I need to add monies to long bond allocation and some to gold. How about buying 66% of EDV vs 100% of TLT. You got 34% to buy GTU @ big discount of over 7%. Seems like you get approx. 36% free gold with not adding any new money. Most of my postion is in TLT. I would buy the EDV in a tax deferred account.
It seems like it just using leverage but you reduce the leverage and have free gold?
EDV has a little lower expense ratio. The EDV SEC yield is @ 4.03%! 10,5,3 year returns beat TLT. Average maturity is about the same. Average duration is about 9 years less with TLT?
Could this also make sense for a loss in TLT in a tax deferred account?
Free gold by buying EDV vs TLT
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Re: Free gold by buying EDV vs TLT
Also, it seems that it is free cash to spend if you are withdrawing funds. Or just build up your Cash position awaiting a re balance.