TLT NYSE

What is TLT?

iShares 20+ Year Treasury Bond ETF (TLT) provides exposure to U.S. Treasury bonds with remaining maturities of 20 years or more. It's the most popular long-duration bond ETF, used for interest rate bets, portfolio hedging, and income generation.

Duration and Interest Rate Sensitivity

TLT has an effective duration of approximately 17 years, making it extremely sensitive to interest rate changes. A 1% rise in rates would cause roughly a 17% price decline. Conversely, a 1% rate cut would boost prices by approximately 17%.

Maturity Distribution

• 20-25 years: 52.5%
• 25-30 years: 47.5%

TLT as a Portfolio Hedge

Long-duration treasuries have historically provided the best equity crash protection. During the 2008 financial crisis, TLT gained 33% while the S&P 500 fell 37%. This negative correlation makes TLT valuable for portfolio insurance.

Interest Rate Environment

TLT performs best when interest rates are falling or expected to fall. In rising rate environments, TLT can experience significant losses. The 2022-2023 rate hiking cycle caused TLT to decline approximately 40% from its peak.

TLT vs EDV vs ZROZ

TLT (17-year duration) is the standard long-bond ETF. EDV (24-year duration) and ZROZ (27-year duration) are even more rate-sensitive, offering amplified bets on falling rates. Choose based on your duration preference.