
NASDAQ:TLT
This summary was created by AI, based on 2 opinions in the last 12 months.
The iShares 20+ Year Treasury Bond ETF (TLT) is viewed as a viable choice for high-risk investors with a long-term investment horizon, particularly in risk-off market conditions where duration-sensitive assets tend to perform well. Experts emphasize that while TLT offers an attractive yield of nearly 5%, potential investors should consider the implications of double taxation, especially for Canadian investors. Furthermore, some experts highlight that TLT may not be the ideal option for those seeking growth in their bond portfolios, primarily due to unfavorable tax treatment. Overall, investors are encouraged to weigh their individual circumstances and investment goals before making a decision regarding TLT, acknowledging both its strengths and the specific challenges it presents.
Bond ETFs have come off a bit, as interest rates have started to move up. For every portfolio, you want some exposure to bonds as a buffer in a correction. He owns IEF, lesser duration bonds. Don't avoid fixed income. If equity markets take a turn for the worse, at least your bond portfolio will do well.