🤝 BFF Take
EDV Wins on Cost — TLT Wins on Liquidity and Moderate Risk
TLT (iShares 20+ Year Treasury Bond ETF) and EDV (Vanguard Extended Duration Treasury ETF) are both long-duration US Treasury bond funds used as interest rate hedges, deflation protection, or portfolio diversifiers. TLT holds Treasury bonds with maturities over 20 years (effective duration ~17 years) at 0.15% with massive liquidity ($55B AUM). EDV holds Treasury STRIPS with 20-30 year maturities (effective duration ~25 years) at a lower 0.06% — but with ~50% more price sensitivity to rate changes. If rates drop 1%, EDV gains roughly 25% while TLT gains about 17%. That leverage works both ways: rising rates in 2022-2023 caused TLT to fall ~40% and EDV to fall ~60%. Both are extremely volatile by bond standards and are not appropriate as core bond holdings for most investors.
📋 Quick Takeaways
⚡EDV has ~25 year effective duration vs TLT's ~17 years — EDV is ~50% more sensitive to rate changes
💰EDV costs 0.06% vs TLT's 0.15% — nearly 2.5x cheaper for a higher-volatility version of the trade
🏦TLT has $55B+ AUM and is the most-traded long-Treasury ETF; EDV has ~$5B — liquidity matters for large positions
📊 Data-Based Take: EDV has the lower fee
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
TLT
iShares 20+ Year Treasury Bond ETF
EDV
Vanguard Extended Duration Treasury ETF
📋 TLT vs EDV — Key Facts Side by Side
| Metric |
TLT |
EDV |
| Fund Name |
iShares 20+ Year Treasury Bond ETF |
Vanguard Extended Duration Treasury ETF |
| Issuer |
iShares |
Vanguard |
| Tracks Index |
ICE US Treasury 20+ Year |
Bloomberg US Treasury STRIPS 20-30 Year |
| Expense Ratio |
0.15% |
0.06% ✓ |
| Cost per $10K/yr |
$15.00 |
$6.00 |
| AUM |
$55B |
$5B |
| Holdings |
40 |
80 |
| Inception |
2002 |
2007 |
| 1-Year Return |
-3.20% |
-4.80% |
| 3-Year Return |
-11.40% |
-14.20% |
| 5-Year Return |
-5.80% |
-7.20% |
| Avg Bid-Ask Spread |
0.00% |
0.02% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 TLT vs EDV — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy TLT or EDV?
Choose if...
TLT
- You already use iShares and prefer staying within their fund family
Choose if...
EDV
- You want the lowest fees — saves ~$9/yr per $10K vs TLT
- You want broader diversification (80 holdings vs 40)
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❓ TLT vs EDV — Frequently Asked Questions
What is the difference between TLT and EDV?
TLT holds US Treasury bonds with 20+ year maturities (effective duration ~17 years) and charges 0.15%. EDV holds Treasury STRIPS with 20-30 year maturities (effective duration ~25 years) and charges 0.06%. STRIPS are zero-coupon bonds — they pay no interest and are purchased at a discount to face value. This makes EDV more price-sensitive to interest rate changes. When rates fall, EDV gains significantly more than TLT; when rates rise, EDV falls more.
Why have TLT and EDV performed so poorly recently?
Long-duration bonds are highly sensitive to interest rate changes. When the Federal Reserve raised rates aggressively from 2022-2023 to fight inflation, long-term bond prices fell sharply — bond prices move inversely to yields. TLT fell roughly 40% during the 2022 rate hike cycle; EDV fell approximately 60%. This was one of the worst periods for long-duration bonds in history, driven by the fastest rate-hiking cycle in decades.
When should I own TLT or EDV?
Long-duration Treasury ETFs serve specific purposes: (1) Deflation or recession hedging — Treasuries typically rise when stocks fall sharply and the economy weakens. (2) Interest rate directional bets — if you believe rates will fall significantly, TLT/EDV would benefit. (3) Portfolio diversification using risk parity concepts — long Treasuries have historically shown negative correlation to stocks during crises. They are not appropriate as a typical "safe" bond holding.
Is TLT a good investment now?
Whether TLT is a good investment depends on your view of future interest rates and your investment purpose. If rates decline from current levels, TLT would rise significantly. If rates stay flat or rise, TLT could continue to struggle. We don't make specific rate predictions — but investors should understand they are making a significant interest rate bet when they own TLT or EDV. For most investors, intermediate-duration bond funds (like BND or AGG) carry less interest rate risk.
How does TLT behave during a stock market crash?
Historically, TLT has rallied during equity market crashes due to "flight to safety" — investors rushing to US Treasuries. During the 2008-2009 financial crisis, TLT rose about 25% while stocks fell 50%+. During March 2020, TLT spiked briefly. However, during 2022, both stocks AND bonds fell simultaneously — an unusual correlation breakdown driven by inflation/rate expectations rather than recession fears.
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ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.