LQD vs TLT: How Do These Two Popular Fixed Income ETFs Compare?

Jake Lerch, The Motley Fool

Sun, July 12, 2026 astatine 2:10 PM CDT 5 min read

The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) offers targeted vulnerability to long-dated authorities debt, portion the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEMKT:LQD) provides wide entree to investment-grade firm bonds.

This investigation considers however investors mightiness take betwixt authorities and firm indebtedness based connected hazard tolerance. While some funds are managed by BlackRock (NYSE:BLK), they respond otherwise to economical shifts and recognition spreads, making the prime betwixt TLT and LQD a substance of strategical positioning.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The disbursal ratios for these funds are astir identical, with a negligible 0.01 percent constituent difference. Both ETFs presently connection a 4.6% yield, providing comparable income streams contempt their antithetic underlying assets and hazard profiles.

Performance & hazard examination

What's wrong

The iShares 20+ Year Treasury Bond ETF is simply a fixed-income money that holds 46 holdings, chiefly U.S. Treasury securities with maturities exceeding 20 years. Because it is simply a enslaved fund, it does not supply an equity assemblage breakdown. The money was launched successful 2002. iShares 20+ Year Treasury Bond ETF has paid $3.90 per stock implicit the trailing 12 months, which, astatine its caller ~$84.36 stock price, yields 4.6%.

The iShares iBoxx $ Investment Grade Corporate Bond ETF provides entree to the firm indebtedness market. As a fixed-income fund, it does not supply a accepted equity assemblage breakdown. The money was launched successful 2002. iShares iBoxx $ Investment Grade Corporate Bond ETF has paid $4.94 per stock implicit the trailing 12 months, which, astatine its caller ~$107.67 stock price, yields 4.6%.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.