FLGV vs VGVT

FLGVBFranklin U.S. Treasury Bond ETF

VGVTBVanguard Government Securities Active ETF

In short

FLGV Treasuries only, anywhere from 1 to 30 years, in one ticker. Franklin charges 0.09%, under the typical fee in its Treasury peer group, and the income lands monthly.

VGVT Vanguard, the index house, goes active on government bonds. VGVT hands a Treasury-and-agency portfolio to human managers for 0.10%, under the typical Treasury ETF fee, with monthly income and an investment-grade-only floor.

Stated mandate

FLGV The Fund seeks income and normally invests at least 80% of net assets in direct U.S. Treasury obligations and related Treasury exposures. It may hold Treasury securities of any maturity, with primary emphasis on remaining maturities from 1 to 30 years.

VGVT The fund seeks its objective by investing in U.S. government securities, including Treasury bills and notes and other obligations issued by the U.S. government, its agencies, or instrumentalities.

Why people hold it

• FLGV One ticker for the whole Treasury curve: at least 80% of net assets in direct U.S. Treasury obligations, with the emphasis on maturities running 1 to 30 years.
• 0.09% a year undercuts the 0.12% median for Treasury funds in its peer group. On government paper, where yields are what they are, the fee is the lever you control.
• Pays monthly, and it is a multi-billion-dollar fund, so the income arrives on a predictable schedule rather than in quarterly lumps.
• Since its 2020 launch it has hewed tightly to its stated Treasury mandate, one of the closer mandate matches in a crowded Treasury peer group.

• VGVT Active management at index-fund pricing: 0.10% a year, below the 0.12% median for Treasury ETFs in its peer group.sec.gov
• Vanguard's Fixed Income Group can shift maturity, lean on agency bonds and add select securitized credit instead of mirroring a Treasury index.prnewswire.com
• Quality rules are written into the strategy: at least 80% in U.S. government and agency bonds, and every bond bought is investment grade.sec.gov
• Income lands monthly, and the fund sits in the upper half of its Treasury peer group on our overall read.

Worth knowing

• FLGV Cheaper shelf-mates exist: VGIT and VTG run 0.03%, a third of this fee. You are paying a bit more for Franklin's version of the same government paper.
• Moderately traded rather than one of the tape's busiest Treasury funds, so spreads matter more on large or hurried orders.
• Holdings can stretch out to 30-year maturities, so this carries real interest-rate sensitivity, not the calm of a T-bill fund.

• VGVT Discretion costs more than Vanguard's own index route: VGIT and VTG charge 0.03%, so you pay roughly triple for a manager's judgment.
• Launched in 2025, it started small and lightly traded, so spreads can run wider than in Vanguard's index giants.
• Active means drift: the portfolio can sit apart from the Bloomberg U.S. Government Total Return Index, and any maturity is fair game, so rate moves bite.sec.gov

Full FLGV profile⁠

Full VGVT profile⁠