wear and tear
The most important question now is whether the interest rate will fall this year. If it is not the interest rate, then the TLT will not be depleted
To discuss this topic, we need to use a very low yield rate compared to the 20-year yield, so I'm comparing it directly to 30 years, and the composition of the TLT changes over time, so it can only be compared to recent years.
2022/10/24
US30Y 4,425
TLT 87.269 (plus previous dividend current price of 91.85)
TLTW 24.70
TMF 59.236
2023/8/21
US30Y 4,474
TLT 89.894 (plus previous dividend current price of 92.23)
TLTW 26.199
TMF 54,366
2024/4/4
US30Y 4,478
TLT 92.68
TLTW 26.09
TMF 51.54
US30Y 4,425
TLT 87.269 (plus previous dividend current price of 91.85)
TLTW 24.70
TMF 59.236
2023/8/21
US30Y 4,474
TLT 89.894 (plus previous dividend current price of 92.23)
TLTW 26.199
TMF 54,366
2024/4/4
US30Y 4,478
TLT 92.68
TLTW 26.09
TMF 51.54
So let's say you buy a TLT at 91.85 on 2022/10/24 and then sell it at 92.68 today
Total monthly profit is 4.581 + realized gain 0.83 =5.411 (roughly, written separately because the tax returns are calculated separately). The real annual return rate is about 3%
Buying TMF does not need to mention that the interest rate bar will definitely wear out
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tuziya55555 : No, tlt he earns profit every month, unless the US government goes bankrupt
tuziya55555 : If you buy a TMF, there will be a loss
好久没有涨工资了 tuziya55555: The cost of time is also exhaustion
ATOM1626 好久没有涨工资了: Big brother, if you put it this way, everything is worn out, then this problem is meaningless at all...
木易君羊OP 好久没有涨工资了: Human life is limited, every second is a waste
73248386 : Leveraged ETFs are sideways trading and losses. I personally think that compared to losses, they value multiples when interest rates are lowered
木易君羊OP 73248386: THE MINDSET WHEN BUYING TMF IS TO MATCH INTEREST, WHO KNOWS IT WILL SCREW UP NOW