LQDW vs. TLTW
Compare and contrast key facts about iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) and iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW).
LQDW and TLTW are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. LQDW is a passively managed fund by iShares that tracks the performance of the CBOE LQD BuyWrite Index. It was launched on Aug 18, 2022. TLTW is a passively managed fund by iShares that tracks the performance of the CBOE TLT 2% OTM Buywrite Index (USD). It was launched on Jun 18, 2022. Both LQDW and TLTW are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: LQDW or TLTW.
Key characteristics
| LQDW | TLTW | |
|---|---|---|
| YTD Return | 2.52% | -1.26% |
| 1Y Return | 4.23% | 2.26% |
| Sharpe Ratio | 0.94 | 0.24 |
| Sortino Ratio | 1.28 | 0.39 |
| Omega Ratio | 1.18 | 1.05 |
| Calmar Ratio | 0.79 | 0.14 |
| Martin Ratio | 3.70 | 0.74 |
| Ulcer Index | 1.14% | 3.43% |
| Daily Std Dev | 4.50% | 10.38% |
| Max Drawdown | -9.20% | -18.59% |
| Current Drawdown | -2.89% | -12.33% |
Correlation
The correlation between LQDW and TLTW is 0.83, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
LQDW vs. TLTW - Performance Comparison
In the year-to-date period, LQDW achieves a 2.52% return, which is significantly higher than TLTW's -1.26% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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LQDW vs. TLTW - Expense Ratio Comparison
LQDW has a 0.34% expense ratio, which is lower than TLTW's 0.35% expense ratio.
Risk-Adjusted Performance
LQDW vs. TLTW - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) 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.
Dividends
LQDW vs. TLTW - Dividend Comparison
LQDW's dividend yield for the trailing twelve months is around 16.51%, more than TLTW's 15.42% yield.
| TTM | 2023 | 2022 | |
|---|---|---|---|
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 16.51% | 19.28% | 8.85% |
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 15.42% | 19.59% | 8.71% |
Drawdowns
LQDW vs. TLTW - Drawdown Comparison
The maximum LQDW drawdown since its inception was -9.20%, smaller than the maximum TLTW drawdown of -18.59%. Use the drawdown chart below to compare losses from any high point for LQDW and TLTW. For additional features, visit the drawdowns tool.
Volatility
LQDW vs. TLTW - Volatility Comparison
The current volatility for iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) is 2.19%, while iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) has a volatility of 4.54%. This indicates that LQDW 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.