iShares 10-20 Year Treasury Bond ETF’s Process Pillar rating is Average, but a strong management team still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a cost advantage over competitors, priced within the second-lowest fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy merits an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in debt with 15- to 20-year maturities and securitized debt compared with category peers. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

iShares 10-20 Year Treasury Bond ETF earns an Average Process Pillar rating. Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. The most substantial contributor to the rating is the firm's five-year retention rate of 92% over the period. This fund tracks an index, which also increases its process rating. Historical data, like Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Lastly, the process is limited by the fund's mediocre long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period.

The investment strategy as stated in the fund's prospectus is: 

The investment seeks to track the investment results of the ICE® U.S. Treasury 10-20 Year Bond Index.  The fund will invest at least 80% of its assets in the component securities of the underlying index and and the fund will invest at least 90% of its assets in U.S. Treasury securities that the advisor believes will help the fund track the underlying index. It seeks to track the investment results of the underlying index which measures the performance of public obligations of the U.S. Treasury that have a remaining maturity of greater than or equal to ten years and less than twenty years.  

 This strategy's 12-month yield is 4.0%, which is neck-and-neck with its average peer. Plus, it has a 4.4% 30-day SEC yield (a measure similar to yield-to-maturity). The portfolio has a lower average surveyed credit quality of AA, compared with the typical peers' AAA and it holds no non-investment-grade assets, similar to its average peer. Lower quality bonds have higher yields but come with more risk. In terms of interest-rate risk, compared with others in the Long Government category, this fund maintains a lower average effective duration of 12.9 years compared to the category's 16.9 years. The shorter a strategy's duration, the less sensitive it is to shifts in interest rates. This fund, with a 12.9-year duration, is expected to gain 12.9% of its net asset value if interest rates drop by 1 percentage point, and vice versa.

Average

Process

iShares’s fixed income team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are two managers listed on the fund: James Mauro, Karen Uyehara. Experience on the team is abundant, with 13 years of average portfolio management experience. Together, they manage a total of 114 strategies, with a Silver asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares 10-20 Year Treasury Bond ETF

TLH tracks a market-weighted index of debt issued by the U.S. Treasury. Remaining maturity must be between 10 and 20 years.

SPDR Bloomberg 1-3 Month T-Bill ETF

Vanguard Extended Duration Treasury ETF

BlackRock Enhanced Government Fund

iShares U.S. Fixed Income Balanced Risk Factor ETF

Goldman Sachs TreasuryAccess 0-1 Year ETF

iShares U.S. Treasury Bond ETF

iShares 25+ Year Treasury STRIPS Bond ETF

Invesco Ultra Short Duration ETF

iShares 7-10 Year Treasury Bond ETF

iShares 3-7 Year Treasury Bond ETF

First Trust Long Duration Opportunities ETF

ProShares UltraShort 7-10 Year Treasury

Schwab Short-Term US Treasury ETF

Schwab Long-Term US Treasury ETF

Schwab Intermediate-Term US Treasury ETF

iShares Short Treasury Bond ETF

iShares 1-3 Year Treasury Bond ETF

SPDR Portfolio Long Term Treasury ETF

SPDR Portfolio Short Term Treasury ETF

Proshares Short 20+ Year Treasury

ProShares UltraShort 20+ Year Treasury

ProShares Short 7-10 Year Treasury

iShares 20+ Year Treasury Bond ETF

Direxion Daily 20+ Year Treasury Bull 3X Shares

It generally takes a few years for changes in Federal Reserve rates to fully impact bond fund dividends. Bond funds are still benefitting from prior rate hikes. Perhaps by enough to cancel out any future rate cuts. By my estimations, and under current Fed guidance, most bond funds would only start to see declining dividends in 2025, at the earliest.

Estimating The Impact Of Lower Rates On Bond Fund Dividends

iShares 0-3 Month Treasury Bond ETF

With an inverted yield curve and a lackluster start for the year for stocks, it is a good time to check whether we are swimming naked. The article provides a simple clear-cut explanation of the bond market and bonds. Long-term bonds might be risky for some, while short-term bonds might not capture the true opportunity of having an inverted yield curve.

Live And Let Bond (Prices Move)

iShares Core U.S. Aggregate Bond ETF

The iShares 20+ Year Treasury Bond ETF continued to decline on Wednesday, dropping to another round of 16-year lows as U.S. Treasurys saw renewed selling.

U.S. Treasury bond rout deepens as popular fixed-income ETFs touch decade-plus lows

The TLH is a duration bet that may not be favorable in the current interest rate environment. We believe higher rates will be needed in 2024 and even 2025, in order to impact inflation through the corporate channel. The impact of higher rates on consumers has been limited, but businesses and corporate earnings will drive recessionary pressures more through restructuring efforts and lower employment.

TLH: Duration Still Dangerous

Long-term bonds look appealing to Wells Fargo Investment Institute after they were hurt by a surge in yields.

Why Wells Fargo sees potentially ‘good entry points' in long-term bonds after yield surge

Vanguard Long-Term Treasury ETF

Exchange-traded funds that invest in long-term Treasury bonds are dropping Thursday, as yields continued their march higher in the wake of the Federal Reserve's meeting on monetary policy.

