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.

Snapshot (cost & size)

Metric	TLT	SPLB
Issuer	iShares	SPDR
Share price	$81.73 (as of 2026-11-02)	$20.89 (as of 2026-11-02)
Expense ratio	0.15%	0.04%
1-yr return (as of 2026-11-02)	(4.9%)	(3.8%)
Dividend yield	5.2%	6.3%
Beta	0.51	0.64
AUM	$47.9 billion	$1.2 billion

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.

Performance & risk comparison

Metric	TLT	SPLB
Max drawdown (5 yr)	(43.7%)	(34.4%)
Growth of $1,000 over 5 years (total return)	$674	$840

What's inside

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.

Which looks like the better buy

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.

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.