Average Daily Volume
9.74M
Fund Overview
The iShares 7-10 Year Treasury Bond ETF (IEF) is designed to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities between seven and ten years. This ETF provides investors with exposure to intermediate-term U.S. government debt, which is considered a relatively low-risk segment of the bond market. IEF is popular among investors seeking steady income and capital preservation, as Treasury securities are backed by the full faith and credit of the U.S. government. The fund is widely used for portfolio diversification, hedging against equity market volatility, and as a component in fixed-income laddering strategies.
- Asset Class
-
Bond
- Industry
-
Treasury Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 4.09 %
- Currency Hedged
-
No
- Portfolio Turnover
-
48 %
- Dividend Date
-
Why Invest in the IEF ETF?
Potential Benefits
- Provides exposure to U.S. Treasury securities, which are considered among the safest fixed-income investments.
- Offers relatively stable income through regular interest payments.
- Acts as a hedge against equity market volatility due to its low correlation with stocks.
- Highly liquid, with tight bid-ask spreads and substantial daily trading volume.
- Low expense ratio compared to actively managed bond funds.
- Tax-efficient at the federal level (though state and local taxes may apply).
Potential Risks
- Interest rate risk: Rising rates can lead to declining bond prices, particularly impactful on intermediate-term bonds.
- Inflation risk: Fixed coupon payments may lose purchasing power over time if inflation rises.
- Lower yield potential compared to corporate or high-yield bonds.
- Opportunity cost: May underperform other asset classes during strong economic expansions.
- Concentration risk: Solely invests in U.S. government debt, lacking diversification across bond types.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-0.2%
|
+2.5%
|
-2.3%
|
-0.1%
|
0.0%
|
+0.3%
|
-1.4%
|
+0.1%
|
-3.4%
|
+0.1%
|
-
|
-
|
| 2025 |
+0.6%
|
+2.8%
|
+0.3%
|
+1.1%
|
-1.2%
|
+1.6%
|
-0.6%
|
+1.6%
|
+0.7%
|
+0.7%
|
+1.0%
|
-0.8%
|
| 2024 |
+0.1%
|
-2.1%
|
+0.7%
|
-3.1%
|
+1.8%
|
+1.2%
|
+2.9%
|
+1.3%
|
+1.4%
|
-3.4%
|
+1.0%
|
-2.3%
|
| 2023 |
+3.6%
|
-3.3%
|
+3.7%
|
+0.8%
|
-1.4%
|
-1.3%
|
-0.7%
|
-0.7%
|
-3.1%
|
-1.9%
|
+4.6%
|
+3.8%
|
| 2022 |
-2.1%
|
-0.3%
|
-4.1%
|
-4.2%
|
+0.6%
|
-0.9%
|
+3.0%
|
-3.9%
|
-4.7%
|
-1.5%
|
+3.6%
|
-1.5%
|
| 2021 |
-1.1%
|
-2.4%
|
-2.4%
|
+1.0%
|
+0.4%
|
+1.0%
|
+2.0%
|
-0.4%
|
-1.6%
|
-0.4%
|
+1.1%
|
-0.5%
|
| 2020 |
+3.5%
|
+3.0%
|
+3.7%
|
+0.3%
|
+0.3%
|
0.0%
|
+0.9%
|
-1.0%
|
+0.3%
|
-1.4%
|
+0.3%
|
-0.2%
|
| 2019 |
+0.7%
|
-0.5%
|
+2.7%
|
-0.5%
|
+3.0%
|
+1.2%
|
0.0%
|
+3.9%
|
-1.2%
|
+0.2%
|
-0.7%
|
-0.9%
|
| 2018 |
-2.2%
|
-0.9%
|
+1.2%
|
-1.3%
|
+1.0%
|
+0.2%
|
-0.5%
|
+1.0%
|
-1.2%
|
-0.3%
|
+1.3%
|
+2.8%
|
| 2017 |
+0.2%
|
+0.7%
|
+0.1%
|
+1.1%
|
+0.8%
|
-0.5%
|
+0.4%
|
+1.5%
|
-1.4%
|
-0.2%
|
-0.3%
|
+0.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: IEF vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
IEF tracks the ICE U.S. Treasury 7-10 Year Bond Index, which measures the performance of public obligations of the U.S. Treasury with remaining maturities between seven and ten years. The index is market-cap weighted, meaning larger issuances have greater representation in the portfolio. The fund employs a passive management approach, seeking to replicate the index rather than outperform it. IEF holds physical Treasury securities rather than using derivatives, which helps minimize tracking error. The portfolio is rebalanced monthly to maintain alignment with the index composition as bonds age and approach maturity.
Frequently Asked Questions
How does IEF differ from a Treasury bond mutual fund?
IEF offers the intraday trading flexibility of an ETF, typically has lower expense ratios than comparable mutual funds, and provides transparent daily holdings disclosure.
Is IEF a good investment during periods of rising interest rates?
While all bonds face price declines when rates rise, IEF's intermediate duration makes it less sensitive than long-term bonds but more affected than short-term instruments. It may be appropriate for investors with medium-term horizons.
How often does IEF pay dividends?
IEF distributes interest income monthly to shareholders, reflecting the coupon payments from its underlying Treasury holdings.
Can IEF lose value?
Yes, like all bond funds, IEF's share price can decline when interest rates rise, though the principal is guaranteed if held to maturity for the underlying bonds.
Why choose IEF over individual Treasury bonds?
IEF provides instant diversification across multiple Treasury issues, eliminates the need to manage individual bond maturities, and offers greater liquidity than holding individual bonds.
Industry Overview
The IEF ETF operates within the intermediate-term U.S. Treasury bond market segment. This sector plays a crucial role in fixed income portfolios, offering a balance between the higher yield sensitivity of long-term bonds and the lower yields of short-term instruments. The 7-10 year Treasury market is particularly sensitive to Federal Reserve policy changes and inflation expectations, often serving as a benchmark for mortgage rates and other lending products. Investors typically use IEF and similar Treasury ETFs for capital preservation, income generation, and as a defensive position during market uncertainty. The Treasury market remains one of the most liquid in the world, with daily trading volume often exceeding $600 billion.
Alternative Comparison
Compared to TLT (iShares 20+ Year Treasury Bond ETF), IEF offers less sensitivity to interest rate changes but typically provides lower yields. Against IEI (iShares 3-7 Year Treasury Bond ETF), IEF has slightly higher duration risk but offers better yield potential. IEF's expense ratio of 0.15% is competitive with similar Treasury ETFs like GOVT (0.05%) but higher than some ultra-low-cost options. Unlike aggregate bond ETFs like AGG or BND, IEF provides pure Treasury exposure without corporate or mortgage-backed securities, making it a cleaner interest rate play.
Issuer Overview
iShares, a division of BlackRock, is the world's largest ETF provider with over $2 trillion in assets under management across its product lineup. The firm is known for its extensive range of index-tracking ETFs, particularly in the fixed income space. iShares maintains rigorous risk management protocols and has established strong relationships with market makers to ensure liquidity across its ETF offerings. The company's scale allows it to offer competitive expense ratios while maintaining tight tracking to underlying indices.
Conclusion
IEF serves as a core holding for investors seeking intermediate-term Treasury exposure with the convenience and liquidity of an ETF structure. While it may not offer the highest yields in the fixed income universe, its government backing and predictable cash flows make it particularly suitable for conservative investors and those building bond ladders. The fund's intermediate duration positions it as a balanced option in rising rate environments, though investors should remain mindful of interest rate sensitivity. As with all fixed income investments, IEF works best as part of a diversified portfolio strategy.
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