TLT +0.01% ^GSPC +1.31% SPLB +0.92% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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.
The State Street fund is considerably more affordable with a 0.04% expense ratio. It also offers a higher payout, with a yield gap of 1.07 percentage points over the iShares fund, reflecting the additional risk premium of corporate debt.
State Street SPDR Portfolio Long Term Corporate Bond ETF focuses on U.S. dollar-denominated, investment-grade corporate bonds with maturities of at least 10 years. It is highly diversified with 2,971 holdings; no single position exceeds 0.34% of the portfolio. This fund was launched in 2009. State Street SPDR Portfolio Long Term Corporate Bond ETF has paid $1.31 per share over the trailing 12 months, which on its recent ~$20.9 share price works out to a 6.3% yield.
The iShares 20+ Year Treasury Bond ETF holds a much more concentrated portfolio of 49 U.S. Treasury securities with maturities exceeding 20 years. Its largest positions include Treasury Bond 4.63% 05/15/2054 at 4.13%, Treasury Bond 4.75% 05/15/2055 at 4.08%, and Treasury Bond (old) 5.00% 05/15/2056 at 4.06%. This fund was launched in 2002. iShares 20+ Year Treasury Bond ETF has paid $4.23 per share over the trailing 12 months, which on its recent ~$81.7 share price works out to a 5.2% yield.
For more guidance on ETF investing, check out the full guide at this link.
Long-term bonds have not been easy to own lately, and neither of these funds has made investors whole over the past five years. Still, SPLB has held up better than iShares' TLT, and that steadier record makes it a strong pick for investors who want bond income for the long haul.
SPLB owns roughly 3,000 corporate bonds, so you get the higher yield of corporate debt without betting on any one company. Companies have to pay more than the government to borrow, which is why SPLB pays more income than TLT. It also costs far less and had a smaller 5-year maximum drawdown. TLT owns only U.S. Treasuries, so default risk is minimal, and its huge size makes it easy to trade. That makes it a common safe haven when stocks get shaky.
Even though SPLB is much smaller, its lower fee and extra income give long-term holders a real edge. If avoiding default risk is your top priority, TLT is the simple choice. For most long-term investors who can handle some corporate credit risk, SPLB looks like the better buy.
Before you buy stock in SPDR Series Trust - State Street SPDR Portfolio Long Termorate Bond Index ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SPDR Series Trust - State Street SPDR Portfolio Long Termorate Bond Index ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $341,157!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,037,753!*
Now, it's worth noting Stock Advisor's total average return is 834% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of November 11, 2026.
Sara Appino has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Which Long-Term Bond ETF Is the Better Buy: State Street's SPLB or iShares' TLT? was originally published by The Motley Fool
