Generated April 2026 from current fund data.
Overview
IEF and TLT are both BlackRock Treasury ETFs tracking U.S. government bonds, but they stake opposite ends of the maturity spectrum. IEF focuses on intermediate Treasuries (7–10 year), while TLT targets the long end (20+ year). The key difference: longer bonds pay higher yields but swing much harder when interest rates move.
How they differ
The fundamental split is maturity. IEF holds bonds maturing in 7–10 years; TLT holds 20+ year bonds. That single fact drives almost everything else.
TLT's yield (4.66%) beats IEF's (3.92%) by 74 basis points, a typical premium for extending duration. But TLT's beta of 2.37 versus IEF's 1.17 tells you the real story: TLT's price swings roughly twice as hard when Treasury yields shift. A 1% rise in yields would likely hurt TLT's NAV roughly twice as much as IEF's.
Both charge 0.15% in fees and pay monthly distributions. AUM is similar in scale—IEF at $48.9 billion, TLT at $42.6 billion—so liquidity is solid in both. IEF's 52-week range ($93–$98) is tighter than TLT's ($83–$92), again reflecting TLT's sensitivity to rate moves.
Who each is best for
IEF: Investors seeking steady Treasury income with lower volatility, or those building a bond ladder for predictable cash flow over the next 7–10 years; works well in any account type.
TLT: Income-focused investors with longer time horizons (10+ years) who can tolerate 40–50% price swings in a down-rate environment; best suited to taxable accounts where monthly distributions are manageable, or IRA/401(k)s where distributions don't trigger taxes.
Key risks to know
- Duration risk. TLT's 2.37 beta means a sudden 2% rise in long-term yields could erase 4–5% of NAV in weeks. IEF is less volatile but still exposed to intermediate-rate moves.
- Reinvestment risk. Both funds distribute monthly income. In a falling-rate environment, monthly dividends get reinvested at lower yields, gradually denting total return. TLT faces this more acutely because longer bonds are sensitive to the shape of the yield curve.
- Inflation erosion. Both hold fixed-rate nominal bonds. Unexpected inflation erodes real purchasing power. This risk is constant for both but compounds over TLT's 20+ year maturities.
- Rate normalization. If yields rise from current levels, both funds' NAVs will decline. TLT declines twice as fast. Neither is a "safe" bond bet if rates keep climbing; they're wagers on flat or falling rates.
Bottom line
If you want lower volatility and can live with a 74-basis-point yield haircut, IEF is the steadier choice. If you're comfortable with price swings and have a long enough horizon to ride them out, TLT's higher yield may compensate over time—but only if rates fall or stay flat. Past performance doesn't predict future results, and neither fund hedges against rising rates.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
