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The core aim of this fund is to precisely mirror the overall performance of a particular benchmark. This index specifically evaluates the returns generated by the long-duration segment of the U.S. Treasury bond market. This objective is considered before any deductions for fund-related fees and operational costs.
Is SCHQ's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
Both Schwab Long-Term U.S. Treasury ETF and Vanguard Long-Term Treasury ETF share a competitive 0.03% expense ratio. Vanguard Long-Term Treasury ETF is the larger fund by assets under management, offering higher daily trading volume for institutional and retail investors.
Both funds charge 0.03% expense ratios, but VCLT offers higher yield while SCHQ experienced steeper losses over five years.
Schwab Long-Term U.S. Treasury ETF (SCHQ) offers a lower expense ratio than iShares 10+ Year Investment Grade Corporate Bond ETF. iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB) provides a higher trailing 12-month dividend yield and better 5-year total returns.
The Schwab Long-Term US Treasury ETF (SCHQ) offers high liquidity and low expense ratio, tracking long-duration US Treasuries with a 13.8-year effective duration. But caution is needed with duration, citing persistent inflation risks, hawkish Fed posture, and geopolitical tensions that pressure long-term yields upward. Geopolitical instability and structural inflation pose significant threats to the forward rates, reflected in sharp changes on the long-side of the yield curve in particular.
The Schwab Long-Term U.S. Treasury ETF has a significantly lower expense ratio of 0.03% compared to the 0.15% fee for iShares 20+ Year Treasury Bond ETF. The iShares 20+ Year Treasury Bond ETF maintains a much larger liquidity profile with assets under management of $42.5 billion.