iShares 20+ Year Treasury Bond ETF (TLT): Complete Beginner's Guide
iShares 20+ Year Treasury Bond ETF (TLT) is a long-term u.s. treasury ETF from BlackRock with an expense ratio of 0.15% and $20.0B in assets under management. Our Beginner Suitability Score: 8.5/10 (Great for Beginners). 5-year annualized return: -5.20%.
Last updated: April 2026
BlackRock • Long-Term U.S. Treasury
Expense Ratio
0.15%
AUM
$20.0B
Dividend Yield
3.90%
Inception
2002
Beginner Score
8.5/10
What is iShares 20+ Year Treasury Bond ETF?
TLT invests in U.S. Treasury bonds with maturities of 20 years or more, making it highly sensitive to changes in long-term interest rates. When rates fall, TLT can deliver stock-like returns, but when rates rise, it can suffer significant losses. Beginners should understand that TLT is much more volatile than short-term bond funds, but it can serve as powerful portfolio insurance during stock market crashes.
TLT is managed by BlackRock and has been available since 2002. With $20.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.15%, which means for every $10,000 you invest, you pay approximately $15 per year in management fees.
TLT at a Glance — Key Metrics
| Expense Ratio | 0.15% |
| Total Holdings | 42 |
| P/E Ratio | N/A |
| Beta | 0.18 |
| Dividend Yield | 3.90% |
| AUM | $20.0B |
| Inception Year | 2002 |
| Issuer | BlackRock |
Top 10 Holdings in TLT
TLT holds 42 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | U.S. Treasury Bond 4.75% 2053 | N/A | 6.50% |
| 2 | U.S. Treasury Bond 4.25% 2054 | N/A | 5.80% |
| 3 | U.S. Treasury Bond 4.625% 2044 | N/A | 5.20% |
| 4 | U.S. Treasury Bond 3.875% 2043 | N/A | 4.80% |
| 5 | U.S. Treasury Bond 4.0% 2055 | N/A | 4.50% |
| 6 | U.S. Treasury Bond 3.625% 2053 | N/A | 4.20% |
| 7 | U.S. Treasury Bond 4.375% 2043 | N/A | 4.00% |
| 8 | U.S. Treasury Bond 3.0% 2049 | N/A | 3.80% |
| 9 | U.S. Treasury Bond 2.875% 2046 | N/A | 3.50% |
| 10 | U.S. Treasury Bond 3.375% 2044 | N/A | 3.20% |
TLT's top holding is U.S. Treasury Bond 4.75% 2053 (N/A) at 6.50%, followed by U.S. Treasury Bond 4.25% 2054 (N/A) at 5.80% and U.S. Treasury Bond 4.625% 2044 (N/A) at 5.20%. The top 10 holdings account for 45.50% of the fund's 42 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | U.S. Treasury Bond 4.75% 2053 | N/A | 6.50% |
| 2 | U.S. Treasury Bond 4.25% 2054 | N/A | 5.80% |
| 3 | U.S. Treasury Bond 4.625% 2044 | N/A | 5.20% |
| 4 | U.S. Treasury Bond 3.875% 2043 | N/A | 4.80% |
| 5 | U.S. Treasury Bond 4.0% 2055 | N/A | 4.50% |
| 6 | U.S. Treasury Bond 3.625% 2053 | N/A | 4.20% |
| 7 | U.S. Treasury Bond 4.375% 2043 | N/A | 4.00% |
| 8 | U.S. Treasury Bond 3.0% 2049 | N/A | 3.80% |
| 9 | U.S. Treasury Bond 2.875% 2046 | N/A | 3.50% |
| 10 | U.S. Treasury Bond 3.375% 2044 | N/A | 3.20% |
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TLT Performance History
Here's how TLT has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
-1.50%
1 Year
-2.50%
3 Year
-10.80%
5 Year
-5.20%
10 Year
0.50%
TLT has returned -5.20% annualized over 5 years and 0.50% over 10 years. YTD return is -1.50%.
View data table
| Period | Return |
|---|---|
| YTD | -1.50% |
| 1 Year | -2.50% |
| 3 Year | -10.80% |
| 5 Year | -5.20% |
| 10 Year | 0.50% |
Beginner Suitability Score: 8.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
TLT scores 8.5/10 because it has very low fees, shows lower-than-average volatility, focuses on 42 selected holdings, and has been available since 2002, giving it a proven track record.
How to Buy TLT — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "TLT" — Use the search bar in your brokerage platform to find iShares 20+ Year Treasury Bond ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
TLT Sector Allocation
Here's how TLT distributes its investments across different sectors of the economy:
TLT's largest sector allocation is U.S. Treasury 20-25 Year at 38.5%, followed by U.S. Treasury 25-30 Year at 34.5% and U.S. Treasury 30+ Year at 21.5%.
View data table
| Sector | Weight |
|---|---|
| U.S. Treasury 20-25 Year | 38.5% |
| U.S. Treasury 25-30 Year | 34.5% |
| U.S. Treasury 30+ Year | 21.5% |
| Cash & Equivalents | 5.5% |
Dollar Cost Averaging Into TLT
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With TLT's expense ratio of 0.15%, a $10,000 investment would lose approximately $1,278 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
TLT's expense ratio of 0.15% costs $1,278 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $45,332.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,592 | $101 |
| 10 | $21,589 | $21,291 | $298 |
| 15 | $31,722 | $31,067 | $655 |
| 20 | $46,610 | $45,332 | $1,278 |
Pros and Cons of TLT
Pros
- ✓Backed by the full faith and credit of the U.S. government, eliminating credit risk entirely
- ✓Historically surges during stock market crashes, providing valuable portfolio insurance
- ✓Decent yield from long-term Treasuries offers income while waiting for potential rate cuts
- ✓Extremely liquid with a deep options market, making it useful for sophisticated strategies
Cons
- ✗Very high interest rate sensitivity means large price swings when rates move even slightly
- ✗Suffered devastating losses of over 30% during the 2022 rate hiking cycle
- ✗Negative real returns after inflation in many recent periods
TLT vs Similar ETFs
See how TLT stacks up against similar funds:
Frequently Asked Questions
Is TLT a good ETF for beginners?▾
TLT has a Beginner Suitability Score of 8.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and focused strategy.
What is the expense ratio of TLT?▾
TLT has an expense ratio of 0.15%. This means for every $10,000 you invest, you pay approximately $15 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in TLT?▾
You can invest in TLT with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does TLT pay dividends?▾
Yes, TLT pays dividends with a current yield of approximately 3.90%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in TLT?▾
The top holdings in TLT include U.S. Treasury Bond 4.75% 2053 (6.50%), U.S. Treasury Bond 4.25% 2054 (5.80%), U.S. Treasury Bond 4.625% 2044 (5.20%), and more. The fund holds 42 total positions, providing focused exposure to selected companies.
What sectors does TLT invest in?▾
TLT's largest sector allocations are U.S. Treasury 20-25 Year (38.50%), U.S. Treasury 25-30 Year (34.50%), U.S. Treasury 30+ Year (21.50%). This sector distribution shows a focus on u.s. treasury 20-25 year stocks.
How much do TLT's fees cost over time?▾
With an expense ratio of 0.15%, a $10,000 investment in TLT would lose approximately $1,278 to fees over 20 years (assuming 8% annual returns). Consider whether the fund's strategy justifies these costs.