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Long-term Treasury ETF TLT rises in recessions, benefiting from rate cuts and safe-haven demand.

Market News
26 Mar 2026
24/7 Wall Street
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Bullish
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The iShares 20+ Year Treasury Bond ETF (TLT) uniquely gains value during recessions due to its long-duration U.S. government bonds. When recessions hit, investors flock to Treasuries as a safe haven, and the Federal Reserve cuts interest rates, both driving TLT prices up. Historically, TLT surged over 30% during the 2008 financial crisis and performed strongly during the 2020 COVID-19 crash. While TLT offers a recession hedge with steady income, it carries interest rate risk and tends to lose value when inflation rises and rates increase. It is best suited for investors seeking protection against economic downturns and falling rates.

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