EDV vs. TLT
Compare and contrast key facts about Vanguard Extended Duration Treasury ETF (EDV) and iShares 20+ Year Treasury Bond ETF (TLT).
EDV and TLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. EDV is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Treasury STRIPS 20-30 Year Equal Par Bond Index. It was launched on Dec 6, 2007. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002. Both EDV and TLT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: EDV or TLT.
Key characteristics
| EDV | TLT | |
|---|---|---|
| YTD Return | -12.99% | -8.85% |
| 1Y Return | -19.33% | -13.14% |
| 3Y Return (Ann) | -15.97% | -11.39% |
| 5Y Return (Ann) | -6.45% | -4.20% |
| 10Y Return (Ann) | -0.34% | 0.13% |
| Sharpe Ratio | -0.81 | -0.76 |
| Daily Std Dev | 23.21% | 16.69% |
| Max Drawdown | -59.96% | -48.35% |
| Current Drawdown | -54.66% | -43.21% |
Correlation
The correlation between EDV and TLT is 0.95, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
EDV vs. TLT - Performance Comparison
In the year-to-date period, EDV achieves a -12.99% return, which is significantly lower than TLT's -8.85% return. Over the past 10 years, EDV has underperformed TLT with an annualized return of -0.34%, while TLT has yielded a comparatively higher 0.13% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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EDV vs. TLT - Expense Ratio Comparison
EDV has a 0.06% expense ratio, which is lower than TLT's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
EDV vs. TLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Extended Duration Treasury ETF (EDV) and iShares 20+ Year Treasury Bond ETF (TLT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
EDV vs. TLT - Dividend Comparison
EDV's dividend yield for the trailing twelve months is around 4.26%, more than TLT's 3.94% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EDV Vanguard Extended Duration Treasury ETF | 4.26% | 3.55% | 3.28% | 1.95% | 5.54% | 3.51% | 2.90% | 2.92% | 5.32% | 4.24% | 3.12% | 5.03% |
TLT iShares 20+ Year Treasury Bond ETF | 3.94% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
Drawdowns
EDV vs. TLT - Drawdown Comparison
The maximum EDV drawdown since its inception was -59.96%, which is greater than TLT's maximum drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for EDV and TLT. For additional features, visit the drawdowns tool.
Volatility
EDV vs. TLT - Volatility Comparison
Vanguard Extended Duration Treasury ETF (EDV) has a higher volatility of 5.45% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 4.12%. This indicates that EDV's price experiences larger fluctuations and is considered to be riskier than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.