Better U.S. Treasury Bond ETF: Vanguard Long-Term Treasury Fund vs. iShares 20+ Year Treasury Bond ETF

A comparison of the Vanguard Long-Term Treasury ETF (VGLT) and the iShares 20+ Year Treasury Bond ETF (TLT) reveals distinct profiles for investors seeking long-term U.S. Treasury bond exposure. VGLT offers a significantly lower expense ratio of 0.03% and a broader maturity range (10-25 years) with an ESG screen, positioning it for cost-conscious investors prioritizing long-term efficiency. In contrast, TLT focuses exclusively on 20+ year maturities and boasts substantially higher Assets Under Management ($49.7 billion vs $14.3 billion), providing superior liquidity favored by active traders.

Analysis

The article provides a comparative analysis of the Vanguard Long-Term Treasury ETF (VGLT) and the iShares 20+ Year Treasury Bond ETF (TLT), detailing their distinct profiles. VGLT features a significantly lower expense ratio of 0.03% compared to TLT's 0.15%, a slightly higher dividend yield (4.4% vs. 4.3%), and a superior 1-year return of 2.73% against TLT's 1.84% as of October 31, 2025. VGLT also tracks a broader range of U.S. Treasury bonds (10-25 year maturities) and incorporates an ESG screen.

Conversely, TLT focuses exclusively on 20+ year maturities with a narrower portfolio of 46 holdings and no ESG criteria. Despite VGLT's cost advantages, TLT boasts substantially higher Assets Under Management (AUM) at $49.7 billion versus VGLT's $14.3 billion, indicating superior liquidity for active traders. Both ETFs exhibit significant interest rate sensitivity, with maximum drawdowns over five years at -47.75% for TLT and -45.47% for VGLT.

The analysis suggests VGLT is better suited for investors prioritizing low fees and long-term cost efficiency. TLT is preferable for those requiring high liquidity for frequent trading due to its larger AUM. Per-ticker sentiment for VGLT is 0.7, indicating a more favorable view compared to TLT's 0.2.

Key Decisions for Investors

• Investors should evaluate their investment horizon and trading frequency to determine suitability between VGLT's cost efficiency and TLT's liquidity
• Consider VGLT for long-term, cost-conscious exposure to U.S. Treasuries, particularly if ESG criteria are important, given its lower expense ratio and broader maturity range
• Active traders prioritizing high liquidity for large-volume transactions may find TLT more suitable due to its significantly larger Assets Under Management
• Acknowledge the inherent interest rate sensitivity and potential for significant drawdowns in both long-duration Treasury ETFs, managing expectations for volatility