IEF vs TLT
IEF vs TLT
iShares 7-10 Year Treasury Bond ETF vs iShares 20+ Year Treasury Bond ETF
Quick Verdict
IEF delivered stronger 1-year returns. TLT offers more diversification with 44 holdings.
Side-by-Side Comparison
| Metric | IEF | TLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.15% | |
| AUM | $47.3B | $43.0B | |
| Dividend Yield | 3.88% | 4.53% | |
| Holdings | 15 | 48 | |
| YTD Return | -1.04% | -2.68% | |
| 1Y Return | +0.80% | -2.04% | |
| 3Y Return (annualized) | +3.49% | -0.34% | |
| 5Y Return (annualized) | -1.57% | -8.06% | |
| Volatility (annualized) | 6.6% | 13.4% | |
| Max Drawdown | -23.9% | -48.7% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Jul 22, 2002 | Jul 22, 2002 |
IEF vs TLT Performance
iShares 7-10 Year Treasury Bond ETF (IEF) is a ETF from iShares by BlackRock (US) and iShares 20+ Year Treasury Bond ETF (TLT) is a ETF from iShares by BlackRock (US). Over the past year IEF returned +0.80% while TLT returned -2.04%. Year to date, IEF is down 1.04% versus a loss of 2.68% for TLT.
Over three years, IEF compounded at +3.49% per year against -0.34% for TLT; over five years the annualized figures are -1.57% and -8.06% respectively. Across the full 24-year window we track, IEF has the edge at +3.35% annualized vs +0.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TLT has been the more volatile fund, with annualized monthly volatility of 13.4% compared with 6.6% for IEF. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -23.9% for IEF and -48.7% for TLT. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IEF charges 0.15% per year while TLT charges 0.15%. On a $10,000 position that is $15 vs $15 annually. On income, IEF currently yields 3.88% against 4.53% for TLT.
Holdings Overlap
IEF and TLT share 1 holdings out of 55 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IEF | Weight in TLT | Difference |
|---|---|---|---|
| XTSLA | 0.01% | 0.03% | 0.02% |
Frequently Asked Questions
Which is cheaper, IEF or TLT?
IEF has an expense ratio of 0.15% while TLT charges 0.15%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, IEF or TLT?
Over the past year IEF returned +0.80% vs -2.04% for TLT, so IEF leads on 1-year performance. Over the longest common window we track (24 years), IEF annualized +3.35% vs +0.81% for TLT. Past performance does not guarantee future results.
Which is riskier, IEF or TLT?
TLT has been the more volatile fund at 13.4% annualized versus 6.6% for IEF. Worst drawdown: IEF -23.9% vs TLT -48.7%.
Should I hold both IEF and TLT?
IEF and TLT have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IEF and TLT?
IEF and TLT share 1 common holdings with a 0.0% weight overlap. Combined, they hold 55 unique securities.
Which pays a higher dividend, IEF or TLT?
IEF yields 3.88% while TLT yields 4.53%, so TLT currently pays the higher dividend yield.
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