ETFs that buy long-term Treasury bonds drop sharply after Fed signals higher for longer rates

Invesco Senior Loan ETF

SPDR Bloomberg Investment Grade Floating Rate ETF

SPDR Bloomberg High Yield Bond ETF

SPDR Bloomberg Short Term High Yield Bond ETF

iShares 0-5 Year TIPS Bond ETF

iShares TIPS Bond ETF

Vanguard Intermediate-Term Corporate Bond ETF

Vanguard Long-Term Corporate Bond ETF

Vanguard Short-Term Corporate Bond ETF

Fixed-income investors looking for interest rate cuts from the Federal Reserve are still waiting, but that hasn't stopped low-rated bonds from posting strong gains in 2023. Bond investors hoping for encouraging signals from the Federal Reserve that its policy of raising interest rates was ending received mixed news yesterday.

Bank Loans And Junk Bonds Are Having A Good Year

Shares of exchange-traded funds that buy U.S. Treasury bonds with long-term maturities fell Monday, after three straight weeks of declines, as Goldman Sachs Group analysts forecast the Federal Reserve may cut interest rates next year.

Long-term Treasury bond ETFs fall as Goldman Sachs forecasts rate cuts in 2024

TLH is a long-duration bet in a risky environment for long-duration plays. Long-term rates are in flux, and it concerns how difficult the last leg of inflation will be to achieve. Signs like last year's inflation expectations for 2024 point to this being the limit of what easy lapping of data and supply chain resolutions will fix.

TLH: The Bigger Changes In Long-Term Rates Could Still Happen

Global X Artificial Intelligence & Technology ETF

IMGP Berkshire Dividend Growth ETF

ProShares Bitcoin Strategy ETF

Amplify Transformational Data Sharing ETF

Global X Robotics & Artificial Intelligence ETF

iShares MSCI Emerging Markets ex China ETF

Pacer Benchmark Industrial Real Estate SCTR ETF

Global X Lithium & Battery Tech ETF

Invesco WilderHill Clean Energy ETF

First Trust NASDAQ Clean Edge Green Energy Index Fund

VanEck Rare Earth/Strategic Metals ETF

Simplify Short Term Treasury Futures Strategy ETF

PIMCO 25+ Year Zero Coupon US Treasury Index ETF

Hello! This is markets reporter Isabel Wang bringing you this week's ETF Wrap. In this week's edition, I spoke with CFRA's Aniket Ullal, head of ETF data and analytics, about thematic ETF ideas and investment categories for the second half of 2023.

Here are ETF themes and categories investors may want to consider in the second half of 2023

Vanguard Total Bond Market ETF

iShares iBoxx High Yield Corporate Bond ETF

iShares iBoxx $ Investment Grade Corporate Bond ETF

Exchange-traded funds that invest in Treasury bonds fell Tuesday after the May inflation report, as the market anticipated the Federal Reserve may continue hiking interest rates after a June pause.

Treasury-bond ETFs fall after inflation report as investors brace for Fed decision

TLH holds treasury bonds in the 10-20 year range. For leaving the safety of shorter-term yields, you get the double penalty of lower yields and higher risk.

TLH: Federal Reserve Cuts Priced Into Bonds, Will You Still Make Money?

I am bullish on Treasuries at the 3.8-4% level on the 10-year. TLH presents an attractive proposition after its +20% drawdown since late 2021 and amid deteriorating economic conditions.

Navigating The Treasury Bonds Renaissance: TLH And The Path To Profitable Returns

AXS Astoria Inflation Sensitive ETF

Global X Superdividend ETF

Vanguard Dividend Appreciation ETF

Vanguard Short-Term Inflation-Protected Securities ETF

Vanguard High Dividend Yield ETF

SPDR S&P Global Dividend ETF

Exchange-traded funds may help when planning required minimum distributions.

Seniors and ETFs: It's About Taxes

TLH owns a portfolio of U.S. treasuries with an average maturity year of 17.4 years. If inflation can cool down quickly, investors will benefit not only from interest income but also from capital appreciation.

TLH: Time To Accumulate But Patience Required

First Trust Financials AlphaDEX Fund

JPMorgan Equity Premium Income ETF

SPDR S&P 500 ETF Trust

iShares Edge MSCI Min Vol USA ETF

During Refinitiv Lipper's fund flows week that ended February 13, 2023, investors were overall net purchasers of fund assets for the first week in three, adding a net of $5.6 billion. Exchange-traded equity funds recorded $783 million in weekly net inflows, marking the fourth straight week of inflows.

U.S. Weekly FundFlows Insight Report: Conventional Municipal Bond Funds Record Sixth Straight Weekly Inflow

Powell spoke on Wednesday, and markets had mixed feelings on what he had to say. Still, markets are getting more excited about duration now that the back of inflation seems like it's breaking.

