What does the expense ratio represent for SPTL and VGLT?

The expense ratio is the annual fee charged by the fund to manage its assets, deducted directly from the fund's performance. Both SPTL and VGLT have an identical expense ratio of 0.03%. This low fee structure means that 99.7 cents of every dollar invested remains invested in the underlying securities. Because both ETFs charge the same low percentage, investors should not expect significant differences in total returns attributable solely to management fees when comparing these two specific funds over time.

How do long-term Treasury ETFs like SPTL and VGLT generate returns?

Long-term Treasury ETFs generate returns primarily through interest payments (coupons) from the underlying government bonds and potential changes in bond market prices. When interest rates fall, existing long-term bonds with higher coupons become more valuable, often raising the ETF's share price. Conversely, rising interest rates typically reduce bond values. The dividend yield, such as the 4.38% for SPTL and 4.82% for VGLT, reflects the income component relative to the current share price, but total returns include both this income and capital appreciation or depreciation.

What is duration risk in the context of SPTL and VGLT?

Duration risk measures the sensitivity of a bond fund's price to changes in interest rates. Both SPTL and VGLT focus on long-term Treasury maturities, resulting in high duration. This means their prices can fluctuate significantly more than short-term bond funds when interest rates change. For example, if interest rates rise by one percentage point, the value of a long-duration ETF may decline substantially. Investors must understand that this volatility is inherent to the asset class and is a primary risk factor for both funds, regardless of their low expense ratios.

How do the dividend yields of SPTL and VGLT compare?

VGLT offers a higher dividend yield of 4.82% compared to SPTL's yield of 4.38%, a difference of 0.44 percentage points. A higher yield suggests more current income per dollar invested, assuming the yields are sustainable. However, yield alone does not determine total return; it must be weighed against capital appreciation potential and fund stability. Both funds distribute income monthly, but the actual payout per share depends on the specific bonds held and the ETF's share price at the time of distribution.

Why are the top holdings not available for these funds?

The specific top-10 holdings for SPTL and VGLT are currently not available in the provided data. This lack of transparency can make it difficult to assess exact concentration risks or compare individual bond positions directly. While both funds are categorised as Long Government ETFs and generally hold US Treasury bonds with long maturities, the absence of specific holding data means investors must rely on the fund's objective and index characteristics rather than granular portfolio analysis to understand their exposure differences.

What does the lack of shared top-10 holdings imply?

The data indicates there are no shared top-10 holdings between SPTL and VGLT, despite both targeting long-term Treasury exposures. This suggests that while the asset class is similar, the specific maturities or individual bond issues selected by each fund may differ. This could be due to variations in index tracking or rebalancing strategies. Investors should note that distinct holdings can lead to divergent performance even when the broad market trend is the same, highlighting the importance of looking beyond just the fund category.

How does the inception date affect the evaluation of these funds?

SPTL was launched in May 2007, while VGLT began in November 2009. SPTL has a longer track record, covering the 2008 financial crisis, whereas VGLT does not have performance data from that specific period. Historical data is crucial for assessing how a fund behaves during extreme market stress. Investors comparing these funds should consider that SPTL's performance history includes a wider range of economic cycles, which may provide more context for evaluating its resilience and tracking accuracy over time.

How do these funds serve as diversification tools?

Long-term Treasury ETFs like SPTL and VGLT are often used to diversify portfolios containing stocks. Government bonds generally have a negative or low correlation with equities, meaning they may hold value or rise when stocks fall. This diversification benefit can reduce overall portfolio volatility. However, the effectiveness of this strategy depends on the specific market environment; in periods where both stocks and bonds fall due to rising interest rates, the diversification advantage may be temporarily reduced for both funds.

Why is liquidity important for ETFs like SPTL and VGLT?

Liquidity refers to how easily an ETF can be bought or sold at a fair price. Both SPTL and VGLT manage substantial assets, $10.9 billion and $10.4 billion respectively. Large asset bases typically support robust trading volume and tighter bid-ask spreads, reducing transaction costs for investors. High liquidity is particularly important during market volatility, as it ensures investors can exit positions without significantly impacting the price. The similar scale of these funds suggests both offer efficient trading execution for retail and institutional investors.

