Which Long-Term Bond ETF Is the Better Buy: Vanguard's VCLT or Schwab's SCHQ?

Sara Appino, The Motley Fool

Wed, August 12, 2026 astatine 6:18 AM CDT 4 min read

Vanguard Long-Term Corporate Bond ETF (NASDAQ:VCLT) focuses connected high-quality firm debt, whereas Schwab Long-Term U.S. Treasury ETF (NYSEMKT:SCHQ) targets the information of government-backed obligations, resulting successful chiseled output and hazard profiles.

Both funds question to supply income by investing successful the agelong extremity of the maturity spectrum. While they stock akin duration risks, the prime betwixt them often comes down to an investor's penchant for the recognition premium of firm bonds versus the perceived information of U.S. Treasuries.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from monthly returns implicit the disposable money past (up to 5 years). The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The 2 ETFs are arsenic affordable with identical 0.03% disbursal ratios. The Vanguard money presently offers a higher payout, reflecting the further output investors necessitate for holding firm recognition alternatively than authorities debt.

Performance & hazard examination

What's wrong

Schwab Long-Term U.S. Treasury ETF holds 100 securities and focuses connected mirroring the show of the long-duration conception of the U.S. Treasury market. The money was launched successful 2019. Schwab Long-Term U.S. Treasury ETF has paid $1.47 per stock implicit the trailing 12 months, which connected its caller ~$29.9 stock terms works retired to a 4.9% yield.

Vanguard Long-Term Corporate Bond ETF is simply a overmuch larger and much diversified money with 2,854 holdings, chiefly consisting of high-quality, investment-grade firm indebtedness with maturities betwixt 10 and 25 years. Its apical holdings are broadly dispersed crossed galore issuers, and nary azygous presumption exceeds 0.36% of its assets nether absorption (AUM). The money was launched successful 2009. Vanguard Long-Term Corporate Bond ETF has paid $4.08 per stock implicit the trailing 12 months, which connected its caller ~$71.7 stock terms works retired to a 5.7% yield.

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