I'm confused with the dividend yield of TLT. The current treasury 20yr yield is about 5%, why TLT have only around 2.5%. what makes such difference.
https://seekingalpha.com/article/4565973-tlt-bearish-due-to-likely-consistent-inflation They didn't buy all their treasuries this past week (or month) so the positions they bought 6, 12, 18, 24 months ago have a much lower yield so the TLT yield is the average of all the treasury holdings. The 30-year could have been purchased 5-10 years ago.
The dividend for TLT has nothing to do with the underlying for TLT. The amount paid out by dividend is just the amount decided upon by the fund manager to return to shareholders on a regular basis. TLT will still move based on the behaviour of longer term treasuries.