VGLT vs. SCHQ: Which U.S. Treasury ETF Is a Better Choice for Investors?

Core Insights - The Schwab Long-Term U.S. Treasury ETF (SCHQ) and the Vanguard Long-Term Treasury ETF (VGLT) provide exposure to long-dated U.S. Treasury bonds, differing mainly in fund size and dividend yield [1][2] Cost & Size Comparison - Both SCHQ and VGLT have an expense ratio of 0.03%, making them equally affordable [3] - SCHQ has a total assets under management (AUM) of $1.0 billion, while VGLT has a significantly larger AUM of $14.3 billion [3][8] - The one-year return for SCHQ is -3.46% and for VGLT is -3.42%, with SCHQ offering a slightly higher dividend yield of 4.47% compared to VGLT's 4.36% [3] Performance & Risk Metrics - The maximum drawdown over five years for SCHQ is -46.13%, while VGLT's is -46.17% [4] - The growth of a $1,000 investment over five years would result in $586 for SCHQ and $588 for VGLT, indicating similar performance [4] Portfolio Composition - VGLT holds 94 bonds, primarily U.S. Treasury bonds with maturities between 10 and 25 years, with a weighted average maturity of 22 years and an average duration of 14 years [5] - SCHQ contains 97 holdings, focusing on U.S. Treasury securities with maturities of more than 10 years, also with an average maturity of 22 years and an average duration of 14 years [5] Investor Considerations - VGLT's larger AUM may provide greater liquidity, which can be beneficial for investors who prioritize ease of buying and selling [8] - Despite being newer and smaller, SCHQ remains competitive, offering similar returns to VGLT over the last one and five years, making it a viable option for diversification among ETF providers [9]