The article discusses the impact of the Federal Reserve's interest rate cuts on the bond market, particularly the iShares 20+ Year Treasury Bond ETF (TLT). Following rate reductions, shorter-term bonds have lost favor, while longer-maturity bonds, like the TLT, have gained attention for their yield potential amid market volatility. Despite a modest gain of 1% in 2025, TLT has underperformed, declining 7.54% in the past year and nearly 40% over five years. Investors are drawn to TLT as it provides a haven during uncertain market conditions, reflecting a shift towards defensive strategies.
While bonds historically have an inverse relationship with interest rates, the TLT has proven that is not always the case, and investors are turning to the ETF in search of a safe haven.
As market volatility continues, defensive positions offering strong yield are increasingly attractive to weary investors.
The iShares 20+ Year Treasury Bond ETF is a popular fund for yield-oriented investors looking to lower the volatility their portfolios are exposed to.
Zooming out, its performance is even worse. Over the past year, the fund has fallen by 7.54%, adding to its long-term woes that have seen it lose nearly 40% over the past five years.
Collection
[
|
...
]