VGLT vs TLT: Which Bond ETF Is the Better Value?
iShares' TLT commands $46 billion in assets but charges five times more in fees than a similar offering from Vanguard.
Overview
The Vanguard Long-Term Treasury ETF (NASDAQ:VGLT) and iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) Both provide exposure to long-dated government debt, but the Vanguard fund offers a significantly lower cost structure.
Fixed income investors often turn to long-term Treasuries to hedge against equity volatility or capture yields when interest rates fall. While TLT is the industry heavyweight with massive liquidity, VGLT tracks a slightly different maturity profile with a focus on fee efficiency for long-term holders.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). 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.