SCHQ vs. VGLT: Vanguard's $14 Billion Giant or Schwab's Nimble Newcomer?

Schwab Long-Term U.S. Treasury ETF (NYSEMKT:SCHQ) and Vanguard Long-Term Treasury ETF (NASDAQ:VGLT) both target long-duration U.S. government bonds, but VGLT stands out for its much larger asset base and deeper history, while SCHQ competes on identical cost and similar yield.

Both ETFs are designed for investors seeking exposure to long-term U.S. Treasuries, appealing to those looking for interest rate risk and potential diversification from equities. This comparison looks at how SCHQ and VGLT stack up in terms of cost, performance, risk, portfolio composition, and practical trading considerations as of Dec. 12, 2025.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

Both funds are equally affordable, charging a 0.03% annual expense ratio, but SCHQ yields a slight edge at 4.5% versus 4.4% for VGLT -- differences that may matter little in practice given their near parity.

Performance & risk comparison

What's inside

VGLT’s approach is straightforward: it invests primarily in U.S. Treasury bonds with a dollar-weighted average maturity of 10 to 25 years, and its portfolio holds 96 securities. With over 15 years of history, VGLT covers the full spectrum of long-dated Treasuries. SCHQ also invests primarily in U.S. Treasury bonds, but it is newer and smaller, with an inception date of 2019.

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What this means for investors

SCHQ and VGLT both track long-term U.S. Treasuries with maturities over 10 years, but they differ dramatically in size and experience. VGLT dominates with over $14 billion in assets under management compared to SCHQ's roughly $1 billion. More importantly, VGLT launched in 2009, providing investors with a 15-year track record through multiple rate cycles, bear markets, and periods of economic uncertainty. SCHQ debuted in October 2019 and simply hasn't had the same opportunity to prove itself across diverse market conditions.

However, SCHQ brings its own appeal. Both funds charge an identical rock-bottom expense ratio of 0.03%, meaning costs won't differentiate your returns. SCHQ's smaller size doesn't handicap its ability to track long-term Treasuries since these are highly liquid government bonds. Both funds offer similar yields around 4.3%-4.4% and hold portfolios with average maturities exceeding 20 years, making them equally sensitive to interest rate changes.

Investors prioritizing a longer performance history and the confidence that comes with a battle-tested fund should favor VGLT's established presence. Those comfortable with a newer fund and interested in Schwab's broader ecosystem might choose SCHQ, knowing they're getting identical cost efficiency and virtually the same underlying exposure.

Glossary

Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual income from dividends, expressed as a percentage of the fund's current price.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
Assets under management (AUM): The total market value of all assets managed by a fund.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a specific period.
ESG screen: A filter that selects investments based on environmental, social, and governance criteria.
Long-term U.S. Treasury: U.S. government bonds with maturities typically ranging from 10 to 30 years.
Portfolio composition: The breakdown of the types of assets or sectors held within a fund.
Sector breakdown: The allocation of a fund's assets across different industry sectors.
Liquidity: How easily a fund's shares can be bought or sold without affecting its price.
Growth of $1,000: The value a $1,000 investment would reach over a specified time period, including returns.
Interest rate risk: The risk that a bond's value will decline due to rising interest rates.

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.