Which Long-Term Corporate Bond ETF Is the Better Buy: Vanguard’s VCLT or State Street’s SPLB?

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Choosing Between Vanguard VCLT and State Street SPLB for Long-Term Bonds

Vanguard’s VCLT edges out State Street’s SPLB as the preferred long-term corporate bond ETF with marginally better costs and yield.

Locally, South African investors often eye USD exposure for diversification and yield. Among US long-term corporate bond ETFs, Vanguard's VCLT and State Street’s SPLB track similar indexes, carry comparable risks, and offer near-identical returns. But VCLT’s slightly lower fee (0.03% vs 0.04%) and higher yield (about 6.0% vs 5.8%) provide a subtle yet meaningful advantage over time, especially in a rand environment where every basis point counts. VCLT’s larger size also means better liquidity—a real practical edge. For those using State Street platforms, SPLB remains a valid contender, but otherwise, VCLT is the default pick. On the flip side, a sharp spike in US interest rates or credit stress could hurt both ETFs, given their long-duration bonds. If South African investors are cautious about rand volatility or dollar interest rate cycles, playing these from rand positions requires judgment. this is just our opinion and not financial advice