Profile
Assets class:
EquityAssets under management:
$63 BAverage volume:
$37 MDomicile:
USExpense ratio:
0.15%Inception date:
30 July 2002Website:
http://www.ishares.comLast dividends:
03 September 2024Next dividends:
N/ATop countries
Dividend yield TTM
TLT Latest News
Instead of falling after the Fed lowered rates, the 10-year and 20+ year yields have risen. This seems incongruous given the dovish Fed talk.
The US national debt is rapidly increasing, exposing long-dated government bonds to significant inflation risk, making iShares 20+ Year Treasury Bond ETF very risky. Rate cuts by the Fed mostly affect short-term rates, while long-term yields are driven by inflation expectations, which are rising. The Fed is increasingly the primary buyer of long-dated US debt, as organic demand dwindles, pushing long-term yields higher.
The current environment for treasury bonds remains favorable for upward trades in the near term, with the biggest consideration being the time frame that an individual trader is working in. We expect to see upward moves lasting a few days and others lasting several weeks.
TLT just broke out, reaching a higher high for 2024, driven by anticipated rate cuts and lower inflation, and should be expected to trend higher. Long-term Treasuries offer steady income, high credit ratings, and act as a hedge against equity downturns, especially amid global economic uncertainty. TLT's chart shows a rounded bottoming pattern, indicating strong potential for further gains, particularly with forthcoming rate cuts and potential market weakness.
Historical Fed rate pivots often precede recessions, highlighting deeper economic issues and potential downturns following interest rate cuts. Sharp declines in insider buying and job openings, coupled with rising consumer credit card delinquencies, signal significant economic stress and potential recession risks.
The iShares 20+ Year Treasury Bond (TLT) ETF has crawled back in the past few months as concerns about the American economy have risen. The TLT ETF fund jumped to a high of $100 earlier this month, its highest point since May 2021.
TLT recently experienced a strong rally due to disappointing economic data and slower inflation, improving its negative correlation with the equity market. CPI YoY dropped below 3% for the first time since 2021, increasing expectations for Fed rate cuts and indicating that inflation is not capping TLT's upside potential. With the recent unemployment rate at 4.3% and the historically reliable Sahm Rule triggering a recession signal, the economy faces growing risks amid a still inverted yield curve.
For much of 2024, the stock market has been driven by two seemingly opposite forces: the exceptionally strong performance of the S&P 500 and the biggest, mostly tech companies, and by persistent recessionary fears driven by concerns over a possible artificial intelligence (AI) bubble, consistently high interest rates, and the ever-increasing indebtedness of the Federal Government.
Long-term Treasury bonds are gaining renewed interest due to potential rate cuts and lower inflation levels. Treasury bonds offer steady income, safety, and hedging capacity in a portfolio. Recent market conditions suggest Treasury bonds, including the iShares 20+ Year Treasury Bond ETF, may perform well in the coming months.
The iShares 20+ Year Treasury Bond ETF had its best week in 2024, and is up over 7% in two weeks. The Fed's shift in focus to labor market followed by a very weak jobs report opens up the potential for aggressive rate cuts into 2025. TLT can be expected to challenge $100-100.5 area and $109 later this year.
What is TLT ETF?
The fund will invest at least 80% of its assets in the component securities of the underlying index, and it will invest at least 90% of its assets in U.S. Treasury securities that the advisor believes will help the fund track the underlying index. The underlying index measures the performance of public obligations of the U.S. Treasury that have a remaining maturity greater than or equal to twenty years.
What is TLT assets class?
Assets class of TLT ETF is 'Equity'
What is TLT assets under management?
Assets under management of TLT ETF is $63 B
What is TLT average volume?
Average volume of TLT ETF is $37 M
What is TLT domicile?
Domicile of TLT ETF is US
What is TLT expense ratio?
Expense ratio of TLT ETF is 0.15%
What is TLT inception date?
Inception date of TLT ETF is 30 July 2002
What is TLT website?
Website of TLT ETF is https://www.ishares.com/us/products/239454/