(TLT) iShares 20+ Year Treasury - Ratings and Ratios

The iShares 20+ Year Treasury Bond ETF (NASDAQ: TLT) is a straightforward, low-cost way to gain exposure to long-duration U.S. Treasury bonds. The fund invests at least 80% of its assets in the securities that make up its underlying index, which tracks the performance of U.S. Treasury obligations with maturities of 20 years or more. This makes it a cornerstone for investors seeking to hedge against interest rate risk or add stability to their portfolios.

TLT is passively managed, aiming to replicate the performance of its index rather than trying to outperform it. The underlying index is designed to measure the returns of U.S. Treasury bonds with remaining maturities of at least 20 years. This focus on long-duration bonds means the fund is particularly sensitive to changes in interest rates—when rates fall, the prices of these long-duration bonds tend to rise, and vice versa. For investors, this makes TLT both a potential hedge against falling rates and a source of price volatility in a rising-rate environment.

With over $53 billion in assets under management, TLT is one of the most liquid and widely traded Treasury ETFs available. Its tight bid-ask spreads and high trading volume make it accessible even for smaller investors. The fund is domiciled in the United States, and its holdings are exclusively U.S. Treasury securities, which are considered among the safest assets in the world due to their backing by the full faith and credit of the U.S. government. This low credit risk makes TLT a favorite for risk-averse investors and those seeking predictable income streams.

For fund managers and institutional investors, TLT is often used as a tool for duration management within fixed-income portfolios. Its long duration makes it an effective hedge against the interest rate sensitivity of other fixed-income assets. Additionally, its transparency and ease of use make it a popular choice for constructing ladders or barbell strategies in bond portfolios. While it’s not a substitute for active bond management, TLT provides a reliable, low-cost way to gain exposure to the long end of the Treasury yield curve.