Select ETFs: Long-Term Bond

A long-term bond ETF provides exposure to long-dated Treasuries, an asset class that is light on credit risk but may offer attractive yields thanks to an extended duration and therefore material interest rate risk.

Best for Liquidity (Short-term Trading)

iShares 20+ Year Treasury Bond ETF (TLT)

Expense Ratio: 0.15%

The iShares 20+ Year Treasury Bond ETF seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities greater than twenty years.

For those looking to extend the duration of their portfolio and potentially enhance the current return offered, TLT can be a useful product. TLT is efficient from a cost perspective, offers exposure to hundreds of individual securities, and delivers impressive liquidity to those looking to execute a trade quickly.

Best for Cost (Long-term Investment)

Schwab Long-Term U.S. Treasury ETF (SCHQ)

Expense Ratio: 0.03%

SCHQ provides access to U.S. Treasury bonds in a 10-year and longer spectrum. It’s a straightforward, low-cost fund which effectively captures the long-end of the Treasury yield curve and can serve as part of the core for a diversified portfolio.

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