ETF story

ETF Strategies: One of the key strategies I employ is utilizing ETFs that track U.S. Treasury bonds, particularly long-term ones, as part of my portfolio. The iShares 20+ Year Treasury Bond ETF (TLT) has been a critical element for managing volatility and interest rate risk. In times of economic uncertainty or when I expect interest rates to decline, I lean on TLT because its value tends to increase as rates drop. It’s a defensive play, allowing me to preserve capital while maintaining a moderate level of income through bond yields.

Trades and Triumphs: I have started buying tlt at $90 and exited at $100.72, recently reentered a buy for TLT when the price hovered around $97.52. Since then, the ETF has climbed to $100.69, netting me a modest gain of +3.25%. This may not be considered a significant win in absolute terms, but it aligns perfectly with my strategy of gradual, risk-averse gains over time. Holding TLT as a safe-haven asset has provided stability during recent market turbulence, and I expect more upside as market expectations shift around interest rate cuts. One of the key lessons here has been the importance of patience and sticking to a long-term strategy.

Investment Lessons: When trading ETFs like TLT, understanding the broader macroeconomic environment is crucial. As TLT tracks long-term bonds, it’s particularly sensitive to changes in the interest rate environment. My trading logic revolves around anticipating the direction of these rates. I tend to avoid leveraging or inverse ETFs in this category, as my focus is more on capital preservation and slow, steady growth. The timing of my entry into TLT was based on the outlook for interest rate cuts, which seems to be materializing, leading to a gradual appreciation of the ETF.