XBB vs. IEF
Compare and contrast key facts about BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB) and iShares 7-10 Year Treasury Bond ETF (IEF).
XBB and IEF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XBB is a passively managed fund by BondBloxx that tracks the performance of the ICE BofA BB US Cash Pay High Yield Constrained Index. It was launched on May 24, 2022. IEF is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 7-10 Year Treasury Bond Index. It was launched on Jul 26, 2002. Both XBB and IEF are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XBB or IEF.
Key characteristics
| XBB | IEF | |
|---|---|---|
| YTD Return | 6.79% | 4.60% |
| 1Y Return | 13.13% | 9.80% |
| Sharpe Ratio | 2.51 | 1.21 |
| Daily Std Dev | 5.19% | 7.79% |
| Max Drawdown | -8.87% | -23.93% |
| Current Drawdown | 0.00% | -13.04% |
Correlation
The correlation between XBB and IEF is 0.51, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
XBB vs. IEF - Performance Comparison
In the year-to-date period, XBB achieves a 6.79% return, which is significantly higher than IEF's 4.60% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XBB vs. IEF - Expense Ratio Comparison
XBB has a 0.20% expense ratio, which is higher than IEF's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
XBB vs. IEF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB) 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.
Dividends
XBB vs. IEF - Dividend Comparison
XBB's dividend yield for the trailing twelve months is around 6.22%, more than IEF's 3.24% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XBB BondBloxx BB Rated USD High Yield Corporate Bond ETF | 6.22% | 6.15% | 3.73% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
IEF iShares 7-10 Year Treasury Bond ETF | 3.24% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% | 2.05% | 1.77% |
Drawdowns
XBB vs. IEF - Drawdown Comparison
The maximum XBB drawdown since its inception was -8.87%, smaller than the maximum IEF drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for XBB and IEF. For additional features, visit the drawdowns tool.
Volatility
XBB vs. IEF - Volatility Comparison
The current volatility for BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB) is 0.94%, while iShares 7-10 Year Treasury Bond ETF (IEF) has a volatility of 1.48%. This indicates that XBB 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.