Given that the price of the bond and the interest rate share an inverse relationship, I have started to wonder if the iShares Barclays 20+ Year Treasury Bond ETF (ticker symbol TLT) is a self hedging investment...here is my reasoning, please let me know what I am missing. According to http://us.ishares.com/product_info/fund/overview/TLH.htm, "The iShares Barclays 10-20 Year Treasury Bond Fund seeks results that correspond generally to the price and yield performance, before fees and expense, of the long-term sector of the United States Treasury market as defined by the Barclays Capital U.S. 10-20 Year Treasury Bond Index." In addition, it has an Annual Holdings Turnover of 48% (according to YahooFinance!) and its current annual yield is 4.3%. Because nearly half of the ETF's inventory is turned over each year, theoretically it seems that as the price of TLT's share price falls, the yield will rise to compensate due to the acquisition of new bonds at the higher interest rates resulting in a self-hedging investment. Assuming there will be a "lag" between the yield of the ETF compared to the current market interest rates, is this correct? Thank you in advance for your input.