(IEF) iShares 7-10 Year Treasury - Ratings and Ratios

The iShares 7-10 Year Treasury Bond ETF (IEF) tracks an index of U.S. Treasury securities with remaining maturities between seven and ten years. By regulation, the fund must hold at least 80 % of its assets in the index constituents and at least 90 % in U.S. Treasuries that the manager deems appropriate for index tracking.

As of the most recent filing (Q2 2025), IEF carries an expense ratio of 0.15 % and reports a weighted-average duration of roughly 8.0 years, positioning it to capture intermediate-term rate movements while limiting price volatility relative to longer-dated bonds. The fund’s distribution yield hovered around 4.3 % in September 2025, reflecting the prevailing 10-year Treasury yield, and it manages approximately $30 billion in assets, making it one of the most liquid instruments in the long-government ETF space.

Key drivers of IEF’s performance are Federal Reserve policy decisions (especially changes to the federal funds rate), inflation expectations, and the supply dynamics of Treasury issuance. A 25 bp hike by the Fed typically depresses the fund’s price by about 0.6 % (based on historical sensitivity), while a decline in core-PCE inflation can bolster yields and support price appreciation. Because the fund holds virtually no credit risk, its returns are highly correlated (≈0.85) with the Bloomberg U.S. Treasury 7-10 Year Index and only modestly correlated (≈0.30) with equity benchmarks such as the S&P 500.

If you want a granular view of how IEF’s price reacts to shifting yield curves, the interactive tools on ValueRay can help you model scenario-based outcomes without any commitment.