LTT

Long Term Treasury

ltt-2017

 

Long term treasury funds generally have an average maturity around 20-25 years.  The fund will accomplish this by purchasing 30-year treasuries and selling them when they fall below 10 or 20 years (the exact details may vary by fund).

US treasury bonds are generally considered the safest form of bond, since because the government can always print more money there’s virtually no default risk.

Long term treasuries have high interest rates and are quite volatile, which works well in some portfolios but not in others.  If you’re looking to add several uncorrelated assets for regular rebalancing purposes, consider trying some long term treasuries in your portfolio.

 

Index Funds

 


Source Data
  • 1970-1972: Longinvest’s bonds fund spreadsheet (30-11 model), S
  • 1973-1986: Bloomberg Barclays US Treasury Long TR USD, P
  • 1987+: Vanguard Long Term Treasury (VUSTX), P

 


Portfolios with Long Term Treasury assets