Gaining From The Market Pain With This Treasury ETF (TLT)
“Most income investors are used to seeing their cash-producing investments as a hedge against a falling stock market. But when stocks drop, the yields from dividend-paying stocks go up. And with bond yields falling like a rock, dividend stocks are looking more and more attractive to income-seeking investors. Over the past month or so, we’ve seen some rocky times in the financial markets. On one hand, stocks have fallen sharply, with the S&P down more than 10% from its April highs,” Dan Caplinger Reports From The Motley Fool.
Caplinger goes on to say, “What hasn’t been reported so widely, however, is the nearly opposite reaction that the U.S. bond market has had to all the current troubles around the world. While European sovereign debt problems have called into question the viability of the euro as a currency, Treasury bonds have seen their prices soar and their yields plummet. Just since early April, the yield on the 10-year Treasury has fallen from nearly 4% to just 3.15% yesterday. The 30-year yield has gone from 4.85% to just over 4.05%.”
“These are huge moves for the bond market, especially when you consider that small changes in yield on long-dated Treasuries translate to significant price moves. The iShares Barclays 20+ Year Treasury Bond ETF (NYSE:TLT) has risen by more than 10% since mid-April. That’s good news for those who already had their money invested in Treasury bonds,” Caplinger Reports.
The Euro’s Demise Has Been Set in Motion: Are you protected?
"Nationalism will emerge. Healthier countries will not see fit to spend their hard earned money to bail out their less responsible neighbors."
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Here are some more details on the iShares Barclays 20+ Year Treasury Bond ETF (NYSE:TLT) below:
Barclays 20+ Year Treasury Bond Fund (NYSE:TLT)
The iShares Barclays 20+ Year Treasury Bond Fund seeks to approximate the total rate of return of the long-term sector of the United States Treasury market as defined by the Barclays Capital U.S. 20+ Year Treasury Bond Index.
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Top Daily Holdings as of 5/24/2010*
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% of Fund
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Coupon | Maturity | Moody’s/S&P Rating | ||
| TREASURY BOND | 14.20% | 4.62 | 2/15/2040 | TSY /TSY | |
| TREASURY BOND | 13.73% | 4.38 | 11/15/2039 | TSY /TSY | |
| TREASURY BOND | 12.64% | 4.50 | 8/15/2039 | TSY /TSY | |
| TREASURY BOND | 10.70% | 4.25 | 5/15/2039 | TSY /TSY | |
| TREASURY BOND | 7.98% | 4.50 | 2/15/2036 | TSY /TSY | |
| TREASURY BOND | 6.77% | 3.50 | 2/15/2039 | TSY /TSY | |
| TREASURY BOND | 6.61% | 4.50 | 5/15/2038 | TSY /TSY | |
| TREASURY BOND | 5.87% | 6.25 | 5/15/2030 | TSY /TSY | |
| TREASURY BOND | 5.26% | 5.38 | 2/15/2031 | TSY /TSY | |
| TREASURY BOND | 5.04% | 5.00 | 5/15/2037 | TSY /TSY | |
| Total | 88.81% | ||||
| *Holdings are subject to change. | |||||



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