iShares’ IGLB offers a 5.20% yield and 0.04% expense ratio, surpassing TLT’s 4.60% yield and 0.15% fee.
The iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB) provides higher yields and lower costs than its Treasury counterpart, TLT. IGLB carries a 0.04% expense ratio and a 5.20% trailing-12-month dividend yield, compared to TLT’s 0.15% fee and 4.60% yield.
Both ETFs target long-dated bonds, making them highly sensitive to interest rate changes. IGLB focuses on investment-grade corporate debt, while TLT holds U.S. government securities, resulting in differing risk and performance profiles. TLT, launched in 2002, has 46 holdings and a trailing-12-month dividend of $3.91 per share.
The choice between the two depends on investor preference for credit risk versus interest rate sensitivity. IGLB’s corporate bonds offer higher income potential, while TLT’s government-backed securities provide lower credit risk.