iShares 20+ Year Treasury Bond ETF

This ETF will be a good investment in terms of both yield and capital appreciation if US inflation continues to moderate, pushing down the yield on US long-term bonds.

This fund holds 45 bonds, all with maturities greater than 20 years. Some of the bonds likely trade at prices higher than par value because they were issued when interest rates were higher than today. Those issued when interest rates were lower than currently would trade below par value. The fact that the yield to maturity is higher than the cash yield indicates that, on average, the bonds trade below par value.

Income Investor

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Interactive Performance Chart

TLT was first recommended here on November 29, 2024