VGLT vs SCHQ: 0.03% Fees, 4.8% vs 4.9% Yield — Which Wins?
VGLT and SCHQ track the same index with identical fees. VGLT's $13B asset base and longer track record give it a liquidity edge over SCHQ's slightly higher 4.9% yield. Here's what matters for traders.
Alpha Score of 59 reflects moderate overall profile with strong momentum, poor value, strong quality, moderate sentiment.
Long-term U.S. Treasury bonds lost roughly a third of their value from peak to trough as the Federal Reserve raised interest rates at the fastest pace in decades. The damage concentrated in funds tracking bonds with maturities beyond 10 years. Two of the most popular vehicles – Vanguard's VGLT and Schwab's SCHQ – offer near-identical exposure but differ on liquidity and yield.
The sharp rise in yields pushed long-duration bond prices lower. For investors holding positions in long-term Treasury ETFs, the impact was immediate and sustained. That backdrop frames the comparison between VGLT and SCHQ.
Both ETFs charge the same expense ratio of 0.03% and track the Bloomberg U.S. Long Treasury Index. The correlation between their returns is essentially perfect over every measured time period. VGLT launched in 2009 and manages roughly $13 billion in assets, while SCHQ launched in 2019 and holds about $1 billion. That 13-to-1 asset ratio gives VGLT deeper liquidity and tighter bid-ask spreads for larger trades.
The yield difference is narrow. VGLT distributes $2.52 per share annually, a 4.8% yield on its near-$53 share price. SCHQ pays $1.47 per share, a 4.9% yield on its near-$30 price. The gap reflects minor differences in the specific bonds each fund holds within the long-duration bucket.
For traders focused on execution cost, VGLT's scale makes it the default. Schwab platform users who prioritize portfolio simplicity may prefer SCHQ. Both provide the same core exposure – long-duration government debt with the same fee and nearly identical performance – but the liquidity edge on VGLT has kept it the institutional choice.
Read more about how the bond market transmits Fed policy in our market analysis.
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