Which Long-Term Bond ETF Is the Better Buy: iShares' IGLB or Its Treasury Rival TLT?
Explore how credit quality and diversification set these two long-duration bond ETFs apart for income-focused investors.
Which Long-Term Bond ETF Is the Better Buy: iShares' IGLB or Its Treasury Rival TLT?
Overview
The iShares 10+ Year Investment Grade Corporate Bond ETF (NYSEMKT:IGLB) offers lower costs and higher yields, while the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) provides pure-play exposure to long-dated government debt.
Both funds target the long end of the maturity curve, meaning they are highly sensitive to interest rate changes. While the iShares 10+ Year Investment Grade Corporate Bond ETF focuses on the debt of highly rated corporations, the iShares 20+ Year Treasury Bond ETF tracks U.S. government obligations. This fundamental difference in credit quality influences their historical performance and risk profiles.
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.
