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ETF Comparison

IEF vs TLT: Two Treasury Durations, Not an Inverse Pair

A head-to-head of iShares 7-10 Year Treasury Bond ETF and 20+ Year Treasury Bond ETF covering duration, cost, and why IEF is not TLT inverse.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • IEFInvestors who want fixed-income ballast that steadies the portfolio when stocks fall.
  • TLTInvestors who want higher current income (4.83% vs 4.14% for IEF).

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

IEF has outpaced TLT over the trailing twelve months, posting a -4.02% total return against -9.20%. The lead holds up over 10 years too: IEF has compounded at 0.12% a year, against -2.78% for TLT. IEF has been the steadier holding, though — annualized volatility of 6.3% against 13.3% for TLT. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jul 2002Volatility Sharpe Sortino Max drawdown
IEF-4.51%-4.02%3.19%-2.13%0.12%3.22%6.3%-0.21-0.30-6.9%
TLT-7.87%-9.20%0.43%-8.60%-2.78%3.25%13.3%-0.31-0.42-16.2%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jul 2002” measures every fund from July 26, 2002 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricIEFTLT
Full nameiShares 7-10 Year Treasury Bond ETFiShares 20+ Year Treasury Bond ETF
IssueriSharesiShares
Underlying indexICE U.S. Treasury 7-10 Year Bond IndexICE U.S. Treasury 20+ Year Bond Index
Last Close$89.05 as of October 2, 2026$77.48 as of October 2, 2026
Distribution rate4.14%4.83%
Trailing 12-month yield4.17%5.02%
Distribution Safety Score™ 10096
Safety-Adjusted Yield 4.14%4.64%
Expense ratio0.15%0.15%
AUM$41.6B$45.8B
Distribution frequencyMonthlyMonthly
ObjectiveProvide exposure to the fund's underlying index or strategy per issuer materials.Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset classFixed IncomeFixed Income
Inception date07/22/200207/22/2002
Beta1.162.39
Last dividend$0.30692 declared, pays 10/06/2026$0.312 declared, pays 10/06/2026
Ex-dividend date10/01/202610/01/2026

Bottom lineChoose IEF if you want fixed-income ballast that steadies the portfolio when stocks fall. Choose TLT if you want higher current income (4.83% vs 4.14% for IEF).

IEF vs TLT: intermediate or long Treasuries?

Neither is an inverse fund. IEF is 7-10 year Treasuries. TLT is 20+ years. Duration is the whole decision.

IEFTLT
What it holdsICE U.S. Treasury 7-10 Year Bond IndexICE U.S. Treasury 20+ Year Bond Index
DurationIntermediate (7-10 year)Long (20+ year)
Expense ratio0.15%0.15%
Distribution rate4.14%4.83%
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

iShares
ETFs466
Total AUM$4683B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on IEF and TLT.

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Quick verdict

IEF (iShares 7-10 Year Treasury Bond ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both monthly-pay dividend ETFs, but they take different approaches.

TLT offers the higher yield at 4.83% vs 4.14% for IEF. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

They have different reference exposures: IEF is linked to ICE U.S. Treasury 7-10 Year Bond Index while TLT is linked to ICE U.S. Treasury 20+ Year Bond Index, which means their performance drivers differ.

TLT is the larger fund by assets ($45.8B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose IEF

iShares 7-10 Year Treasury Bond ETF

  • Want fixed-income ballast that cushions equity drawdowns.
  • Prefer lower volatility — a beta of 1.2 vs 2.4 for TLT.

Choose TLT

iShares 20+ Year Treasury Bond ETF

  • Want higher current income — TLT yields 4.83% vs 4.14% for IEF.
  • Want fixed-income ballast that cushions equity drawdowns.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, IEF would generate roughly $34.50 cash per distribution, while TLT would produce $40.25 cash per distribution, at current distribution rates. Both pay monthly distributions.

IEF yield4.14%
TLT yield4.83%
Cash diff on $10K$5.75

Cost & efficiency

Over 10 years on $10,000, IEF would cost approximately $150 in fees vs $150 for TLT (simplified, not compounded). Both charge the same expense ratio.

IEF ER0.15%
TLT ER0.15%

Strategy & risk

IEF tracks ICE U.S. Treasury 7-10 Year Bond Index with a treasury approach, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index with a treasury approach. Beta is 1.16 for IEF and 2.39 for TLT, making IEF the less volatile of the two by this measure.

