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Active bond fund BINC offers higher yield, lower rate risk than TLT's long Treasury exposure.

Market News
17 Jun 2026
24/7 Wall Street
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Bullish
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The iShares 20+ Year Treasury Bond ETF (TLT) offers long-duration U.S. Treasury exposure with a 4.95% yield but carries high interest rate sensitivity, losing over 28% in five years. The actively managed iShares Flexible Income Active ETF (BINC) provides a higher yield of 5.18% with about one-fifth the duration risk, thanks to diversified holdings across credit sectors. BINC's flexibility allows it to better navigate rate changes, showing a 23.38% gain since its 2023 inception compared to TLT's losses. However, BINC carries more credit risk and taxable distributions, making it a tradeoff between pure Treasury safety and active multi-sector income strategies.

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