Norway's sovereign fund plans to sell $80B in long-term U.S. Treasuries, raising concerns for TLT ETF holders.

Norway's Government Pension Fund Global, the world's largest sovereign wealth fund, proposed gradually reducing its $80 billion exposure to long-term U.S. Treasuries starting in 2027. This move raises questions about the future value of the iShares 20+ Year Treasury Bond ETF (TLT), which is highly sensitive to interest rate changes. While no immediate sell-off is expected, the shift signals potential structural changes in long Treasury yields. Investors may consider shorter-duration Treasury ETFs as alternatives to avoid the high price risk associated with TLT's long duration.