what is tlt

1 year ago 33
Nature

TLT is a stock ticker symbol for iShares 20+ Year Treasury Bond ETF, which is an exchange-traded fund that tracks the performance of long-term U.S. Treasury bonds with remaining maturities greater than 20 years. The ETF seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities greater than 20 years. TLT is a high-quality ETF, thanks to a low expense ratio and liquidity. It is a bond ETF that follows bond prices, not bond yields. The relationship between Treasury bond yields and interest rates is the key to its performance. Generally speaking, if you expect that interest rates will rise in the future, it is best to avoid long-term bonds such as those that are tracked by the TLT. If you believe interest rates will fall, then it makes sense to invest in a long-term bond fund like the TLT.