VTIVX vs. IEI
VTIVX (Vanguard Target Retirement 2045 Fund) and IEI (iShares 3-7 Year Treasury Bond ETF) are both funds - VTIVX is a Target Retirement Date fund managed by Vanguard, while IEI is a Government Bonds fund tracking the ICE U.S. Treasury 3-7 Year Bond Index. Over the past 10 years, VTIVX returned 11.31%/yr vs 1.24%/yr for IEI. At a correlation of -0.21, they often move in opposite directions. VTIVX charges 0.08%/yr vs 0.15%/yr for IEI.
Performance
VTIVX vs. IEI - Performance Comparison
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Returns By Period
In the year-to-date period, VTIVX achieves a 8.87% return, which is significantly higher than IEI's -0.30% return. Over the past 10 years, VTIVX has outperformed IEI with an annualized return of 11.31%, while IEI has yielded a comparatively lower 1.24% annualized return.
VTIVX
- 1D
- 2.05%
- 1M
- 0.08%
- YTD
- 8.87%
- 6M
- 9.59%
- 1Y
- 21.67%
- 3Y*
- 17.25%
- 5Y*
- 8.91%
- 10Y*
- 11.31%
IEI
- 1D
- -0.12%
- 1M
- -0.00%
- YTD
- -0.30%
- 6M
- -0.00%
- 1Y
- 2.97%
- 3Y*
- 3.77%
- 5Y*
- 0.21%
- 10Y*
- 1.24%
VTIVX vs. IEI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTIVX Vanguard Target Retirement 2045 Fund | 8.87% | 20.01% | 13.68% | 19.72% | -17.38% | 16.16% | 16.31% | 24.94% | -7.89% | 19.16% |
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 VTIVX and IEI is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.29 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.22 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.16 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.02 |
Correlation (All Time) Calculated using the full available price history since Jan 11, 2007 | -0.21 |
The correlation between VTIVX and IEI shifts across timeframes, from -0.21 (all time) to 0.29 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VTIVX vs. IEI — Risk / Return Rank
VTIVX
IEI
VTIVX vs. IEI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2045 Fund (VTIVX) 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.
| VTIVX | IEI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.01 | ||
| Sortino ratioReturn per unit of downside risk | +1.25 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.17 | +0.20 |
| Calmar ratioReturn relative to maximum drawdown | 2.68 | 1.19 | +1.49 |
| Martin ratioReturn relative to average drawdown | 11.59 | 3.35 | +8.24 |
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Drawdowns
VTIVX vs. IEI - Drawdown Comparison
The maximum VTIVX drawdown since its inception was -51.69%, which is greater than IEI's maximum drawdown of -14.60%. Use the drawdown chart below to compare losses from any high point for VTIVX and IEI.
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Drawdown Indicators
| VTIVX | IEI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -51.69% | -14.60% | -37.09% |
Max Drawdown (1Y)Largest decline over 1 year | -8.30% | -2.50% | -5.80% |
Max Drawdown (3Y)Largest decline over 3 years | -13.40% | -3.66% | -9.74% |
Max Drawdown (5Y)Largest decline over 5 years | -25.10% | -13.88% | -11.22% |
Max Drawdown (10Y)Largest decline over 10 years | -31.42% | -14.60% | -16.82% |
Current DrawdownCurrent decline from peak | -2.00% | -1.74% | -0.26% |
Average DrawdownAverage peak-to-trough decline | -6.33% | -2.67% | -3.66% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.92% | 0.89% | +1.03% |
Volatility
VTIVX vs. IEI - Volatility Comparison
Vanguard Target Retirement 2045 Fund (VTIVX) has a higher volatility of 4.51% compared to iShares 3-7 Year Treasury Bond ETF (IEI) at 0.98%. This indicates that VTIVX'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
| VTIVX | IEI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.51% | 0.98% | +3.53% |
Volatility (6M)Calculated over the trailing 6-month period | 9.13% | 2.18% | +6.95% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.10% | 3.00% | +8.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.58% | 4.78% | +8.80% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.82% | 3.93% | +10.89% |
VTIVX vs. IEI - Expense Ratio Comparison
VTIVX has a 0.08% 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
VTIVX vs. IEI - Dividend Comparison
VTIVX's dividend yield for the trailing twelve months is around 2.29%, less 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% |
VTIVX Vanguard Target Retirement 2045 Fund | 2.29% | 2.50% | 2.36% | 2.27% | 2.75% | 15.40% | 1.90% | 2.23% | 2.52% | 0.04% | 2.47% | 3.29% |
Frequently Asked Questions
VTIVX and IEI have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTIVX has higher volatility (4.51%) compared to IEI (0.98%). In terms of maximum drawdown, VTIVX dropped -51.69% vs IEI's -14.60%.
VTIVX currently has the higher Sharpe Ratio (2.01 vs 1.00), 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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