Average Daily Volume
2.06M
Fund Overview
The iShares 3-7 Year Treasury Bond ETF (IEI) is designed to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities between three and seven years. This ETF provides investors with exposure to intermediate-term U.S. government debt, offering a balance between yield and interest rate risk. The fund is passively managed and seeks to replicate the performance of the ICE U.S. Treasury 3-7 Year Bond Index, which includes fixed-rate, nominal U.S. Treasury securities. IEI is a popular choice for investors looking to add stability and income to their portfolios while maintaining a relatively low duration compared to longer-term Treasury ETFs.
- Asset Class
-
Bond
- Industry
-
Treasury Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 3.91 %
- Currency Hedged
-
No
- Portfolio Turnover
-
45 %
- Dividend Date
-
Why Invest in the IEI ETF?
Potential Benefits
- Provides exposure to U.S. Treasury bonds, which are considered among the safest fixed-income investments due to the full faith and credit of the U.S. government.
- Offers a balance between yield and interest rate sensitivity, with intermediate-term maturities typically providing higher yields than short-term bonds with less volatility than long-term bonds.
- Low expense ratio (0.15%) makes it a cost-effective way to gain Treasury bond exposure.
- Highly liquid, with tight bid-ask spreads and substantial assets under management.
- Regular monthly distributions provide consistent income for investors.
- Can serve as a defensive allocation in diversified portfolios during periods of market volatility.
Potential Risks
- Interest rate risk: Bond prices move inversely to interest rates, and intermediate-term bonds are sensitive to rate changes.
- Inflation risk: Fixed coupon payments may lose purchasing power if inflation rises significantly.
- Opportunity cost: During strong equity markets, Treasury returns may lag riskier assets.
- Yield risk: Current yields may not keep pace with investor income needs in low-rate environments.
- Limited capital appreciation potential compared to longer-duration bonds or equities.
- Concentration risk in U.S. government debt, with no exposure to corporate or municipal bonds.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
0.0%
|
+1.5%
|
-1.5%
|
0.0%
|
-0.1%
|
+0.1%
|
-0.5%
|
+0.1%
|
-2.0%
|
+0.2%
|
-
|
-
|
| 2025 |
+0.5%
|
+1.7%
|
+0.6%
|
+1.4%
|
-0.7%
|
+1.1%
|
-0.4%
|
+1.5%
|
+0.1%
|
+0.5%
|
+0.7%
|
-0.2%
|
| 2024 |
+0.3%
|
-1.4%
|
+0.4%
|
-1.7%
|
+1.3%
|
+0.9%
|
+2.2%
|
+1.2%
|
+1.0%
|
-2.1%
|
+0.6%
|
-0.8%
|
| 2023 |
+2.1%
|
-2.2%
|
+2.9%
|
+0.6%
|
-0.9%
|
-1.2%
|
+0.1%
|
0.0%
|
-1.3%
|
-0.6%
|
+2.7%
|
+2.3%
|
| 2022 |
-1.4%
|
-0.5%
|
-3.2%
|
-2.0%
|
+0.7%
|
-0.7%
|
+1.7%
|
-2.7%
|
-2.9%
|
-0.5%
|
+2.2%
|
-0.6%
|
| 2021 |
-0.3%
|
-1.1%
|
-0.8%
|
+0.5%
|
+0.3%
|
-0.1%
|
+1.0%
|
-0.3%
|
-0.8%
|
-0.8%
|
+0.3%
|
-0.4%
|
| 2020 |
+1.8%
|
+1.9%
|
+2.5%
|
+0.1%
|
+0.3%
|
+0.1%
|
+0.4%
|
-0.3%
|
+0.1%
|
-0.4%
|
+0.1%
|
+0.1%
|
| 2019 |
+0.5%
|
-0.2%
|
+1.6%
|
0.0%
|
+1.8%
|
+0.9%
|
-0.2%
|
+2.1%
|
-0.6%
|
+0.3%
|
-0.4%
|
-0.2%
|
| 2018 |
-1.2%
|
-0.4%
|
+0.6%
|
-0.8%
|
+0.7%
|
0.0%
|
-0.3%
|
+0.7%
|
-0.7%
|
+0.1%
|
+0.8%
|
+1.8%
|
| 2017 |
+0.3%
|
+0.3%
|
+0.1%
|
+0.7%
|
+0.4%
|
-0.3%
|
+0.4%
|
+0.8%
|
-0.8%
|
-0.2%
|
-0.4%
|
0.0%
|
< -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: IEI vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
IEI tracks the ICE U.S. Treasury 3-7 Year Bond Index, which includes all nominal, fixed-rate Treasury securities with remaining maturities between three and seven years. The index is market-cap weighted, meaning larger issuances have greater representation in the portfolio. The fund holds the constituent bonds in proportion to their weightings in the index, employing a sampling strategy when exact replication isn't practical. IEI's portfolio consists entirely of direct Treasury obligations, with no exposure to derivatives or other synthetic instruments. The fund rebalances monthly to account for changes in the index composition as bonds age out of the maturity range or new issuances enter the eligible universe.
