VUSUX vs. TLT

[Kevin K.]

My IRA where I have the most room for bonds is at Vanguard (I took Craig R's advice about splitting assets between a couple of brokerages and have everything else at Schwab). I'm currently using VUSUX for the long-term treasury allocation but it seems that most here favor TLT (acknowledging of course that directly holding bonds is the purist approach and has much to recommend it).

TLT has just slightly longer average weighted maturities but VUSUX has a better expense ratio (.10% vs. .15%). Would I be better off switching anyway?

[Kbg]

Tlt is favored because its duration is closest to the original. V is clearly better on cost. I assume you understand the ramifications of duration +/-. If you can accurately forecast interest rates, chose accordingly.

[Kevin K.]

Weighted average maturity is 25.20 years Vanguard vs. 26.74 for TLT, average duration is 17.2 vs. 18. I think for the difference in expense ratio I'll stick with the Vanguard option. Interestingly though TLT has double the assets of the Vanguard fund, so those who prefer it have lots of company.

Thanks for the feedback.

[Kbg]

Me too unless it is actively managed.

[Dieter]

I like Mutual Funds over ETFs, so yeah, VUSTX (got a smaller PP, but one day!

[Edit: Their Government Bond fund, VLGSX, has the 18 year duration and lower ADM requirements, but has Agency bonds, and didn't drill in to find out how much (part of a single 'Treasury/Agency' bucket. 100%]

[Kbg]

You looked at the right things and came to a solid conclusion on what you preferred, that is the most important thing.

[Jeffreyalan]

Does anyone use TLO instead of TLT? It's commission free at Schwab. And i cannot tell a big difference in the makeup of the funds.

[Jack Jones]

Does anyone use TLO instead of TLT? It's commission free at Schwab. And i cannot tell a big difference in the makeup of the funds.

I use TLO in my kid's ESA (AKA Coverdell) at Schwab. I chose it because it's commission free.

[Jack Jones]

Just be aware that avg daily volume on TLO is pathetically low.

Good to know, thanks. I plan on buying a bond once the account breaks $4000.

[dualstow]

I like Mutual Funds over ETFs

Because you can buy small amounts at a time?

That's why I like them, anyway.

[Dieter]

I like Mutual Funds over ETFs

Because you can buy small amounts at a time?

That's why I like them, anyway.

Don't have to worry about bid/ask spread or transaction volume.

Just what i'm comfortable with.