$100,000 in TLT at the 2020 Peak Is Down More Than 40% Today, Even After Every Monthly Check

A $100,000 investment in iShares 20+ Year Treasury Bond ETF (TLT) bought at the August 2020 peak has lost more than 40% of its value, even accounting for monthly distributions. The eTf is down 41% in total return over this period, while the iShares Core U.S. Aggregate Bond ETF (AGG) has only declined by 2%. TLT charges a gross expense ratio of 0.15% and offers exposure to long-Treasury bonds, but has no maturity date, meaning it continually sells and replaces bonds with longer maturities.

The fund's high yield and long duration make it particularly vulnerable to rising interest rates, which has contributed to its steep decline. In comparison, two similar funds, Vanguard Long-Term Treasury ETF (VGLT) and SPDR Portfolio Long Term Treasury ETF (SPTL), charge significantly lower fees of around 0.03% to 0.04% and provide similar long-dated Treasury exposure.