Can I use TLT to hedge against interest rate rIsk?
TLT, which is the ticker symbol for the iShares 20+ Year Treasury Bond ETF, can be utilized as a potential hedge against interest rate risk. TLT aims to track the performance of long-term U.S. Treasury bonds, and since bond prices generally move inversely to interest rates, an increase in interest rates typically leads to a decline in bond prices. By holding TLT, investors may potentially benefit from a rise in bond prices if interest rates decrease or remain stable, thus providing a hedge against interest rate risk in their investment portfolio.