What do the expense ratios of BLV and VGLT mean for long-term investing costs?

Both BLV and VGLT charge a 0.03% expense ratio, meaning there is no difference in percentage points between them. For every $10,000 invested, each fund deducts approximately $3 annually for management and operational costs. Since the ratios are identical, fee differentials do not alter comparative returns over time in this specific scenario. Investors should focus on how other factors, such as holdings or credit quality, impact net outcomes, rather than cost, as both funds maintain the same low-cost structure.

Why does BLV track an index but list it as not available?

Although BLV is identified as an index fund, the specific index name is marked as 'not available' in the data provided. This lack of transparency can hinder an investor's ability to verify the exact methodology used for selection and weighting. While the fund aims to replicate a long-term bond index, the absence of the benchmark name prevents direct comparison with other indices. Investors should recognise that tracking an index typically involves passive management, but the specific rules remain undisclosed in this dataset.

How does VGLT's focus on government bonds define its credit quality?

VGLT holds exclusively government bonds, which provides a high level of credit quality and sovereign backing. This means the default risk is associated with the issuing government rather than private corporations. The document notes that this Treasury-only focus limits investment opportunities compared to broader markets. Consequently, the fund's risk profile is defined by interest rate movements and government fiscal stability rather than corporate earnings performance. This structural choice significantly influences the fund's yield potential and volatility characteristics relative to corporate-heavy alternatives.

What does the yield difference between BLV and VGLT indicate?

BLV has a dividend yield of 5.01%, while VGLT offers 4.82%, resulting in a 0.19 percentage point difference. BLV's higher yield reflects its exposure to a diversified investment-grade bond index, which may include corporate bonds offering higher compensation for risk. In contrast, VGLT's lower yield is typical for Treasury-only holdings, which carry lower credit risk. The text notes that VGLT's yields are 0.19% lower than comparable funds. This differential highlights the trade-off between additional income and the specific risk types each fund assumes.

How does diversification differ between these two Vanguard ETFs?

BLV provides diversified investment-grade exposure through its long-term bond index composition, potentially spanning various issuers. Conversely, VGLT has a Treasury-only focus, which the data explicitly states limits investment opportunities and diversification. While BLV offers broader market coverage, VGLT concentrates entirely on government-backed securities. This structural difference means BLV may respond to corporate credit cycles, whereas VGLT is driven primarily by sovereign yield curves. The lack of shared top-10 holdings confirms that their diversification strategies are fundamentally distinct in terms of issuer type and market segment.

What are the implications of fund size and liquidity for these ETFs?

VGLT has net assets of $10.4 billion, indicating strong liquidity for traders and institutions. BLV is smaller with $5.5 billion in net assets, which the document describes as offering meaningful scale for both institutional and retail investors. While VGLT is nearly twice the size, both funds are large enough to minimise liquidity concerns for typical investors. The difference in asset size may affect bid-ask spreads, with larger funds often providing tighter spreads due to higher trading volumes, although specific spread data is not provided in the source material.

How do inception dates impact the historical data availability?

BLV was established on 3 April 2007, while VGLT was launched on 19 November 2009. This means BLV has approximately 2.5 years of additional historical performance data. However, both funds have been active for over a decade, providing long-term records for analysis. The inception date does not necessarily indicate current operational differences, as both funds track similar long-duration segments. Investors should note that while BLV has a longer track record, the fundamental characteristics of duration and yield described in the pros and cons apply to both funds regardless of their start dates.

How does interest rate sensitivity affect both BLV and VGLT?

Both funds are classified under long-term categories, creating significant sensitivity to interest rate changes. The document states that BLV's average duration creates sensitivity to rate movements, while VGLT's average duration results in greater volatility than short-term bonds. Since both track long-dated securities, a rise in interest rates will typically cause their prices to fall. The primary distinction lies in the source of that risk: BLV combines duration risk with corporate credit exposure, whereas VGLT isolates duration risk within government securities. Neither fund is immune to rate-driven volatility.

Why are sector weights not available for these funds?

The data lists sector weights as 'not available' for both BLV and VGLT. Typically, bond funds report issuer types (government, corporate) rather than equity sectors (technology, healthcare). Since VGLT is Treasury-only and BLV is a diversified index, specific sector breakdowns may be irrelevant or undisclosed in this dataset. The absence of this data prevents a granular comparison of economic exposure through sectoral lenses. Investors must rely on the credit quality descriptions—government-backed versus investment-grade index—to understand the market segments these funds occupy.

