Difference between VUSUX & VLGSX?

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Difference between VUSUX & VLGSX?

Post by ishkadetto »

A probably stupidly simple answer but I can't seem to figure this out... what are the differences between these two Vanguard funds, as they seem nearly exactly the same? Why buy one over the other?

VLGSX - Long-Term Treasury Index Fund Admiral Shares

VUSUX - Long-Term Treasury Fund Admiral Shares
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Re: Difference between VUSUX & VLGSX?

Post by welderwannabe »

VUSUX is an actively managed fund. VLGSX is an index fund and it used to be called something else...like long term government fund or something if I remember.

I would use VLGSX. The expense ratio is less because it isn't actively managed. Some people make an argument that actively managed bond funds are better than indexed bond funds...however for a treasury fund, which is about the simplest bond to buy, active management provides little to no value in my opinion.

Make sure you want long term treasuries too. I keep mine short and intermediate.
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Re: Difference between VUSUX & VLGSX?

Post by UpperNwGuy »

In August 2017, Vanguard announced that they would rename and revamp their three "government" bond funds (short term, intermediate term, and long term) to turn them into Treasury Index Funds. The composition of the funds changed fairly rapidly in early December 2017. There were a lot of threads here on Bogleheads at the time, but there has been surprisingly little discussion since then. If you check the turnover rate of the two funds you are comparing, you will quickly see the difference.
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