TLT, EDV and VGLT Make the Same Bet on Long Bonds. One Swings Far Harder Than the Others
Three funds hold government-backed bonds, yet their five-year losses tell a wildly different story. Understanding why one swings so much harder could change which one belongs in your portfolio.
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Three funds hold the same asset and carry the same government guarantee. Even so, the Vanguard Extended Duration Treasury ETF (NYSEARCA:EDV) lost 48.45% of its price over the past five years. Over the same period, the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) fell 33.99%, and the Vanguard Long-Term Treasury ETF (NASDAQ:VGLT) dropped 29.84%. Then, in the week through October 16, 2026, EDV rallied 4.25%, the biggest gain of the three.
That gap matters for investors near retirement who think of Treasuries as the safe part of their portfolio. Government support protects you against default. It does nothing to cushion price swings when interest rates move.
All three funds hold long-dated U.S. Treasuries. All three rise when rates fall and drop when rates climb. Picking one really means deciding how much rate risk you’re willing to carry.
Duration Decides How Hard Your Bond Fund Swings
Duration is a rough measure of how much a bond fund’s price moves when interest rates change. The longer it is, the larger the swing, up or down.
iShares lists TLT’s effective duration at 14.85 years as of October 15, 2026. iShares also puts the fund’s weighted average maturity, meaning the average time until its bonds come due, at 26.05 years. In plain terms, TLT’s price reacts sharply to even modest shifts in long-term rates.
EDV’s name signals extended duration. Its returns show it moving more than the other two funds in both directions.
Five Years of Returns Show Which Fund Moves Most
These are price returns through the October 16, 2026 close.
| Metric | TLT | EDV | VGLT |
|---|---|---|---|
| Share price | $80.05 | $57.61 | $51.39 |
| 1 week | 2.65% | 4.25% | 2.41% |
| 1 month | -0.63% | -1.55% | -0.56% |
| Year to date | -4.95% | -7.87% | -4.62% |
| 1 year | -8.29% | -13.66% | -7.2% |
| 5 years | -33.99% | -48.45% | -29.84% |
EDV is the most extreme fund in every window shown. It fell the most over one month, year-to-date, one year, and five years, and it climbed the most in last week’s bounce.
TLT and VGLT track each other closely. VGLT fell slightly less than TLT in each down period, while TLT gained a bit more during the up week. That pattern suggests TLT carries a little more rate sensitivity than VGLT.
TLT Is the Best Known and Costs the Most
iShares charges a 0.15% expense ratio for TLT, which tracks an index of Treasury bonds with remaining maturities greater than twenty years. EDV’s prospectus lists an expense ratio of 0.05%. VGLT’s prospectus lists 0.03%.
So TLT, the most widely recognized of the three, carries the highest stated expense ratio. Both Vanguard funds cost less. Many investors never compare fees on bond funds, and over long holding periods that gap comes straight out of their returns.
Income Is Real, but Price Swings Can Swamp It
iShares reports TLT’s 30-day SEC yield at 5.41% as of October 15, 2026. iShares puts its 12-month trailing yield at 4.86% as of the same date.
The two measures answer different questions. The SEC yield is a standardized picture of what the fund’s current holdings are earning after fees, based on the latest 30 days. The trailing yield looks back at what the fund actually paid out over the past year. When rates have been climbing, the SEC yield tends to run higher because newer bonds pay more.
At these levels, long Treasuries pay meaningful income. Over short and medium periods, though, price moves can overcome that income, and the five-year numbers above show exactly that.
Match the Fund to the Job You Need It to Do
EDV fits someone who wants the maximum gain if long-term rates fall and can stomach the largest losses if they rise. TLT and VGLT are the less extreme versions of the same position. Between those two, the cost difference deserves your attention.
If you want Treasuries for stability, these funds sit in the wrong part of the yield curve entirely. The yield curve is the range of Treasury yields from bills maturing in a few months to bonds maturing in 30 years. Stability lives at the short end, where prices barely budge when rates shift. That distinction matters most in the first few years of retirement, when a bad decline does permanent damage, something we walked through in a free guide to defending the early retirement window.
For more on the money moving into TLT, see our earlier coverage.
From here, keep an eye on long-term Treasury yields. Whichever direction they move next, these returns suggest EDV holders would feel it first and hardest.
Contact [email protected] for any questions or corrections.
Ryne Mauck is an investment writer covering exchange-traded funds, retirement planning, and portfolio strategy. Through his work at 24/7 Wall St. and other investment platforms, including Seeking Alpha, he aims to provide clear, research-driven insights that help investors make more informed decisions while maintaining a long-term approach to investing.
Ryne holds a B.Sc. in Finance and an M.A. in Political Science. He is a formerly registered Municipal Advisor Representative and has passed the Series 50, Series 63, and Series 65 exams. His articles are not intended to be, nor should they be interpreted as, financial advice.
