Core Insights - The Vanguard Long-Term Corporate Bond ETF (VCLT) offers lower costs and higher yields compared to the iShares 20 Year Treasury Bond ETF (TLT), which provides greater scale and pure exposure to U.S. Treasuries [1][9] Group 1: Fund Characteristics - TLT focuses exclusively on U.S. Treasuries with maturities over 20 years, while VCLT invests in a diverse range of investment-grade corporate bonds with maturities between 10 and 25 years [2] - VCLT has an expense ratio of 0.03%, significantly lower than TLT's 0.15%, making it more cost-efficient [3][4] - VCLT's dividend yield is 5.4%, compared to TLT's 4.4%, appealing to income-focused investors [3][4] Group 2: Performance and Risk - Over the past year, TLT has returned -4.0%, while VCLT has returned -1.6% [3] - The maximum drawdown over five years for TLT is -45.06%, whereas VCLT's is -34.31%, indicating VCLT's relative resilience [5] - The growth of $1,000 invested over five years would yield $564 for TLT and $695 for VCLT, showcasing VCLT's better performance [5] Group 3: Portfolio Composition - VCLT holds 257 securities across various sectors, including healthcare (14%) and financial services (13%), and applies an ESG screen [6] - TLT consists entirely of U.S. Treasury bonds with 100% of its assets in cash and government debt, making it less exposed to corporate credit risk [7] Group 4: Investment Considerations - Investors must choose between the financial security of U.S. Treasuries offered by TLT and the lower cost and higher yield of corporate bonds from VCLT, with the latter carrying higher credit risk [10][11]

Core Insights - The Vanguard Long-Term Corporate Bond ETF (VCLT) and the iShares iBoxx Investment Grade Corporate Bond ETF (LQD) focus on investment-grade U.S. corporate bonds but differ in maturity range, diversification, and cost structure, making them suitable for different types of fixed-income investors [1] Cost & Size Comparison - VCLT has a lower expense ratio of 0.03% compared to LQD's 0.14%, providing a cost advantage [2][3] - As of November 6, 2025, VCLT has a 1-year return of -1.21%, while LQD has a return of 1.34% [2] - VCLT offers a higher dividend yield of 5.37% compared to LQD's 4.35% [2][3] - VCLT has assets under management (AUM) of $8.53 billion, while LQD has AUM of $31.79 billion [2] Performance & Risk Analysis - Over the past five years, VCLT experienced a maximum drawdown of 34.31%, while LQD had a drawdown of 24.96% [4] - The growth of $1,000 invested over five years would result in $704 for VCLT and $811 for LQD [4] Portfolio Composition - VCLT holds 1,797 bonds with maturities ranging from 10 to 25 years, primarily from the industrials sector (68%), followed by finance (17%) and utilities (14%) [5] - LQD has a broader exposure with 2,998 holdings, heavily weighted in banking (23%), consumer non-cyclical (18%), and technology (12%) [6] Investment Strategy - VCLT's concentrated approach may lead to higher returns but also increased volatility, as indicated by its higher beta of 2.06 and lower one-year total returns [8] - LQD offers more stability through greater diversification and lower price volatility, but has a higher expense ratio and lower dividend yield compared to VCLT [9]