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Both funds own long-term bonds, but the risks they carry are completely different. Here is how to choose between corporate credit and government safety.
State Street SPDR Portfolio Long Term Corporate Bond ETF offers a significantly lower expense ratio and higher trailing dividend yield than iShares 20+ Year Treasury Bond ETF. While iShares 20+ Year Treasury Bond ETF focuses on U.S. government debt, State Street SPDR Portfolio Long Term Corporate Bond ETF holds a diversified basket of investment-grade corporate bonds.
The Schwab Long-Term U.S. Treasury ETF (SCHQ) offers a slightly lower expense ratio and a lower volatility profile than the State Street SPDR Portfolio Long Term Corporate Bond ETF (SPLB). SPLB delivers a higher dividend yield than SCHQ.
Farther Finance Advisors LLC lifted its stake in shares of SPDR Portfolio Long Term Corporate Bond ETF (NYSEARCA:SPLB) by 399.7% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 34,753 shares of the company's stock after acquiring an additional
SPLB charges a lower expense ratio and offers a higher yield than TLT. SPLB has outperformed TLT over the past year and five-year periods, with a milder drawdown.
SPLB and SCHQ both offer ultra-low fees, but SPLB delivers a higher dividend yield and stronger recent total returns. SCHQ holds fewer bonds and tilts entirely toward Treasuries, while SPLB focuses on investment-grade corporate bonds with much broader diversification.
The State Street SPDR Portfolio Long Term Corp Bd ETF targets investment-grade, long-duration corporate bonds. Duration is an issue for this ETF as the crisis concerns both long-term and short-term YTMs, all going up due to a combination of terminal inflation assumptions and spreads. Our primary note is that the impact on oil logistics could be longer lasting than the war, which itself could be longer lasting than expected.
LQD comes with higher fees but offers greater assets under management and deeper liquidity. SPLB pays a higher dividend yield, while LQD has delivered stronger one-year and five-year total returns.