ETF Comparison

BND vs TLT: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Total Bond Market ETF and iShares 20+ Year Treasury Bond ETF covering yield, cost, risk, and income potential.

Data updated May 20, 2026

Vanguard

ETFs48

Total AUM$11763.3B

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

Vanguard is known for offering low-cost, passively managed ETFs that serve as core portfolio holdings for individual investors. Their fund lineup emphasizes core equity exposure and dividend income strategies, with offerings spanning domestic growth (VGT, VUG), broad market indices (VOO), dividend-focused portfolios (VYM, VIG), and international high dividend yield opportunities (VONG, VYMI). The issuer's seven funds are characterized by expense ratios among the industry's lowest and a focus on long-term, buy-and-hold investors seeking diversified equity exposure.

See our curated list of related YouTube videos on BND.

See all Vanguard ETFs

BlackRock

ETFs44

Total AUM$3107.6B

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

BlackRock is one of the world's largest asset managers and a major provider of ETFs across multiple investment strategies. The company's dividend-focused lineup emphasizes income-generating investments, with funds designed to deliver regular distributions to investors seeking yield. Their portfolio includes eight notable ETFs such as BALI (emerging markets income), DIVB (dividend equity), and DGRO (dividend growth), alongside complementary funds that span income, growth, and fixed-income strategies.

See our curated list of related YouTube videos on TLT.

See all BlackRock ETFs

Side-by-side snapshot

	BND	TLT
Full name	Vanguard Total Bond Market ETF	iShares 20+ Year Treasury Bond ETF
Issuer	Vanguard	BlackRock
Last Close	$72.69 as of May 20, 2026	$83.56 as of May 20, 2026
Distribution yield	4.02%	4.65%
Expense ratio	0.03%	0.15%
AUM	$389.7B	$42.9B
Distribution frequency	Monthly	Monthly
Underlying index	Bloomberg U.S. Aggregate Float Adjusted Index	ICE U.S. Treasury 20+ Year Bond Index
Objective	Track 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 class	Fixed Income	Fixed Income
Inception date	04/03/2007	07/22/2002
Beta	0.98	2.37
Last dividend	$0.24	$0.32
Ex-dividend date	05/01/2026	05/01/2026

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Visual comparison

Key metrics

Projected income on $10K

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

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 4.65% vs 4.02% 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 track different benchmarks: BND is linked to Bloomberg U.S. Aggregate Float Adjusted Index while TLT tracks ICE U.S. Treasury 20+ Year Bond Index, which means their performance drivers differ.

BND is the larger fund by assets ($389.7B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, BND would generate roughly $33.50/month, while TLT would produce $38.75/month, at current distribution rates. Both pay monthly distributions.

BND yield4.02%

TLT yield4.65%

Monthly diff on $10K$5.25

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 using a treasury strategy. Beta is 0.98 for BND and 2.37 for TLT, indicating BND is less volatile relative to the market.

BND beta0.98

TLT beta2.37

Fund details

BND is managed by Vanguard (launched 04/03/2007) with $389.7B in assets. TLT is managed by BlackRock (launched 07/22/2002) with $42.9B in assets.

BND AUM$389.7B

TLT AUM$42.9B

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Frequently asked questions

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.

What is the difference between BND and TLT?

BND (Vanguard Total Bond Market ETF) tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds strategy, while TLT (iShares 20+ Year Treasury Bond ETF) tracks ICE U.S. Treasury 20+ Year Bond Index with a treasury approach. They are issued by Vanguard and BlackRock respectively.

Can I hold both BND and TLT?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

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 $33.50 per month ($402.00 annually). The same in TLT would produce about $38.75 per month ($465.00 annually).

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BND vs TLT — at a glance

Generated April 2026 from current fund data.

Overview

BND and TLT are both bond ETFs tracking U.S. fixed-income indexes, but they cover vastly different parts of the market. BND holds the entire investment-grade bond universe—Treasuries, investment-grade corporates, mortgage-backed securities, and other sectors—while TLT focuses exclusively on long-dated Treasury bonds with 20+ year maturities. The key distinction: BND diversifies across credit quality and duration; TLT concentrates on duration and government credit only.

How they differ

The biggest difference is scope. BND tracks a broad aggregate index spanning multiple bond types and maturities, while TLT is a narrow play on the longest-maturity Treasuries. This drives their interest-rate sensitivity: TLT's beta of 2.37 means it swings roughly 2.4 times harder than the broader bond market (BND's 0.98 beta) when rates move. TLT yields more (4.66% vs. 4.00%), but that higher yield comes from duration risk, not credit risk—long bonds appreciate more when rates fall and lose more when rates rise.

Fee-wise, BND's 0.03% expense ratio is five times cheaper than TLT's 0.15%, and BND's asset base ($387 billion vs. $43 billion) reflects its broader appeal. The gap in 52-week trading ranges—BND moved 2.1% (high $75.23 to low $71.76) while TLT moved 10.7% (high $92.19 to low $83.30)—underscores TLT's volatility from interest-rate moves. Both distribute monthly.

Who each is best for

BND: Income-focused investors seeking stable, diversified bond exposure with minimal fees, suitable for core bond allocation in taxable or tax-advantaged accounts. Works well for those uncomfortable with the duration risk of long bonds.

TLT: Total-return investors with moderate-to-long time horizons who can tolerate significant price swings and want to bet on falling long-term rates. Better suited for tax-advantaged accounts given price volatility; useful as a hedge against equity downturns during risk-off periods.

Key risks to know

Duration risk: TLT's 2.37 beta exposes you to outsized losses if the Fed holds rates higher for longer or if long yields rise. BND, with lower duration, is less sensitive.

Yield sustainability: TLT's 4.66% yield is entirely dependent on the current level of long-dated Treasury yields; if yields rise, distributions may fall as prices decline.

Interest-rate environment: Both funds lose principal value in rising-rate environments, but TLT amplifies this effect. The recent 52-week decline in TLT (down ~9.5% from high to low) illustrates this vulnerability.

Credit diversification: BND's corporate and MBS holdings carry embedded credit and prepayment risks absent from TLT's pure-Treasury structure.

Bottom line

If you want ballast for a portfolio and low fees, BND offers broad diversification and minimal volatility. If you believe long-term rates will decline and can stomach significant price swings, TLT offers higher yield and duration leverage. Neither choice eliminates interest-rate risk—a reality facing all fixed-income investors. Past performance doesn't predict future results.

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