ETF Versus

BND vs TLT

Vanguard Total Bond Market Index Fund vs iShares 20+ Year Treasury Bond ETF

Last updated: 2026-04-02

BND Vanguard

Vanguard Total Bond Market Index Fund (BND) is an exchange-traded fund issued by Vanguard that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.93%. Launched in 2007, the fund has a 19-year track record.

AUM: $150.4B ER: 0.03% Yield: 3.93% Since: Apr 3, 2007
TLT iShares

iShares 20+ Year Treasury Bond ETF (TLT) is an exchange-traded fund issued by iShares that provides exposure to long-duration U.S. Treasury bonds with high interest rate sensitivity. It charges a low expense ratio of 0.15%. The fund offers a high dividend yield of 4.51%. Launched in 2002, the fund has a 24-year track record.

AUM: $41.7B ER: 0.15% Yield: 4.51% Since: Jul 22, 2002

Quick Verdict

BND is significantly cheaper at 0.03% vs 0.15% expense ratio, saving you approximately $238 per $10,000 invested over 10 years. Over the past year, BND has significantly outperformed with a -0.0% return vs -5.7%. Income investors may prefer TLT for its higher yield (4.5% vs 3.9%).

Key Metrics

Metric BND TLT
Expense Ratio 0.03% 0.15%
Dividend Yield 3.9% 4.5%
Fund Family Vanguard iShares
Category US Aggregate Bond US Long-Term Treasury

Performance Chart

Indexed to 100 at start (5-year comparison)

60 71 82 93 104 115 2021-04 2022-06 2023-09 2024-12 2026-04
BND -13.3%
TLT -37.0%

Performance Comparison

Period BND TLT Difference
1 Month -1.63% -3.74% +2.11%
3 Months -0.84% -0.88% +0.04%
6 Months -1.20% -3.49% +2.29%
YTD -0.84% -0.88% +0.04%
1 Year -0.03% -5.72% +5.69%
3 Years -0.73% -19.08% +18.35%
5 Years -13.29% -37.00% +23.71%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period BND Fees TLT Fees You Save
$10.000 10 years $60 $298 $238
$10.000 20 years $258 $1.278 $1.020
$10.000 30 years $835 $4.109 $3.274
$50.000 10 years $299 $1.490 $1.190
$50.000 30 years $4.176 $20.547 $16.371
$100.000 30 years $8.352 $41.094 $32.742

Risk Metrics

Based on 5 years of daily returns

Metric BND TLT
Annualized Volatility 6.0% 15.9%
Max Drawdown -21.7% -46.4%
Sharpe Ratio -1.19 -0.79

Dividend Comparison

Metric BND TLT
Annual Dividend (per share) $2.88 $3.89
Dividend Yield 3.92% 4.51%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose BND if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose BND if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose TLT if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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