TLT vs. BND
Compare and contrast key facts about iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard Total Bond Market ETF (BND).
TLT and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both TLT and BND 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: TLT or BND.
Key characteristics
| TLT | BND | |
|---|---|---|
| YTD Return | -9.08% | -2.69% |
| 1Y Return | -12.42% | -0.59% |
| 3Y Return (Ann) | -11.76% | -3.51% |
| 5Y Return (Ann) | -4.17% | -0.07% |
| 10Y Return (Ann) | 0.20% | 1.21% |
| Sharpe Ratio | -0.67 | -0.03 |
| Daily Std Dev | 17.25% | 6.78% |
| Max Drawdown | -48.35% | -18.84% |
| Current Drawdown | -43.35% | -13.00% |
Correlation
The correlation between TLT and BND is 0.85, 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
TLT vs. BND - Performance Comparison
In the year-to-date period, TLT achieves a -9.08% return, which is significantly lower than BND's -2.69% return. Over the past 10 years, TLT has underperformed BND with an annualized return of 0.20%, while BND has yielded a comparatively higher 1.21% 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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TLT vs. BND - Expense Ratio Comparison
TLT has a 0.15% expense ratio, which is higher than BND's 0.03% expense ratio. However, 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
TLT vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard Total Bond Market ETF (BND). 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
TLT vs. BND - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 3.89%, more than BND's 3.35% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 3.89% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
BND Vanguard Total Bond Market ETF | 3.35% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
TLT vs. BND - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, which is greater than BND's maximum drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for TLT and BND. For additional features, visit the drawdowns tool.
Volatility
TLT vs. BND - Volatility Comparison
iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 4.24% compared to Vanguard Total Bond Market ETF (BND) at 1.84%. This indicates that TLT's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.