TLT: "Yield" vs "Yield to Maturity"

[KohPhiPhi]

Hello everyone,

Right now, at the iShare’s official webpage, TLT is listed with a “Yield" of 2.90% and a "Yield To Maturity" of 4.00%.

I understand that the difference is because many of the bonds currently held in TLT trade below par at the moment. However, I struggle to understand how that “Yield To Maturity” actually materializes in an ETF that is constantly rolling bonds and therefore many don’t reach maturity. Perhaps TLT’s price increases as bonds are rolled over? I am just trying to understand what is the real yield an investor actually gets, regardless of whether it is gained via distributions or via embedding it into the price hikes.

Thanks!

 

[SunTrader]

I would think the real yield one would get, is determined same as stonks, price value appreciation (or deficit) from original starting value.

 

[ph1l]

I am just trying to understand what is the real yield an investor actually gets

https://www.ishares.com/us/products/239454/ishares-20-year-treasury-bond-etf

I think the "30-Day SEC Yield" is the best measure of what would be paid in the near future.

https://budgeting.thenest.com/determine-total-return-bond-fund-27362.html

Pay attention to the 30-day SEC yield of a mutual fund. The federal Securities and Exchange Commission developed the yield formula to provide a common basis for comparing different funds. The SEC yield uses the current earnings from a fund's bond portfolio minus the fund's management expenses. The resulting SEC yield is similar to the yield to maturity for an individual bond -- the type of serious number on which to base your investment decisions. Investment experts recommend using the SEC yield to determine the expected return of a fund and to compare the yields of different bond funds, according to a Feb. 1, 2010 article in The Wall Street Journal.

 

[mervyn]

https://www.ishares.com/us/products/239454/ishares-20-year-treasury-bond-etf
View attachment 315427
I think the "30-Day SEC Yield" is the best measure of what would be paid in the near future.

https://budgeting.thenest.com/determine-total-return-bond-fund-27362.html

tlt is 20 yr treasury, measuring with 30 days is nonsense.

at 101 or below 100 is probably a good entry point.

 

[murray t turtle]

%%
WELL yield + price has been down trending nicely, since inception\LOL\use the lowest figure you can find. Looking @ all time frames good downtrend except 2019...
Sorry\ 3 years TLT is much lower than any figure noted here\ + lower than SPY,QQQ, HYG,BIL.
But one month, TLT finally had some gains looks more like 2.9%, looks like an annualized%, much worse than any good money market. Good down trending short, even with occasional monthly $00.25 dividend paid. Good volume on all those noted

 

[KohPhiPhi]

Thank you everybody for your responses, but the original question still remains: "How does “Yield To Maturity” actually materialize in an ETF that is constantly rolling bonds and therefore many won't ever reach maturity".

Does anyone know?