Are there any shared top-10 holdings between BLV and VGLT?

The data explicitly states that there are 'none among the listed top holdings' shared between the two funds. This indicates that even if both hold long-duration bonds, the specific securities in the top ten are distinct. BLV likely holds a mix of corporate and possibly securitised bonds, while VGLT holds only Treasuries. This lack of overlap ensures that the funds provide distinct portfolio positions. Holding both would diversify the specific issue risk, as the top positions do not duplicate each other in terms of individual bond identification.

What should a beginner know before comparing these ETFs?

This comparison is for educational purposes only and does not constitute financial advice. While BLV offers a higher yield of 5.01% and broader diversification, it carries corporate credit risk. VGLT provides sovereign backing with a 4.82% yield but lacks diversification. Both share the same 0.03% expense ratio and high interest rate sensitivity. Beginners should understand that 'not available' data points, such as specific indices or sector weights, limit full transparency. Always consult qualified financial professionals to assess suitability relative to personal risk tolerance and financial goals.

BLV vs VGLT

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare BLV (Vanguard Long-Term Bond Index Fund ETF) and VGLT (Vanguard Long-Term Treasury ETF). This page reviews fees, holdings, dividends and how each tracks its market. Both Vanguard funds have a 0.03% expense ratio. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

BLV

Metric

VGLT

0.03%

Expense Ratio

0.03%

5.01%

Dividend Yield

4.82%

$5.51B

Net Assets

$10.43B

2,932

Holdings

103

Apr 3, 2007

Inception Date

Nov 19, 2009

–

Index Tracked

–

Long-Term Bond

Fund Category

Long Government

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

BLV vs VCLT

Compare BLV and VCLT. Review fees, holdings, dividends and tracking. Both Vanguard ETFs have a 0.03 percent expense ratio for neutral baseline research.

EDV vs VGLT

Compare EDV and VGLT by expense ratios, net assets, dividend yields and tracking details to assess long-term treasury options. Educational content.

TLT vs VGLT

Compare TLT and VGLT long Treasury ETFs on fees, holdings, dividends and tracking. TLT has 0.15% expense ratio and $46.7b assets; VGLT has 0.03% expense.

Investment Analysis

BLV

Pros

The fund's long-term bond index composition provides diversified investment-grade exposure.
Vanguard's low-cost structure is evident in the 0.03% expense ratio.
Net assets of $5.5 billion offer meaningful scale for institutional and retail investors.

Considerations

The fund's average duration creates sensitivity to interest rate changes.
5.01% yield comes with capital risk from fluctuating bond prices.
No index tracked disclosure hinders transparency on methodology.

VGLT

Pros

Government bond holdings provide a high credit quality and sovereign backing.
VGLT's $10.4 billion in assets indicate strong liquidity.
The 0.03% expense ratio reflects cost-efficient management.

Considerations

Treasury-only focus limits investment opportunities and diversification.
Yields are 0.19% lower than those of comparable funds.
The fund's average duration results in greater volatility than short-term bonds.

About BLV and VGLT

BLV (BLV)

The Vanguard Long-Term Bond Index Fund ETF (BLV) is an exchange-traded fund designed to offer exposure to a broad, diversified portfolio of long-term, higher-quality U.S. bonds. With a remarkably low expense ratio of 0.03%, it aims to match the performance of the long-term investment-grade bond market. As of its inception in April 2007, the fund has accumulated net assets of USD 5.51 billion, holding a diversified selection of 2,932 bonds. Investors seeking income might note its dividend yield of 5.01%. It is essential to remember that bond values can fluctuate with interest rate changes, and returns are not guaranteed. This fund serves as a general investment vehicle for those interested in long-duration fixed-income markets.

VGLT (VGLT)

The Vanguard Long-Term Treasury ETF, traded under the ticker VGLT, is an exchange-traded fund designed to provide investors with exposure to US government bonds with longer maturities. As a part of the Vanguard Scottsdale Funds family, it aims to track the performance of long-term Treasury securities issued by the United States government. This fund falls into the 'Long Government' category, reflecting its focus on bonds with significant time to maturity. Investors should be aware that while these bonds are generally considered lower risk due to the backing of the US government, their prices can fluctuate significantly in response to changes in interest rates. The fund offers a relatively low expense ratio, enhancing potential net returns, and pays out income from the underlying Treasury securities. It's essential to understand that bond ETF values can rise and fall, and past performance does not guarantee future results.

Buy BLV or VGLT in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

BLV vs VGLT

Fund Snapshot