The Vanguard Long-Term Corporate Bond ETF (VCLT) has a lower expense ratio and higher yield compared to the iShares 20 Year Treasury Bond ETF (TLT). VCLT focuses on corporate bonds while TLT is solely on U.S. Treasuries, leading to differences in cost, performance, and risk.

VCLT has a lower expense ratio of 0.03% compared to TLT’s 0.15%. VCLT also boasts a higher dividend yield of 5.4% versus TLT’s 4.4%. In terms of assets under management (AUM), TLT has $49.7 billion while VCLT has $9.1 billion, showing a difference in scale.

VCLT tracks investment-grade corporate bonds across various sectors like healthcare and financial services. TLT, on the other hand, solely focuses on U.S. Treasury bonds, making it highly sensitive to interest rate changes. The choice between the two depends on investor preference for income, risk, and cost efficiency.

VCLT has a lower max drawdown of -34.31% over 5 years compared to TLT’s -45.06%. Additionally, a $1,000 investment in VCLT would have grown to $695 over 5 years, while the same in TLT would have become $564. These metrics show differences in performance and volatility between the two ETFs.

Read more at Yahoo Finance: Is VCLT’s Focus on Corporate Bonds the Superior Approach to TLT’s U.S. Treasuries?