At a glance
IEI charges 0.15% a year, above the 0.08% average of the 7 funds most like it (the 5th cheapest of 8). It has $17.68B in assets, the 7th largest of that group; it paid 3.79% of its price in distributions over the past 12 months, monthly. Over the past year it returned −0.4% with distributions reinvested, 6th of those 8 funds; over three years it returned +4.0% a year. At its worst it fell 1.8% in the 2020 crash (S&P 500: 33.7%) and 10.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 30 months after the lows. Its ten largest positions make up 22.6% of the fund, out of 83 in all.
The short version
iShares 3-7 Year Treasury Bond ETF (IEI) is a BlackRock index fund that holds U.S. Treasury notes maturing in roughly three to seven years, tracking the ICE U.S. Treasury 3-7 Year Bond Index. Its middle-of-the-road maturity makes it more sensitive to interest rates than short-term Treasury funds but less than 7-10 year ones. Its 0.15% expense ratio costs more than Vanguard's closely matched VGIT, which charges 0.03%.
Price history
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IEI -0.4% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IEI official prospectus, to Dec 31, 2025 | — | +7.01% | — | +0.05% | +1.64% | — |
| ICEB Of AUS Broad Market Index index, same period | — | +7.15% | — | -0.42% | +2.01% | — |
| IEI price data to Nov 2, 2026 | -0.9% | -0.4% | +4.0% | +0.3% | +1.2% | +2.8% |
- Over the year to Nov 2, 2026, IEI returned -0.4%, 6th of 8 among similar funds.
- Its 5-year annualized return was +0.3% and its 10-year +1.2%.
- In the 2020 COVID crash, while stocks fell, it gained 4.4%.
- Its worst full calendar year was 2022 (-9.5%); its best was 2008 (+12.8%).
- The deepest fall in its price history was 14.6% (Aug 4, 2020 to Oct 20, 2022), recovered by Nov 25, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.9% | — |
| 2025 | +7.0% | +7.01% |
| 2024 | +1.8% | +1.81% |
| 2023 | +4.4% | +4.42% |
| 2022 | -9.5% | -9.59% |
| 2021 | -2.5% | -2.51% |
| 2020 | +7.0% | +6.88% |
| 2019 | +5.7% | +5.78% |
| 2018 | +1.4% | +1.36% |
| 2017 | +1.2% | +1.19% |
| 2016 | +1.2% | +1.22% |
| 2015 | +1.6% | — |
| 2014 | +3.2% | — |
| 2013 | -1.8% | — |
| 2012 | +1.9% | — |
| 2011 | +8.3% | — |
| 2010 | +6.3% | — |
| 2009 | -1.7% | — |
| 2008 | +12.8% | — |
| 2007 | +10.1% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Gained 16.5% over that stretch · deepest drop along the way 5.3%, back to its old high 3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Gained 4.4% over that stretch · deepest drop along the way 1.8% |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 10.3% over that stretch · deepest drop along the way 10.9%, back to its old high 30.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $3.2694 | |
| 2025 | $4.1500 | +12.8% |
| 2024 | $3.6800 | +33.8% |
| 2023 | $2.7500 | +76.3% |
| 2022 | $1.5600 | +64.2% |
| 2021 | $0.9500 | -36.2% |
| 2020 | $1.4900 | -41.3% |
| 2019 | $2.5400 | +7.2% |
| 2018 | $2.3700 | +28.8% |
| 2017 | $1.8400 | +13.6% |
| 2016 | $1.6200 | -4.1% |
| 2015 | $1.6900 | +12.7% |
| 2014 | $1.5000 | +59.6% |
| 2013 | $0.9400 | -12.1% |
| 2012 | $1.0695 | -47.7% |
| 2011 | $2.0431 | -16.3% |
| 2010 | $2.4417 | -29.3% |
| 2009 | $3.4548 | +6.9% |
| 2008 | $3.2319 | -24.3% |
| 2007 | $4.2675 |
What's inside
As of Aug 31, 2026, the fund held 83 securities; the ten largest made up 22.55% of assets.
| Holding | Weight | |
|---|---|---|
| United States of America Bonds and notes | 2.90% | |
| United States of America Bonds and notes | 2.30% | |
| United States of America Bonds and notes | 2.29% | |
| United States of America Bonds and notes | 2.26% | |
| United States of America Bonds and notes | 2.24% | |
| United States of America Bonds and notes | 2.17% | |
| United States of America Bonds and notes | 2.11% | |
| United States of America Bonds and notes | 2.10% | |
| United States of America Bonds and notes | 2.10% | |
| United States of America Bonds and notes | 2.09% | |
| United States of America Bonds and notes | 2.08% | |
| United States of America Bonds and notes | 1.93% | |
| United States of America Bonds and notes | 1.93% | |
| United States of America Bonds and notes | 1.83% | |
| United States of America Bonds and notes | 1.66% |
By country
United States 98.45%By issuer
US Treasury 98.45%The bonds mature in 4.7 years on average (weighted by size), with an average coupon of 3.49%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $570.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.09%, -0.56%, +0.09%.
How it works
IEI tracks the ICE U.S. Treasury 3-7 Year Bond Index, which is run by ICE Data Indices. The index holds fixed-rate U.S. Treasury securities in dollars that have about three to seven years left until they mature and at least $300 million outstanding. The index leaves out inflation-protected Treasuries (TIPS), Treasury bills, government agency debt and zero-coupon bonds. The index weights each issue by its market value, so larger issues count for more. It is updated on the last calendar day of each month. It held 88 issues as of February 28, 2026.
