VGLT vs. TLT: Bond ETF Value Comparison

The Vanguard Long-Term Treasury ETF (VGLT) and iShares 20+ Year Treasury Bond ETF ($TLT+WL) both advanced, showing 1.50% and 1.67% gains, respectively. Investors scrutinizing long-duration bond exposure may favor VGLT due to its significantly lower expense ratio of 0.03% compared to $TLT+WL's 0.15%.

While both ETFs offer exposure to long-dated government debt, VGLT tracks bonds with maturities between 10 and 25 years, holding approximately 100 securities. Its top holdings include U.S. Treasury Notes with coupon rates around 4.75%. $TLT+WL, conversely, targets the ultra-long end of the curve, holding 48 securities with maturities exceeding 20 years, with key holdings featuring Treasury Bonds around 4.53% and 4.47% yields.

The Vanguard fund, launched in 2009, reported a trailing-12-month dividend of $2.52 per share, yielding 4.75% at its recent price. The iShares fund, launched in 2002, paid $3.90 per share over the same period, yielding 4.72% at its recent price. In terms of risk, $TLT+WL experienced a 5-year max drawdown of -43.8%, while VGLT saw a -41.0% drawdown over the same period. For every $1,000 invested, VGLT generated $703 in total return over five years, compared to $658 for $TLT+WL.