The Schwab Long-Term U.S. Treasury ETF (NYSEMKT:SCHQ) and the State Street SPDR Portfolio Long Term Corporate Bond ETF (NYSEMKT:SPLB) differ most in their underlying bond exposure, with SPLB offering corporate credit risk and a slightly higher yield. At the same time, SCHQ is more concentrated in U.S. Treasuries and carries lower expenses.
NYSEMKT: SCHQ
Key Data Points
SPLB and SCHQ both aim to provide diversified exposure to long-duration fixed income. Still, their approaches diverge: SPLB holds investment-grade corporate bonds with maturities of 10 years or more, while SCHQ focuses squarely on the long-term U.S. Treasury market. This comparison explores how their costs, returns, risks, and portfolios stack up for investors seeking long-dated bond exposure.
Snapshot (cost & size)
| Metric | SPLB | SCHQ |
|---|---|---|
| Issuer | SPDR | Schwab |
| Expense ratio | 0.04% | 0.03% |
| 1-yr return (as of 2026-02-09) | 6.5% | 3.6% |
| Dividend yield | 5.2% | 4.5% |
| Beta | 1.97 | 2.16 |
| AUM | $1.2 billion | $925 million |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months.
SCHQ is marginally more affordable with a 0.03% expense ratio compared to SPLB’s 0.04%. SPLB offers a higher dividend yield of 5.3% compared with SCHQ’s 4.6%, reflecting the additional compensation for corporate credit risk.
Performance & risk comparison
| Metric | SPLB | SCHQ |
|---|---|---|
| Max drawdown (5 y) | (31.8%) | (38.5%) |
| Growth of $1,000 over 5 years | $889 | $729 |
What's inside
SCHQ tracks the long-term U.S. Treasury bond market and holds 98 securities, with 100% in U.S. government bonds and zero in cash, reflecting its pure-play government focus. The fund has been operating for 6.3 years, and its concentrated portfolio provides streamlined exposure to U.S. sovereign debt.
SPLB, by contrast, is much broader with 2,959 holdings and targets investment-grade corporate bonds across a range of sectors. Some of its largest positions include Ssi Us Gov Money Market Class, Anheuser-Busch Co./InBev Company Guar, and Verizon Communications Sr Unsecured, highlighting its diverse corporate issuer holdings. SPLB’s composition provides investors with exposure to credit risk and yield premium over Treasuries, but also introduces sector and issuer concentration differences not present in SCHQ.
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What this means for investors
Both SCHQ and SPLB are high-quality, low-cost bond funds that can help an investor lock in high yields. SPLB offers a higher yield and broader diversification to mitigate the higher risk of investing in corporate debt. With nearly 3,000 positions, it seems to adequately absorb individual issuer risk, which explains its record of delivering superior returns.
SCHQ would be for investors who want the most reliable income from U.S. government bonds. Still, the safety of government bonds didn’t prevent SPLB from outperforming SCHQ during the 2022 drawdown.
The prospect of lower interest rates and improving economic conditions could make SPLB a better play for 2026. Both these funds focus on long-duration bonds, which are more sensitive to rate swings and therefore should perform well if interest rates come down. But SPLB’s higher yield gives it an edge.
