Hi YXI friends,

Today, we are reviewing TLT, BlackRock’s 20+ Year Treasury Bond ETF.

TLT is on the longer end of the yield curve. Among the iShare ETFs, only GOVZ has a longer duration.

We walk through all of TLT’s key components including its benchmark, the specific holdings, yield to maturity, duration, and performance. We include a technical analysis on where TLT could be headed in the near-term.

I understand many of the readers like to jump straight to the price action and macro analysis. But it’s hugely beneficial to learn the technical details of the ETF (walking) before we confidently trade (running) in and out of it.

I've written simple guides on SGOV and SHV before (both are free to read). Be sure to take a look!

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. TLT tracks the ICE U.S. Treasury 20+ Years Bond Index

The benchmark that TLT tracks, ICE U.S. Treasury 20+ Years Bond Index, only includes Treasury securities with at least 20 years remaining until maturity.

TLT uses a representative sampling indexing strategy. This means the ETF does not fully replicate the index, but simply picks a range of investments that best represent the profile of the index. This is not an active strategy, as the fund managers would not attempt to defend the fund returns in a market downturn.

TLT tracks the index pretty efficiently since inception.

Until 2020, TLT had enjoyed a 2-decade long bull market in bonds, where yields trended lower and lower after each rate cycle. Since COVID, yields have snapped back due to heightened inflation.

In terms of fees, TLT has a total expense ratio of 0.15%.

2. A detailed view of TLT holdings

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