"Those with the view that interest rates are likely to continue to head lower may want to take a look at the iShares 20+ Year Treasury ETF (TLT). What TLT and other bond ETFs tracking government bonds with longer durations provide is really a sense of portfolio stability over a given time frame. For those looking to invest for the next two decades or longer, holding some exposure to assets that will provide a reasonable yield over that time frame makes sense."
"I'm of the view that the 4.3% yield TLT currently provides is one that's worth locking in, even for those who think rates may hold steady or increase slightly over time. That's a reasonable yield to park a portion of one's portfolio in, to balance out cash needs that may come over time, or have an ultra-liquid option to be able to sell when the time comes (and keep one's capital working in higher-growth equities in the meantime)."
Investors seeking yield can choose from many equity and fixed-income options, with ETFs offering diversified, low-cost exposure to asset classes. Many investors prefer ETFs for portfolio core holdings while selecting individual stocks on the edges. Long-duration government bond ETFs like iShares 20+ Year Treasury ETF (TLT) provide yield and portfolio stability across extended time frames. TLT currently yields about 4.3%, which can serve as yield to lock in, liquidity for tactical moves, and an insurance-like holding if interest rates decline in the future. Holding some TLT exposure helps balance cash needs and complements higher-growth equity allocations.
Read at 24/7 Wall St.
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