What is the primary difference between Vanguard Intermediate-Term Treasury ETF (VGIT) and Vanguard Long-Term Treasury ETF (VGLT)?

The main difference lies in the duration of the underlying Treasury bonds. VGIT holds intermediate-term government bonds, which are less sensitive to interest rate fluctuations. VGLT holds long-term government bonds, which experience greater price volatility when rates change. This distinction means VGLT offers potentially higher yields but also greater risk of capital loss when interest rates rise, compared to VGIT's more stable price movements.

Both funds track government bond indices that are not specified in their public data, limiting transparency on exact methodology. However, VGLT targets long-term Treasury securities, while VGIT focuses on intermediate-term bonds. This creates a structural difference in how each fund responds to interest rate movements, with VGLT exhibiting higher duration and volatility.

What are the primary similarities and differences between VGIT and VGLT in terms of fees and fund structure?

VGIT and VGLT share identical expense ratios of 0.03% and the same inception date of November 2009. However, VGIT holds $39.7 billion in net assets compared to VGLT's $10.4 billion, while offering dividend yields of 3.99% and 4.82% respectively. VGLT's longer-term bonds provide higher yields but with less stability.

How do the dividend yields of VGIT and VGLT differ?

VGIT provides a dividend yield of 3.99%, while VGLT offers a higher yield of 4.82%. This difference reflects the additional interest rate risk inherent in long-term bonds. Investors receive regular distributions from both funds, which are subject to change based on market conditions and interest rates. The higher yield of VGLT compensates for its greater price volatility when compared to the more stable VGIT. However, the actual dividend payments can fluctuate significantly depending on prevailing interest rates and market conditions.

What are the key differences in fund size and liquidity between VGIT and VGLT?

VGIT holds $39.7 billion in net assets, compared to VGLT's $10.4 billion. The larger asset base of VGIT typically results in higher trading volume and tighter bid-ask spreads, enhancing liquidity for investors. While both funds maintain reasonable liquidity, VGIT's greater size makes it more suitable for larger institutional trades without significantly impacting the fund's price or market structure. This size difference also reflects broader investor preferences for intermediate-term Treasury exposure over longer-duration positions in current market conditions.

What are the key advantages of investing in VGLT?

VGLT provides a higher dividend yield of 4.82% compared to VGIT's 3.99%, reflecting its exposure to long-term Treasury bonds. With an identical expense ratio of 0.03%, the cost efficiency remains comparable. VGLT's longer duration makes it more responsive to potential interest rate declines, offering greater capital appreciation opportunities. Investors may choose VGLT if seeking enhanced yield potential within government bonds, particularly in scenarios where declining interest rates are anticipated. However, this comes with increased price volatility when rates rise.

How do VGIT and VGLT compare in their market resilience during interest rate fluctuations?

VGLT exhibits greater sensitivity to interest rate changes due to its longer bond duration, experiencing larger price swings both upward and downward. VGIT, with its intermediate-term focus, shows more moderate reactions to rate changes. During rising interest rates, VGLT typically sees greater capital depreciation, while falling rates can produce stronger gains for VGLT compared to VGIT. Investors considering these funds should evaluate their interest rate expectations and risk tolerance, as the two funds represent different points on the Treasury yield curve and offer varying exposure to fixed income market dynamics.

What role do VGIT and VGLT play in interest rate environments?

VGIT and VGLT serve as distinct benchmarks for different Treasury maturities. VGLT is commonly utilised to reflect expectations of long-term interest rates, offering higher yield potential at the cost of greater price sensitivity. VGIT provides a stable middle ground, with lower yield than VGLT but more moderate interest rate exposure. Investors may employ either fund for portfolio diversification purposes, depending on their desired balance between income and potential interest rate exposure. These funds are not recommended as specific portfolio additions, but rather represent educational information about how Treasury maturities perform in different rate environments.

What considerations should investors keep in mind when choosing between VGIT and VGLT?