BlackRock Fund Advisors uses "representative sampling," which means it can buy a subset of the index's bonds with matching traits such as duration (sensitivity to interest rates), maturity and yield. The fund must keep at least 80% of its assets in index bonds and at least 90% in Treasuries. It may put up to 10% in futures, options and swaps. As of August 31, 2026, it held 83 issues, with 98.45% in Treasuries, 1.84% in cash and no derivatives. Average maturity was 4.7 years.
When a note drops below three years to maturity, it leaves the index and is replaced by a newer one. This keeps the fund's maturity roughly steady, so unlike a single bond, the fund never matures and pays back a fixed amount. Portfolio turnover was 37%. The fund may lend out up to one-third of its assets.
What it really costs
- IEI charges 0.15% a year, versus an average of 0.08% for the similar funds below (5th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IEI | $15 | $48 | $85 | $192 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It owns only U.S. Treasury notes, has moved largely independently of stocks, and gained during the 2008 and 2020 stock market crashes.
IEI gained 16.5% between the stock market's October 2007 peak and its March 2009 low, and 4.4% during the 2020 COVID crash. The exception was 2022. Rising interest rates caused its worst calendar year, a 9.59% loss according to the prospectus. From August 2020 to October 2022 it fell 14.6%, and it took until November 2025, about 37 months, to fully recover. Anyone selling shares to fund spending that year would have sold at a loss, just as stocks were also falling.
It paid a trailing 12-month yield of 3.8% as of October 29, 2026, with monthly payments. The 0.15% fee works out to about $15 a year on $10,000, compared with 0.03% at VGIT. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting Treasury-only bond exposure in the three-to-seven-year maturity range, with no corporate or mortgage credit risk.
- Retirees who value monthly income. The trailing yield was 3.8% as of October 29, 2026.
- Portfolios seeking a cushion in stock crashes. IEI gained 16.5% during the 2007–2009 market decline and 4.4% in the 2020 crash.
Look elsewhere if
- Cost-focused investors: the 0.15% expense ratio compares with 0.03% for Vanguard Intermediate-Term Treasury ETF (VGIT), the closest match.
- Anyone seeking inflation protection. The index excludes TIPS, and IEI lost 9.59% in 2022 as rates and inflation rose.
- Savers who may need the money within a year or two. IEI's 2022 drop took about 30 months to recover.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| IEI this fund | 4.7 yrs | 0.15% | $17.68B | -0.4% | +4.0% |
| VGIT Vanguard Intermediate-Term Treasury ETF | 5.5 yrs | 0.03% | $48.41B | -0.2% | +4.5% |
| GOVT iShares U.S. Treasury Bond ETF | 7.4 yrs | 0.05% | $43.55B | -0.5% | +3.8% |
| VGSH Vanguard Short-Term Treasury ETF | 1.9 yrs | 0.03% | $39.20B | +2.2% | +4.2% |
| SHY iShares 1-3 Year Treasury Bond ETF | 1.9 yrs | 0.15% | $25.91B | +1.7% | +3.9% |
| SCHO Schwab Short-Term U.S. Treasury ETF | 1.9 yrs | 0.03% | $12.95B | +2.1% | +4.2% |
| USFR WisdomTree Floating Rate Treasury Fund | 1.5 yrs | 0.15% | $18.76B | +4.1% | +4.6% |
| IEF iShares 7-10 Year Treasury Bond ETF | 8.4 yrs | 0.15% | $41.82B | -1.7% | +4.0% |
Questions investors ask
Is IEI good for retirement?
IEI can play a defensive role in a retirement portfolio, but it isn't risk-free. It holds only U.S. Treasury notes maturing in roughly three to seven years and pays income monthly. Its trailing yield was 3.8% as of October 29, 2026. It gained during the 2008 and 2020 stock crashes but lost 9.59% in 2022 when interest rates jumped. Its 0.15% expense ratio is higher than some similar Treasury funds.
What's the difference between IEI and VGIT?
Both hold intermediate-term U.S. Treasury notes, but VGIT costs less and holds slightly longer bonds. VGIT charges 0.03% a year versus IEI's 0.15%. As of August 31, 2026, VGIT's average maturity was 5.5 years and IEI's was 4.7 years. Returns have been close. Over the year to October 29, 2026, VGIT returned −0.6% and IEI −0.4%. Over three years, the figures were 4.3% and 4.1% a year.
Does IEI pay monthly dividends?
Yes. IEI pays distributions every month. In the 12 months to October 29, 2026, it paid about $4.36 per share, a trailing yield of 3.8%. The income comes from interest on its Treasury notes, which had an average coupon of 3.49% as of August 31, 2026. Payments can change. The prospectus warns that income may fall if rates drop and maturing bonds are replaced with lower-yielding ones.
Why did IEI lose money in 2022?
Interest rates rose sharply. When rates climb, existing bonds that pay lower rates lose value. IEI fell 9.59% in 2022, its worst calendar year in the prospectus record, and its weakest quarter was the first quarter of 2022, down 5.04%. From its August 2020 peak to its October 2022 low it dropped 14.6%, and it didn't regain that peak until November 2025, about 37 months later.
IEI vs SHY vs IEF: what's the difference?
All three are iShares Treasury ETFs charging 0.15% a year. The difference is maturity. As of August 31, 2026, SHY held 1–3 year notes averaging 1.9 years, IEI held 3–7 year notes averaging 4.7 years and IEF held 7–10 year notes averaging 8.4 years. Longer maturities usually mean bigger price swings when rates move. Over the year to October 29, 2026, SHY returned 1.9%, IEI −0.4% and IEF −2.1%.