IEF vs VTI
IEF vs VTI
iShares 7-10 Year Treasury Bond ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | IEF | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $47.3B | $663.5B | |
| Dividend Yield | 3.88% | 1.07% | |
| Holdings | 15 | 3,543 | |
| YTD Return | -0.98% | +13.57% | |
| 1Y Return | +0.94% | +24.23% | |
| 3Y Return (annualized) | +3.50% | +20.73% | |
| 5Y Return (annualized) | -1.49% | +12.24% | |
| Volatility (annualized) | 6.6% | 15.3% | |
| Max Drawdown | -23.9% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2002 | May 24, 2001 |
IEF vs VTI Performance
iShares 7-10 Year Treasury Bond ETF (IEF) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IEF returned +0.94% while VTI returned +24.23%. Year to date, IEF is down 0.98% versus a gain of 13.57% for VTI.
Over three years, IEF compounded at +3.50% per year against +20.73% for VTI; over five years the annualized figures are -1.49% and +12.24% respectively. Across the full 24-year window we track, VTI has the edge at +8.12% annualized vs +3.35%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 -0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEF charges 0.15% per year while VTI charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, IEF currently yields 3.88% against 1.07% for VTI.
Holdings Overlap
IEF and VTI share 0 holdings out of 2795 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IEF or VTI?
IEF has an expense ratio of 0.15% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, IEF or VTI?
Over the past year IEF returned +0.94% vs +24.23% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (24 years), IEF annualized +3.35% vs +8.12% for VTI. Past performance does not guarantee future results.
Which is riskier, IEF or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 6.6% for IEF. Worst drawdown: IEF -23.9% vs VTI -56.6%.
Should I hold both IEF and VTI?
IEF and VTI have a monthly-return correlation of -0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEF and VTI?
IEF and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2795 unique securities.
Which pays a higher dividend, IEF or VTI?
IEF yields 3.88% while VTI yields 1.07%, so IEF currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.