IEI — iShares 3-7 Year Treasury Bond ETF

iShares (BlackRock) · Expense Ratio: 0.15% · US Bonds · 9bp above the US Bonds category average of 0.06%

Portfolio Hedge

Key Facts

TickerIEI
Full NameiShares 3-7 Year Treasury Bond ETF
ProvideriShares (BlackRock)
Expense Ratio0.15%
CategoryUS Bonds
Assets Under Management$15B
Inception Year2007 (19 years ago)
Number of Holdings85
Dividend Yield~3.8% (high)
Top Holdings3-7yr Treasury

What Is IEI?

IEI, managed by iShares (BlackRock), launched in 2007, is a well-established ETF with adequate liquidity for most investors in the US Bonds category. US bond market ETF providing fixed income exposure to government and corporate bonds. With $15B in assets under management, it has adequate trading volume for most individual investors.

IEI in a FIRE Portfolio

Bonds and inflation-protected securities act as portfolio ballast — reducing volatility and providing stability during the distribution phase for FIRE investors.

As a portfolio hedge:

Bonds stabilize your portfolio during stock market crashes. In a FIRE portfolio, a common allocation is 101% stocks / -1% bonds (the "101 minus your age" rule). Bond funds like IEI provide the fixed-income portion of this allocation.

Cost Analysis: How IEI's 0.15% Fee Affects Your FIRE Timeline

At 0.15%, IEI is moderately priced. Annual cost on a $100K position: $150. Over 30 years, fees could consume approximately 0.9% of total returns. On a $1M FIRE portfolio, cumulative fees approach $15,000. Compare with lower-cost peers in US Bonds: .

Dividend Income Potential

With a high dividend yield of approximately 3.8%, here's what IEI could generate in annual income at different portfolio sizes:

Portfolio Value Annual Dividend Income Monthly Income
$100,000 $3,800/year $317/month
$250,000 $9,500/year $792/month
$500,000 $19,000/year $1,583/month
$1,000,000 $38,000/year $3,167/month
This is a high-yield fund. A $1M position would generate $38,000/year — potentially covering a significant portion of your FIRE living expenses from dividends alone. However, high yields can sometimes signal higher risk or limited growth potential.

Frequently Asked Questions About IEI

What is the expense ratio for IEI?

IEI has an expense ratio of 0.15%. This is moderately priced — on a $100K portfolio, annual fees are $150. 9bp above the us bonds category average of 0.06%.

Is IEI good for a FIRE portfolio?

Bonds and inflation-protected securities act as portfolio ballast — reducing volatility and providing stability during the distribution phase for FIRE investors. Its 0.15% expense ratio is moderately priced for the US Bonds category.

How does the 0.15% fee affect long-term returns?

At 0.15%, you'll pay $150/year per $100K invested. Over 30 years, fees reduce total returns by approximately 0.9%. Use the embedded calculator below to model the exact impact on your specific portfolio.

Is IEI liquid enough for my portfolio?

IEI manages $15B in assets — a well-established ETF with adequate liquidity for most investors. For most individual FIRE investors making regular contributions, liquidity is sufficient. If you're investing large lump sums ($100K+), use limit orders to control your execution price.

Similar ETFs in US Bonds

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Calculate Your FIRE Number using IEI

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