HYGW vs. TLTW

Last updated Jun 3, 2026

HYGW (iShares High Yield Corporate Bond Buywrite Strategy ETF) and TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) are both exchange-traded funds - HYGW is a High Yield Bonds fund tracking the Cboe HYG BuyWrite Index, while TLTW is a Options Trading fund tracking the CBOE TLT 2% OTM Buywrite Index (USD). Both are passively managed. Over the past 3 years, HYGW returned 5.66%/yr vs 0.81%/yr for TLTW. At a 0.38 correlation, their price movements are largely independent. HYGW charges 0.69%/yr vs 0.35%/yr for TLTW.

Performance

HYGW vs. TLTW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares High Yield Corporate Bond Buywrite Strategy ETF (HYGW) and iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HYGW achieves a 1.75% return, which is significantly higher than TLTW's 1.44% return.

HYGW

• 1D: -0.07%
• 1M: 0.57%
• YTD: 1.75%
• 6M: 2.57%
• 1Y: 6.58%
• 3Y*: 5.66%
• 5Y*: —
• 10Y*: —

TLTW

• 1D: 0.03%
• 1M: 0.22%
• YTD: 1.44%
• 6M: 0.24%
• 1Y: 10.61%
• 3Y*: 0.81%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

HYGW vs. TLTW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
HYGW iShares High Yield Corporate Bond Buywrite Strategy ETF	1.75%	6.19%	6.99%	7.31%	-0.12%
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF	1.44%	11.36%	-2.18%	0.73%	-11.09%

Correlation

The correlation between HYGW and TLTW is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.41
Correlation (All Time) Calculated using the full available price history since Aug 23, 2022	0.38

Return for Risk

HYGW vs. TLTW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HYGW

HYGW Risk / Return Rank: 78
HYGW Sharpe Ratio Rank: 71
HYGW Sortino Ratio Rank: 77
HYGW Omega Ratio Rank: 83
HYGW Calmar Ratio Rank: 74
HYGW Martin Ratio Rank: 83

TLTW

TLTW Risk / Return Rank: 36
TLTW Sharpe Ratio Rank: 38
TLTW Sortino Ratio Rank: 38
TLTW Omega Ratio Rank: 37
TLTW Calmar Ratio Rank: 34
TLTW Martin Ratio Rank: 34

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HYGW vs. TLTW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares High Yield Corporate Bond Buywrite Strategy ETF (HYGW) and iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	HYGW	TLTW	Difference
Sharpe ratio Return per unit of total volatility	2.36	1.38	+0.97
Sortino ratio Return per unit of downside risk	3.47	1.99	+1.48
Omega ratio Gain probability vs. loss probability	1.51	1.25	+0.27
Calmar ratio Return relative to maximum drawdown	3.76	1.70	+2.06
Martin ratio Return relative to average drawdown	17.24	5.12	+12.12
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HYGW vs. TLTW - Sharpe Ratio Comparison

The current HYGW Sharpe Ratio is 2.36, which is higher than the TLTW Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of HYGW and TLTW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HYGW	TLTW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.36	1.38	+0.97
Sharpe Ratio (All Time) Calculated using the full available price history	1.25	-0.02	+1.28

Drawdowns

HYGW vs. TLTW - Drawdown Comparison

The maximum HYGW drawdown since its inception was -5.49%, smaller than the maximum TLTW drawdown of -18.61%. Use the drawdown chart below to compare losses from any high point for HYGW and TLTW.

Drawdown Indicators

	HYGW	TLTW	Difference
Max Drawdown Largest peak-to-trough decline	-5.49%	-18.61%	+13.12%
Max Drawdown (1Y) Largest decline over 1 year	-1.82%	-5.97%	+4.15%
Max Drawdown (3Y) Largest decline over 3 years	-3.66%	-17.19%	+13.53%
Current Drawdown Current decline from peak	-0.10%	-2.98%	+2.88%
Average Drawdown Average peak-to-trough decline	-0.61%	-8.26%	+7.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.40%	1.98%	-1.58%

Volatility

HYGW vs. TLTW - Volatility Comparison

The current volatility for iShares High Yield Corporate Bond Buywrite Strategy ETF (HYGW) is 0.90%, while iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) has a volatility of 2.59%. This indicates that HYGW experiences smaller price fluctuations and is considered to be less risky than TLTW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HYGW	TLTW	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.90%	2.59%	-1.69%
Volatility (6M) Calculated over the trailing 6-month period	2.21%	5.87%	-3.66%
Volatility (1Y) Calculated over the trailing 1-year period	2.81%	7.71%	-4.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.68%	11.40%	-6.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.68%	11.40%	-6.72%

HYGW vs. TLTW - Expense Ratio Comparison

HYGW has a 0.69% expense ratio, which is higher than TLTW's 0.35% expense ratio.

Dividends

HYGW vs. TLTW - Dividend Comparison

HYGW's dividend yield for the trailing twelve months is around 12.89%, less than TLTW's 13.63% yield.

Position	TTM	2025	2024	2023	2022
HYGW iShares High Yield Corporate Bond Buywrite Strategy ETF	11.56%	12.53%	12.30%	15.98%	8.71%
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF	11.73%	14.82%	14.47%	19.59%	8.71%

Frequently Asked Questions

Can I hold both HYGW and TLTW in my portfolio?

HYGW and TLTW have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HYGW or TLTW?

TLTW has higher volatility (2.59%) compared to HYGW (0.90%). In terms of maximum drawdown, HYGW dropped -5.49% vs TLTW's -18.61%.

Which ETF is better, HYGW or TLTW?

On 3-year performance, HYGW leads with 5.66% vs 0.81% for TLTW. On fees, TLTW is cheaper at 0.35% per year. On volatility, HYGW has been the lower-risk option at 0.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HYGW or TLTW?

Over the 3-year period, HYGW has performed better with a 5.66% return vs 0.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HYGW or TLTW?

TLTW is cheaper with a 0.35% expense ratio, compared with 0.69% for HYGW.

Which ETF pays a higher dividend yield, HYGW or TLTW?

TLTW has the higher dividend yield at 13.63%, compared with 12.89% for HYGW.

What is the main difference between HYGW and TLTW?

HYGW is categorized as High Yield Bonds, while TLTW is Options Trading. HYGW tracks Cboe HYG BuyWrite Index, while TLTW tracks CBOE TLT 2% OTM Buywrite Index (USD). Their fees differ too: 0.69% for HYGW and 0.35% for TLTW.

Which has better risk-adjusted returns?

HYGW currently has the higher Sharpe Ratio (2.36 vs 1.38), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.