VettaFi’s vice chairman Tom Lydon discussed the iShares 20+ Year Treasury Bond ETF (TLT) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.”
The first half of 2022 proved painful for bonds in particular but with recession risk now top of mind for many advisors and investors, the dual benefit of recession hedge and cheaper price could make TLT an attractive fund.
Bonds have traditionally been a safe haven asset in times of recession and in the last week there has been nearly $800 million of net inflows into TLT. With interest rate risk already priced in, the fund has an effective duration of 18.16 years.
