IEF — iShares 7-10 Year Treasury Bond ETF
IEF holds US Treasury bonds with maturities between 7 and 10 years, providing intermediate-duration government bond exposure. With a duration of approximately 7–8 years, IEF offers meaningful interest rate sensitivity while being considerably more conservative than TLT. It is a popular choice for investors who want pure US government credit quality in the intermediate part of the yield curve.
Top Holdings
Strategy
- →Use as intermediate-duration government bond exposure in a laddered bond portfolio
- →Hedge equity risk with less volatility than long-duration TLT
- →Trade around Federal Reserve policy expectations in the intermediate rate segment
- →Combine with short-term SHY and long-term TLT for a barbell or laddered approach
Best For
- ✓Investors seeking pure US government credit quality at intermediate maturities
- ✓Those who want Treasury exposure with lower duration risk than TLT
- ✓Portfolio builders constructing a yield curve ladder across short, intermediate, and long terms
- ✓Conservative investors who want government bonds as a flight-to-safety allocation
Key Risks
- ⚠Interest rate sensitivity with 7–8 year duration — roughly 7–8% price decline per 1% rate rise
- ⚠Lower yield compared to longer-duration Treasuries or investment-grade corporates
- ⚠No credit diversification — holds only US government bonds with no corporate or mortgage component
- ⚠Inflation erodes real returns on nominal Treasury bonds
Similar ETFs
Frequently Asked Questions
What is the difference between IEF and TLT?
IEF holds 7–10 year Treasury bonds with ~7–8 year duration, while TLT holds 20+ year bonds with ~16–18 year duration. IEF is considerably less volatile and less sensitive to interest rate changes than TLT. This is educational content, not financial advice.
Is IEF safer than TLT?
From an interest rate risk perspective, yes — IEF's shorter duration means smaller price swings per rate move. Both hold only US government obligations with no credit risk. This is educational content, not financial advice.
Does IEF pay monthly dividends?
Yes, IEF distributes monthly interest income from its Treasury holdings. The yield tracks intermediate Treasury rates. This is educational content, not financial advice.
When does IEF perform well?
IEF tends to perform well when interest rates are falling, typically during economic slowdowns or when the Federal Reserve is cutting rates. This is educational content, not financial advice.
How does IEF fit into a portfolio?
IEF is often used as a moderate-duration bond core or as a flight-to-safety allocation alongside equities. Its intermediate duration provides a balance between yield and interest rate risk. This is educational content, not financial advice.
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