BND vs TLT

Quick Verdict

BND has a lower expense ratio. BND delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.

Lower Fees: BNDHigher Returns: BNDMore Diversified: BND

Side-by-Side Comparison

MetricBNDTLTWinner
Expense Ratio0.03%0.15%
AUM$159.8B$43.0B
Dividend Yield3.94%4.53%
Holdings17,52848
YTD Return-0.50%-3.35%
1Y Return+2.63%-1.06%
3Y Return (annualized)+3.92%-1.44%
5Y Return (annualized)-0.47%-8.15%
Volatility (annualized)4.6%13.4%
Max Drawdown-19.6%-48.7%
Fund FamilyVanguard (US)iShares by BlackRock (US)
CategoryFixed IncomeFixed Income
InceptionApr 3, 2007Jul 22, 2002

BND vs TLT Performance

Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and iShares 20+ Year Treasury Bond ETF (TLT) is a ETF from iShares by BlackRock (US). Over the past year BND returned +2.63% while TLT returned -1.06%. Year to date, BND is down 0.50% versus a loss of 3.35% for TLT.

Over three years, BND compounded at +3.92% per year against -1.44% for TLT; over five years the annualized figures are -0.47% and -8.15% respectively. Across the full 19-year window we track, TLT has the edge at +0.79% annualized vs +0.68%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TLT has been the more volatile fund, with annualized monthly volatility of 13.4% 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 worth weighing if you expect to sell during market stress rather than ride it out.

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 3.94% against 4.53% for TLT.

Holdings Overlap

5.3%overlap

BND and TLT share 43 holdings out of 10791 unique holdings combined, representing a 5.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BNDWeight in TLTDifference
T 4.125 08/15/530.19%4.63%4.44%
T 4.75 11/15/530.21%4.61%4.40%
T 4.75 05/15/550.22%4.57%4.35%
T 4.625 05/15/54ProProPro
T 1.875 11/15/51ProProPro
T 4.25 08/15/54ProProPro
T 2 08/15/51ProProPro
T 4.25 02/15/54ProProPro
T 3.625 05/15/53ProProPro
T 4.625 02/15/55ProProPro
See all 10 holdings BND shares with TLT
Exact weights in each fund and the difference, for every overlapping position.
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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. On a $10,000 investment, that is $12 per year of difference.

Which performed better, BND or TLT?

Over the past year BND returned +2.63% vs -1.06% for TLT, so BND leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.68% vs +0.79% for TLT. Past performance does not guarantee future results.

Which is riskier, BND or TLT?

TLT has been the more volatile fund at 13.4% 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 combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BND and TLT?

BND and TLT share 43 common holdings with a 5.3% weight overlap. Combined, they hold 10791 unique securities.

Which pays a higher dividend, BND or TLT?

BND yields 3.94% while TLT yields 4.53%, so TLT currently pays the higher dividend yield.

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