Frequently Asked Questions
What is the average duration of IEI?
IEI typically maintains an average duration between 4-5 years, reflecting its focus on bonds with 3-7 years remaining to maturity.
How does IEI differ from a total bond market ETF?
IEI concentrates solely on intermediate-term U.S. Treasuries, while total bond market ETFs include a broader mix of government, corporate, and mortgage-backed securities across all maturities.
Is IEI suitable for retirement income?
IEI can serve as part of a retirement income strategy, providing regular interest payments, though investors should be aware that yields may fluctuate with interest rate changes.
How often does IEI pay dividends?
IEI distributes interest income to shareholders monthly, with payments typically made at the beginning of each month.
Does IEI hold any callable bonds?
No, IEI only holds direct U.S. Treasury securities, which are non-callable, meaning they cannot be redeemed by the issuer before maturity.
Industry Overview
The IEI ETF provides exposure to the intermediate-term U.S. Treasury bond market, a core component of the fixed income universe. Intermediate-term Treasuries (3-7 year maturities) occupy a strategic position in bond investing, offering higher yields than short-term instruments while exhibiting less price volatility than long-term bonds. This segment of the yield curve is particularly sensitive to Federal Reserve policy changes and inflation expectations. The iShares 3-7 Year Treasury Bond ETF (IEI) allows investors to efficiently access this market segment without having to purchase individual bonds. Treasury ETFs like IEI have grown in popularity as investors seek transparent, liquid ways to implement duration strategies and manage interest rate exposure in their portfolios.
Alternative Comparison
Compared to IEF (iShares 7-10 Year Treasury Bond ETF), IEI offers shorter duration exposure with less sensitivity to interest rate movements, making it potentially more suitable for investors concerned about rising rates. VGIT (Vanguard Intermediate-Term Treasury ETF) is a close competitor with a similar maturity focus but slightly lower expense ratio (0.04% vs. IEI's 0.15%). GOVT (iShares U.S. Treasury Bond ETF) provides broader Treasury exposure across all maturities, while IEI offers more targeted intermediate-term positioning. Unlike some actively managed bond funds that may use credit analysis or duration timing, IEI maintains a purely passive approach to Treasury market exposure.
Issuer Overview
iShares by BlackRock is the world's largest ETF provider, known for its extensive lineup of index-tracking funds across asset classes. With trillions in assets under management, iShares offers investors institutional-quality portfolio construction tools and robust liquidity. The firm's fixed income ETFs, including IEI, benefit from BlackRock's scale and expertise in bond markets. iShares maintains a strong commitment to index replication and transparency, with detailed holdings disclosures and tight tracking to benchmark indices.
Conclusion
The iShares 3-7 Year Treasury Bond ETF (IEI) provides investors with efficient, low-cost access to intermediate-term U.S. government debt. Its focused maturity range offers a balance between yield potential and interest rate risk management, making it suitable for core fixed income allocations. While not without risks—particularly in rising rate environments—IEI serves as a valuable tool for portfolio diversification, income generation, and capital preservation. Investors should consider their interest rate outlook, income needs, and overall portfolio strategy when evaluating IEI's potential role in their investment plans.
Boost Your Returns with SectorSurfer
Award-winning investment strategy automation