What should investors consider regarding index methodology transparency?

For both SPTL and VGLT, the specific index tracked is not available in the provided data. Transparency in index methodology helps investors understand exactly how bonds are selected, weighted, and rebalanced. Without this information, it is challenging to predict how the fund will perform in unique market conditions or to assess tracking error against a specific benchmark. Investors relying on precise index replication should seek additional documentation from the fund issuers to fully comprehend the underlying construction rules of each ETF.

How should one interpret the difference in net assets between SPTL and VGLT?

SPTL holds $10.9 billion in net assets, slightly more than VGLT's $10.4 billion. While this difference is relatively small, larger asset bases can sometimes offer marginal advantages in economies of scale, potentially leading to more efficient trading and lower indirect costs. However, both funds are already large enough to be considered highly liquid and stable. Investors should not view this minor difference in scale as a significant determinant of performance, as both funds operate with similar low expense ratios and long-term Treasury strategies.

SPTL vs VGLT

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

This page compares the SPDR Portfolio Long Term Treasury ETF (SPTL) and the Vanguard Long-Term Treasury ETF (VGLT). Both funds offer exposure to long-term government bonds with low expense ratios. We examine their fees, holdings, dividend yields, and how each tracks its underlying market to help you understand their differences. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SPTL

Metric

VGLT

0.03%

Expense Ratio

0.03%

4.38%

Dividend Yield

4.82%

$10.93B

Net Assets

$10.43B

103

Holdings

103

May 23, 2007

Inception Date

Nov 19, 2009

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Index Tracked

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Long Government

Fund Category

Long Government

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SPTL

Pros

SPTL offers a competitive zero point zero three percent expense ratio for investors seeking low-cost access to long-term Treasury exposure.
The fund manages substantial assets of ten point nine billion dollars, supporting robust liquidity and efficient trading execution for institutional and retail investors.
It provides exposure to the long-term Treasury market, which may serve as a diversification tool within broader balanced portfolios during economic downturns.

Considerations

SPTL features a lower dividend yield of four point three eight percent compared to Vanguard’s comparable product, potentially reducing immediate income generation.
The ETF is subject to significant interest rate risk, where rising yields can cause substantial declines in the market value of long-duration bonds.
Specific index methodology details are not publicly available, limiting transparency regarding how the fund selects and maintains its underlying long-term Treasury holdings.

VGLT

Pros

VGLT delivers a higher dividend yield of four point eight two percent, offering enhanced current income relative to its lower-duration Treasury counterparts.
The fund utilises a cost-effective expense ratio of zero point zero three percent, minimising fee drag on long-term capital accumulation for buy-and-hold investors.
Backed by Vanguard’s established reputation for shareholder alignment, it maintains a substantial asset base of ten point four billion dollars for stable operations.

Considerations

Investors face considerable duration risk, as the focus on long-term maturities increases sensitivity to fluctuations in prevailing long-term interest rates and inflation.
Similar to its peer, VGLT lacks transparent public disclosure of its specific index tracking methodology, which may hinder precise benchmarking assessments.
The fund’s inception date of November 2009 means it lacks performance data from earlier economic cycles, such as the 2008 financial crisis.

About SPTL and VGLT

SPTL (SPTL)

This ETF offers a straightforward way for investors to gain exposure to long-term U.S. Treasury bonds. With a low expense ratio of 0.03%, it aims to provide a cost-effective approach to investing in government debt. Holding 103 different bonds, the fund diversifies risk across numerous issuers. As of May 23, 2007, it has been offering investors this gateway to Treasury bonds. The current dividend yield of 4.38% can be attractive, though remember bond yields fluctuate with market conditions. Like any investment, values can rise and fall, so understanding the potential impact of interest rate changes is important before considering allocation.

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.

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SPTL vs VGLT

Fund Snapshot