IEF beta1.16
TLT beta2.39

Fund details

IEF is managed by iShares (launched 07/22/2002) with $41.6B in assets. TLT is managed by iShares (launched 07/22/2002) with $45.8B in assets.

IEF AUM$41.6B
TLT AUM$45.8B
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Frequently asked questions

What is the difference between IEF and TLT?

Neither is an inverse fund. IEF (iShares 7-10 Year Treasury Bond ETF) holds 7-10 year Treasuries. TLT (iShares 20+ Year Treasury Bond ETF) holds 20+ year Treasuries. Both move with rates; TLT moves more because duration is longer. Cost is 0.15% versus 0.15%; distributions are 4.14% and 4.83% as of October 2026. Duration, not an inverse, is the decision.

What is the current distribution rate for IEF and TLT?

IEF currently distributes 4.14% and TLT 4.83%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is IEF or TLT better for dividend income?

It depends on your goals. TLT currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

Can I hold both IEF and TLT?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is IEF or TLT safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — IEF scores 100, TLT scores 96, so IEF's payout currently looks the more resilient of the two. IEF has also shown lower price volatility (beta 1.16 vs 2.39 for TLT). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, IEF or TLT?

IEF and TLT both charge the same expense ratio of 0.15%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

How much income does $10,000 in IEF vs TLT generate?

At current rates, $10,000 in IEF would generate roughly $34.50 cash per distribution ($414.00 annually). The same in TLT would produce about $40.25 cash per distribution ($483.00 annually).

Which has performed better historically, IEF or TLT?

IEF has outpaced TLT over the trailing twelve months, posting a -4.02% total return against -9.20%. The lead holds up over 10 years too: IEF has compounded at 0.12% a year, against -2.78% for TLT. IEF has been the steadier holding, though — annualized volatility of 6.3% against 13.3% for TLT. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

IEF vs TLT — at a glance

Generated October 3, 2026.

Overview

IEF and TLT are both iShares Treasury bond ETFs that track different maturity segments of U.S. government debt. IEF focuses on the 7–10 year portion of the Treasury curve, while TLT extends to bonds with 20+ year maturities. The key distinction is duration: TLT's longer maturity exposure makes it significantly more sensitive to interest-rate changes and delivers a higher distribution rate in exchange for greater price volatility.

How they differ

The fundamental difference is duration and maturity exposure. IEF tracks 7–10 year Treasuries, while TLT holds 20+ year Treasuries—a gap that translates directly to interest-rate sensitivity. TLT's beta of 2.39 is roughly double IEF's beta of 1.16, meaning TLT will amplify price moves as rates shift. That longer duration also supports TLT's 4.83% distribution rate compared to IEF's 4.14%, reflecting the yield premium that markets demand for longer-maturity bonds.

TLT: Fits investors comfortable with significant price swings tied to rate changes, who expect rates to remain stable or decline over their holding period, and who prioritize the highest yield available within pure Treasury exposure. This is not a market-risk abstraction; it's the core mechanic of holding longer bonds.

  • Valuation risk at today's yield curve. Both ETFs distribute 4.14% and 4.83% respectively, which reflects current Treasury yields. If rates rise after purchase, bond prices fall and future coupons will reflect the new, lower price basis—classic duration trap for long-maturity portfolios.
  • Call risk and reinvestment timing. Treasury ETFs cannot be "called," but holders who reinvest distributions into a rising-rate environment lock in lower yields than available at purchase, eroding total return. This effect is more material for TLT holders over multi-year periods because the longer maturity amplifies duration drag.
  • Overlap and curve concentration. Both track the same Treasury market and will move in tandem during systemic shocks, so holding both provides no diversification benefit and concentrates exposure to U.S. government credit risk.

Bottom line

If you want steady Treasury income with manageable duration risk, IEF's 4.14% yield and 1.16 beta fit a moderate risk appetite. If you expect stable or lower rates and accept larger price swings for 4.83% yield, TLT's longer duration becomes an advantage rather than a liability. Both offer minimal expenses and deep liquidity; the choice hinges on your interest-rate outlook and portfolio volatility tolerance, not fund quality. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Bond fund basics How to read a fund's stats Why total return beats chasing yield

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These comparisons follow the Dividend Vision methodology.