iShares 7-10 Year Treasury Bond ETF (IEF): Complete Beginner's Guide
Last updated: March 2026 • BlackRock • Intermediate Treasury
Expense Ratio
0.15%
AUM
$30.0B
Dividend Yield
3.30%
Inception
2002
Beginner Score
8.5/10
What is iShares 7-10 Year Treasury Bond ETF?
IEF tracks the ICE U.S. Treasury 7-10 Year Bond Index, providing exposure to intermediate-maturity U.S. government bonds. These bonds offer a balance between the higher yields of long-term bonds and the stability of short-term bonds, sitting in the middle of the yield curve. IEF is widely used as a portfolio diversifier because intermediate Treasuries tend to rise in value when stocks fall sharply.
IEF is managed by BlackRock and has been available since 2002. With $30.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.15%, which means for every $10,000 you invest, you pay approximately $15 per year in management fees.
IEF at a Glance — Key Metrics
| Expense Ratio | 0.15% |
| Total Holdings | 15 |
| P/E Ratio | N/A |
| Beta | 0.10 |
| Dividend Yield | 3.30% |
| AUM | $30.0B |
| Inception Year | 2002 |
| Issuer | BlackRock |
Top 10 Holdings in IEF
IEF holds 15 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | US Treasury 4.0% 02/15/2034 | T 4.0 2034 | 12.00% |
| 2 | US Treasury 3.875% 08/15/2033 | T 3.875 2033 | 11.00% |
| 3 | US Treasury 4.125% 11/15/2032 | T 4.125 2032 | 10.00% |
| 4 | US Treasury 3.5% 02/15/2033 | T 3.5 2033 | 9.00% |
| 5 | US Treasury 4.375% 05/15/2034 | T 4.375 2034 | 8.50% |
| 6 | US Treasury 2.875% 05/15/2032 | T 2.875 2032 | 8.00% |
| 7 | US Treasury 4.5% 11/15/2033 | T 4.5 2033 | 7.50% |
| 8 | US Treasury 3.0% 08/15/2032 | T 3.0 2032 | 7.00% |
| 9 | US Treasury 4.625% 02/15/2035 | T 4.625 2035 | 6.50% |
| 10 | US Treasury 2.75% 08/15/2032 | T 2.75 2032 | 6.00% |
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IEF Performance History
Here's how IEF has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
0.30%
1 Year
2.50%
3 Year
-3.00%
5 Year
-0.50%
10 Year
1.20%
Beginner Suitability Score: 8.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
IEF scores 8.5/10 because it has very low fees, shows lower-than-average volatility, focuses on 15 selected holdings, and has been available since 2002, giving it a proven track record.
How to Buy IEF — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "IEF" — Use the search bar in your brokerage platform to find iShares 7-10 Year Treasury Bond ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into IEF
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With IEF's expense ratio of 0.15%, a $10,000 investment would lose approximately $1,278 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of IEF
Pros
- ✓Strong negative correlation with stocks makes it an excellent portfolio diversifier
- ✓Intermediate duration offers a balance between yield and interest rate risk
- ✓Massive AUM and deep liquidity make it the benchmark intermediate Treasury ETF
- ✓Zero credit risk since all holdings are backed by the U.S. government
Cons
- ✗Significant price sensitivity to interest rate changes with duration around 7 years
- ✗Can produce negative total returns during prolonged rate-hiking cycles
- ✗Lower yields than corporate bonds with similar maturities due to no credit risk premium
IEF vs Similar ETFs
See how IEF stacks up against similar funds:
Frequently Asked Questions
Is IEF a good ETF for beginners?▾
IEF has a Beginner Suitability Score of 8.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and focused strategy.
What is the expense ratio of IEF?▾
IEF has an expense ratio of 0.15%. This means for every $10,000 you invest, you pay approximately $15 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in IEF?▾
You can invest in IEF with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does IEF pay dividends?▾
Yes, IEF pays dividends with a current yield of approximately 3.30%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in IEF?▾
The top holdings in IEF include US Treasury 4.0% 02/15/2034 (12.00%), US Treasury 3.875% 08/15/2033 (11.00%), US Treasury 4.125% 11/15/2032 (10.00%), and more. The fund holds 15 total positions, providing focused exposure to selected companies.