US Treasury prices have sunk during the US hiking cycle, and long-dated bonds now offer yields that rival the broad FTSE 100 index.
Bond investment is typically associated with income, but this ETF provides a substantial yield and an opportunity for capital appreciation.
Longer-dated bonds have higher duration risk, which means changes in the underlying price of the bond are extremely sensitive to interest rate changes. While this is a risk, it can also be an opportunity.
Investing in this ETF is a play on the US cutting rates while achieving a 4.27% yield. It is also a play on a risk avers...
