We see the fiscal risk premium as being priced in and think the iShares 20+ Year Treasury Bond ETF can tap into lucrative longer-term key rates. Our short-term forecast for the yield curve is bullish flattening, TLT ETF's effective duration of 15.68 means the ETF might benefit from such a scenario. The on-the-run coupon base is set quite high for 20-year+ Treasuries. Therefore, we see short-term distributions being sustained at decent levels.
The Simplify Bond Bull ETF is "151 proof" duration, and carries 3x the interest rate sensitivity of 20-year bond funds like TLT. This gives investors direct access to the "duration trade," where investors profit if interest rates fall, one of the investment theses behind TLT and other long bond funds. RFIX does pose a lot of risk, as it is very volatile and highly responsive to interest rate changes, making it a fund that investors should consider carefully.
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 4 months ago Paid | Monthly | $0.29 Per Share |
![]() TLT 5 months ago Paid | Monthly | $0.31 Per Share |
![]() TLT 6 months ago Paid | Monthly | $0.35 Per Share |
![]() TLT 7 months ago Paid | Monthly | $0.33 Per Share |
![]() TLT 8 months ago Paid | Monthly | $0.31 Per Share |
![]() TLT 4 months ago Paid | Monthly | $0.29 Per Share |
![]() TLT 5 months ago Paid | Monthly | $0.31 Per Share |
![]() TLT 6 months ago Paid | Monthly | $0.35 Per Share |
![]() TLT 7 months ago Paid | Monthly | $0.33 Per Share |
![]() TLT 8 months ago Paid | Monthly | $0.31 Per Share |
Asset Management - Bonds Industry | Financial Services Sector | - CEO | XSGO Exchange | US4642874329 ISIN |
US Country | - Employees | - Last Dividend | - Last Split | - IPO Date |
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.
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.
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.