US Treasury ETFs are also exciting – TLT ETF

Shares publishes the distinguishing dimension of such products, that is, the usual dimension of government bonds: time, after all, this is closely related to its yield, and the response of government bonds to the macro environment in each time period is also different, so in your investor portfolio, according to the situation, the allocation of different time periods of government bond ETFs is also a good way to adjust the risk tolerance of the portfolio.

TLT:

This ETF is an active variety in bond ETFs. Although the scale is less than 6 billion US dollars, the trading volume is 9.30 million, far exceeding the 1.75 million of IEF with a size of 84 billion US dollars. The reason is that it holds bonds with a maturity date of more than 20 years, which belongs to the long-term bond ETF, so the yield will be relatively high, and it will be more sensitive to changes in the macro environment. The ETF pays dividends once a month, and the dividend rate in the last year is around 2.70%. It is worth mentioning that in 2014, the yield of TLT stock price was as high as 23%, while the SPY in the same year was only 14%, which also gave investors an education. Investing at the right time can also bring rich returns

The coupon characteristics of TLT

TLT yield to maturity

The TLT yield to maturity is 3.67%, which is a good indicator. Yield to maturity (YTM) is the best return rate for investing in ETFs. But it does not mean that the higher the yield to maturity, the better, because generally the higher the yield, the higher the yield, the higher the yield.

TLT storage period

The average deposit period of TLT is 17.74 years, which is high. The deposit period of the coupon refers to the average return of the coupon held. Calculated by adding the value of the gold flow, it can be used to measure the sensitivity of the interest rate of the coupon. The market interest rate is 1%, and the price of the coupon. The more the deposit period is, the higher the sensitivity of the interest rate will be, and the higher the price will be.

TLT average maturity: 10-month coupons

The average maturity of TLT is 25.63 years, and the monthly dividend is usually high due to the high water requirements of TLT. Short-term coupons are coupons with a maturity of 1 year, the medium term is coupons with a maturity of 1 year to 10 years, and the long term is coupons with a maturity of more than 10 years.

TLT is a coupon for Gaoxin.

All TLT coupon credits are almost the “highest credit rating”, at least 10% of the average AAA or above. Boy, see the coupon letter score:

Eye TLT capacity proportion
Voucher credit etc AAA 99.71%
Gold and derivatives 0.29%
Keep it international coupons 99.71%
Gold and derivatives 0.29%

Although TLT is a long-term coupon, the interest rate sensitivity is high, but considering the yield to maturity, credit, etc. are very good, so TLT is still very attractive.

US stock TLT ETF monthly dividend

In terms of TLT monthly dividend, the same is the SHY ratio of public ETFs, and the TLT monthly dividend is higher. The TLT yield is 1.6%, which is nearly double the difference of 0.75%:

dividend basis date TLT dividend dividend basis date SHY
2022/12/16 0.261059 2022/12/21 0.180684
2022/12/2 0.244243 2022/12/07 0.165441
2022/11/2 0.235637 2022/11/07 0.14069
2022/10/4 0.244114 2022/10/07 0.108023
2022/9/2 0.236135 2022/9/8 0.100482
2022/8/2 0.213043 2022/8/5 0.088246
2022/7/5 0.226939 2022/7/8 0.078997
together 1.6617 together 0.862563

Use of beautiful TLT

The cost-effectiveness of TLT is 0.15%, and the following four US companies are: SCHO, SHY, GOVT, ZROZ, and BND (combined coupon: public mixing company). It is not the cheapest to use TLT, but the difference is not very large.

SCHO SHY GOVT ZROZ BND
utilization rate 0.03% 0.15% 0.05% 0.15% 0.03%
Coupon type U.S. government agency together

TLT ETF stock review

TLT stocks have three characteristics:

  • The 10-year yield is the opposite.
  • S & P500 go inconsistently.
  • Join the coupon and invest in the wave to reduce.

Feature 1: TLT has opposite 10-year interest rates

Next, we can clearly see that the 10-year yield TLT goes in the opposite direction, because the formula for the yield is: dividend/dollar, so the yield goes down, but the yield goes up.

In addition, the color square in the film is the cross-section of the 10-year public yield rate TLT, and the technical analysis is a discount, which can be reversed without a wave of market moves (up or down).TLT US ETF is going fast, and the film: 10-year public yield (color) TLT (color)

Feature 2: TLT S & P500 travel is inconsistent

During the epidemic period in 2020, the S & P500 fell by 30%, compared with 20% on the TLT. TLT-type public ETFs have different watches in the period of collapse or bear market. It is strange that someone’s coupon ETFs are like insurance. Usually, things are small, and once something goes wrong, it can be big!Film: S & P500 (black color), TLT (black color)

Feature 3: Investment and joining the coupon have clear resilience!

Vouchers play a role in reducing volatility in investment. The ratio of investment to investment is low, the left one is the combination of investment with full ownership of stocks, the average reward rate is 7.2%, and the volatility is 14.87%. The right one is the configuration of 60% stocks and 40% coupons. The average reward rate is 6.62%, and the volatility is 8.9%. You can add coupons, and then you will get 1% reward, but it can reduce volatility! Therefore, the joint construction of coupons is configured.Film: 100% stock investment (left), 40% stock investment and 60% stock investment (right)

Raise interest rates and get rid of the myth of coupons!

One common reason for going to the gold world is that the stock of the stock goes in the opposite direction, but the stock of the stock of the stock of the stock, the non-financial phase of the stock (the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of the stock of

product influence factor
stock Enterprise Profit Exhibition

Market rate

coupon Market rate

The government uses interest rate hikes to curb inflation, and the stock market is likely to fall first, especially technology stocks that are easy to attract. However, due to interest rate hikes, the yield is not attractive, causing the coupon price to fall. On the contrary, the yield rises to attractive levels, and the stock market will fall later.

In 2022, it will be a year of great growth, and the stock market will move nearly uniformly, due to a 17% interest rate hike.

Most importantly, even if the interest rate hike is stopped, the stock price will start to rise, and the stock price will have an inverse gap on the stock price, so that the stock price is still low, and the stock price will rise, and the stock price will return to the previous stock price.

Follow the trail Stock table Coupon watch 兩者關係
Inflation causes prices to rise. Stock holdings Ticket holder Stock prices fell
Interest rate hikes to curb inflation Stock decline Coupon fell That’s the price.
Stop raising interest rates Stock listing The coupon is still falling Stock prices fell
Start cutting interest rates Stock listing The coupon is still falling Stock prices fell

Film: TLT () S & P500 () will go the same way in 2020

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