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 July 4, 2026

Vanguard

ETFs115

Total AUM$4484B

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 emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on BND.

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iShares

ETFs481

Total AUM$4451B

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

Side-by-side snapshot

	BND	TLT
Full name	Vanguard Total Bond Market ETF	iShares 20+ Year Treasury Bond ETF
Issuer	Vanguard	iShares
Last Close	$73.11 as of July 4, 2026	$85.51 as of July 4, 2026
Distribution yield	4.01%	4.46%
Distribution Safety Score	100	96
Expense ratio	0.03%	0.15%
AUM	$158B	$40.7B
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	2.38
Last dividend	$0.2445	$0.3180
Ex-dividend date	07/01/2026	08/03/2026

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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.

Total returns

BND has outpaced TLT over the trailing twelve months, posting a 3.34% total return against 0.67%. The lead holds up over 10 years too: BND has compounded at 1.41% a year, against -2.21% for TLT. BND has been the steadier holding, though — annualized volatility of 5.3% against 13.9% for TLT. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Apr 2007	Volatility	Sharpe	Sortino	Max drawdown
BND	0.38%	3.34%	4.07%	-0.05%	1.41%	3.02%	5.3%	-0.09	-0.13	-5.9%
TLT	-0.28%	0.67%	-1.97%	-6.92%	-2.21%	3.01%	13.9%	-0.47	-0.64	-18.9%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Apr 2007” measures every fund from April 10, 2007 — the youngest fund's first trading day — 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.

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 4.46% vs 4.01% 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 ($158B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, BND would generate roughly $33.42/month, while TLT would produce $37.17/month, at current distribution rates. Both pay monthly distributions.

BND yield4.01%

TLT yield4.46%

Monthly diff on $10K$3.75

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 2.38 for TLT, indicating BND is less volatile relative to the market.

BND beta0.98

TLT beta2.38

Fund details

BND is managed by Vanguard (launched 04/03/2007) with $158B in assets. TLT is managed by iShares (launched 07/22/2002) with $40.7B in assets.

BND AUM$158B

TLT AUM$40.7B

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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 approach, 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 iShares 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 $33.42 per month ($401.00 annually). The same in TLT would produce about $37.17 per month ($446.00 annually).

Which has performed better historically, BND or TLT?

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BND vs TLT — at a glance

Generated June 2026 from current fund data.

Overview

BND and TLT are both Treasury-heavy fixed-income ETFs, but they target opposite ends of the duration spectrum. BND tracks the broad U.S. bond market across all maturities and credit qualities, while TLT focuses exclusively on long-dated Treasuries with 20-plus-year maturities. The key distinction: BND is a core holding for diversified bond exposure; TLT is a duration bet that amplifies interest-rate sensitivity.

How they differ

The biggest difference is maturity and diversification. BND holds the full spectrum of investment-grade bonds—Treasuries, mortgages, corporates, and agencies—while TLT owns only long-term Treasury paper. This means TLT has roughly 2.4 times the interest-rate sensitivity of BND, reflected in its beta of 2.38 versus BND's 0.98.

TLT yields more: 4.62% versus BND's 4.03%, the result of longer duration and higher reinvestment risk rather than credit pickup. BND's 0.03% expense ratio is five times cheaper than TLT's 0.15%, and BND's $158B in assets dwarf TLT's $40.7B. Both pay monthly, but the yield floor is structurally different—TLT's income depends on long-term Treasury rates, while BND benefits from credit spreads and mortgage coupons that cushion it in a flat-to-falling rate environment.

Who each is best for

BND: Fits investors who want a low-cost, market-weight bond allocation with built-in diversification across Treasuries, corporates, and mortgages, and who expect to hold bonds as a stable portfolio ballast rather than a rate-directional trade.

TLT: Fits investors who believe longer-dated Treasury yields offer value or who want explicit long-duration exposure in a falling-rate scenario, and who are comfortable with significant NAV swings tied to 10-year and 20-year yield moves.

Key risks to know

Interest-rate duration risk. TLT's beta of 2.38 means a 1% rise in long yields could cut its NAV by roughly 24%, while BND's broader-based portfolio would lose around 10%. This asymmetry intensifies in a rising-rate environment.

Yield sustainability tied to Treasury rates. TLT's 4.62% distribution depends on long-term Treasury coupons; if the 20-year yield falls sharply, distributions and NAV both compress. BND's income is more resilient because corporate and mortgage spreads can offset Treasury weakness.

Reinvestment timing. TLT's concentration in a single maturity band means coupon reinvestment happens at whatever rates prevail; in a lower-rate backdrop, forward income could slip. BND's diversified maturity ladder provides natural staggering.

Credit spread narrowing. BND holds investment-grade corporate and agency bonds whose spreads can tighten in a risk-on rally, capping upside; TLT has no spread exposure to benefit from widening.

Bottom line

If you want a core, diversified bond holding with minimal volatility and the lowest possible fees, BND is the natural scaffold. If you're positioning for falling rates or want explicit long-duration Treasury exposure and can tolerate sharp NAV moves, TLT's higher yield and duration come with that trade-off. Past performance does not predict future results.

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