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VEA vs. TLT
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VEA vs. TLT

Last updated Jun 4, 2026

VEA (Vanguard FTSE Developed Markets ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, VEA returned 10.17%/yr vs -1.66%/yr for TLT. At a correlation of -0.22, they often move in opposite directions. VEA charges 0.03%/yr vs 0.15%/yr for TLT.

Performance

VEA vs. TLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Developed Markets ETF (VEA) and iShares 20+ Year Treasury Bond ETF (TLT). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VEA achieves a 14.92% return, which is significantly higher than TLT's -0.27% return. Over the past 10 years, VEA has outperformed TLT with an annualized return of 10.17%, while TLT has yielded a comparatively lower -1.66% annualized return.

VEA

1D
-0.90%
1M
5.54%
YTD
14.92%
6M
18.15%
1Y
32.48%
3Y*
19.77%
5Y*
9.60%
10Y*
10.17%

TLT

1D
-0.40%
1M
0.81%
YTD
-0.27%
6M
-2.02%
1Y
4.93%
3Y*
-1.80%
5Y*
-6.31%
10Y*
-1.66%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VEA vs. TLT - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VEA
Vanguard FTSE Developed Markets ETF		14.92%35.16%3.15%17.93%-15.34%11.66%9.71%22.62%-14.75%26.42%
TLT
iShares 20+ Year Treasury Bond ETF		-0.27%4.25%-8.05%2.77%-31.23%-4.60%18.15%14.12%-1.61%9.18%

Correlation

The correlation between VEA and TLT is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.34

Correlation (3Y)
Calculated over the trailing 3-year period

0.29

Correlation (5Y)
Calculated over the trailing 5-year period

0.14

Correlation (10Y)
Calculated over the trailing 10-year period

-0.04

Correlation (All Time)
Calculated using the full available price history since Jul 27, 2007

-0.22

The correlation between VEA and TLT shifts across timeframes, from -0.22 (all time) to 0.34 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard FTSE Developed Markets ETF

iShares 20+ Year Treasury Bond ETF

Often compared with VEA:
VEA vs. VXUSVEA vs. VWOVEA vs. VOOVEA vs. VEUVEA vs. SCHFVEA vs. IEFAVEA vs. VTI
Often compared with TLT:
TLT vs. SPYTLT vs. IEFTLT vs. TMFTLT vs. BNDTLT vs. VGLTTLT vs. TLTWTLT vs. EDV

Return for Risk

VEA vs. TLT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VEA
VEA Risk / Return Rank: 5959
Overall Rank
VEA Sharpe Ratio Rank: 6060
Sharpe Ratio Rank
VEA Sortino Ratio Rank: 6060
Sortino Ratio Rank
VEA Omega Ratio Rank: 6060
Omega Ratio Rank
VEA Calmar Ratio Rank: 5555
Calmar Ratio Rank
VEA Martin Ratio Rank: 6060
Martin Ratio Rank
TLT
TLT Risk / Return Rank: 1616
Overall Rank
TLT Sharpe Ratio Rank: 1616
Sharpe Ratio Rank
TLT Sortino Ratio Rank: 1515
Sortino Ratio Rank
TLT Omega Ratio Rank: 1515
Omega Ratio Rank
TLT Calmar Ratio Rank: 1717
Calmar Ratio Rank
TLT Martin Ratio Rank: 1616
Martin Ratio Rank
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.

VEA vs. TLT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) 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.

VEATLTDifference
Sharpe ratioReturn per unit of total volatility
2.09
0.51

+1.58

Sortino ratioReturn per unit of downside risk
2.87
0.80

+2.07

Omega ratioGain probability vs. loss probability

1.38

1.09

+0.29

Calmar ratioReturn relative to maximum drawdown

2.81

0.65

+2.15

Martin ratioReturn relative to average drawdown

10.94

1.63

+9.32

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEA vs. TLT - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 2.09, which is higher than the TLT Sharpe Ratio of 0.51. The chart below compares the historical Sharpe Ratios of VEA and TLT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VEATLTDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.09

0.51

+1.58

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.58

-0.40

+0.98

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.59

-0.11

+0.70

Sharpe Ratio (All Time)

Calculated using the full available price history

0.25

0.26

-0.01

Drawdowns

VEA vs. TLT - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, which is greater than TLT's maximum drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for VEA and TLT.

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Drawdown Indicators

VEATLTDifference

Max Drawdown

Largest peak-to-trough decline

-60.68%

-48.35%

-12.33%

Max Drawdown (1Y)

Largest decline over 1 year

-11.63%

-7.58%

-4.05%

Max Drawdown (3Y)

Largest decline over 3 years

-13.45%

-19.18%

+5.73%

Max Drawdown (5Y)

Largest decline over 5 years

-29.71%

-43.70%

+13.99%

Max Drawdown (10Y)

Largest decline over 10 years

-35.73%

-48.35%

+12.62%

Current Drawdown

Current decline from peak

-0.90%

-40.44%

+39.54%

Average Drawdown

Average peak-to-trough decline

-13.29%

-13.82%

+0.53%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.98%

3.04%

-0.06%

Volatility

VEA vs. TLT - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) has a higher volatility of 5.66% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.76%. This indicates that VEA's price experiences larger fluctuations and is considered to be riskier 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

VEATLTDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.66%

2.76%

+2.90%

Volatility (6M)

Calculated over the trailing 6-month period

13.32%

6.50%

+6.82%

Volatility (1Y)

Calculated over the trailing 1-year period

15.66%

9.77%

+5.89%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.55%

15.87%

+0.68%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.36%

14.91%

+2.45%

VEA vs. TLT - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than TLT's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VEA vs. TLT - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.62%, less than TLT's 4.59% yield.

PositionTTM20252024202320222021202020192018201720162015
TLT
iShares 20+ Year Treasury Bond ETF		4.59%4.43%4.30%3.38%2.67%1.50%1.50%2.27%2.63%2.43%2.60%2.61%
VEA
Vanguard FTSE Developed Markets ETF		2.62%3.22%3.35%3.15%2.91%3.16%2.04%3.04%3.35%2.77%3.05%2.92%

Frequently Asked Questions

VEA and TLT have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VEA has higher volatility (5.66%) compared to TLT (2.76%). In terms of maximum drawdown, VEA dropped -60.68% vs TLT's -48.35%.

On 10-year performance, VEA leads with 10.17% vs -1.66% for TLT. On fees, VEA is cheaper at 0.03% per year. On volatility, TLT has been the lower-risk option at 2.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VEA has performed better with a 10.17% return vs -1.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VEA is cheaper with a 0.03% expense ratio, compared with 0.15% for TLT.

TLT has the higher dividend yield at 4.59%, compared with 2.62% for VEA.

VEA is categorized as Foreign Large Cap Equities, while TLT is Government Bonds. VEA tracks FTSE Developed All Cap ex US Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VEA and 0.15% for TLT.

VEA currently has the higher Sharpe Ratio (2.09 vs 0.51), 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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