IEF holds US Treasury notes and bonds with remaining maturities between seven and ten years, tracking the ICE US Treasury 7-10 Year Bond Index. The fund has no credit risk in the sense of default risk, but its price is sensitive to interest rates: its duration is about seven years, so a one percentage point rise in rates would be expected to lower the price by around seven percent. It sits between short-term Treasury funds such as SHY and long-term funds such as TLT in rate sensitivity.
