From Yahoo Finance: 2025-06-02 06:05:00

The iShares 20+ Year Treasury Bond ETF (TLT) gained $1.3 billion assets despite its nickname “widow maker” due to recent poor performance. Investors may be buying the dip, anticipating peak Fed interest rates. Long-term bond yields are just under 5%, with President Trump pushing for rate cuts. TLT’s momentum may continue if the economy weakens significantly.

Investors in TLT could benefit if the US economy weakens and the Fed cuts rates aggressively, but the fund’s track record is not strong. Despite $50 billion in inflows over the past five years, the fund’s performance is down nearly 50%. Timing this trade can be challenging, according to experts.

TLT’s demand is rising despite its risky track record. Investors are attracted to long-term Treasury bonds, potentially banking on a weakening economy and aggressive rate cuts by the Fed. However, timing the trade remains difficult, and the fund’s performance has not been rewarding for investors in recent years.

Read more: BlackRock’s ‘Widow Maker’ ETF Is Suddenly in High Demand