Which Long-Term Corporate Bond ETF Is the Better Buy: Vanguard’s VCLT or State Street’s SPLB?
When two funds are this close, the choice between them comes down to something other than performance.
When assessing the better buy between Vanguard's VCLT and State Street's SPLB, two long-term corporate bond ETFs, their historical returns and expense ratios are nearly identical. Both funds target corporate bonds with maturities of ten years or more, providing higher yields at the expense of increased interest rate sensitivity.
They both track unique indexes but have similar portfolio compositions, with VCLT managing seven times the assets of SPLB, indicating deeper liquidity and a longer institutional history. For most long-term investors, VCLT might be the more dependable choice due to its scale and track record. However, SPLB could be a preferable option for State Street platform investors or those who find marginally better pricing on their brokerage.
The decision should be based on understanding the actual investment being made, as both funds are essentially the same with slight differences in fees and yields.
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