Which Is the Better Long-Term Bond ETF: Vanguard's Corporate VCLT or Treasury VGLT?
Key Points
Vanguard Long-Term Corporate Bond ETF and Vanguard Long-Term Treasury ETF both feature identical and highly efficient expense ratios of 0.03%.
Vanguard Long-Term Corporate Bond ETF provides a higher trailing-12-month dividend yield of 5.60% compared to 4.60% for the Treasury fund.
Vanguard Long-Term Corporate Bond ETF has delivered superior total returns and a smaller maximum drawdown over the last five years compared to Vanguard Long-Term Treasury ETF.
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Comparing Vanguard Long-Term Corporate Bond ETF (NASDAQ:VCLT) and Vanguard Long-Term Treasury ETF (NASDAQ:VGLT) highlights a choice between the high credit safety of sovereign debt and the yield premium offered by investment-grade corporate bonds.
Both funds serve as long-duration anchors, focusing on fixed-income maturities between 10 and 25 years. While VGLT holds sovereign debt backed by the U.S. government, VCLT targets corporate credit, offering higher income potential in exchange for taking on additional default risk.
Snapshot (cost & size)
| Metric | VGLT | VCLT |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Share price | $54.69 (as of 2026-07-02) | $74.81 (as of 2026-07-02) |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of July 2, 2026) | 2.80% | 4.40% |
| Dividend yield | 4.60% | 5.60% |
| Beta | 0.49 | 0.63 |
| AUM | $14.8 billion | $9.2 billion |
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.
Both funds are exceptionally affordable for long-term investors with 0.03% expense ratios. The primary differentiator for income seekers is the payout; Vanguard Long-Term Corporate Bond ETF offers a 5.60% yield, representing a 0.95% premium over the Treasury alternative.
Performance & risk comparison
| Metric | VGLT | VCLT |
|---|---|---|
| Max drawdown (5 yr) | (41.00%) | (34.30%) |
| Growth of $1,000 over 5 years (total return) | $740 | $886 |
What’s inside
Vanguard Long-Term Corporate Bond ETF (NASDAQ:VCLT) focuses on high-quality, investment-grade corporate debt. It manages 2,777 holdings and is highly diversified, as its largest positions include no single bond exceeding 0.38% of the total assets under management (AUM). This fund was launched in 2009. Vanguard Long-Term Corporate Bond ETF has paid $4.16 per share over the trailing 12 months, which on its recent ~$74.81 share price works out to a 5.60% yield.
Vanguard Long-Term Treasury ETF (NASDAQ:VGLT) primarily invests in U.S. government bonds with maturities between 10 and 25 years. It manages 101 holdings and focuses on sovereign debt issues, with its largest positions carrying weights of 2.20% and 2.19%. This fund was also launched in 2009. Vanguard Long-Term Treasury ETF has paid $2.52 per share over the trailing 12 months, which on its recent ~$54.69 share price works out to a 4.60% yield.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
When two funds from the same family charge identical fees, the choice becomes purely about what you are buying and what risks come with it. VCLT and VGLT share the same expense ratio and long-duration focus, but hold completely different types of bonds with very different risk profiles.
VGLT holds only U.S. Treasury bonds, the highest-quality fixed income available. That means zero credit risk, with every payment backed by the federal government. That purity comes at a price: VGLT is exquisitely sensitive to interest rate moves, and its negative YTD return in 2026 reflects that vulnerability.
VCLT holds long-term investment-grade corporate bonds, which yield more than Treasuries because they carry credit risk that government bonds do not. In recessions, corporate bonds can fall sharply as investors worry about companies' ability to meet their obligations, a risk VGLT simply does not carry.
Both funds delivered punishing drawdowns during the rate-hiking cycle of 2022 through 2024. For investors who want long-term bond income with a yield premium, VCLT is the stronger income choice. For those prioritizing the purest possible safe-haven bond holding, VGLT is the more defensive option.
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Sara Appino 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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