VGLT vs TLT: Which Bond ETF Is the Better Value?
Key PointsVanguard Long-Term Treasury ETF (VGLT) has a significantly lower expense ratio than iShares 20+ Year Treasury Bond ETF (TLT).
When evaluating the Vanguard Long-Term Treasury ETF (VGLT) and iShares 20+ Year Treasury Bond ETF (TLT), investors should consider the cost structure and portfolio characteristics. VGLT boasts a lower expense ratio of 0.03% compared to TLT's 0.15%. Both funds offer similar income levels, with VGLT providing a slightly higher yield.
VGLT focuses on U.S. government bonds with maturities between 10 and 25 years, while TLT targets the ultra-long end of the curve, holding securities with maturities exceeding 20 years. VGLT's average effective maturity is slightly shorter, making it less sensitive to interest rate fluctuations. Over the past five years, VGLT experienced less volatility and had a marginally lower beta than TLT.
Investors should consider these factors when deciding between the two ETFs, as VGLT may be the better option across various market conditions and interest rate levels.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- VGLT vs TLT: Which Bond ETF Is the Better Value? fool.com
- VGLT vs TLT: Which Bond ETF Is the Better Value? finance.yahoo.com
