Summit Showdown|
4 min
Updated December 2025
TLT vs IEF: Long-Term vs Intermediate Treasury Bonds in 2025
Comparing iShares 20+ Year Treasury vs 7-10 Year Treasury for bond allocation.
Head-to-Head Comparison
Metric
TLT
IEF
Expense Ratio
0.15%
0.15%
Dividend Yield
4.25%
3.85%
5Y Total Return
-5.2%
-1.8%
Volatility
16.5%
8.2%
Distribution
Monthly
Monthly
Tax Efficiency
Low
Low
The Verdict by Scenario
Scenario
Interest rate sensitivity
IEF
IEF's shorter duration means less price volatility when rates change, critical in rising rate environments.
Scenario
Flight-to-safety hedge
TLT
TLT rallies harder during stock market crashes, providing better portfolio insurance when you need it most.
Scenario
Steady income
IEF
IEF offers more stable prices and predictable income, suitable for retirees who can't handle TLT's volatility.
In This Showdown
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LaunchSection 1Duration Matters
TLT holds 20+ year Treasury bonds; IEF holds 7-10 year Treasuries. Duration determines how much prices move when interest rates change. TLT's ~17-year duration means a 1% rate hike causes ~17% price drop. IEF's ~7-year duration means only ~7% drop. Same direction, different magnitude.
Section 2TLT: The Volatile Hedge
TLT is for investors who want maximum flight-to-safety protection. When stocks crash, long bonds rally hard, TLT gained 40%+ during COVID panic. But rising rates crush TLT (down 30%+ in 2022). Use TLT tactically or if you have conviction on falling rates.
Section 3IEF: The Balanced Approach
IEF offers Treasury exposure with manageable volatility. It still provides safe-haven benefits during crises but won't devastate your portfolio if rates rise. For investors who want bonds as ballast rather than a speculative bet, IEF is the pragmatic choice.
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Updated December 2025