State Street SPDR Portfolio Long Term Corporate Bond ETF

SPLB

Market cap $1.34B

SPLB and SCHQ both offer ultra-low fees, but SPLB delivers a higher dividend yield and stronger recent total returns. SCHQ holds fewer bonds and tilts entirely toward Treasuries, while SPLB focuses on investment-grade corporate bonds with much broader diversification.

The State Street SPDR Portfolio Long Term Corp Bd ETF targets investment-grade, long-duration corporate bonds. Duration is an issue for this ETF as the crisis concerns both long-term and short-term YTMs, all going up due to a combination of terminal inflation assumptions and spreads. Our primary note is that the impact on oil logistics could be longer lasting than the war, which itself could be longer lasting than expected.

LQD comes with higher fees but offers greater assets under management and deeper liquidity. SPLB pays a higher dividend yield, while LQD has delivered stronger one-year and five-year total returns.

SCHQ comes with a slightly lower expense ratio and focuses on long-term U.S. Treasury bonds, while SPLB targets long-term investment-grade corporate bonds. SPLB has delivered a stronger 1-year return and higher dividend yield, and has also shown a smaller maximum drawdown than SCHQ.

SPLB offers a lower expense ratio and a positive return over the last 12 months, while TLT has decreased in price within that span. TLT carries less risk than SPLB because all of the bonds it holds are backed by the U.S. government.

SCHQ charges a slightly lower expense ratio but trails SPLB on yield and one-year returns. SPLB has a higher five-year risk exposure but lost less value during recent drawdowns than SCHQ.

SPLB charges a meaningfully lower expense ratio and offers a higher yield than LQD. SPLB has experienced a deeper five-year drawdown and weaker long-term total returns.

SPLB and LQD both offer exposure to U.S. investment-grade corporate bonds. SPLB stands out for its lower fees and higher yield.

Demographics (outside of immigration considerations) aren't a direct concern for US productivity and therefore long-term benchmark rates. But it has been suggested the demographic effects in portfolio allocation may see a net retail divestment from long-term fixed income as the soon-to-retire sell long-dated bonds. We see more risks in the ability for the US to maintain its USD reserve currency status over significant horizons of the long-dated SPLB, at 20+ years.

SPLB offers diversified exposure to long-term US corporate bonds, with a focus on A and BBB credits and a 12.5-year duration. Current BBB spreads are near historic lows, limiting upside potential and increasing downside risk if spreads widen or rates rise. The fund's performance relies heavily on long-term interest rates and credit spreads, both of which present unfavorable risk/reward at present.