iShares 25+ Year Treasury STRIPS ETF faces losses amid rising rates and hawkish Fed stance

The iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) has shown a negative total return of -0.26% over the past year, highlighting risks from its extreme duration and sensitivity to long-term interest rates. Rising rate volatility, a hawkish Federal Reserve, and renewed inflation expectations pose threats of further losses, as even small rate increases could cause sharp declines. Analysts recommend selling GOVZ and suggest investors consider intermediate Treasury exposure instead, due to the risky macroeconomic environment for long-term bonds.