GOVT vs TLT
iShares US Treasury Bond ETF vs iShares 20+ Year Treasury Bond ETF
Which is better, GOVT or TLT?
GOVT has been ahead.
GOVT has a lower expense ratio. GOVT led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | GOVT | TLT |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.15% |
| AUM | $41.9B | $48.9B |
| Dividend Yield | 3.79% | 5.00% |
| Holdings | 220 | 49 |
| YTD Return | -4.67%Best | -6.19% |
| 1Y Return | -5.12%Best | -9.15% |
| 3Y Return (annualized) | +2.50%Best | +1.69% |
| 5Y Return (annualized) | -1.57%Best | -8.14% |
| Volatility (annualized) | 4.5%Best | 13.1% |
| Max Drawdown | -23.4%Best | -48.7% |
| $10,000 over 5 years | $9,239Best | $6,541 |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) |
| Category | Fixed Income | Fixed Income |
| Style | - | Long Term Government Bond |
| Inception | Feb 14, 2012 | Jul 22, 2002 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 24, 2012 to Oct 14, 2026 (14.6 years).
GOVT vs TLT growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.6 years both funds cover.
GOVT vs TLT Performance
iShares US Treasury Bond ETF (GOVT) is an ETF from iShares by BlackRock (US) and iShares 20+ Year Treasury Bond ETF (TLT) is an ETF from iShares by BlackRock (US). Over the past year GOVT returned -5.12% while TLT returned -9.15%. Year to date, GOVT is down 4.67% versus a loss of 6.19% for TLT.
Over three years, GOVT compounded at +2.50% per year against +1.69% for TLT; over five years the annualized figures are -1.57% and -8.14% respectively. Across the full 15-year window we track, GOVT has the edge at +0.86% annualized vs -1.33%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TLT has been the more volatile fund, with annualized monthly volatility of 13.1% compared with 4.5% for GOVT. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -23.4% for GOVT and -48.7% for TLT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
GOVT charges 0.05% per year while TLT charges 0.15%. On a $10,000 position that is $5 vs $15 annually, a gap of $10 per year that compounds over a long holding period. On income, GOVT currently yields 3.79% against 5.00% for TLT.
Holdings Overlap
We hold position weights for 176 holdings in GOVT and 44 in TLT, totalling 80.3% and 85.7% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 36 positions appear in both.
36 positions in common, counted across the 176 positions we hold weights for in GOVT and 44 in TLT, against full books of 220 and 49.
Top Shared Holdings
| Stock | Weight in GOVT | Weight in TLT | Difference |
|---|---|---|---|
| T 4.75 05/15/55Government Of The United States Of America 4.75% 15-May-2055 | 0.43% | 4.33% | 3.90% |
| T 4.625 05/15/54U.S. Treasury Bond 4.625 05/15/2054 | 0.53% | 4.13% | 3.60% |
| T 4.625 02/15/55Us Treasury N/B 4.63 2055-02-15 | 0.58% | 3.84% | 3.26% |
| T 4.25 08/15/54Treasury Bond (Otr) 4.25% Aug 15, 2054 | 0.51% | 3.88% | 3.37% |
| T 4.5 11/15/54Treasury Bond (Otr) 4.5% Nov 15, 2054 | 0.43% | 3.84% | 3.41% |
| T 4.25 02/15/54U.S. Treasury Bonds 2054-02-15 | 0.33% | 3.93% | 3.60% |
| T 4.75 11/15/53Us Treasury N/B 4.75 11/15/2053 | 0.19% | 4.03% | 3.84% |
| T 4.125 08/15/53Treasury Bond 4 08/15/2053 | 0.26% | 3.92% | 3.66% |
| T 1.875 11/15/51Government Of The United States Of America 1.875% 15-Nov-2051 | 0.23% | 3.69% | 3.46% |
| T 4.75 08/15/55Wi Treasury Sec 08/55 4.75 | 0.45% | 3.45% | 3.00% |
You are not choosing between two funds in isolation.
Whichever of GOVT and TLT you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, GOVT or TLT?
GOVT has an expense ratio of 0.05% while TLT charges 0.15%. GOVT is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, GOVT or TLT?
Over the past year GOVT returned -5.12% vs -9.15% for TLT, so GOVT leads on 1-year performance. Over the longest common window we track (15 years), GOVT annualized +0.86% vs -1.33% for TLT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, GOVT or TLT?
TLT has been the more volatile fund at 13.1% annualized versus 4.5% for GOVT. Worst drawdown: GOVT -23.4% vs TLT -48.7%.
Should I hold both GOVT and TLT?
GOVT and TLT have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, GOVT or TLT?
GOVT yields 3.79% while TLT yields 5.00%, so TLT currently pays the higher dividend yield.
Is TLT better than GOVT?
GOVT has a lower expense ratio. GOVT led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. Which one suits a particular account depends on what it is for. This is information, not a recommendation.