Buy iShares MSCI EAFE ETF
What is TLT?
The iShares MSCI EAFE ETF was launched in the summer of 2002 to track the investment results of an index comprising those U.S. Treasury bonds with remaining maturities greater than 20 years.
With a low expense ratio and ample liquidity, TLT is considered a high-quality vehicle poised to benefit from falling interest rates. They can't go too much lower. And yet, in some cases, government bonds have gone to negative yields. In Denmark, for example, most government bonds have fallen sub-zero.
As an exchange-traded fund, TLT, even while being a proxy for long-term fixed income, still trades like a stock. It has $18 billion in assets. The weighted average coupon yield of the 50 holdings is 2.8%. The weighted average maturity: 25.8 years.
What is the price of TLT?
At roughly $160 per share (as of mid-November 2020), TLT is up 20% since the start of the year. In five years, some analysts say, TLT could be in excess of $250.
Most online brokerages offer the ETF at zero commission. BlackRock collects an annual 0.15% management fee, or $15 per $10,000. As far as inexpensive retail investment vehicles go there are hardly any that could be considered less costly than TLT.
Some analysts see rates remaining low, possibly going lower, for the next two to three years. As always, short-term volatility is possible. Flows into fixed-income ETFs continue to be robust. In a risky environment marked by unprecedented uncertainty, U.S. government bonds will play an important role as a diversifying asset.
How to invest in TLT with Uphold
You only need a verified Uphold account to buy TLT stock fast.
Here’s how easy it is to get started:
- Go to Uphold.com and click ‘Sign up’.
- Enter your email address, create a password, and complete an identity check.
- Your account will then be activated, and you can start using Uphold.
You can then fund your account with your debit card, credit card, bank account, or crypto deposit. Your Uphold account can be used to make payments to vendors, send money to friends on the other side of the world, and more.
Uphold’s unique ‘Anything-to-Anything’ trading experience will make any currency exchange a seamless process, all commission-free.
*U.S. stock trading is not available in the U.S., U.K., and certain other jurisdictions.
This article is for informational purposes only and takes no account of particular personal or market circumstances, and should not be relied upon as investment, tax, or legal advice. For investment, tax, or legal advice, and before taking any action you should consult your own advisors. Note that assets such as equities present unique risks for investors.
This content is correct as of October 2020
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