VGLT vs. SCHQ: Which U.S. Treasury ETF Is More Beneficial for Investors?
Comparison of ETFs: The Schwab Long-Term U.S. Treasury ETF (SCHQ) and Vanguard Long-Term Treasury ETF (VGLT) both provide exposure to long-dated U.S. Treasury bonds, sharing similar risk profiles, expense ratios (0.03%), and returns, with SCHQ offering a slightly higher yield.
Portfolio Composition: VGLT holds 94 bonds with maturities between 10 and 25 years, while SCHQ contains 97 holdings focused on U.S. Treasury securities with maturities over 10 years, both having an average maturity of 22 years and an average duration of 14 years.
Liquidity and AUM: VGLT's significantly higher assets under management (AUM) may provide greater liquidity for investors, making it easier to buy and sell, although this factor may be less relevant for long-term investors.
Performance and Competitiveness: Despite being newer and smaller, SCHQ has demonstrated competitive returns similar to VGLT over the past one and five years, making it a viable option for investors looking to diversify their ETF providers.
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Analyst Views on VGLT

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Market Volatility: Cracks in the credit markets and uncertainty regarding interest rates and the Federal Reserve have introduced volatility in the financial landscape.
Bonds' Appeal: Despite the volatility, bonds continue to be an attractive option for investors seeking income.
Portfolio Adjustments: Income-oriented investors are advised to make adjustments to their portfolios in preparation for the upcoming year.
Future Outlook: The current market conditions suggest a need for strategic planning and adaptability among investors.
- 52 Week Range: VGLT's stock has a 52-week low of $53.175 and a high of $59.51, with the last trade recorded at $56.22.
- Market Analysis: The article mentions other ETFs that have recently fallen below their 200-day moving average.
- Author's Perspective: The views expressed in the article are solely those of the author and do not necessarily represent Nasdaq, Inc.
- Investment Insights: The information provided may be useful for investors looking to analyze VGLT's performance and market trends.
Comparison of SCHQ and VGLT: Both the Schwab Long-Term U.S. Treasury ETF (SCHQ) and the Vanguard Long-Term Treasury ETF (VGLT) offer similar exposure to long-dated U.S. Treasury bonds, featuring identical expense ratios of 0.03% and comparable total returns, though VGLT has a longer track record and higher assets under management (AUM).
Yield and Investment Focus: While SCHQ provides a slightly higher yield, both funds focus on U.S. Treasury securities with maturities over 10 years, maintaining similar average maturities and durations, making them appealing options for income-focused investors.
Liquidity and Investor Considerations: VGLT's larger AUM may offer greater liquidity for investors, which could be beneficial for those who trade frequently, while SCHQ remains competitive despite being newer and smaller, appealing to those looking to diversify ETF providers.
Performance Metrics: Both ETFs have shown similar performance over the past one and five years, and investors should consider factors like expense ratios, yield, and liquidity when choosing between them, as the differences are minimal.

Comparison of VGLT and TLT: The Vanguard Long-Term Treasury Fund (VGLT) offers a broader range of U.S. Treasury bonds with maturities from 10 to 25 years, while the iShares 20+ Year Treasury Bond ETF (TLT) focuses solely on bonds with maturities greater than 20 years.
Cost and Performance: VGLT has a lower expense ratio and a slightly higher yield (4.4% vs. 4.3%) compared to TLT, making it more appealing for cost-conscious investors seeking long-term efficiency.
Liquidity and Holdings: TLT has a higher assets under management (AUM) of $49.7 billion compared to VGLT's $14.3 billion, providing greater liquidity, but it holds only 46 securities compared to VGLT's 96.
Investor Considerations: VGLT is better suited for investors looking for low fees and a diverse range of long-term bonds, while TLT is ideal for those who frequently trade and prioritize liquidity.

Federal Reserve's Position: Jerome Powell highlighted "strongly differing views" within the Federal Reserve regarding future interest rate decisions, particularly for December.
Impact on Treasury Yields: Following Powell's comments, Treasury yields experienced a rise, with the 10-year Treasury note reaching approximately 4.09%, marking its largest increase since July.
Current Market Status: The U.S. stock market is close to its record peak despite experiencing a recent stumble.
Economic Expectations: Analysts suggest that the market is pricing in a strong economy, but there are concerns that actual conditions may not meet these high expectations.
Interest Rate Optimism: There is an over-optimistic view regarding potential interest-rate cuts by the Federal Reserve, according to Bob Elliott, co-founder of Unlimited Funds.
Inflation Concerns: The impact of tariffs on inflation remains uncertain, adding another layer of complexity to the economic outlook.









