By comparison, the iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) with an effective duration of 17.1 years, lost 13.4% last year.
Bottom line: There are two ways to view EDV and ZROZ. Either an investor thinks will stay low and or they believe rates will rise. The first scenario nearly guarantees EDV and ZROZ will be winning bets while the second scenario promises punishment for these ETFs.
Vanguard Extended Duration Treasury ETF
Tom Lydon’s clients own shares of TLT.