Summary
TLT Chart
TLT: 5% Yield Now Outpaces Equity Earnings Yield, With Higher Term Premium Embedded
TLT's recent sharp selloff has priced in some fiscal deficit concerns, with 2-20 yield spread widening to 100 bps, indicating the current yield has embedded higher term premium. TLT has reached a 5% yield, surpassing the S&P 500's 4.7% earnings yield due to the recent V-shaped rebound in the equity market, as the market priced out recession risk in 2025. With yields nearing the 5.25%–5.5% resistance range, dip buyers may step in as cooling inflation makes further Fed hikes unlikely.
TLT: Doubling Down On Our Bullish Outlook
A fundamental analysis paired with a modelling process suggests longer-term yields remain overzealous. We think iShares 20+ Year Treasury Bond ETF can benefit if the market wakes up to the realities of lower justified real rates, lower term premiums, and the convexity-conducive environment. CDS and residual risk premiums were incorporated in our modelling process. In addition, history and UBS show that a ratings-based adjustment of a 10-15 basis point yield increase is justified.
TLT Vs. VCTL: Yield Spread Is Near 10-Year Low
The dividend yield spread between Vanguard Long-Term Corporate Bond Index Fund ETF Shares and iShares 20+ Year Treasury Bond ETF is currently near a 10-year low. This signals an unusually unfavorable return/risk ratio for VCLT relative to treasury bonds. To further compound the downside risks, VCLT has significant exposure to medium-quality corporate debt.
iShares 20+ Year Treasury Bond ETF Dividends
 TLT 3 months ago Paid | Monthly | $0.29 Per Share |
| TLT 4 months ago Paid | Monthly | $0.31 Per Share |
| TLT 5 months ago Paid | Monthly | $0.35 Per Share |
| TLT 6 months ago Paid | Monthly | $0.33 Per Share |
| TLT 7 months ago Paid | Monthly | $0.31 Per Share |
iShares 20+ Year Treasury Bond ETF Earnings
| TLT 3 months ago Paid | Monthly | $0.29 Per Share |
| TLT 4 months ago Paid | Monthly | $0.31 Per Share |
| TLT 5 months ago Paid | Monthly | $0.35 Per Share |
| TLT 6 months ago Paid | Monthly | $0.33 Per Share |
| TLT 7 months ago Paid | Monthly | $0.31 Per Share |
iShares 20+ Year Treasury Bond ETF (TLT) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has iShares 20+ Year Treasury Bond ETF ever had a stock split?
iShares 20+ Year Treasury Bond ETF Profile
| NASDAQ (NMS) Exchange | US Country |
Overview
This fund is designed for investors seeking to invest in U.S. Treasury securities with a focus on long-term maturity obligations. By committing at least 80% of its assets to securities that are part of the underlying index, the fund aims to closely track its performance. The underlying index is specifically dedicated to measuring the performance of U.S. Treasury public obligations that have remaining maturities of twenty years or longer. This strategic focus on long-term U.S. government securities positions the fund as a potential choice for investors looking for exposure to long-duration Treasury instruments. The investment approach emphasizes not only adherence to the composition of the underlying index but also a high allocation (at least 90%) to U.S. Treasury securities, encapsulating a conservative investment philosophy geared toward tracking index performance while investing in secure government obligations.
Products and Services
- Long-Term U.S. Treasury Securities Investment
The core offering encompasses investment in U.S. Treasury securities with maturities greater than or equal to twenty years. This service is tailored for investors aiming to benefit from the stability and predictability of long-term government bonds. By emphasizing securities with extended durations, the fund seeks to provide a reliable income stream and a hedge against market volatility over the long term.
- Index Tracking Investment Strategy
Implementing a strategy focused on tracking the performance of the designated underlying index, the fund dedicates a substantial portion of its assets towards mirroring the index's composition. This methodological approach to investment is designed to minimize tracking error, thereby offering investors an efficient vehicle to gain exposure to the performance of long-term U.S. Treasury obligations as measured by the index.
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