IEF vs GOVT: returns, risk and drawdowns compared
iShares 7-10 Year Treasury Bond ETF against iShares U.S. Treasury Bond ETF, over the same 14 years (March 2012 to October 2026) with dividends reinvested.
Data updated October 2026
From March 2012 to October 2026, IEF returned 1.2% a year and GOVT 1.0% a year on average, so IEF came out ahead by 0.1% a year. IEF was the more volatile of the two (6.3% against 4.5% a year), and the deepest falls from a month-end high were 23.2% for IEF and 19.2% for GOVT.
The correlation of monthly returns was 0.96: they moved almost in lockstep. Over 141 rolling 3-year periods, IEF did better in 57% and GOVT in 43%.
Side by side
| IEF | GOVT | |
|---|---|---|
| Annual return (CAGR) | +1.2% | +1.0% |
| Total return | +19% | +16% |
| Annual volatility | 6.3% | 4.5% |
| Maximum drawdown (month-end) | −23.2% | −19.2% |
| Worst month | −4.7% | −3.4% |
| Best month | +4.6% | +3.5% |
| Positive months | 52% | 51% |
| Best year | 2020: +10.0% | 2019: +7.4% |
| Worst year | 2022: −15.2% | 2022: −13.4% |
| 1-year return | −4.0% | −2.0% |
| 5 years, a year | −1.5% | −0.7% |
| 10 years, a year | +0.3% | +0.6% |
| Trading currency | USD | USD |
First nine rows: the same 176 months for both funds. Trailing returns: to each fund’s last close.
Growth of 10,000: IEF vs GOVT
Returns by calendar year
| Year | IEF | GOVT |
|---|---|---|
| 2025 | +8.0% | +3.8% |
| 2024 | −0.6% | +2.9% |
| 2023 | +3.9% | +4.2% |
| 2022 | −15.2% | −13.4% |
| 2021 | −3.3% | −1.1% |
| 2020 | +10.0% | +6.3% |
| 2019 | +8.0% | +7.4% |
| 2018 | +1.0% | +0.3% |
| 2017 | +2.5% | +2.2% |
| 2016 | +1.0% | +0.8% |
| 2015 | +1.5% | +0.9% |
| 2014 | +9.1% | +4.7% |
| 2013 | −6.1% | −2.5% |
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.
Questions
Which has returned more, IEF or GOVT?
From March 2012 to October 2026, IEF returned +1.2% a year and GOVT +1.0% a year, with dividends reinvested. Over rolling 3-year periods IEF did better in 57% of cases. Past returns do not predict future returns.
Which is riskier, IEF or GOVT?
Over the same months annual volatility was 6.3% for IEF and 4.5% for GOVT; the deepest fall from a month-end high was 23.2% and 19.2%, and the worst single month −4.7% and −3.4%.
How correlated are IEF and GOVT?
The correlation of their monthly returns was 0.96: they moved almost in lockstep. Holding both adds little diversification compared with holding one.
More comparisons
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.