The Vanguard Long-Term Treasury ETF (NASDAQ:VGLT) and the Schwab Long-Term U.S. Treasury ETF (NYSEMKT:SCHQ) provide near-identical exposure to long-duration government debt with matching expense ratios and performance profiles. Both the Vanguard fund and the Schwab fund target the long end of the U.S.
Treasury curve, allowing investors to hedge against falling interest rates or broader economic volatility. These funds focus on bonds with at least 10 years until maturity, which makes them highly sensitive to interest rate shifts. 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. Both ETFs are highly efficient, sharing a low 0.03% expense ratio.
While they track similar portfolios, the Schwab fund offers a slightly higher yield of 4.9% compared to 4.8% for the Vanguard fund, reflecting minor differences in their specific bond selections. Growth of $1,000 over 5 years (total return) Vanguard Long-Term Treasury ETF targets significant and steady current income by investing in government debt with maturities spanning 10 to 25 years. This concentration in the long end of the yield curve makes the fund particularly sensitive to interest rate changes.
It currently holds 102 positions and was launched in 2009. Vanguard Long-Term Treasury ETF has paid $2.52 per share over the trailing 12 months, which on its recent ~$53.05 share price works out to a 4.8% yield. Treasury ETF focuses on mirroring a benchmark index that tracks the performance of the long-duration segment of the U.S.
The portfolio contains 100 holdings and consists of debt backed by the full faith and credit of the federal government, often providing a hedge against equity market downturns. Treasury ETF has paid $1.47 per share over the trailing 12 months, which on its recent ~$30.10 share price works out to a 4.9% yield. For more guidance on ETF investing, check out the full guide at this link.
Extract — continue reading at the source.
