State Street's SPLB or iShares' TLT: Which Long-Term Bond ETF Should Investors Choose?
SPLB's diversified portfolio of investment-grade bonds delivered stronger 5-year performance with lower volatility, while charging just 0.04% in fees.
Overview
State Street SPDR Portfolio Long Term Corporate Bond ETF (NYSEMKT:SPLB) offers low-cost exposure to corporate credit, while iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) provides a highly liquid vehicle for long-dated U.S. government debt.
Investors seeking long-duration bond exposure often choose between Treasuries and corporate credit. While both funds are sensitive to interest rate movements, they carry different risk profiles. The SPDR fund provides diversified corporate credit exposure, whereas the iShares fund acts as a pure play on long-term government interest rates.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.