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ETF Comparison

BND vs TLT: A Bond Core, or a Long-Rate Bet?

A head-to-head of Vanguard's Total Bond Market ETF and iShares 20+ Year Treasury Bond ETF covering duration, credit, cost, and job.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • BNDInvestors who want fixed-income ballast that steadies the portfolio when stocks fall.
  • TLTInvestors who want higher current income (4.83% vs 4.26% for BND).

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

BND has outpaced TLT over the trailing twelve months, posting a -2.04% total return against -9.20%. The lead holds up over 10 years too: BND has compounded at 1.10% a year, against -2.78% for TLT. BND has been the steadier holding, though — annualized volatility of 5.1% against 13.3% for TLT. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Apr 2007Volatility Sharpe Sortino Max drawdown
BND-2.63%-2.04%4.29%-0.71%1.10%2.82%5.1%-0.06-0.08-4.7%
TLT-7.87%-9.20%0.43%-8.60%-2.78%2.55%13.3%-0.31-0.42-16.2%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Apr 2007” measures every fund from April 10, 2007 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricBNDTLT
Full nameVanguard Total Bond Market ETFiShares 20+ Year Treasury Bond ETF
IssuerVanguardiShares
Underlying indexBloomberg U.S. Aggregate Float Adjusted IndexICE U.S. Treasury 20+ Year Bond Index
Last Close$69.94 as of October 2, 2026$77.48 as of October 2, 2026
Distribution rate4.26%4.83%
Trailing 12-month yield4.20%5.02%
Distribution Safety Score™ 10096
Safety-Adjusted Yield 4.26%4.64%
Expense ratio0.03%0.15%
AUM$162B$45.8B
Distribution frequencyMonthlyMonthly
ObjectiveTrack the Bloomberg U.S. Aggregate Float Adjusted Index for broad U.S. bond exposure.Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset classFixed IncomeFixed Income
Inception date04/03/200707/22/2002
Beta0.982.39
Last dividend$0.2485 declared, pays 10/05/2026$0.312 declared, pays 10/06/2026
Ex-dividend date10/01/202610/01/2026

Bottom lineChoose BND if you want fixed-income ballast that steadies the portfolio when stocks fall. Choose TLT if you want higher current income (4.83% vs 4.26% for BND).

BND vs TLT: bond core or long Treasuries?

BND is the investment-grade bond market. TLT is a long-duration Treasury bet. Duration is the decision.

BNDTLT
What it holdsBloomberg U.S. Aggregate Float Adjusted IndexICE U.S. Treasury 20+ Year Bond Index
Rate riskBroad investment-grade durationLong 20+ year Treasuries
Expense ratio0.03%0.15%
Distribution rate4.26%4.83%
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Vanguard
ETFs116
Total AUM$4676B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on BND.

See all Vanguard ETFs
iShares
ETFs466
Total AUM$4683B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on TLT.

See all iShares ETFs

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Quick verdict

BND (Vanguard Total Bond Market ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both monthly-pay dividend ETFs, but they take different approaches.

TLT offers the higher yield at 4.83% vs 4.26% for BND. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

BND is cheaper with an expense ratio of 0.03% compared to 0.15%.

They have different reference exposures: BND is linked to Bloomberg U.S. Aggregate Float Adjusted Index while TLT is linked to ICE U.S. Treasury 20+ Year Bond Index, which means their performance drivers differ.

BND is the larger fund by assets ($162B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose BND

Vanguard Total Bond Market ETF

  • Want fixed-income ballast that cushions equity drawdowns.
  • Want to keep costs low — a 0.03% expense ratio vs 0.15% for TLT.
  • Prefer lower volatility — a beta of 1.0 vs 2.4 for TLT.

Choose TLT

iShares 20+ Year Treasury Bond ETF

  • Want higher current income — TLT yields 4.83% vs 4.26% for BND.
  • Want fixed-income ballast that cushions equity drawdowns.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, BND would generate roughly $35.50 cash per distribution, while TLT would produce $40.25 cash per distribution, at current distribution rates. Both pay monthly distributions.

BND yield4.26%
TLT yield4.83%
Cash diff on $10K$4.75

Cost & efficiency

Over 10 years on $10,000, BND would cost approximately $30 in fees vs $150 for TLT (simplified, not compounded). The $120.00 difference may be offset by yield or performance.

BND ER0.03%
TLT ER0.15%

Strategy & risk

BND tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index with a treasury approach. Beta is 0.98 for BND and 2.39 for TLT, making BND the less volatile of the two by this measure.

