What are the main differences in expense ratios between EDV and GOVZ?

EDV has an expense ratio of 0.05%, while GOVZ has an expense ratio of 0.10%. This means GOVZ costs 0.05 percentage points more annually. Over time, this difference can impact net returns, especially in long-term holding scenarios. Both funds offer exposure to long-duration Treasuries, but the lower fee structure of EDV may appeal to cost-conscious investors. Investors should consider how even small fee differences accumulate over years.

How do the inception dates of EDV and GOVZ affect their operational history?

EDV was launched in December 2007, giving it a track record of over 15 years. In contrast, GOVZ began in September 2020, resulting in a much shorter operational history. Longer histories can provide insights into fund management and performance across market cycles. However, newer funds might reflect updated investment strategies. Investors should weigh historical context against current fund characteristics when evaluating these ETFs.

What does the net asset size indicate about liquidity for these funds?

EDV has net assets of $3.8 billion, suggesting higher liquidity due to its larger size. Conversely, GOVZ has net assets of $329 million, which may result in lower liquidity. Larger funds typically offer tighter bid-ask spreads, potentially reducing transaction costs for investors. Smaller funds might face higher execution costs during trades. Investors should consider these factors when evaluating trading ease and fund stability.

Which fund has a higher dividend yield and how might this affect income generation?

GOVZ has a dividend yield of 5.44%, compared to EDV's 5.36%. This slight difference may influence investors seeking income. Both funds invest in Treasury securities, which provide interest payments rather than dividends. Investors should consider how these yields align with their income needs and overall portfolio strategy. Yield differences can reflect variations in security selection and interest rate expectations.

How do the index tracking capabilities differ between EDV and GOVZ?

Currently, index tracking information is not available for either EDV or GOVZ. This limitation may affect transparency in understanding their benchmark strategies. Investors typically look at index data to evaluate potential tracking error or performance against a benchmark. Without this information, it is harder to compare how each fund replicates the intended exposure. Consider seeking additional documentation or updates from fund providers.

What are the implications of the funds' sector weight data being unavailable?

Sector weights are not available for both EDV and GOVZ. This limits the ability to analyse specific market exposures within the Treasury space. Investors usually examine sector weights to understand concentration risk and portfolio diversification. Without this data, it becomes challenging to assess how these funds align with broader portfolio strategies. Look for future disclosures from Vanguard and iShares to gain more insight.

How does the focus on long-duration Treasuries impact risk and return profiles?

Both EDV and GOVZ target long-term Treasury bonds, which are sensitive to interest rate changes. Long-duration bonds typically exhibit higher price volatility compared to shorter maturities. As interest rates rise, bond prices fall, leading to potential capital losses. Conversely, falling rates may result in capital gains. Investors should consider these dynamics when adding Treasury ETFs to their portfolios.

Why might Treasury ETFs serve as a hedge against equity market downturns?

Treasury ETFs like EDV and GOVZ can act as portfolio stabilisers during equity market declines. Historically, long-term Treasuries often appreciate during periods of uncertainty or falling interest rates. Their low correlation with equities provides diversification benefits. However, rising interest rates can negatively impact their performance. Investors should carefully evaluate their risk tolerance and market conditions.

What are the tax implications of holding Treasury ETFs in the UK?

In the UK, income from Treasury ETFs, including interest distributions, is subject to tax. However, certain government securities may qualify for tax-efficient treatment. Investors should consult a tax professional to understand how capital gains and income are taxed based on individual circumstances. Considerations like wrap accounts or ISA eligibility may affect the tax burden on these investments.

How can investors monitor fund performance and make informed decisions over time?

Investors should regularly review fund performance, expense ratios, and yield changes for EDV and GOVZ. Utilising resources from Vanguard and iShares can provide updated metrics and strategic insights. Monitoring market conditions and interest rate trends is vital for Treasury ETFs. By staying informed, investors can evaluate the effectiveness of their chosen fund against their investment objectives over time.

EDV vs GOVZ

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

Compare Vanguard Extended Duration Treasury ETF and iShares 25+ Yr Treasury Strips ETF on fees, holdings and dividend yields. EDV has a 0.05% expense ratio, while GOVZ has 0.10%. Both track long-term government treasuries. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

EDV

Metric

GOVZ

0.05%

Expense Ratio

0.10%

5.36%

Dividend Yield

5.44%

$3.81B

Net Assets

$328.55M

Holdings

Dec 6, 2007

Inception Date

Sep 22, 2020

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Index Tracked

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Long Government

Fund Category

Long Government

EDV costs about $5.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

EDV

Pros

Vanguard's established reputation and long fund history from 2007 provide investor confidence in operational stability.
The 0.05% expense ratio offers lower cost efficiency compared to the alternative provided fund.
A $3.8 billion net asset base ensures substantial liquidity and reduces risks associated with fund size constraints.

Considerations

Key details regarding index tracked and top holdings are currently not available, limiting transparency for analysis.
Sector weights data is not available, which prevents a clear understanding of the fund's specific market exposure.
The 5.36% dividend yield is marginally lower than the alternative fund's yield as per the data.

GOVZ

Pros

The 5.44% dividend yield provides a slightly higher income distribution compared to the alternative fund.
Managed by BlackRock's iShares division, the fund benefits from a reputable global asset manager infrastructure.
The fund provides targeted exposure to 25+ year Treasury Strips, offering specific long-duration characteristics.

Considerations

A higher 0.10% expense ratio increases the cost of ownership relative to the alternative fund.
The relatively small $329 million net assets may result in lower liquidity compared to larger funds.
Inception in September 2020 means a shorter operational track record than the more established alternative.

About EDV and GOVZ

EDV (EDV)

The Vanguard Extended Duration Treasury ETF (EDV) offers investors exposure to a diversified portfolio of US government bonds with long maturities. As a part of the Vanguard World Fund, this exchange-traded fund (ETF) aims to track the performance of the Treasury market by investing in debt securities issued by the US government. With a low expense ratio of 0.05% and net assets of USD 3.81 billion, EDV is structured to be a cost-effective way for investors to gain exposure to long-duration fixed income. The fund holds 82 individual securities and boasts an inception date of December 6, 2007. It’s important to note that while the fund currently displays a dividend yield of 5.36%, past performance does not guarantee future results, and the value of investments can fluctuate.

GOVZ (GOVZ)

The iShares 25+ Yr Treasury Strips ETF (GOVZ) offers investors exposure to U.S. Treasury bonds with maturities of 25 years or more. By focusing on long-duration government debt, this fund aims to provide a hedge against economic uncertainty and potential interest rate changes. With a low expense ratio of 0.10%, it is designed for cost-efficient access to the bond market. The fund currently holds 22 securities and has net assets of USD 329 million. It boasts a dividend yield of 5.44%, appealing to those seeking income. However, investors should be aware that values can rise and fall, and past performance does not guarantee future results. This ETF is suitable for those looking to diversify their portfolio with long-term government bonds, understanding the inherent risks of interest rate fluctuations.

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EDV vs GOVZ

Fund Snapshot