iShares 20+ Year Treasury Bond ETF
TLT · Exchange-traded fund · Bonds
Market Close· Not a live price
What this fund holds
iShares 20+ Year Treasury Bond ETF is an exchange-traded fund. It holds uS Treasury bonds with twenty years or more left to run.
1M price history
What this fund owns
US Treasury bonds with twenty years or more left to run.
Held by investors who want the largest reaction to falling interest rates, or a holding that has often behaved differently from shares.
Fund profile
Classification, not a provider estimate- Asset class
- Fixed income (bonds)
- Category
- Long-term Treasuries
- Typical maturity
- Long (20 years and beyond)
- Credit quality
- US government
- Interest-rate sensitivity
- Very high
- Credit risk
- Very low
Expense ratio, yield to maturity and average duration in years are not available from Scope's current data provider for bond funds, so they are shown as unavailable rather than estimated.
How interest rates affect it
Bond prices and interest rates generally move in opposite directions. When market interest rates rise, existing bond prices generally fall, and when rates fall, existing bond prices generally rise. Longer-duration bonds are typically more sensitive to interest-rate changes.
This fund's interest-rate sensitivity is very high, and its credit risk is very low. Those are two separate risks: a fund can carry a lot of one and almost none of the other.
What can go wrong
- Interest-rate risk: very high. Very long maturities make this one of the most rate-sensitive funds available: double-digit falls in a year of rising rates have happened.
- Credit risk is very low — these are loans to the US government, which has always repaid in dollars.
- Inflation risk: the interest received can be worth less in real terms if prices rise faster than the yield.
Bond ETFs can fall in value and have done so. They are usually steadier than shares, which is not the same as safe.
For learning purposes only. Scope does not offer trading or financial advice.