The iShares 10+ Yr Funding Grade Company Bond ETF (NYSEMKT:IGLB) and the Vanguard Lengthy-Time period Company Bond ETF (NASDAQ:VCLT) supply almost an identical long-term company bond publicity, differing primarily in yield and value.
Each funds goal the lengthy finish of the company credit score curve, offering earnings via investment-grade debt. Traders typically look to those ETFs for increased yields than authorities bonds, although they could settle for higher sensitivity to rate of interest shifts and company credit score danger in change.
Snapshot (value & measurement)
|
Metric |
VCLT |
IGLB |
|---|---|---|
|
Issuer |
Vanguard |
iShares |
|
Expense ratio |
0.03% |
0.04% |
|
1-yr return (as of June 17, 2026) |
6.60% |
6.80% |
|
Dividend yield |
5.53% |
5.22% |
|
Beta |
0.62 |
0.61 |
|
AUM |
$9.2 billion |
$2.6 billion |
Beta measures value volatility relative to the S&P 500; beta is calculated from five-year month-to-month returns. The 1-yr return represents whole return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard fund is barely extra reasonably priced with an expense ratio of 0.03%, in comparison with 0.04% for the iShares fund. Moreover, the Vanguard fund supplied a better payout with a 5.50% trailing-12-month dividend yield.
Efficiency & danger comparability
|
Metric |
VCLT |
IGLB |
|---|---|---|
|
Max drawdown (5 yr) |
(34.30%) |
(34.10%) |
|
Development of $1,000 over 5 years (whole return) |
$887 |
$896 |
What’s inside
The iShares 10+ Yr Funding Grade Company Bond ETF (NYSEMKT:IGLB) is a set earnings fund consisting of roughly 3,800 holdings, primarily high-quality company debt with maturities over 10 years. Its largest positions embrace varied investment-grade points, although the portfolio is extremely diversified and no single place exceeds 0.29% of the portfolio. Launched in 2009, this iShares fund has paid $2.62 per share over the trailing 12 months.
The Vanguard Lengthy-Time period Company Bond ETF (NASDAQ:VCLT) manages a portfolio throughout hundreds of investment-grade company debt with maturities between 10 and 25 years. Like its peer, the fund is extremely diversified and no single place exceeds 0.38% of the entire property beneath administration (AUM). Additionally launched in 2009, the Vanguard fund has a trailing-12-month dividend of $4.15 per share.
For extra steering on ETF investing, try the total information at this hyperlink.
What this implies for buyers
Lengthy-term company bond ETFs can look interesting when yields are excessive. Nevertheless, they’re a number of the most delicate choices within the investment-grade bond market with regards to rates of interest. Each IGLB and VCLT put money into long-maturity company debt, which implies buyers face appreciable dangers from modifications in rates of interest and credit score spreads.
