Which Long-Term Bond ETF Is the Better Buy: State Street’s SPLB or iShares’ TLT?
The State Street SPDR Portfolio Long Term Corporate Bond ETF (NYSEMKT:SPLB) offers lower costs and corporate credit exposure, while the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) provides high-liquidity access to long-term government debt. Both funds target the long end of the maturity spectrum, meaning they are highly sensitive to interest rate movements. However, they differ in credit risk: one relies on the full faith and credit of the U.S. government, while the other holds thousands of corporate obligations. Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield. Continue reading