VBND vs. IEF
VBND (Vident U.S. Bond Strategy ETF) and IEF (iShares 7-10 Year Treasury Bond ETF) are both exchange-traded funds - VBND is a Intermediate Core-Plus Bond fund tracking the Vident Core U.S. Bond Strategy Index, while IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index. Both are passively managed. Over the past 10 years, VBND returned 1.54%/yr vs 0.51%/yr for IEF. Their correlation of 0.84 suggests significant overlap in exposure. VBND charges 0.41%/yr vs 0.15%/yr for IEF.
Performance
VBND vs. IEF - Performance Comparison
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Returns By Period
In the year-to-date period, VBND achieves a 0.39% return, which is significantly higher than IEF's -0.66% return. Over the past 10 years, VBND has outperformed IEF with an annualized return of 1.54%, while IEF has yielded a comparatively lower 0.51% annualized return.
VBND
- 1D
- -0.39%
- 1M
- 0.94%
- YTD
- 0.39%
- 6M
- 1.07%
- 1Y
- 4.94%
- 3Y*
- 4.62%
- 5Y*
- 0.37%
- 10Y*
- 1.54%
IEF
- 1D
- -0.38%
- 1M
- 0.46%
- YTD
- -0.66%
- 6M
- -0.64%
- 1Y
- 3.24%
- 3Y*
- 2.55%
- 5Y*
- -1.20%
- 10Y*
- 0.51%
VBND vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VBND Vident U.S. Bond Strategy ETF | 0.39% | 7.31% | 1.26% | 8.16% | -14.18% | -0.43% | 5.37% | 9.50% | -0.96% | 3.15% |
IEF iShares 7-10 Year Treasury Bond ETF | -0.66% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
Correlation
The correlation between VBND and IEF is 0.80, 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 | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.88 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.91 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.84 |
Correlation (All Time) Calculated using the full available price history since Oct 16, 2014 | 0.84 |
The correlation between VBND and IEF shifts across timeframes, from 0.80 (1 year) to 0.91 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VBND vs. IEF — Risk / Return Rank
VBND
IEF
VBND vs. IEF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vident U.S. Bond Strategy ETF (VBND) and iShares 7-10 Year Treasury Bond ETF (IEF). 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.
| VBND | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.48 | ||
| Sortino ratioReturn per unit of downside risk | +0.72 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.12 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.76 | 0.80 | +0.96 |
| Martin ratioReturn relative to average drawdown | 4.66 | 2.17 | +2.49 |
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Drawdowns
VBND vs. IEF - Drawdown Comparison
The maximum VBND drawdown since its inception was -18.97%, smaller than the maximum IEF drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for VBND and IEF.
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Drawdown Indicators
| VBND | IEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.97% | -23.93% | +4.96% |
Max Drawdown (1Y)Largest decline over 1 year | -2.82% | -4.07% | +1.25% |
Max Drawdown (3Y)Largest decline over 3 years | -4.60% | -7.74% | +3.14% |
Max Drawdown (5Y)Largest decline over 5 years | -18.97% | -21.40% | +2.43% |
Max Drawdown (10Y)Largest decline over 10 years | -18.97% | -23.93% | +4.96% |
Current DrawdownCurrent decline from peak | -0.88% | -11.35% | +10.47% |
Average DrawdownAverage peak-to-trough decline | -4.20% | -5.36% | +1.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.06% | 1.49% | -0.43% |
Volatility
VBND vs. IEF - Volatility Comparison
The current volatility for Vident U.S. Bond Strategy ETF (VBND) is 1.08%, while iShares 7-10 Year Treasury Bond ETF (IEF) has a volatility of 1.41%. This indicates that VBND experiences smaller price fluctuations and is considered to be less risky than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VBND | IEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.08% | 1.41% | -0.33% |
Volatility (6M)Calculated over the trailing 6-month period | 2.96% | 3.49% | -0.53% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.26% | 4.73% | -0.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.11% | 7.71% | -1.60% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.46% | 6.63% | -1.17% |
VBND vs. IEF - Expense Ratio Comparison
VBND has a 0.41% expense ratio, which is higher than IEF's 0.15% expense ratio.
Dividends
VBND vs. IEF - Dividend Comparison
VBND's dividend yield for the trailing twelve months is around 4.26%, more than IEF's 3.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.90% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
VBND Vident U.S. Bond Strategy ETF | 4.26% | 4.22% | 4.41% | 3.88% | 2.55% | 1.56% | 1.98% | 3.14% | 2.82% | 2.00% | 3.12% | 1.49% |
Frequently Asked Questions
VBND and IEF have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEF has higher volatility (1.41%) compared to VBND (1.08%). In terms of maximum drawdown, VBND dropped -18.97% vs IEF's -23.93%.
On 10-year performance, VBND leads with 1.54% vs 0.51% for IEF. On fees, IEF is cheaper at 0.15% per year. On volatility, VBND has been the lower-risk option at 1.08%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VBND has performed better with a 1.54% return vs 0.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEF is cheaper with a 0.15% expense ratio, compared with 0.41% for VBND.
VBND has the higher dividend yield at 4.26%, compared with 3.90% for IEF.
VBND is categorized as Intermediate Core-Plus Bond, while IEF is Government Bonds. VBND tracks Vident Core U.S. Bond Strategy Index, while IEF tracks ICE U.S. Treasury 7-10 Year Bond Index. They also come from different issuers: Vident and iShares. Their fees differ too: 0.41% for VBND and 0.15% for IEF.
VBND currently has the higher Sharpe Ratio (1.17 vs 0.69), 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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