Investors should focus on their interest rate outlook and tolerance for price volatility. VGLT's $10.4 billion asset base and 4.82% dividend yield indicate lower liquidity but potentially higher income. VGIT's $39.7 billion assets and 3.99% yield suggest stronger liquidity but less upside potential. Both offer 0.03% expense ratios. Neither has publicly available top holdings or sector weights. The educational content provided does not constitute financial advice; investors should consult a qualified professional before making investment decisions.

This information is for educational purposes only and does not constitute financial advice.

Investors should note that the comparison between VGIT and VGLT highlights key metrics including their identical 0.03% expense ratios and inception dates of November 2009. VGIT's $39.7 billion assets versus VGLT's $10.4 billion illustrates differing liquidity profiles, while their dividend yields of 3.99% and 4.82% reflect maturity choices.

How do the expense ratios of VGIT and VGLT compare?

Both VGIT and VGLT share an identical expense ratio of 0.03%, meaning there is no cost difference in fees between the two funds. This fee level is considered low and competitive for government bond ETFs. Since the expense ratios are the same, investors cannot gain a cost advantage by choosing one over the other based on fees alone. The fee difference is 0 percentage points. Over time, this equal cost structure ensures that differences in returns are driven by underlying bond market performance rather than fund management charges.

What do the funds track, and how do their exposures differ?

The specific indices tracked by both VGIT and VGLT are not available, limiting transparency on their exact methodologies. However, VGIT targets intermediate-term government bonds, while VGLT focuses on long-term government bonds. This distinction creates different exposures to the Treasury yield curve. Intermediate-term bonds generally experience less price volatility than long-term bonds when interest rates change. Consequently, VGIT offers stability suited for moderate duration risk, whereas VGLT provides higher potential yields at the cost of greater sensitivity to interest rate movements.

VGIT vs VGLT

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

Explore VGIT vs VGLT, comparing Vanguard Intermediate-Term and Long-Term Treasury ETFs. Review fees, holdings, dividends and how each fund tracks its market to understand key differences in duration and yield. Both have 0.03% expense ratios. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

VGIT

Metric

VGLT

0.03%

Expense Ratio

0.03%

3.99%

Dividend Yield

4.82%

$39.66B

Net Assets

$10.43B

104

Holdings

103

Nov 19, 2009

Inception Date

Nov 19, 2009

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Index Tracked

–

Intermediate 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

VGIT

Pros

Expense ratio of 0.03% is low and competitive for a government bond fund
Assets of $39.7 billion provide liquidity and stability for investors
Inception date of November 2009 gives a long track record in market conditions

Considerations

Index tracked is not available, limiting transparency on methodology
Dividend yield of 3.99% is lower than longer-term Treasury funds
Top holdings and sector weights are not available, reducing visibility

VGLT

Pros

Dividend yield of 4.82% is relatively high for a Treasury fund
Expense ratio of 0.03% keeps total cost minimal for investors
Category long-term Government bonds offer potential for capital gains

Considerations

Assets of $10.4 billion are smaller than intermediate Treasury funds
Index tracked is not available, limiting transparency on methodology
Top holdings and sector weights are not available, reducing visibility

About VGIT and VGLT

VGIT (VGIT)

The Vanguard Intermediate-Term Treasury ETF (VGIT) is designed to track the performance of a market-weighted index composed of US government bonds with maturities between three and ten years. As an exchange-traded fund, it offers investors exposure to a diversified portfolio of 104 holdings, primarily consisting of fixed-income securities backed by the full faith and credit of the US government. This structure typically aims to provide a balance between yield potential and interest rate risk compared to shorter or longer-term treasury options. With a low expense ratio of 0.03%, it is often used by investors seeking stability and income within a broader portfolio. It is important to remember that while US government bonds are considered low credit risk, their market value can fluctuate based on changes in interest rates. Consequently, returns are not guaranteed, and values may rise or fall over time.

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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VGIT vs VGLT

Fund Snapshot