IEF vs TLT
iShares 7-10 Year Treasury Bond ETF vs iShares 20+ Year Treasury Bond ETF
Which is better, IEF or TLT?
IEF has been ahead.
IEF led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IEF | TLT |
|---|---|---|
| Expense Ratio | 0.15%Tie | 0.15%Tie |
| AUM | $41.8B | $46.9B |
| Dividend Yield | 3.94% | 4.73% |
| Holdings | 16 | 48 |
| YTD Return | -3.62%Best | -4.71% |
| 1Y Return | -3.08%Best | -5.79% |
| 3Y Return (annualized) | +3.62%Best | +1.18% |
| 5Y Return (annualized) | -1.75%Best | -8.14% |
| Volatility (annualized) | 6.6%Best | 13.3% |
| Max Drawdown | -23.9%Best | -48.7% |
| $10,000 over 5 years | $9,155Best | $6,541 |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) |
| Category | Fixed Income | Fixed Income |
| Style | Long Term Government Bond | Long Term Government Bond |
| Inception | Jul 22, 2002 | Jul 22, 2002 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2002 to Sep 23, 2026 (24.2 years).
IEF vs TLT growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 24.2 years both funds cover.
IEF vs TLT Performance
iShares 7-10 Year Treasury Bond ETF (IEF) is an ETF from iShares by BlackRock (US) and iShares 20+ Year Treasury Bond ETF (TLT) is an ETF from iShares by BlackRock (US). Over the past year IEF returned -3.08% while TLT returned -5.79%. Year to date, IEF is down 3.62% versus a loss of 4.71% for TLT.
Over three years, IEF compounded at +3.62% per year against +1.18% for TLT; over five years the annualized figures are -1.75% and -8.14% respectively. Across the full 24-year window we track, IEF has the edge at +3.22% annualized vs +0.72%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TLT has been the more volatile fund, with annualized monthly volatility of 13.3% 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 -48.7% for TLT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 3.94% against 4.73% for TLT.
Holdings Overlap
We hold position weights for 12 holdings in IEF and 44 in TLT, totalling 70.1% and 87.6% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 1 positions appear in both.
1 positions in common, counted across the 12 positions we hold weights for in IEF and 44 in TLT, against full books of 16 and 48.
Top Shared Holdings
| Stock | Weight in IEF | Weight in TLT | Difference |
|---|---|---|---|
| XTSLABlackrock Cash Funds: Treasury, Sl Agency Shares | 1.11% | 1.09% | 0.02% |
You are not choosing between two funds in isolation.
Whichever of IEF and TLT you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IEF or TLT?
IEF has an expense ratio of 0.15% while TLT charges 0.15%. At the precision these are quoted to, they cost the same.
Which performed better, IEF or TLT?
Over the past year IEF returned -3.08% vs -5.79% for TLT, so IEF leads on 1-year performance. Over the longest common window we track (24 years), IEF annualized +3.22% vs +0.72% for TLT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IEF or TLT?
TLT has been the more volatile fund at 13.3% 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. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, IEF or TLT?
IEF yields 3.94% while TLT yields 4.73%, so TLT currently pays the higher dividend yield.
Is TLT better than IEF?
IEF led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. Which one suits a particular account depends on what it is for. This is information, not a recommendation.