BBLB vs GOVZ

BBLBAJPMorgan BetaBuilders U.S. Treasury Bond 20+ Year ETF

GOVZBiShares 25+ Year Treasury STRIPS Bond ETF

In short

BBLB The same 20+ year Treasury index the category's household name tracks, at a fraction of the fee. A plain, cheap wrapper on the long end of the curve, still small and young by category standards.

GOVZ Treasury bonds with the coupons stripped off, 25 years and out. No interest payments means extreme duration and price swings to match, for 0.10% net of a waiver through February 28, 2029.

Stated mandate

BBLB The fund seeks investment results that closely correspond, before fees and expenses, to the ICE U.S. Treasury 20+ Year Bond Index.

GOVZ The fund seeks to track an index of principal STRIPS from U.S. Treasury bonds with at least 25 years remaining to maturity.

Why people hold it

• BBLB Costs 0.04% a year against a 0.15% median for long-Treasury funds, and follows the very same index as TLT, which charges 0.15%.
• No clever overlay. It holds the actual long-dated Treasuries of the ICE U.S. Treasury 20+ Year Bond Index, a few dozen bonds, and has hugged that benchmark closely.
• Coupon income is paid out monthly, not quarterly, so cash arrives on a steadier rhythm.
• On cost and index fidelity, one of the tidiest implementations in the long-Treasury group, alongside cheap rivals like VGLT and EDV.

• GOVZ Tracks the ICE BofA Long US Treasury Principal STRIPS Index, the same index as ZROZ (0.15%), for 0.10% net of a waiver through February 28, 2029 (0.15% gross). Sits near the category median on fee.
• Owns only principal STRIPS, the zero-coupon remains of Treasury bonds. Because they make no periodic interest payments, duration runs longer and rate moves land harder than on traditional notes and bonds.sec.gov
• Pays monthly, even though the bonds inside send no coupons. The underlying paper is US Treasury obligations, with no corporate credit in the mix.

Worth knowing

• BBLB Trades thinly next to the category's giants, so spreads can widen. Limit orders do real work here.
• A small fund launched in 2023, without the asset base or history of the older names tracking the same ground.
• Bonds maturing 20+ years out swing hard when long yields move. Credit risk is about as low as it gets; interest-rate risk is not.

• GOVZ The flip side of max duration: the prospectus notes STRIPS market values generally swing more with interest rates than regular Treasuries. That works in both directions.sec.gov
• Cheaper long-Treasury options exist: EDV charges 0.05% (also STRIPS-based, different index) and VGLT 0.03% (coupon-paying bonds, shorter duration). Neither is a 25-year-plus principal STRIPS pure play.
• A mid-sized fund that trades more lightly than the category's giants, so bid-ask spreads can be wider, especially on large or off-hours orders.

Full BBLB profile⁠

Full GOVZ profile⁠