VGLT vs. IEI
VGLT (Vanguard Long-Term Treasury ETF) and IEI (iShares 3-7 Year Treasury Bond ETF) are both Government Bonds funds - VGLT tracks the Bloomberg U.S. Long Treasury Index while IEI tracks the ICE U.S. Treasury 3-7 Year Bond Index. Both are passively managed. Over the past 10 years, VGLT returned -1.21%/yr vs 1.24%/yr for IEI. Their correlation of 0.82 suggests significant overlap in exposure. VGLT charges 0.03%/yr vs 0.15%/yr for IEI.
Performance
VGLT vs. IEI - Performance Comparison
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Returns By Period
In the year-to-date period, VGLT achieves a 0.03% return, which is significantly higher than IEI's -0.30% return. Over the past 10 years, VGLT has underperformed IEI with an annualized return of -1.21%, while IEI has yielded a comparatively higher 1.24% annualized return.
VGLT
- 1D
- -0.27%
- 1M
- 2.62%
- YTD
- 0.03%
- 6M
- 0.49%
- 1Y
- 4.27%
- 3Y*
- -0.30%
- 5Y*
- -5.52%
- 10Y*
- -1.21%
IEI
- 1D
- -0.12%
- 1M
- 0.54%
- YTD
- -0.30%
- 6M
- -0.00%
- 1Y
- 3.16%
- 3Y*
- 3.77%
- 5Y*
- 0.21%
- 10Y*
- 1.24%
VGLT vs. IEI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGLT Vanguard Long-Term Treasury ETF | 0.03% | 5.35% | -6.28% | 3.27% | -29.34% | -4.98% | 17.57% | 14.30% | -1.54% | 8.64% |
IEI iShares 3-7 Year Treasury Bond ETF | -0.30% | 6.96% | 1.81% | 4.42% | -9.51% | -2.54% | 6.95% | 5.71% | 1.36% | 1.22% |
Correlation
The correlation between VGLT and IEI is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.83 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.85 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.84 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.83 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.82 |
The correlation between VGLT and IEI has been stable across timeframes, ranging from 0.82 to 0.85 - a consistent structural relationship.
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Return for Risk
VGLT vs. IEI — Risk / Return Rank
VGLT
IEI
VGLT vs. IEI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Treasury ETF (VGLT) and iShares 3-7 Year Treasury Bond ETF (IEI). 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.
| VGLT | IEI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.62 | ||
| Sortino ratioReturn per unit of downside risk | -0.91 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.17 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 0.47 | 1.19 | -0.72 |
| Martin ratioReturn relative to average drawdown | 1.19 | 3.35 | -2.16 |
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Drawdowns
VGLT vs. IEI - Drawdown Comparison
The maximum VGLT drawdown since its inception was -46.18%, which is greater than IEI's maximum drawdown of -14.60%. Use the drawdown chart below to compare losses from any high point for VGLT and IEI.
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Drawdown Indicators
| VGLT | IEI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.18% | -14.60% | -31.58% |
Max Drawdown (1Y)Largest decline over 1 year | -7.01% | -2.50% | -4.51% |
Max Drawdown (3Y)Largest decline over 3 years | -17.68% | -3.66% | -14.02% |
Max Drawdown (5Y)Largest decline over 5 years | -40.98% | -13.88% | -27.10% |
Max Drawdown (10Y)Largest decline over 10 years | -46.18% | -14.60% | -31.58% |
Current DrawdownCurrent decline from peak | -36.55% | -1.74% | -34.81% |
Average DrawdownAverage peak-to-trough decline | -15.09% | -2.67% | -12.42% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.78% | 0.89% | +1.89% |
Volatility
VGLT vs. IEI - Volatility Comparison
Vanguard Long-Term Treasury ETF (VGLT) has a higher volatility of 2.69% compared to iShares 3-7 Year Treasury Bond ETF (IEI) at 0.98%. This indicates that VGLT's price experiences larger fluctuations and is considered to be riskier than IEI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGLT | IEI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.69% | 0.98% | +1.71% |
Volatility (6M)Calculated over the trailing 6-month period | 6.09% | 2.18% | +3.91% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.78% | 3.00% | +5.78% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.57% | 4.78% | +9.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 13.82% | 3.93% | +9.89% |
VGLT vs. IEI - Expense Ratio Comparison
VGLT has a 0.03% expense ratio, which is lower than IEI'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
VGLT vs. IEI - Dividend Comparison
VGLT's dividend yield for the trailing twelve months is around 4.59%, more than IEI's 3.64% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | 3.64% | 3.48% | 3.18% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% |
VGLT Vanguard Long-Term Treasury ETF | 4.59% | 4.44% | 4.33% | 3.33% | 2.84% | 1.82% | 2.15% | 2.46% | 2.71% | 2.55% | 2.69% | 3.21% |
Frequently Asked Questions
VGLT and IEI have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGLT has higher volatility (2.69%) compared to IEI (0.98%). In terms of maximum drawdown, VGLT dropped -46.18% vs IEI's -14.60%.
On 10-year performance, IEI leads with 1.24% vs -1.21% for VGLT. On fees, VGLT is cheaper at 0.03% per year. On volatility, IEI has been the lower-risk option at 0.98%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IEI has performed better with a 1.24% return vs -1.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGLT is cheaper with a 0.03% expense ratio, compared with 0.15% for IEI.
VGLT has the higher dividend yield at 4.59%, compared with 3.64% for IEI.
VGLT tracks Bloomberg U.S. Long Treasury Index, while IEI tracks ICE U.S. Treasury 3-7 Year Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VGLT and 0.15% for IEI.
IEI currently has the higher Sharpe Ratio (1.00 vs 0.38), 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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