# IEF vs TLT: fees, holdings and returns compared

> IEF vs TLT: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

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](https://tactfolio.com/about/editorial-policy). Fund facts checked October 16, 2026. Prices through October 16, 2026.

## 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.

| Fact | IEF | TLT |
| --- | --- | --- |
| Full name | iShares 7-10 Year Treasury Bond ETF | iShares 20+ Year Treasury Bond ETF |
| Issuer | iShares (BlackRock) | iShares (BlackRock) |
| Expense ratio | 0.15% a year | 0.15% a year |
| Started trading | July 22, 2002 | July 22, 2002 |
| Tracks | ICE US Treasury 7-10 Year Bond Index | ICE US Treasury 20+ Year Bond Index |
| Holdings | 17 holdings as of October 15, 2026 | 47 holdings as of October 15, 2026 |
| Type | US bonds, ETF | US bonds, ETF |

Fund facts checked on the [iShares (BlackRock) IEF page](https://www.ishares.com/us/products/239456/ishares-7-10-year-treasury-bond-etf) and the [iShares (BlackRock) TLT page](https://www.ishares.com/us/products/239454/ishares-20-year-treasury-bond-etf).

## 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

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.

| Measure | IEF | TLT |
| --- | --- | --- |
| $10,000 grew to | $22,605 | $22,605 |
| Total return | 126.0% | 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 year | 3.7% | 1.8% |
| Last 5 years, per year | −1.7% | −8.0% |
| Last 10 years, per year | 0.4% | −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

| Year | IEF | TLT |
| --- | --- | --- |
| 2026 (part of the year) | −3.1% | −5.0% |
| 2025 | 8.0% | 4.3% |
| 2024 | −0.6% | −8.1% |
| 2023 | 3.6% | 2.8% |
| 2022 | −15.2% | −31.2% |
| 2021 | −3.3% | −4.6% |
| 2020 | 10.0% | 18.1% |
| 2019 | 8.0% | 14.1% |
| 2018 | 1.0% | −1.6% |
| 2017 | 2.5% | 9.2% |
| 2016 | 1.0% | 1.2% |
| 2015 | 1.5% | −1.8% |
| 2014 | 9.1% | 27.3% |
| 2013 | −6.1% | −13.4% |
| 2012 | 3.7% | 2.4% |
| 2011 | 15.7% | 34.0% |
| 2010 | 9.4% | 9.0% |
| 2009 | −6.6% | −21.8% |
| 2008 | 17.9% | 34.0% |
| 2007 | 10.4% | 10.3% |
| 2006 | 2.5% | 0.7% |
| 2005 | 2.6% | 8.6% |
| 2004 | 4.1% | 8.7% |
| 2003 | 5.3% | 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.

