IEF vs TLT: fees, holdings and returns

IEF holds US Treasury bonds that mature in 7 to 10 years. TLT holds Treasury bonds that mature in more than 20 years. TLT swings much more when interest rates change. Over the same dates since July 2002, IEF returned about 3.4% a year and TLT returned about 3.4% a year.

Written by the Tactfolio research team. Fund facts checked October 16, 2026. Prices through October 16, 2026.

IEF

Yearly fee
0.15%
about $15 on $10,000
Return per year
3.4%
since July 2002
Worst drop
−23.9%
since 2002
Started trading
Jul 2002
iShares (BlackRock)

TLT

Yearly fee
0.15%
about $15 on $10,000
Return per year
3.4%
since July 2002
Worst drop
−48.4%
since 2002
Started trading
Jul 2002
iShares (BlackRock)

Key points

  • Both charge 0.15% a year.
  • IEF started trading in July 2002. TLT started in July 2002.
  • Worst drops since 2002: IEF −23.9%, TLT −48.4%.
  • Daily correlation: 0.91 (1 means they always move together).

What is the difference between IEF and TLT?#

Both hold only US government bonds, so the risk of the government not paying is very low. The difference is time. Bonds that mature far in the future lose more value when interest rates rise and gain more when rates fall. That is why TLT had much bigger swings than IEF, including a deep fall when rates rose in 2022.

FactIEFTLT
Full nameiShares 7-10 Year Treasury Bond ETFiShares 20+ Year Treasury Bond ETF
IssueriShares (BlackRock)iShares (BlackRock)
Expense ratio0.15% a year0.15% a year
Started tradingJuly 22, 2002July 22, 2002
TracksICE US Treasury 7-10 Year Bond IndexICE US Treasury 20+ Year Bond Index
Holdings17 holdings as of October 15, 202647 holdings as of October 15, 2026
TypeUS bonds, ETFUS bonds, ETF

Fund facts checked on the iShares (BlackRock) IEF page and the iShares (BlackRock) TLT page.

Is IEF or TLT cheaper?#

Both charge 0.15% a year. On $10,000, that is about $15 a year for IEF and $15 for TLT. The fund takes its fee out of its own value a little each day, so you never get a bill.

IEF vs TLT performance over the same dates#

$10k$20k20032006200920122015201820212024
IEFTLTGrowth of $10,000, log scale, with dividends reinvested. Past results do not tell you what happens next.

Both funds are measured from July 2002 to October 2026, the dates both traded. IEF returned about 3.4% a year and TLT returned about 3.4% a year.

MeasureIEFTLT
$10,000 grew to$22,605$22,605
Total return126.0%126.0%
Return per year (CAGR)3.4%3.4%
Worst drop from a high−23.9%−48.4%
Volatility (how much it swings)6.8%14.2%
Last 12 months−3.6%−8.3%
Last 3 years, per year3.7%1.8%
Last 5 years, per year−1.7%−8.0%
Last 10 years, per year0.4%−2.1%

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

IEF and TLT returns by year#

YearIEFTLT
2026 (part of the year)−3.1%−5.0%
20258.0%4.3%
2024−0.6%−8.1%
20233.6%2.8%
2022−15.2%−31.2%
2021−3.3%−4.6%
202010.0%18.1%
20198.0%14.1%
20181.0%−1.6%
20172.5%9.2%
20161.0%1.2%
20151.5%−1.8%
20149.1%27.3%
2013−6.1%−13.4%
20123.7%2.4%
201115.7%34.0%
20109.4%9.0%
2009−6.6%−21.8%
200817.9%34.0%
200710.4%10.3%
20062.5%0.7%
20052.6%8.6%
20044.1%8.7%
20035.3%1.6%
2002 (part of the year)7.6%11.1%

Which fell further in bad times?#

A drawdown is how far a fund falls from its last high point. IEF’s worst fall was −23.9%, from August 4, 2020 to October 19, 2023. By October 16, 2026 it had not yet climbed back to that high.

TLT’s worst fall was −48.4%, from August 4, 2020 to October 19, 2023. By October 16, 2026 it had not yet climbed back to that high.

Their daily moves had a correlation of 0.91. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.

Why people choose IEF or TLT#

IEF. People who want Treasury bonds with moderate swings tend to pick IEF. Many classic strategies use it as their safe asset.

TLT. People who want the biggest move from falling interest rates, and can accept big drops when rates rise, tend to pick TLT.

Strategies that hold IEF or TLT#

These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.

Other funds like IEF and TLT#

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: IEF alternatives and TLT alternatives.

Test a mix of IEF and TLT#

Open the builder, add IEF and TLT, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for IEF and TLT, or see more ETF comparisons.

The details#

Both funds use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund’s first day, so neither gets a head start. Correlation uses daily returns over the same days. Read what a backtest simulates for more on these measures.

Research and test it

Common questions#

Why did TLT fall so much?#

TLT holds bonds that mature in 20 or more years. Those bonds lose the most value when interest rates rise, and rates rose quickly from 2022.

Are Treasury bond funds safe?#

The US government is very likely to pay its bonds. But the funds can still lose value when interest rates rise, as the worst drop figures above show.

Which is cheaper, IEF or TLT?#

Both charge 0.15% a year. Fees come from each issuer and were checked on October 16, 2026.

Which did better, IEF or TLT?#

From July 2002 to October 2026, IEF returned about 3.4% a year and TLT returned about 3.4% a year, with dividends reinvested. Their worst drops were −23.9% and −48.4%. Past returns do not tell you what comes next.

Sources#