What does 'duration' mean when comparing IEF and IEI?

Duration measures a bond fund's sensitivity to interest rate changes. IEF holds 7-10 year Treasuries, meaning its value typically falls more than IEI's (3-7 year Treasuries) when rates rise, but gains more when rates fall. This creates different risk profiles: IEF offers higher potential volatility but potentially higher income, while IEI provides relatively lower volatility. Duration helps investors understand how each fund might react to interest rate movements.

Why do IEF and IEI have identical 0.15% expense ratios?

Both funds are issued by BlackRock's iShares platform and employ similar passive management strategies tracking Treasury bond indexes. The identical 0.15% expense ratio reflects shared operational costs for index replication, portfolio management, and regulatory compliance across this product family. Investors pay the same annual fee percentage for both funds, meaning the cost difference between IEF and IEI is zero regardless of investment size or duration preferences.

Why aren't top holdings and index tracked listed for either IEF or IEI?

In the provided data, the fields for 'Index tracked' and 'Top holdings' are marked as not available for both funds. This lack of transparency means investors cannot view the specific benchmarks used or the individual securities within the portfolios from this dataset. When comparing these ETFs, one must rely on their stated objective (7-10 year vs 3-7 year Treasuries) rather than granular holding details, which may limit deeper analysis.

How does IEF's 4.06% yield differ from IEI's 3.79% yield?

IEF's higher dividend yield of 4.06% compared to IEI's 3.79% reflects the term premium in longer-duration Treasuries. Typically, investors demand higher compensation for holding bonds with greater interest rate risk over a longer period. The 0.27 percentage point difference indicates IEF's exposure to potentially higher income, which correlates with its longer maturity profile. This yield gap is a key factor when evaluating the income generation potential of these specific government bond ETFs.

Do IEF and IEI share common top holdings?

The fund data explicitly states that there are no shared top-10 holdings between IEF and IEI. This indicates that the individual securities comprising the largest weights in each portfolio are distinct, which is expected given their different maturity bands. IEF focuses on bonds maturing in seven to ten years, while IEI targets bonds maturing in three to seven years. Consequently, they hold different specific Treasury notes to meet these duration objectives.

Which fund is associated with a 'Long Government' category versus 'Intermediate Government'?

IEF is categorised as a 'Long Government' fund, targeting the 7-10 year maturity segment of the US Treasury market. IEI is categorised as 'Intermediate Government', focusing on the 3-7 year segment. These classifications help investors identify the intended duration exposure of each ETF. IEF's longer maturity typically results in higher price sensitivity to interest rate changes, while IEI's intermediate duration generally offers relatively lower volatility compared to longer-term bond alternatives.

How does net asset size affect IEF and IEI liquidity?

IEF manages $41.9 billion in net assets, significantly larger than IEI's $17.1 billion. This substantial asset base supports higher trading volumes and potentially tighter bid-ask spreads for IEF, particularly for large institutional transactions. While both funds offer adequate liquidity for most investors, IEF's greater size may provide better execution for very large trades. IEI's smaller size remains sufficient for typical retail investor activity but could have slightly wider spreads in volatile conditions.

What do the inception dates of 2002 and 2007 tell us?

IEF launched on July 22, 2002, providing over two decades of operational history through various interest rate cycles. IEI started on January 5, 2007, offering roughly 19 years of track record. Both funds have experienced periods of rising and falling rates, allowing investors to evaluate their performance across different monetary environments. IEF's longer existence provides more historical data for backtesting, while IEI still offers a substantial history for its duration strategy.

How do the maturity ranges differ in practice for IEF and IEI?

IEF tracks US Treasury bonds with maturities of seven to ten years, while IEI targets those with three to seven year maturities. This means IEF holds bonds that remain outstanding longer, resulting in a higher average duration and greater sensitivity to long-term interest rate trends. IEI's portfolio contains shorter-dated securities, leading to lower duration and reduced sensitivity to rate movements. Investors choose between them based on their outlook for interest rates and desired risk level.

Does IEF offer significantly better liquidity for large trades than IEI?

IEF's net assets of $41.9 billion are over twice IEI's $17.1 billion, suggesting greater liquidity. For large institutional trades, IEF may offer better execution with lower market impact due to higher trading volumes and depth. However, IEI's $17.1 billion base remains substantial and adequate for most individual investors. While IEF supports larger trades more comfortably, both funds provide sufficient liquidity for standard retail participation, though spreads might vary during extreme market stress.

What should investors know about interpreting missing data for these funds?

The provided data lists 'not available' for the index tracked and top holdings for both IEF and IEI. This means you cannot determine the exact benchmark or specific securities held from this information. When evaluating these ETFs, focus on the stated duration targets (7-10 years vs 3-7 years), expense ratios (both 0.15%), and net assets. Lack of holdings transparency requires reliance on the fund's objective rather than granular security analysis for these specific entries.