- [Hybrid Asset Allocation (HAA)](https://tactfolio.com/strategies/hybrid-asset-allocation.md), by Wouter Keller and JW Keuning, 2023 (holds IEF and TLT)
- [HAA Simple: Hybrid Asset Allocation with one asset](https://tactfolio.com/strategies/hybrid-asset-allocation-simple.md), by Wouter Keller and JW Keuning, 2023 (holds IEF)
- [Bold Asset Allocation (BAA)](https://tactfolio.com/strategies/bold-asset-allocation.md), by Wouter Keller, 2022 (holds IEF and TLT)
- [Vigilant Asset Allocation (VAA)](https://tactfolio.com/strategies/vigilant-asset-allocation.md), by Wouter Keller and JW Keuning, 2017 (holds IEF)
- [Defensive Asset Allocation (DAA)](https://tactfolio.com/strategies/defensive-asset-allocation.md), by Wouter Keller and JW Keuning, 2018 (holds IEF and TLT)
- [Protective Asset Allocation (PAA)](https://tactfolio.com/strategies/protective-asset-allocation.md), by Wouter Keller and JW Keuning, 2016 (holds IEF and TLT)
- [Adaptive Asset Allocation (AAA)](https://tactfolio.com/strategies/adaptive-asset-allocation.md), by Adam Butler, Michael Philbrick, Rodrigo Gordillo, and David Varadi, 2012 (holds IEF and TLT)
- [Global Tactical Asset Allocation (GTAA 5)](https://tactfolio.com/strategies/global-tactical-asset-allocation.md), by Mebane Faber, 2007 (holds IEF)
- [Vigilant Asset Allocation G12 (VAA-G12)](https://tactfolio.com/strategies/vigilant-asset-allocation-g12.md), by Wouter Keller and JW Keuning, 2017 (holds IEF and TLT)
- [Bold Asset Allocation G4 (BAA aggressive)](https://tactfolio.com/strategies/bold-asset-allocation-g4.md), by Wouter Keller, 2022 (holds IEF and TLT)
- [GTAA 13: Faber’s 13-asset tactical allocation](https://tactfolio.com/strategies/gtaa-13.md), by Mebane Faber, 2013 (holds IEF and TLT)
- [GTAA Aggressive 3 (Faber GTAA AGG3)](https://tactfolio.com/strategies/gtaa-aggressive-3.md), by Mebane Faber, 2013 (holds IEF and TLT)
- [GTAA Aggressive 6 (Faber GTAA AGG6)](https://tactfolio.com/strategies/gtaa-aggressive-6.md), by Mebane Faber, 2013 (holds IEF and TLT)
- [Ivy Portfolio rotation (Faber’s relative strength model)](https://tactfolio.com/strategies/ivy-portfolio-rotation.md), by Mebane Faber and Eric Richardson, 2009 (holds IEF)
- [12-Month High Switch (Meb Faber)](https://tactfolio.com/strategies/12-month-high-switch.md), by Mebane Faber, 2020 (holds IEF)
- [Papa Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/papa-bear-portfolio.md), by Brian Livingston, 2018 (holds IEF and TLT)
- [Gold Cross-Asset Momentum (gold and Treasury rule)](https://tactfolio.com/strategies/gold-cross-asset-momentum.md), by Cyril Dujava (Quantpedia), 2026 (holds IEF)
- [US Cross-Asset Momentum (stock and Treasury timing)](https://tactfolio.com/strategies/cross-asset-momentum.md), by Aleksi Pitkäjärvi, Matti Suominen, and Lauri Vaittinen, 2016 (holds IEF)
- [US Risk Parity Trend-Following (The Trend is Our Friend)](https://tactfolio.com/strategies/us-risk-parity-trend-following.md), by Andrew Clare, James Seaton, Peter N. Smith, and Stephen Thomas, 2016 (holds IEF)
- [HAA 60/40 (NLX Finance’s Hybrid Asset Allocation variant)](https://tactfolio.com/strategies/haa-60-40.md), by Nicolas Lequeux (NLX Finance), 2024 (holds IEF)
- [Quint Switching Filtered (Lewis Glenn’s QSF)](https://tactfolio.com/strategies/quint-switching-filtered.md), by Lewis A. Glenn, 2018 (holds IEF and TLT)
- [Robust Asset Allocation Balanced (Alpha Architect RAA)](https://tactfolio.com/strategies/robust-asset-allocation-balanced.md), by Wesley Gray (Alpha Architect), 2014 (holds IEF)
- [Robust Asset Allocation Aggressive (Alpha Architect RAA)](https://tactfolio.com/strategies/robust-asset-allocation-aggressive.md), by Wesley Gray (Alpha Architect), 2014 (holds IEF)
- [Tactical Permanent Portfolio (GestaltU / ReSolve)](https://tactfolio.com/strategies/tactical-permanent-portfolio.md), by Adam Butler, Michael Philbrick, and Rodrigo Gordillo, 2012 (holds IEF)
- [Paul Novell's Tactical Bond Strategy](https://tactfolio.com/strategies/novell-tactical-bond-strategy.md), by Paul Novell, 2014 (holds IEF and TLT)
