TLT vs VIG: iShares 20+ Year Treasury Bond ETF vs Vanguard Dividend Appreciation ETF Comparison
Compare TLT (iShares 20+ Year Treasury Bond ETF) and VIG (Vanguard Dividend Appreciation ETF) by expense ratio, dividend yield, holdings, and more.
Key Differences
- 1Expense ratio: VIG 0.06% vs TLT 0.15% (VIG is 0.09%p cheaper)
- 2Dividend yield: TLT 3.31% vs VIG 1.68%
- 3Category: TLT is Bonds & Commodities, VIG is Dividend ETFs
- 4Holdings: TLT 50 vs VIG 289
- 5Issuer: TLT (BlackRock(iShares)) vs VIG (Vanguard)
Conclusion
TLT and VIG each have different strengths, so the choice depends on your investment objectives. Choose the one with lower fees if cost is a priority, or the one with higher yield if income is your goal.
| Category | TLT | VIG |
|---|---|---|
| Fund Name | iShares 20+ Year Treasury Bond ETF | Vanguard Dividend Appreciation ETF |
| Current Price | ... | ... |
| Category | Bonds & Commodities | Dividend ETFs |
| Expense Ratio | 0.15% | 0.06% |
| Dividend Yield | 3.31% | 1.68% |
| Holdings | 50 | 289 |
TLT Top Holdings
- 1. U.S. 30-Year Treasury Bonds
- 2. U.S. 20-Year Treasury Bonds
VIG Top Holdings
- 1. Microsoft
- 2. Apple
- 3. Broadcom
- 4. JPMorgan
- 5. UnitedHealth
TLT Features
- •Long-term government bonds
- •Interest rate sensitive
- •Safe-haven asset
- •Hedging tool
VIG Features
- •Dividend growth
- •High-quality companies
- •Low expense ratio
- •Stability
Pros & Cons
TLT
Advantages
- ✓ Rises when equities fall
- ✓ Safe-haven asset
- ✓ Excellent liquidity
Disadvantages
- ⚠ Rising interest rate risk
- ⚠ Inflation risk
- ⚠ High duration
VIG
Advantages
- ✓ Continuous dividend growth
- ✓ Quality company selection
- ✓ Inflation hedge
Disadvantages
- ⚠ Underperformance vs. growth stocks
- ⚠ Interest rate sensitive
- ⚠ Sector bias
Investment Strategy
Best For: TLT
For risk hedging; bet on falling rates; 10-20% of total portfolio
Best For: VIG
Core dividend strategy; hold long-term; consider combining with SCHD
Detailed Analysis
TLT (iShares 20+ Year Treasury Bond ETF) and VIG (Vanguard Dividend Appreciation ETF) They belong to different categories — Bonds & Commodities and Dividend ETFs — representing distinct investment areas. TLT: iShares 20+ Year Treasury Bond ETF (TLT) is an exchange-traded fund that provides investors with exposure to bonds, gold, and other commodities. It carries an expense ratio of 0.15%. The fund offers a dividend yield of approximately 3.31%. The portfolio holds 50 securities. With an expense ratio of 0.15% and dividend yield of 3.31%, its top holdings include U.S. 30-Year Treasury Bonds, U.S. 20-Year Treasury Bonds. Key features include Long-term government bonds, Interest rate sensitive, with Rises when equities fall being a major advantage. VIG: Vanguard Dividend Appreciation ETF (VIG) is an exchange-traded fund that provides investors with exposure to dividend-paying equities. It carries an expense ratio of 0.06%. The fund offers a dividend yield of approximately 1.68%. The portfolio holds 289 securities. With an expense ratio of 0.06% and dividend yield of 1.68%, top holdings include Microsoft, Apple, Broadcom. Notable features are Dividend growth, High-quality companies, with Continuous dividend growth as a core strength. In terms of expense ratio, VIG is 0.09%p cheaper, which can lead to significant cost savings through compounding over long-term investment. Over 20 years with a $100,000 investment, this difference can amount to thousands of dollars.
Investment Recommendation
TLT is suitable for For risk hedging; bet on falling rates; 10-20% of total portfolio, while VIG is suitable for Core dividend strategy; hold long-term; consider combining with SCHD. Since they are in different categories, holding both can provide portfolio diversification benefits. Adjust the allocation based on your risk tolerance and investment horizon. For beginners, we recommend a core-satellite strategy: choose a low-cost, well-diversified ETF as your core holding, and allocate the rest to satellite positions.
Key Summary
Both TLT and VIG are excellent ETFs for their respective investment objectives. The key is to choose based on your investment goals, time horizon, and risk tolerance. Rather than focusing on a single metric (dividend yield, fees, etc.), evaluate from a holistic portfolio perspective. Use our rebalancing calculator to easily determine the optimal asset allocation including both ETFs.
TLT vs VIG Investment Guide
Both TLT and VIG are popular US ETFs, but they differ in investment strategy and portfolio role. TLT has an expense ratio of 0.15%, while VIG charges 0.06%, giving VIG a cost advantage. In terms of dividend yield, TLT offers 3.31% while VIG offers 1.68%, making TLT the better choice for income investors.
When choosing between the two, consider your investment goals, time horizon, and risk tolerance. If long-term growth is your priority, favor the ETF with lower fees and broader diversification. If you need steady cash flow, the higher-yielding ETF may be more suitable. You can also hold both in your portfolio for a complementary approach.
Regardless of which ETF you choose, maintaining your target allocation through regular rebalancing is key to long-term performance. Review your portfolio quarterly or semi-annually, and adjust if weights have drifted significantly. Our rebalancing calculator can automatically determine the buy/sell quantities for each holding.
5 Things to Check When Comparing ETFs
Expense Ratio: Even a 0.1% difference in fees can translate to thousands of dollars over long-term investing. When two ETFs track a similar index, the lower-cost option has the edge.
Tracking Index & Holdings: Even ETFs in the same category may track different indices. Review the top holdings and sector weights to find the best fit for your investment goals.
Dividend Policy: Compare dividend frequency (monthly vs quarterly), yield, and dividend growth rate. Monthly dividend ETFs may be preferable if you need regular cash flow.
Trading Volume & Liquidity: Sufficient daily trading volume ensures you can buy and sell at fair prices. Low-volume ETFs may have wider bid-ask spreads, increasing your trading costs.
Portfolio Role: Determine whether the ETF serves as a core or satellite holding in your portfolio, and size your position accordingly.