Is this comparison page financial advice for choosing between IEF and IEI?

No, this content is strictly educational and provides factual comparisons based on available data. It explains terms like duration, yield, and expense ratios but does not recommend one fund over the other or predict future performance. Investment decisions depend on individual risk tolerance, time horizon, and financial goals. Investors should consult qualified financial professionals for personalised advice. The data shown (2026-09-22) is for reference only and does not constitute a buy or sell recommendation.

IEF vs IEI

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare IEF (iShares 7-10 Year Treasury Bond ETF) and IEI (iShares 3-7 Year Treasury Bond ETF). Both funds have a 0.15% expense ratio. This page examines fees, holdings, dividends, and how each fund tracks its market. IEF targets longer duration while IEI focuses on shorter durations. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IEF

Metric

IEI

0.15%

Expense Ratio

0.15%

4.06%

Dividend Yield

3.79%

$41.92B

Net Assets

$17.11B

Holdings

Jul 22, 2002

Inception Date

Jan 5, 2007

–

Index Tracked

–

Long Government

Fund Category

Intermediate Government

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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IEF vs TLT

Compare IEF and TLT ETFs. Review 0.15% fees, $41.9bn vs $46.7bn assets, and yields. Holdings are not available. Neutral educational overview.

Investment Analysis

IEF

Pros

Fund provides exposure to seven to ten year US government treasuries.
Asset base of $41.9 billion supports liquidity in large institutional trades.
Inception date of July 2002 offers long-term track record stability.

Considerations

Index tracked and top holdings are not available for transparency.
4.06% dividend yield reflects higher interest rate exposure and risk.
0.15% expense ratio is identical to shorter duration alternative Fund B.

IEI

Pros

Fund targets three to seven year US treasuries for reduced volatility.
$17.1 billion net assets ensure adequate liquidity for most investor sizes.
Inception date of January 2007 provides substantial history in rate cycles.

Considerations

Index tracked and top holdings details are currently not available.
3.79% dividend yield may offer lower income than longer duration bonds.
Smaller asset base than Fund A could impact trading spreads.

About IEF and IEI

IEF (IEF)

The iShares 7-10 Year Treasury Bond ETF (IEF) offers investors exposure to medium-term U.S. government bonds. With an average maturity between 7 and 10 years, it sits in the middle of the duration spectrum, aiming to balance income generation with some sensitivity to interest rate movements. As an ETF, it trades on stock exchanges like a share, providing flexibility for buying and selling throughout the trading day. The fund has an expense ratio of 0.15%, which is relatively low for active fixed-income products, though as an index-tracking ETF, costs are managed efficiently. It holds 18 positions, reflecting its focus on specific treasury notes. Investors often use IEF as a component of a diversified portfolio to potentially dampen equity volatility or hedge against economic uncertainty, bearing in mind that bond prices can fluctuate with changes in market interest rates and inflation expectations.

IEI (IEI)

The iShares 3-7 Year Treasury Bond ETF offers investors exposure to U.S. Treasury securities with remaining maturities between three and seven years. As an intermediate government bond fund, it aims to provide a balance between the stability of short-term bonds and the potentially higher yields of long-term bonds. With a low expense ratio of 0.15% and net assets of USD 17.11 billion, it is a well-established option for those looking to diversify their portfolios with government debt. The fund holds 85 securities and has an inception date of January 2007. While it provides a dividend yield of 3.79%, investors should note that bond fund values can fluctuate due to interest rate changes and market conditions. This ETF is generally considered a core component of a diversified fixed-income strategy, though it does not guarantee profits.

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IEF vs IEI

Fund Snapshot

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Investment Analysis

IEF

Pros

Considerations

IEI

Pros

Considerations

About IEF and IEI

Buy IEF or IEI in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What does 'duration' mean when comparing IEF and IEI?

Why do IEF and IEI have identical 0.15% expense ratios?

Why aren't top holdings and index tracked listed for either IEF or IEI?

How does IEF's 4.06% yield differ from IEI's 3.79% yield?

Do IEF and IEI share common top holdings?

Which fund is associated with a 'Long Government' category versus 'Intermediate Government'?

How does net asset size affect IEF and IEI liquidity?

What do the inception dates of 2002 and 2007 tell us?

How do the maturity ranges differ in practice for IEF and IEI?

Does IEF offer significantly better liquidity for large trades than IEI?

What should investors know about interpreting missing data for these funds?

Is this comparison page financial advice for choosing between IEF and IEI?

Fund Snapshot

About IEF and IEI

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