Still Might Be Early For TLH

Invesco BulletShares 2023 Corporate Bond ETF

Invesco BulletShares 2024 Corporate Bond ETF

Invesco BulletShares 2025 Corporate Bond ETF

Hello! In this week's ETF Wrap, I spoke with BlackRock's U.S. head of bond ETFs, Steve Laipply, and also caught up with Invesco's John Hoffman, the firm's head of ETFs and indexed strategies for the Americas.

‘They can actually derisk their portfolios': Here's where BlackRock is seeing iShares bond ETFs garner inflows amid climbing bond yields

2022 has been the year with no safety in US Treasuries, with painful and persistent declines. With the BofA 10+ Year US Treasury Index already down 7% this month, September will be the eighth month this year that long-term US Treasuries have had a negative total return.

One-Way Bonds

TLH contains bonds that are much longer term in maturity, and therefore have very long durations. While they're treasury bonds and have no credit risk, as rates rise, duration will take its toll heavily.

TLH Got Pounded By Rate Hikes, But Likely Not Enough

iShares MSCI Italy ETF

iShares MSCI United Kingdom ETF

iShares MSCI United Kingdom Small Cap ETF

First Trust United Kingdom AlphaDEX Fund

Franklin FTSE United Kingdom ETF

Franklin FTSE Italy ETF

Invesco CurrencyShares British Pound Sterling Trust

iShares Currency Hedged MSCI United Kingdom ETF

UK rates haven't had a chance to fully digest the Bank of England's statement yesterday. We think hike expectations will persist, but there are other areas where the BoE and Treasury can restore confidence.

Rates Spark: Bank Of England Vs. The Market

iShares Core S&P 500 ETF

Vanguard S&P 500 ETF

Financial Select Sector SPDR Fund

These ETF areas amassed massive assets in July.

ETF Asset Report of July 2022

Invesco QQQ

Last week, ETFs pulled in about $8 billion in capital, pushing year-to-date inflows to $318.8 billion.

Fixed Income ETFs That Gained Investor Love Last Week

JPMorgan BetaBuilders Europe ETF

Xtrackers MSCI Europe Hedged Equity ETF

Xtrackers MSCI Eurozone Hedged Equity ETF

WisdomTree Europe SmallCap Dividend Fund

WisdomTree Europe Quality Dividend Growth Fund

ProShares MSCI Europe Dividend Growers ETF

iShares MSCI Europe Financials ETF

WisdomTree Europe Hedged SmallCap Equity Fund

iShares MSCI Eurozone ETF

First Trust STOXX European Select Dividend Index Fund

First Trust Europe AlphaDEX Fund

First Trust Eurozone AlphaDEX ETF

SPDR EURO STOXX 50 ETF

UBS AG FI Enhanced Europe 50 ETN

Franklin FTSE Europe ETF

Franklin FTSE Europe Hedged ETF

First Trust IPOX Europe Equity Opportunities ETF

Goldman Sachs ActiveBeta Europe Equity ETF

WisdomTree Europe Hedged Equity Fund

iShares Currency Hedged MSCI Eurozone ETF

iShares Core MSCI Europe ETF

iShares MSCI Europe Small-Cap ETF

iShares Europe ETF

ALPS O'Shares Europe Quality Dividend ETF Shares

Invesco 1-30 Laddered Treasury ETF

Pacer Trendpilot European Index ETF

First Trust RiverFront Dynamic Europe ETF

SPDR Portfolio Europe ETF

Vanguard FTSE Europe ETF

Europe is facing the risk of an energy shock-driven recession and periphery stress. That's why we think the ECB will stop hiking earlier than the Fed.

ECB May Limit Hikes As Recession Nears

Barclays Bank iPath US Treasury 5-Year Bear Exchange Traded   Note 2011-12.7.21 Ser -A- Lkd to BC 2Y US Trsry Futs Trgtd Expsre

Barclays Bank iPath US Treasury 2-year Bull Exchange Traded   Notes 2010-13.8.20 Ser -A- Lnk to BC 2Y US Treasury Futures Trg Ex

Barclays Bank iPath US Treasury 2 Yr Bear Exchange Traded

Barclays Bank iPath US Treasury 10 Yr Bull Exchange Traded    Notes 2010-13.8.20 Sr-A Lk Barclays Cap 10Y US Trs Fut Trgt Exp Id

Barclays Inverse US Treasury Composite ETN

Direxion Daily 20+ Year Treasury Bear 3X Shares

ProShares UltraPro Short 20+ Year Treasury

Direxion Daily 7-10 Year Treasury Bull 3x Shares

Direxion Daily 7-10 Year Treasury Bear 3x Shares

ProShares Ultra 20+ Year Treasury

ProShares Ultra 7-10 Year Treasury

Vanguard Intermediate-Term Treasury ETF

Vanguard Short-Term Treasury ETF

While there is upward pressure on market rates in 2022, it's not coming from higher net supply. In fact, lower net supply can help to richen government bonds. On top of that, we should see flatter curves over the whole of 2022. We also anticipate some upward pressure on USD Libor.

Rates Outlook: Swap Spreads To See Widening Pressure

News for iShares 10-20 Year Treasury Bond ETF ETF (TLH)