Analysis: Vanguard VGLT and Schwab SCHQ, two long-term US Treasury ETFs, show similar performance, with SCHQ having a slightly higher yield but VGLT offering better liquidity.
The article points out that Vanguard Long-Term Treasury ETF (VGLT) and Schwab Long-Term U.S. Treasury ETF (SCHQ) are nearly identical in terms of risk exposure, a 0.03% expense ratio, and performance. SCHQ's dividend yield is 4.9%, slightly higher than VGLT's 4.8%. However, VGLT's asset size is approximately 13 times larger than SCHQ's, and it has a longer history (launched in 2009), offering deeper liquidity and a longer institutional track record. Long-term U.S. Treasuries have been hit hard in recent years due to the Federal Reserve's rapid interest rate hikes, but analysis suggests that VGLT, due to its size and history, is a more reliable default choice, while SCHQ is a good alternative for investors on the Schwab platform.
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