VGLT vs. SCHQ
Compare and contrast key facts about Vanguard Long-Term Treasury ETF (VGLT) and Schwab Long-Term U.S. Treasury ETF (SCHQ).
VGLT and SCHQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGLT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. Long Government Float Adjusted Index. It was launched on Nov 19, 2009. SCHQ is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US Aggregate Government - Treasury - Long. It was launched on Oct 10, 2019. Both VGLT and SCHQ 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: VGLT or SCHQ.
Key characteristics
| VGLT | SCHQ | |
|---|---|---|
| YTD Return | -4.50% | -4.49% |
| 1Y Return | 5.38% | 5.40% |
| 3Y Return (Ann) | -10.72% | -10.70% |
| 5Y Return (Ann) | -5.09% | -5.07% |
| Sharpe Ratio | 0.49 | 0.49 |
| Sortino Ratio | 0.78 | 0.78 |
| Omega Ratio | 1.09 | 1.09 |
| Calmar Ratio | 0.16 | 0.16 |
| Martin Ratio | 1.21 | 1.22 |
| Ulcer Index | 5.47% | 5.42% |
| Daily Std Dev | 13.47% | 13.47% |
| Max Drawdown | -46.18% | -46.13% |
| Current Drawdown | -38.65% | -38.60% |
Correlation
The correlation between VGLT and SCHQ is 1.00, 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
VGLT vs. SCHQ - Performance Comparison
The year-to-date returns for both investments are quite close, with VGLT having a -4.50% return and SCHQ slightly higher at -4.49%. 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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VGLT vs. SCHQ - Expense Ratio Comparison
VGLT has a 0.04% expense ratio, which is lower than SCHQ's 0.05% 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
VGLT vs. SCHQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Treasury ETF (VGLT) and Schwab Long-Term U.S. Treasury ETF (SCHQ). 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
VGLT vs. SCHQ - Dividend Comparison
VGLT's dividend yield for the trailing twelve months is around 4.12%, less than SCHQ's 4.47% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGLT Vanguard Long-Term Treasury ETF | 4.12% | 3.33% | 2.83% | 1.82% | 2.15% | 2.46% | 2.71% | 2.55% | 2.69% | 3.21% | 2.75% | 3.19% |
SCHQ Schwab Long-Term U.S. Treasury ETF | 4.47% | 3.79% | 2.88% | 1.69% | 1.52% | 0.44% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
VGLT vs. SCHQ - Drawdown Comparison
The maximum VGLT drawdown since its inception was -46.18%, roughly equal to the maximum SCHQ drawdown of -46.13%. Use the drawdown chart below to compare losses from any high point for VGLT and SCHQ. For additional features, visit the drawdowns tool.
Volatility
VGLT vs. SCHQ - Volatility Comparison
Vanguard Long-Term Treasury ETF (VGLT) and Schwab Long-Term U.S. Treasury ETF (SCHQ) have volatilities of 4.29% and 4.36%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.