Better U.S. Treasury ETF: Schwab Long-Term U.S. Treasury vs. Vanguard Long-Term Treasury

Core Insights - The Schwab Long-Term U.S. Treasury ETF (SCHQ) and the Vanguard Long-Term Treasury ETF (VGLT) are designed to track long-term U.S. Treasury bonds, appealing to investors seeking interest rate sensitivity and government-backed stability [1] Cost & Size - Both SCHQ and VGLT have an identical expense ratio of 0.03% [3] - As of October 20, 2025, SCHQ has a 1-year return of 2.70% and a dividend yield of 4.5%, while VGLT has a 1-year return of 2.73% and a dividend yield of 4.4% [2] - SCHQ has assets under management (AUM) of $859.0 million, whereas VGLT has a significantly larger AUM of $14.3 billion [2] Performance & Risk Comparison - Over a 5-year period, SCHQ experienced a maximum drawdown of -43.01%, while VGLT had a slightly higher drawdown of -43.11% [4] - The growth of $1,000 invested over 5 years would result in $584 for SCHQ and $586 for VGLT [4] Fund Composition - VGLT invests in U.S. Treasury bonds with maturities ranging from 10 to 25 years, holding 96 securities [5] - SCHQ also focuses on long-term U.S. Treasury bonds with 95 holdings, primarily in U.S. Treasury bonds with yields of 4.75% and 4.625% [6] Investment Appeal - Both ETFs are considered solid investment vehicles for exposure to long-term U.S. Treasuries, with low expense ratios enhancing returns for investors over time [7] - VGLT benefits from a larger asset base, leading to higher liquidity and economies of scale, while SCHQ offers a competitive alternative with a similar return profile [8] - The choice between SCHQ and VGLT often depends on individual preferences regarding fund size, brokerage platforms, and financial goals [9]