The iShares 10+ Yr Funding Grade Company Bond ETF (NYSEMKT:IGLB) and the Vanguard Lengthy-Time period Company Bond ETF (NASDAQ:VCLT) provide practically equivalent long-term company bond publicity, differing primarily in yield and value.
Each funds goal the lengthy finish of the company credit score curve, offering revenue by means of investment-grade debt. Traders usually look to those ETFs for larger yields than authorities bonds, although they could settle for better sensitivity to rate of interest shifts and company credit score danger in trade.
Snapshot (value & dimension)
|
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 worth volatility relative to the S&P 500; beta is calculated from five-year month-to-month returns. The 1-yr return represents complete return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard fund is barely extra inexpensive with an expense ratio of 0.03%, in comparison with 0.04% for the iShares fund. Moreover, the Vanguard fund offered 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%) |
|
Progress of $1,000 over 5 years (complete return) |
$887 |
$896 |
What’s inside
The iShares 10+ Yr Funding Grade Company Bond ETF (NYSEMKT:IGLB) is a set revenue fund consisting of roughly 3,800 holdings, primarily high-quality company debt with maturities over 10 years. Its largest positions embody varied investment-grade points, although the portfolio is very 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 very diversified and no single place exceeds 0.38% of the full property underneath administration (AUM). Additionally launched in 2009, the Vanguard fund has a trailing-12-month dividend of $4.15 per share.
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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 in relation to rates of interest. Each IGLB and VCLT spend money on long-maturity company debt, which implies buyers face appreciable dangers from modifications in rates of interest and credit score spreads.
