ETFs & Mutual Funds
Dreams of Big Bond Gains Backfire With $10 Billion ETF Loss
- Record sums of cash flowing to TLT despite an epic drawdown
- Rare chance for double-digit returns at long end: McDonough
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All year, Wall Street pros have been sinking record sums of cash into the world’s largest Treasury ETF in a high-conviction bet that interest rates have peaked. All year they’ve been wrong, with an estimated $10 billion loss — yet that’s not stopping a cohort of dip buyers braving the worst market drawdown in decades.
The big reason: Even a modest rebound in long-dated government debt would spark bumper returns.