IEF ETF Explained: Returns, Expense Ratio, Holdings, and Alternative ETFs
The iShares 7-10 Year Treasury Bond ETF (IEF) invests in intermediate-term US Treasuries with 7 to 10 years remaining to maturity, offering low credit risk and monthly distributions. Differences in expense ratio and duration versus VGIT, IEI, and SCHR are the key selection criteria.
SubscribeWhat Is the iShares 7-10 Year Treasury Bond ETF?
This is an intermediate-term Treasury ETF that tracks an index of US Treasury bonds with 7 to 10 years remaining to maturity. It holds most of its assets in bonds issued by the US Treasury, providing exposure to government debt with low credit risk.
It suits investors who want to add intermediate-term Treasuries as a safe-haven asset to their portfolios, or who want bond exposure that responds to interest rate trends.
The ETF is passively managed (index-tracking) by BlackRock (iShares).
How Does the iShares 7-10 Year Treasury Bond ETF Invest?
| Item | Details |
|---|---|
| Tracking Index | ICE US Treasury 7-10 Year Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Monthly |
| Distribution Frequency | Monthly |
| Expense Ratio | 0.15% |
| Issuer | BlackRock (iShares) |
The fund holds US Treasuries with 7 to 10 years remaining to maturity in line with index weights, tracking the performance of the intermediate-term Treasury market. When a bond's maturity falls outside that range, it is replaced with a new bond, and the holdings are reconstituted periodically so that duration stays within a set range.
- Clear duration exposure concentrated in the 7 to 10 year maturity range
- Low credit risk, with a focus on bonds issued by the US government
iShares 7-10 Year Treasury Bond ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $42.1B, and the expense ratio is 0.15% per year.
Because its duration is longer than that of short-term Treasury ETFs, its price moves more in response to interest rate changes, and its interest income also tends to be higher.
iShares 7-10 Year Treasury Bond ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeTreasury prices move in the opposite direction of market interest rates, so prices tend to come under pressure when rates rise and strengthen when rates fall, a pattern that repeats over time. Because this is an intermediate-term segment, it is more sensitive to rate changes than shorter-dated bonds.
During volatile periods when risk aversion grows, money tends to flow in on safe-haven demand, and fund flows react sensitively to the direction of rate policy and the economic outlook. As a core bond holding, it has a steady base of demand.
iShares 7-10 Year Treasury Bond ETF Pros and Cons
Its strengths are low credit risk and clear intermediate-term duration exposure, while price declines in rising-rate periods and currency fluctuations can work against it.
💪 Key Strengths
⚠️ Points to Watch
iShares 7-10 Year Treasury Bond ETF Alternative ETFs and Related Products
VGIT, SCHR, and SPTI, shown in the table, are lower-cost alternatives in the same intermediate-term US Treasury category, while IEI covers a shorter maturity range and therefore has lower duration. To extend the maturity range and increase interest rate exposure, you can consider TLT, a long-term Treasury ETF. Conversely, to cut duration significantly, SHY, a short-term Treasury ETF, is also worth reviewing.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VGIT | Vanguard Intermediate-Term Treasury ETF | $57.40 | -0.1% | $40.7B | 0.03% | 3.99% | -5.0% |
 IEI | iShares 3-7 Year Treasury Bond ETF | $114.67 | -0.1% | $17.0B | 0.15% | 3.8% | -4.5% |
 SCHR | Schwab Intermediate-Term U.S. Treasury ETF | $24.00 | -0.2% | $13.6B | 0.03% | 4.05% | -5.1% |
 SPTI | State Street SPDR Portfolio Intermediate Term Treasury ETF | $27.63 | -0.1% | $10.9B | 0.03% | 3.97% | -4.9% |
 UTEN | F/m US Treasury 10 Year Note ETF | $41.52 | -0.2% | $262.9M | 0.15% | 4.23% | -7.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 USLM | United States Lime & Minerals Inc | 0.54% | $111.71 | +0.2% | $3.2B | 23.9 | 0.21% |
 BNO | United States Brent Oil Fund LP | 0.35% | $70.99 | +3.0% | $0.0M | - | - |
iShares 7-10 Year Treasury Bond ETF Investor Checkpoints
Here are the points to review before investing in IEF. Although it is an intermediate-term Treasury fund with safe-haven characteristics, the direction of interest rates, the level of duration, and exchange rate movements directly affect returns, so it is wise to check them before buying.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cumulative cost impact over a long holding period | Needs comparison with category |
| 📉 Rate Direction | Possibility of price declines when rates rise | Needs advance review |
| 📊 Duration | Level of interest rate sensitivity in the intermediate range | Moderate |
| 💱 Exchange Rate | Impact on returns converted to Korean won | Not currency-hedged |
In a rising-rate environment, the price decline can be larger than for shorter-dated bonds because of its intermediate duration, and dollar exchange rate movements also affect returns in Korean won terms. Even a safe-haven asset can post short-term valuation losses.
It is a core bond holding that suits investors looking to add intermediate-term US Treasury exposure to their portfolios. To reduce cost, compare VGIT and SCHR, and if the goal is to adjust duration, compare IEI, TLT, and SHY, which cover different maturity ranges.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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