.02B | $2.19B | |
| $3.81M | $4.33M | $4.58M |
UTWO vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
UTWO US Treasury 2 Year Note ETF | 0.61% | 4.79% | 3.71% | 3.45% | -0.84% |
TLT iShares 20+ Year Treasury Bond ETF | -3.49% | 4.25% | -8.05% | 2.77% | -14.88% |
Correlation
The correlation between UTWO and TLT is 0.62, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.62 |
Correlation (3Y) Balances recent behavior with more history. | 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 0.62 - 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 | +2.21 | ||
| Sortino ratioReturn per unit of downside risk | +3.44 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 0.99 | +0.43 |
| Calmar ratioReturn relative to maximum drawdown | 3.21 | -0.14 | +3.35 |
| Martin ratioReturn relative to average drawdown | 11.11 | -0.30 | +11.41 |
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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% | -7.74% | +6.84% |
Max Drawdown (3Y)Largest decline over 3 years | -1.08% | -14.79% | +13.71% |
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 | -0.10% | -42.36% | +42.26% |
Average DrawdownAverage peak-to-trough decline | -0.48% | -13.99% | +13.51% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.26% | 3.57% | -3.31% |
Volatility
UTWO vs. TLT - Volatility Comparison
The current volatility for US Treasury 2 Year Note ETF (UTWO) is 0.40%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.46%. 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 | 0.40% | 2.46% | -2.06% |
Volatility (6M)Calculated over the trailing 6-month period | 1.07% | 6.85% | -5.78% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.38% | 9.32% | -7.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.05% | 15.74% | -13.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.05% | 14.83% | -12.78% |
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 3.84%, less than TLT's 4.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.34% | 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 | 3.54% | 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 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.46%) compared to UTWO (0.40%). In terms of maximum drawdown, UTWO dropped -2.04% vs TLT's -48.35%.
On 3-year performance, UTWO leads with 3.96% vs -1.80% for TLT. Both ETFs have the same 0.15% expense ratio. On volatility, UTWO has been the lower-risk option at 0.40%. 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 3.96% return vs -1.80%. 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 4.34%, compared with 3.54% 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 (2.10 vs -0.11), 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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