VGLT ETF

The iShares 20+ Year Treasury Bond ETF (TLT) and the Vanguard Long-Term Treasury Index Fund ETF (VGLT) ETFs have pulled back in the past few weeks as investors assess the next actions of the Federal Reserve and a potential black swan event in the US.  The more popular TLT ETF retreated to $94.

VGLT is a leading long treasury ETF positioned well for a rate declining cycle. Warren Buffett is increasing his cash position by selling leading equity stocks like AAPL and BAC, prompting asset rotation to increase fixed income investments. More asset allocation in long government bonds is recommended, with VGLT ETF as one of the preferred choices.

Vanguard Long-Term Treasury Index Fund ETF Shares offers a yield of about 4.5% and low expense ratios. The ETF has experienced volatility but may be poised for a rebound as interest rates decline. BlackRock sees this as a good opportunity to buy bonds and believes potential downside risks are limited.

VGLT is a good investment option for long-term US Treasury Bonds in 2024 due to expected interest rate cuts and decreasing inflation. Advances in artificial intelligence and other more efficient technologies will allow companies to reduce costs; these advances decrease the odds of continuing inflation and rising rates, thus benefiting long-term bonds. VGLT offers advantages over other funds like TLT, making it an attractive choice for investors.

December CPI came in slightly higher than expected, with headline inflation at +0.3% and core inflation at +0.3%. On a year-over-year basis, headline CPI is now +3.4% and core inflation is 3.9%.

2023 has been marked by a return to bond exchange traded funds (ETFs) despite continued hawkishness by the U.S. Federal Reserve. Short-term bond funds have been a default option amid tightening monetary policy, but now, long-term debt could be back in the fold.

The Vanguard Long-Term Treasury Index Fund has been given a hold rating due to its low cost, high tradeability, and decent yield, despite near-term downside risks. VGLT's portfolio consists of 76 bonds and net assets under management sum to $6.2 billion as of July 7, 2023, with 41% of its holdings in long-term Treasuries over 25 years in duration. Despite being a solid long-term holding for investors looking to diversify their portfolios, the near-term technical outlook and momentum.