- [Kipnis Defensive Adaptive Asset Allocation (KDA)](https://tactfolio.com/strategies/kipnis-defensive-asset-allocation.md), by Ilya Kipnis, 2019 (holds IEF and TLT)
- [All Weather Portfolio (Ray Dalio’s All Seasons)](https://tactfolio.com/strategies/all-weather-portfolio.md), by Ray Dalio and Tony Robbins, 2014 (holds IEF and TLT)
- [Ivy Portfolio (Faber and Richardson, buy and hold)](https://tactfolio.com/strategies/ivy-portfolio.md), by Mebane Faber and Eric Richardson, 2009 (holds IEF)
- [60/40 Portfolio (classic stocks and bonds)](https://tactfolio.com/strategies/60-40-portfolio.md), by Traditional balanced funds (holds IEF)
- [Tactical Risk Rotation (TRRS)](https://tactfolio.com/strategies/tactical-risk-rotation.md), by Michael Gayed and Charles Bilello, 2014 (holds IEF and TLT)
- [Lethargic Asset Allocation (Keller’s LAA)](https://tactfolio.com/strategies/lethargic-asset-allocation.md), by Wouter J. Keller, 2019 (holds IEF)
- [Resilient Asset Allocation (Keller’s RAA)](https://tactfolio.com/strategies/resilient-asset-allocation.md), by Wouter J. Keller, 2020 (holds IEF and TLT)
- [Bond UI1 (Paul Novell’s unemployment bond strategy)](https://tactfolio.com/strategies/novell-bond-ui1.md), by Paul Novell, 2019 (holds IEF and TLT)
- [Pragmatic Asset Allocation (Quantpedia’s PAA)](https://tactfolio.com/strategies/pragmatic-asset-allocation.md), by Radovan Vojtko and Juliána Javorská (Quantpedia), 2024 (holds IEF)
- [Inflation Compass (Varadi’s growth and inflation model)](https://tactfolio.com/strategies/inflation-compass.md), by David Varadi, 2026 (holds IEF)
- [Composite Dual Momentum](https://tactfolio.com/strategies/composite-dual-momentum.md), by Gary Antonacci, 2012 (holds TLT)
- [Trinity Portfolio (Meb Faber)](https://tactfolio.com/strategies/trinity-portfolio.md), by Mebane Faber, 2016 (holds TLT)
- [Mama Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/mama-bear-portfolio.md), by Brian Livingston, 2018 (holds TLT)
- [Defense First (Carlson’s defensive tactical model)](https://tactfolio.com/strategies/defense-first.md), by Thomas D. Carlson, 2025 (holds TLT)
- [Paired Switching (quarterly SPY and TLT rotation)](https://tactfolio.com/strategies/paired-switching.md), by Akhilesh Maewal and Joel R. Bock, 2011 (holds TLT)
- [Accelerating Dual Momentum (ADM)](https://tactfolio.com/strategies/accelerating-dual-momentum.md), by Engineered Portfolio (Steve Hanly), 2018 (holds TLT)
- [Three-Way Model (Ned Davis Research)](https://tactfolio.com/strategies/three-way-model.md), by Ned Davis Research, 2015 (holds TLT)
- [Harry Browne’s Permanent Portfolio](https://tactfolio.com/strategies/permanent-portfolio.md), by Harry Browne, 1999 (holds TLT)
- [Golden Butterfly Portfolio](https://tactfolio.com/strategies/golden-butterfly-portfolio.md), by Tyler (Portfolio Charts), 2015 (holds TLT)

## 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](https://tactfolio.com/alternatives/ief.md) and [TLT alternatives](https://tactfolio.com/alternatives/tlt.md).

## Test a mix of IEF and TLT

Open the [builder](https://tactfolio.com/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](https://tactfolio.com/etf/ief.md) and [TLT](https://tactfolio.com/etf/tlt.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## 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](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [Portfolio rebalancing](https://tactfolio.com/learn/portfolio-rebalancing): What portfolio rebalancing is, why a 60/40 mix drifts, calendar vs threshold methods, and how taxes and costs fit in.
- [Risk parity](https://tactfolio.com/learn/risk-parity): Risk parity balances risk instead of dollars. See a simple stock and bond example, why funds use leverage, and what went wrong in 2022.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## 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

- [iShares (BlackRock): iShares 7-10 Year Treasury Bond ETF fund page](https://www.ishares.com/us/products/239456/ishares-7-10-year-treasury-bond-etf)
- [iShares (BlackRock): iShares 20+ Year Treasury Bond ETF fund page](https://www.ishares.com/us/products/239454/ishares-20-year-treasury-bond-etf)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.