Key Points

VGLT delivers a much lower expense ratio than TLT while offering nearly the same dividend yield for long-term Treasury exposure.
TLT targets only Treasury securities maturing beyond 20 years.
VGLT posted stronger total returns over the past 12 months and a milder maximum drawdown across five years compared to TLT.

The Vanguard Long-Term Treasury ETF (NASDAQ:VGLT) features a notably reduced expense ratio versus the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) for those pursuing exposure to extended-duration government securities.

Both ETFs serve as core holdings for fixed-income portfolios seeking protection from equity swings or benefits from declining rates. Although each emphasizes the longer portion of the Treasury yield curve, variations in fees and precise maturity profiles may influence outcomes over extended periods for yield-oriented investors.

Snapshot (cost and size)

Metric	TLT	VGLT
Issuer	iShares	Vanguard
Expense ratio	0.15%	0.03%
1-year return (as of June 12, 2026)	2.89%	3.30%
Dividend yield	4.55%	4.58%
Beta	2.38	2.24
AUM	$42.9 billion	$14.8 billion

Beta reflects price volatility versus the S&P 500 based on five-year monthly data. The 1-year return captures total performance over the trailing 12 months. Dividend yield uses the trailing-12-month distribution figure.

VGLT stands out for its lower costs at 0.03% versus TLT at 0.15%. Even with this difference, both deliver comparable dividend yields near 4.6%.

Performance and risk comparison

Metric	TLT	VGLT
Max drawdown (5 yr)	(48.4%)	(46.2%)
Growth of $1,000 over 5 years (total return)	$603	$633

Holdings breakdown

VGLT tracks the Bloomberg U.S. Long Treasury Index covering Treasuries with 10-plus year maturities. Launched in 2009, it holds 99 securities and distributes a yield around 4.6%. Its strategy centers on income generation through a dollar-weighted average maturity spanning 10 to 25 years, with an effective maturity of 21.8 years and duration of 13.8 years.

TLT follows the ICE U.S. Treasury 20+ Year Bond Index and concentrates solely on Treasuries beyond 20 years. Introduced in 2002, it contains 46 bonds and offers a similar 4.6% yield. Its effective maturity averages 26.1 years with duration at 15.9 years, heightening sensitivity to rate shifts relative to shorter products.

Investor implications

Superficially, VGLT and TLT appear alike since both emphasize long-dated Treasuries and yield about 4.6%. Yet key distinctions emerge upon closer review for those holding long term.

VGLT holds a clear advantage through its 0.03% expense ratio, which is five times lower than TLT. In the bond space, where gains tend to be modest, such fee savings represent a controllable factor that compounds over time.

Construction also differs: VGLT includes bonds from 10 years onward while TLT restricts to over 20 years. This results in greater rate sensitivity for TLT, amplifying gains when rates drop but also steeper losses when they climb.

Both ETFs fulfill similar roles by generating income and offsetting equity volatility. Still, cost-conscious investors seeking modestly reduced rate exposure may find VGLT the stronger long-term selection.