Better U.S. Treasury Bond ETF: Vanguard Long-Term Treasury Fund vs. iShares 20+ Year Treasury Bond ETF

Core Insights - The Vanguard Long-Term Treasury ETF (VGLT) and the iShares 20+ Year Treasury Bond ETF (TLT) provide exposure to long-term U.S. Treasury bonds, with distinct differences in cost, performance, and structure [1] Cost & Size - TLT has an expense ratio of 0.15% while VGLT has a lower expense ratio of 0.03% [2] - As of October 31, 2025, TLT's one-year return is 1.84% compared to VGLT's 2.73% [2] - TLT offers a dividend yield of 4.3%, slightly lower than VGLT's yield of 4.4% [2] - TLT has assets under management (AUM) of $49.7 billion, significantly higher than VGLT's AUM of $14.3 billion [2][8] Performance & Risk Comparison - Over the past five years, TLT experienced a maximum drawdown of -47.75%, while VGLT had a drawdown of -45.47% [4] - The growth of a $1,000 investment over five years would result in $576 for TLT and $552 for VGLT [4] Portfolio Composition - VGLT tracks U.S. Treasury bonds with maturities between 10 to 25 years, holding 96 securities and incorporating an ESG screen [5] - TLT focuses exclusively on Treasury bonds with maturities greater than 20 years, consisting of 46 holdings and does not apply ESG screens [6] Investment Considerations - VGLT is more suitable for cost-conscious investors seeking lower fees and a broader range of bonds [7][9] - TLT is better for investors who prioritize high liquidity and frequently trade bonds due to its larger AUM [8][9]