BND beta0.98
TLT beta2.39

Fund details

BND is managed by Vanguard (launched 04/03/2007) with $162B in assets. TLT is managed by iShares (launched 07/22/2002) with $45.8B in assets.

BND AUM$162B
TLT AUM$45.8B
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Frequently asked questions

What is the difference between BND and TLT?

BND (Vanguard Total Bond Market ETF) holds the broad US investment-grade bond market. TLT (iShares 20+ Year Treasury Bond ETF) holds 20+ year Treasuries — a long duration bet on rates, not a bond core. Both pay monthly. Cost is 0.03% versus 0.15%; distributions are 4.26% and 4.83% as of October 2026. Duration, not a small yield gap, is the live decision.

What is the current distribution rate for BND and TLT?

BND currently distributes 4.26% and TLT 4.83%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is BND or TLT better for dividend income?

It depends on your goals. TLT currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

Can I hold both BND and TLT?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is BND or TLT safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — BND scores 100, TLT scores 96, so BND's payout currently looks the more resilient of the two. BND has also shown lower price volatility (beta 0.98 vs 2.39 for TLT). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, BND or TLT?

BND has an expense ratio of 0.03% while TLT charges 0.15%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in BND vs TLT generate?

At current rates, $10,000 in BND would generate roughly $35.50 cash per distribution ($426.00 annually). The same in TLT would produce about $40.25 cash per distribution ($483.00 annually).

Which has performed better historically, BND or TLT?

BND has outpaced TLT over the trailing twelve months, posting a -2.04% total return against -9.20%. The lead holds up over 10 years too: BND has compounded at 1.10% a year, against -2.78% for TLT. BND has been the steadier holding, though — annualized volatility of 5.1% against 13.3% for TLT. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

BND vs TLT — at a glance

Generated October 3, 2026.

Overview

BND and TLT are both fixed-income ETFs that pay monthly distributions, but they track fundamentally different segments of the bond market. BND holds the full spectrum of U.S. investment-grade bonds—Treasuries, corporates, mortgage-backs, and securitized debt—while TLT focuses exclusively on long-term Treasury bonds with maturities exceeding 20 years. The key distinction is duration and credit exposure: BND offers broad diversification across issuers and maturities; TLT concentrates risk on duration and interest-rate sensitivity.

How they differ

The single biggest difference is scope. BND tracks a broad bond index that includes Treasuries, investment-grade corporates, and mortgage-backed securities spanning the full maturity spectrum. TLT holds only Treasuries with 20+ year terms, making it a single-asset-class, long-duration play. That concentration shows up in their betas: TLT's beta of 2.39 signals roughly 2.4 times the price volatility of BND's 0.98 beta when rates move.

Yield follows from duration. That gap reflects longer duration—TLT's sensitivity to rate declines is substantially higher, but so is its downside if rates rise. Expenses differ slightly: BND costs 0.03% while TLT runs 0.15%, a difference of 0.12% basis points. BND also holds a much larger asset base at $162B, versus $45.8B for TLT.

Who each is best for

  • BND: Fits investors seeking a core fixed-income anchor with broad credit and maturity diversification, steady income with lower duration risk, and minimal fees. Works as a bond portfolio foundation or ballast in a mixed portfolio.
  • TLT: Fits investors with an active interest-rate view who expect long-term Treasury yields to fall or who want to amplify bond price appreciation in a declining-rate environment. Also suits those building a dedicated long-duration Treasury sleeve.

Key risks to know

  • Duration and rate-risk asymmetry. TLT's 2.39 beta means a 1% rise in long-term rates could drive a material decline in NAV, while a 1% fall offers outsized gains. BND's near-one beta makes it less volatile in either direction, exposing investors in TLT to larger swings.
  • Credit risk concentration in BND. While BND's inclusion of corporate and mortgage-backed holdings diversifies maturity, those segments expose holders to issuer default risk and prepayment risk (mortgages), particularly if economic growth slows or credit spreads widen.
  • Reinvestment and rolldown risk. As TLT's long-dated Treasuries mature or roll down the curve, a lower-yield environment at reinvestment could compress future distributions, though the price appreciation from declining rates may offset that loss.

Bottom line

If you want stability and broad bond-market exposure with minimal duration risk, BND's lower beta and diversified holdings stand out. If you're willing to accept higher volatility in exchange for duration premium and expect long-term Treasury yields to compress, TLT's longer maturity focus and higher distribution rate align with that thesis. Past performance doesn't predict future results, and both are vulnerable to unexpected changes in monetary policy and inflation expectations.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Bond fund basics How to read a fund's stats Why total return beats chasing yield

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These comparisons follow the Dividend Vision methodology.