VGLT vs TLT: Which Bond ETF Is the Better Value?
Key Points
Vanguard Long-Term Treasury ETF (VGLT) has a significantly lower expense ratio than iShares 20+ Year Treasury Bond ETF (TLT).
Both funds focus on long-term U.S. government debt but the Vanguard fund holds more than double the number of securities.
The iShares fund manages more assets under management (AUM), though both ETFs maintain high liquidity for investors.
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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.
Snapshot (cost & size)
| Metric | TLT | VGLT |
|---|---|---|
| Issuer | iShares | Vanguard |
| Share price | $82.59 (as of 2026-08-13) | $53.05 (as of 2026-08-13) |
| Expense ratio | 0.15% | 0.03% |
| 1-yr return (as of Aug. 13, 2026) | (-1.5%) | (-0.7%) |
| Dividend yield | 4.72% | 4.75% |
| Beta | 2.40 | 2.25 |
| AUM | $46 billion | $15 billion |
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.
The Vanguard is the more affordable option with an expense ratio of 0.03%, compared to 0.15% for the iShares fund. Both funds currently offer similar income levels, with the Vanguard fund providing a slightly higher payout.
Performance & risk comparison
| Metric | TLT | VGLT |
|---|---|---|
| Max drawdown (5 yr) | (-43.8%) | (-41.0%) |
| Growth of $1,000 over 5 years (total return) | $658 | $703 |
What's inside
The Vanguard focuses on U.S. government bonds with maturities between 10 and 25 years. It is a fixed-income fund with no equity sector breakdown and holds close to 100 securities. Its largest positions include United States Treasury Note/Bond 4.75% 02/15/2056 at 2.22% and United States Treasury Note/Bond 4.75% 05/15/2055 at 2.21%.
Launched in 2009. The Vanguard Long-Term Treasury ETF has paid $2.52 per share over the trailing 12 months, which, at its recent $53.05 share price, works out to a 4.75% yield.
The iShares targets the ultra-long end of the curve, holding 48 U.S. Treasury securities with maturities exceeding 20 years. This is a fixed-income fund with no equity sector breakdown. Its largest positions include Treasury Bond 4.75% 05/15/2055 at 4.53% and Treasury Bond 4.63% 05/15/2054 at 4.47%.
Launched in 2002. iShares 20+ Year Treasury Bond ETF has paid $3.90 per share over the trailing 12 months, which, at its recent $82.59 share price, works out to a 4.72% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy?
These are both solid Treasury bond ETFs. There's not much that separates them in returns. The biggest differences are in cost and portfolio structure, and this is where Vanguard may win for most investors.
Vanguard's mandate is to maintain a dollar-weighted average maturity of 10 to 25 years. In contrast, the iShares' TLT focuses on U.S. Treasury bonds with remaining maturities greater than 20 years. VGLT has a slightly shorter average effective maturity, which makes it less sensitive to interest rate swings.
Investors seeking to maximize returns if interest rates fall may favor iShares' longer-maturity portfolio. But Vanguard has experienced less volatility over the last five years, as noted by its marginally lower beta and max drawdown. The Vanguard may be the better option across market cycles and interest rate levels.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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