iShares 20+ Year Treasury Bond ETF (TLT): Complete Beginner's Guide
Last updated: March 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% |
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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%
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.
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.
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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.