Which Long-Term Bond ETF Is the Better Buy: iShares' IGLB or Its Treasury Rival TLT?
Key Points
iShares 10 Year Investment Grade Corporate Bond ETF offers a lower expense ratio of 0.04% and a higher dividend yield than the iShares 20 Year Treasury Bond ETF.
iShares 20 Year Treasury Bond ETF has experienced a deeper maximum drawdown over the last five years compared to the corporate bond alternative.
iShares 20 Year Treasury Bond ETF holds pure U.S. government debt while iShares 10 Year Investment Grade Corporate Bond ETF provides exposure to nearly 4,000 corporate issues.
The iShares 10 Year Investment Grade Corporate Bond ETF (NYSEMKT:IGLB) offers lower costs and higher yields, while the iShares 20 Year Treasury Bond ETF (NASDAQ:TLT) provides pure-play exposure to long-dated government debt.
Both funds target the long end of the maturity curve, meaning they are highly sensitive to interest rate changes. While the iShares 10 Year Investment Grade Corporate Bond ETF focuses on the debt of highly rated corporations, the iShares 20 Year Treasury Bond ETF tracks U.S. government obligations. This fundamental difference in credit quality influences their historical performance and risk profiles.
Snapshot (cost & size)
| Metric | IGLB | TLT |
|---|---|---|
| Issuer | iShares | iShares |
| Expense ratio | 0.04% | 0.15% |
| 1-yr return (as of June 12, 2026) | 6.10% | 2.90% |
| Dividend yield | 5.20% | 4.60% |
| Beta | 0.61 | 0.51 |
| AUM | $2.6 billion | $40.7 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares 10 Year Investment Grade Corporate Bond ETF is the more cost-effective option, carrying an expense ratio of 0.04% compared to the 0.15% fee for TLT. The corporate focus of IGLB also translates into a higher income stream, as the fund offers a trailing-12-month dividend yield of 5.20% versus the 4.60% yield provided by the Treasury-focused fund.
Performance & risk comparison
| Metric | IGLB | TLT |
|---|---|---|
| Max drawdown (5 yr) | (34.10%) | (43.70%) |
| Growth of $1,000 over 5 years (total return) | $908 | $714 |
What's inside
iShares 20 Year Treasury Bond ETF is a fixed-income fund focused on U.S. government debt with maturities exceeding 20 years. Its 46 holdings are concentrated in long-dated Treasuries. The fund was launched in 2002 and has a trailing-12-month dividend of $3.91 per share. Since it holds government-backed securities, it carries lower credit risk but higher interest rate sensitivity due to its long duration.
The iShares 10 Year Investment Grade Corporate Bond ETF holds 3,827 investment-grade corporate bonds maturing in more than 10 years. This fund is highly diversified, and its largest positions include no single issue exceeding 0.28% of the portfolio. Launched in 2009, it has a trailing-12-month dividend of $2.62 per share. While both are fixed-income products without equity sector breakdowns, the corporate focus of IGLB introduces credit risk that is absent in the government-guaranteed Treasury fund.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Most investors think of government bonds as the safest place to park money in uncertain times. TLT has tested that assumption in a painful way. When interest rates surged from 2022 through 2024, TLT lost nearly half its value from peak to trough. That kind of drawdown is not what most people picture when they think of a government bond fund.
Instead of government debt, IGLB holds long-term corporate bonds from high-quality companies. It yields more than TLT, charges less, and over the past decade delivered much better returns. This may surprise you if you assume government bonds are automatically the safer long-term choice.
Both funds carry more risk than many investors realize going in. IGLB's corporate bonds can suffer when economic conditions deteriorate and companies come under financial stress. TLT is immune to that risk but devastatingly sensitive to interest rate moves. Choosing between them is really a question of which threat feels more manageable given where the economy and interest rates appear to be headed.
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