VGLT vs TLT: Which Bond ETF Is the Better Value?
iShares' TLT commands $46 billion in assets but charges five times more in fees than a similar offering from Vanguard.
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.
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Also reported by 2 other outlets
- VGLT vs TLT: Which Bond ETF Is the Better Value? nasdaq.com
- VGLT vs TLT: Which Bond ETF Is the Better Value? finance.yahoo.com
