1-Star ETFs Poised to Plunge: iShares Barclays 20+ Year Treasury Bond Fund?


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares Barclays 20+ Year Treasury Bond Fund (NYSE: TLT) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at TLT and see what CAPS investors are saying about the ETF right now.

iShares Barclays 20+ Year Treasury Bond Fund facts


July 2002

Total Net Assets

$2.9 billion

Investment Approach

Seeks investment results that correspond generally to the Barclays U.S. 20+ Year Treasury Bond Index. The underlying index measures the performance of public obligations of the U.S. Treasury that have a remaining maturity of 20 or more years.

Expense Ratio


1-Year/3-Year/5-Year Returns



SPDR Barclays Capital Long Term Treasury (NYSE: TLO)

Vanguard Extended Duration Treasury Index ETF (NYSE: EDV)

iShares Core US Total Bond Market ETF (NYSE: AGG)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 77% of the 526 members who have rated TLT believe the ETF will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star TerryHogan, succinctly summed up the TLT bear case for our community:

I think the run of outperformance of bonds is over, I think it actually ended last year sometime. Unless we see sustained negative interest rates (which I think is rather unlikely) bonds should be underperformers for a while, particularly when interest rates start rising (although we could be waiting a while for that). [A]dd in a little expense ratio, and a rising S&P, and you have a nice little red thumb.

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The article 1-Star ETFs Poised to Plunge: iShares Barclays 20+ Year Treasury Bond Fund? originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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