Vanguard’s VCLT offers a 0.03% expense ratio and 5.50% yield, slightly outperforming iShares’ IGLB in long-term corporate bond exposure.
The Vanguard Long-Term Corporate Bond ETF (VCLT) and iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB) provide similar exposure to long-term investment-grade corporate debt. Both funds target the long end of the credit curve, prioritizing income over government bonds but with added interest rate and credit risk sensitivity.
VCLT undercuts IGLB on cost, charging a 0.03% expense ratio versus 0.04%. Over the trailing 12 months, VCLT delivered a 5.50% dividend yield, while IGLB paid $2.62 per share. IGLB holds roughly 3,800 bonds, with no single position exceeding 0.29% of the portfolio, while VCLT spans thousands of issues with maturities up to 25 years.
Investors favor these ETFs for their diversification and yield advantages, though performance may vary with rate movements and credit conditions.