GOVT vs TLT
GOVT vs TLT
iShares US Treasury Bond ETF vs iShares 20+ Year Treasury Bond ETF
Quick Verdict
GOVT has a lower expense ratio. GOVT delivered stronger 1-year returns. GOVT offers more diversification with 188 holdings.
Side-by-Side Comparison
| Metric | GOVT | TLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.15% | |
| AUM | $43.6B | $43.0B | |
| Dividend Yield | 3.57% | 4.53% | |
| Holdings | 216 | 48 | |
| YTD Return | -2.28% | -2.68% | |
| 1Y Return | -0.94% | -2.04% | |
| 3Y Return (annualized) | +2.46% | -0.34% | |
| 5Y Return (annualized) | -1.39% | -8.06% | |
| Volatility (annualized) | 4.5% | 13.4% | |
| Max Drawdown | -23.4% | -48.7% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Feb 14, 2012 | Jul 22, 2002 |
GOVT vs TLT Performance
iShares US Treasury Bond ETF (GOVT) is a ETF from iShares by BlackRock (US) and iShares 20+ Year Treasury Bond ETF (TLT) is a ETF from iShares by BlackRock (US). Over the past year GOVT returned -0.94% while TLT returned -2.04%. Year to date, GOVT is down 2.28% versus a loss of 2.68% for TLT.
Over three years, GOVT compounded at +2.46% per year against -0.34% for TLT; over five years the annualized figures are -1.39% and -8.06% respectively. Across the full 14-year window we track, GOVT has the edge at +1.04% annualized vs +0.81%. 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 4.5% for GOVT. 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 -23.4% for GOVT 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
GOVT charges 0.05% per year while TLT charges 0.15%. On a $10,000 position that is $5 vs $15 annually, a gap of $10 per year that compounds over a long holding period. On income, GOVT currently yields 3.57% against 4.53% for TLT.
Holdings Overlap
GOVT and TLT share 36 holdings out of 196 unique holdings combined, representing a 11.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in GOVT | Weight in TLT | Difference |
|---|---|---|---|
| T 4.625 05/15/54 | 0.56% | 4.50% | 3.94% |
| T 4.75 05/15/55 | 0.45% | 4.57% | 4.12% |
| T 4.125 08/15/53 | 0.27% | 4.63% | 4.36% |
| T 4.25 08/15/54 | Pro | Pro | Pro |
| T 4.75 11/15/53 | Pro | Pro | Pro |
| T 1.875 11/15/51 | Pro | Pro | Pro |
| T 2 08/15/51 | Pro | Pro | Pro |
| T 4.625 02/15/55 | Pro | Pro | Pro |
| T 4.25 02/15/54 | Pro | Pro | Pro |
| T 4 11/15/52 | Pro | Pro | Pro |
See all 10 holdings GOVT shares with TLT Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, GOVT or TLT?
GOVT has an expense ratio of 0.05% while TLT charges 0.15%. GOVT is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, GOVT or TLT?
Over the past year GOVT returned -0.94% vs -2.04% for TLT, so GOVT leads on 1-year performance. Over the longest common window we track (14 years), GOVT annualized +1.04% vs +0.81% for TLT. Past performance does not guarantee future results.
Which is riskier, GOVT or TLT?
TLT has been the more volatile fund at 13.4% annualized versus 4.5% for GOVT. Worst drawdown: GOVT -23.4% vs TLT -48.7%.
Should I hold both GOVT and TLT?
GOVT and TLT have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between GOVT and TLT?
GOVT and TLT share 36 common holdings with a 11.1% weight overlap. Combined, they hold 196 unique securities.
Which pays a higher dividend, GOVT or TLT?
GOVT yields 3.57% while TLT yields 4.53%, so TLT currently pays the higher dividend yield.
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