IEF vs VTI
iShares 7-10 Year Treasury Bond ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IEF | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $43.3B | $666.9B | |
| Dividend Yield | 3.94% | 1.07% | |
| Holdings | 15 | 3,543 | |
| YTD Return | -0.72% | +13.86% | |
| 1Y Return | +0.92% | +20.74% | |
| 3Y Return (annualized) | +3.91% | +21.66% | |
| 5Y Return (annualized) | -1.34% | +11.90% | |
| 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 Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IEF returned +0.92% while VTI returned +20.74%. Year to date, IEF is down 0.72% versus a gain of 13.86% for VTI.
Over three years, IEF compounded at +3.91% per year against +21.66% for VTI; over five years the annualized figures are -1.34% and +11.90% respectively. Across the full 24-year window we track, VTI has the edge at +8.11% 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 3.94% against 1.07% for VTI.
Holdings Overlap
IEF and VTI share 0 holdings out of 2798 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 +0.92% vs +20.74% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (24 years), IEF annualized +3.35% vs +8.11% 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 2798 unique securities.
Which pays a higher dividend, IEF or VTI?
IEF yields 3.94% while VTI yields 1.07%, so IEF currently pays the higher dividend yield.
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