Which Long-Term Treasury ETF Is Better, Schwab's SCHQ or the iShares TLT?

Robert Izquierdo, The Motley Fool

Sun, July 26, 2026 astatine 3:21 PM CDT 4 min read

The Schwab Long-Term U.S. Treasury ETF (NYSEMKT:SCHQ) and iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) supply akin vulnerability to long-dated authorities debt, though the Schwab money offers a importantly little outgo illustration for semipermanent holders.

Long-term Treasury bonds are indispensable tools for managing involvement complaint hazard and hedging equity volatility, peculiarly during periods of marketplace stress. While some funds people maturities of 20 years oregon more, investors often measurement the monolithic liquidity of the iShares money against the rock-bottom pricing recovered successful the Schwab alternative.

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 Schwab money is much affordable, with an disbursal ratio that is 0.12 percent points little than its iShares counterpart. Additionally, the Schwab money provides a somewhat higher payout, reflected successful a output spread of 0.17 percent points.

Performance & hazard examination

What's wrong

The Schwab Long-Term U.S. Treasury ETF focuses 100% of its holdings connected U.S. authorities bonds with agelong durations. It holds 100 securities to supply wide vulnerability to the agelong extremity of the output curve. Its largest positions see Treasury Bond 4.75% 02/15/2056 astatine 2.20% and Treasury Bond 4.75% 05/15/2055 astatine 2.20%. It was launched successful 2019. The Schwab Long-Term U.S. Treasury ETF has paid $1.47 per stock implicit the trailing 12 months, which connected its caller ~$30.21 stock terms works retired to a 4.9% yield.

The iShares 20+ Year Treasury Bond ETF is simply a fixed income money that besides is comprised of 100% U.S. Treasuries, focusing exclusively connected those with maturities exceeding 20 years. It manages a much concentrated portfolio of 48 securities. Its apical holdings see Treasury Bond 4.13% 08/15/2053 astatine 4.68%, Treasury Bond 4.75% 11/15/2053 astatine 4.55%, and Treasury Bond 4.75% 05/15/2055 astatine 4.51%. It was launched successful 2002. The iShares 20+ Year Treasury Bond ETF has paid $3.90 per stock implicit the trailing 12 months, which connected its caller ~$83.17 stock terms works retired to a 4.7% yield.