BND vs TLT
Vanguard Total Bond Market ETF vs iShares 20+ Year Treasury Bond ETF
Which is better, BND or TLT?
Intermediate Term Bond against Long Term Government Bond.
BND has a lower expense ratio. BND led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BND | TLT |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.15% |
| AUM | $163.3B | $46.4B |
| Dividend Yield | 4.04% | 4.73% |
| Holdings | 16,300 | 49 |
| YTD Return | -2.24%Best | -7.27% |
| 1Y Return | -1.53%Best | -8.50% |
| 3Y Return (annualized) | +4.28%Best | +1.12% |
| 5Y Return (annualized) | -0.41%Best | -7.81% |
| Volatility (annualized) | 4.6%Best | 14.0% |
| Max Drawdown | -19.6%Best | -48.7% |
| $10,000 over 5 years | $9,797Best | $6,659 |
| Fund Family | Vanguard (US) | iShares by BlackRock (US) |
| Category | Fixed Income | Fixed Income |
| Style | Intermediate Term Bond | Long Term Government Bond |
| Inception | Apr 3, 2007 | Jul 22, 2002 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 10, 2007 to Oct 9, 2026 (19.5 years).
BND vs TLT growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.5 years both funds cover.
BND vs TLT Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and iShares 20+ Year Treasury Bond ETF (TLT) is an ETF from iShares by BlackRock (US). Over the past year BND returned -1.53% while TLT returned -8.50%. Year to date, BND is down 2.24% versus a loss of 7.27% for TLT.
Over three years, BND compounded at +4.28% per year against +1.12% for TLT; over five years the annualized figures are -0.41% and -7.81% respectively. Across the full 20-year window we track, BND has the edge at +0.58% annualized vs +0.46%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TLT has been the more volatile fund, with annualized monthly volatility of 14.0% compared with 4.6% for BND. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -19.6% for BND and -48.7% for TLT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BND charges 0.03% per year while TLT charges 0.15%. On a $10,000 position that is $3 vs $15 annually, a gap of $12 per year that compounds over a long holding period. On income, BND currently yields 4.04% against 4.73% for TLT.
Holdings Overlap
We hold position weights for 12,775 holdings in BND and 44 in TLT, totalling 65.9% and 86.9% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 43 positions appear in both.
43 positions in common, counted across the 12,775 positions we hold weights for in BND and 44 in TLT, against full books of 16,300 and 49.
Top Shared Holdings
| Stock | Weight in BND | Weight in TLT | Difference |
|---|---|---|---|
| T 4.75 05/15/55Treasury Bond (Otr) 4.75% May 15, 2055 | 0.20% | 4.54% | 4.34% |
| T 4.625 05/15/54U.S. Treasury Bond 4.625 05/15/2054 | 0.21% | 4.30% | 4.09% |
| T 4.125 08/15/53Treasury Bond 4 08/15/2053 | 0.19% | 4.21% | 4.02% |
| T 4.25 02/15/54Treasury Bond 4.25 02/15/2054 | 0.22% | 4.06% | 3.84% |
| T 4.75 11/15/53Us Treasury N/ 4.75 11/53 | 0.21% | 4.00% | 3.79% |
| T 4.25 08/15/54Treasury Bond (Otr) 4.25% Aug 15, 2054 | 0.20% | 3.97% | 3.77% |
| T 4.625 02/15/55Us Treasury N/B 4.63 2055-02-15 | 0.22% | 3.83% | 3.61% |
| T 4.5 11/15/54Treasury Bond (Otr) 4.5% Nov 15, 2054 | 0.20% | 3.82% | 3.62% |
| T 1.875 11/15/51Government Of The United States Of America 1.875% 15-Nov-2051 | 0.12% | 3.81% | 3.69% |
| T 4.75 08/15/55Wi Treasury Sec 08/55 4.75 | 0.18% | 3.44% | 3.26% |
You are not choosing between two funds in isolation.
Whichever of BND and TLT you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BND or TLT?
BND has an expense ratio of 0.03% while TLT charges 0.15%. BND is the cheaper option, by $12 a year on a $10,000 investment.
Which performed better, BND or TLT?
Over the past year BND returned -1.53% vs -8.50% for TLT, so BND leads on 1-year performance. Over the longest common window we track (20 years), BND annualized +0.58% vs +0.46% for TLT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BND or TLT?
TLT has been the more volatile fund at 14.0% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs TLT -48.7%.
Should I hold both BND and TLT?
BND and TLT have a monthly-return correlation of 0.82, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BND or TLT?
BND yields 4.04% while TLT yields 4.73%, so TLT currently pays the higher dividend yield.
Is TLT better than BND?
BND has a lower expense ratio. BND led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.