ETF Versus

IEF vs VGIT

iShares 7-10 Year Treasury Bond ETF vs Vanguard Intermediate-Term Treasury Index Fund ETF Shares

Last updated: 2026-04-10

IEF iShares

iShares 7-10 Year Treasury Bond ETF (IEF) is an exchange-traded fund issued by iShares that provides exposure to intermediate-term U.S. Treasury bonds. It charges a low expense ratio of 0.15%. The fund offers an attractive dividend yield of 3.84%. Launched in 2002, the fund has a 24-year track record.

AUM: $49.6B ER: 0.15% Yield: 3.84% Since: Jul 22, 2002
VGIT Vanguard

Vanguard Intermediate-Term Treasury Index Fund ETF Shares (VGIT) is an exchange-traded fund issued by Vanguard that provides exposure to intermediate-term U.S. Treasury bonds. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.82%. Launched in 2009, the fund has a 17-year track record.

AUM: $39.8B ER: 0.03% Yield: 3.82% Since: Nov 19, 2009

Quick Verdict

VGIT is significantly cheaper at 0.03% vs 0.15% expense ratio, saving you approximately $238 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (1.4% vs 0.8%), tracking closely.

Key Metrics

Metric IEF VGIT
Expense Ratio 0.15% 0.03%
Dividend Yield 3.8% 3.8%
Fund Family iShares Vanguard
Category US Intermediate Treasury US Intermediate Treasury

Performance Chart

Indexed to 100 at start (5-year comparison)

75 81 87 93 99 105 2021-04 2022-07 2023-10 2025-01 2026-04
IEF -16.0%
VGIT -11.8%

Performance Comparison

Period IEF VGIT Difference
1 Month -0.70% -0.61% -0.09%
3 Months -0.89% -0.78% -0.11%
6 Months -1.69% -1.34% -0.35%
YTD -0.79% -0.78% -0.01%
1 Year +1.37% +0.84% +0.53%
3 Years -4.15% -1.01% -3.14%
5 Years -16.04% -11.79% -4.25%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IEF Fees VGIT Fees You Save
$10,000 10 years $298 $60 $238
$10,000 20 years $1,278 $258 $1,020
$10,000 30 years $4,109 $835 $3,274
$50,000 10 years $1,490 $299 $1,190
$50,000 30 years $20,547 $4,176 $16,371
$100,000 30 years $41,094 $8,352 $32,742

Risk Metrics

Based on 5 years of daily returns

Metric IEF VGIT
Annualized Volatility 7.7% 5.4%
Max Drawdown -24.7% -18.2%
Sharpe Ratio -1.00 -1.27

Dividend Comparison

Metric IEF VGIT
Annual Dividend (per share) $3.66 $2.27
Dividend Yield 3.84% 3.82%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose VGIT if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Either works if...

you just need broad us intermediate treasury exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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