TLT Profile
The iShares 20+ Year Treasury Bond ETF focuses on providing investors with exposure to long-term U.S. Treasury securities. The fund is committed to investing at least 80% of its assets in securities that are components of the underlying index, which is designed to track the performance of long-term U.S. Treasury obligations. This index specifically includes publicly-issued U.S. Treasury securities with a remaining maturity of 20 years or more, offering investors a targeted exposure to the longest-duration government bonds available.
The fund aims to allocate at least 90% of its assets in U.S. Treasury securities, ensuring that the majority of its holdings are directly tied to U.S. government-issued debt. This high allocation to Treasury securities helps the fund closely track the performance of the underlying index. U.S. Treasury securities are considered among the safest investments due to their backing by the full faith and credit of the U.S. government, providing stability and reliability to the fund's investors.
Long-term Treasury securities, as included in the fund, are characterized by their extended maturities, typically exceeding 20 years. These securities are sensitive to changes in interest rates, which means they generally offer higher yields compared to shorter-term Treasuries but also come with increased interest rate risk. The ETF provides investors with the opportunity to gain exposure to this segment of the Treasury market, which can be attractive during periods of declining interest rates or when seeking to hedge against inflation.
Managed by BlackRock, a leading global asset management firm, the iShares 20+ Year Treasury Bond ETF benefits from the company's extensive expertise and sophisticated investment strategies. BlackRock's robust research and management capabilities ensure that the fund effectively mirrors the performance of the underlying index. The ETF is suitable for investors looking for long-term government bonds with significant duration exposure, providing a way to invest in U.S. Treasury securities with extended maturities while benefiting from BlackRock's renowned investment management prowess.
|
