LQDW vs. TLTW
LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) and TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) are both exchange-traded funds - LQDW is a Corporate Bonds fund tracking the CBOE LQD BuyWrite Index, while TLTW is a Derivative Income fund tracking the CBOE TLT 2% OTM Buywrite Index (USD). Both are passively managed. Over the past 3 years, LQDW returned 3.64%/yr vs 0.52%/yr for TLTW. A 0.80 correlation means they provide meaningful diversification when combined. LQDW charges 0.34%/yr vs 0.35%/yr for TLTW.
Performance
LQDW vs. TLTW - Performance Comparison
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Returns By Period
In the year-to-date period, LQDW achieves a 1.70% return, which is significantly lower than TLTW's 2.17% return.
LQDW
- 1D
- -0.22%
- 1M
- 1.18%
- YTD
- 1.70%
- 6M
- 1.70%
- 1Y
- 6.47%
- 3Y*
- 3.64%
- 5Y*
- —
- 10Y*
- —
TLTW
- 1D
- -0.71%
- 1M
- 2.04%
- YTD
- 2.17%
- 6M
- 2.05%
- 1Y
- 9.22%
- 3Y*
- 0.52%
- 5Y*
- —
- 10Y*
- —
LQDW vs. TLTW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 1.70% | 9.05% | 2.60% | 3.99% | -6.78% |
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 2.17% | 11.36% | -2.18% | 0.73% | -11.14% |
Correlation
The correlation between LQDW and TLTW is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.80 |
Correlation (All Time) Calculated using the full available price history since Aug 22, 2022 | 0.80 |
The correlation between LQDW and TLTW has been stable across timeframes, ranging from 0.80 to 0.80 - a consistent structural relationship.
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Return for Risk
LQDW vs. TLTW — Risk / Return Rank
LQDW
TLTW
LQDW vs. TLTW - Risk-Adjusted Trends 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| LQDW | TLTW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.58 | ||
| Sortino ratioReturn per unit of downside risk | +0.79 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.22 | +0.15 |
| Calmar ratioReturn relative to maximum drawdown | 2.51 | 1.55 | +0.96 |
| Martin ratioReturn relative to average drawdown | 9.31 | 4.46 | +4.85 |
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Drawdowns
LQDW vs. TLTW - Drawdown Comparison
The maximum LQDW drawdown since its inception was -9.20%, smaller than the maximum TLTW drawdown of -18.61%. Use the drawdown chart below to compare losses from any high point for LQDW and TLTW.
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Drawdown Indicators
| LQDW | TLTW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.20% | -18.61% | +9.41% |
Max Drawdown (1Y)Largest decline over 1 year | -2.59% | -5.97% | +3.38% |
Max Drawdown (3Y)Largest decline over 3 years | -6.74% | -17.19% | +10.45% |
Current DrawdownCurrent decline from peak | -0.22% | -2.28% | +2.06% |
Average DrawdownAverage peak-to-trough decline | -2.32% | -8.17% | +5.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.70% | 2.07% | -1.37% |
Volatility
LQDW vs. TLTW - Volatility Comparison
The current volatility for iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) is 0.99%, while iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) has a volatility of 1.68%. 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.
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Volatility by Period
| LQDW | TLTW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.99% | 1.68% | -0.69% |
Volatility (6M)Calculated over the trailing 6-month period | 3.12% | 5.82% | -2.70% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.63% | 7.63% | -4.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.47% | 11.34% | -5.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.47% | 11.34% | -5.87% |
LQDW vs. TLTW - Expense Ratio Comparison
LQDW has a 0.34% expense ratio, which is lower than TLTW's 0.35% expense ratio.
Dividends
LQDW vs. TLTW - Dividend Comparison
LQDW's dividend yield for the trailing twelve months is around 12.52%, more than TLTW's 11.64% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 12.52% | 16.02% | 15.74% | 19.28% | 8.85% |
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 11.64% | 14.82% | 14.47% | 19.59% | 8.71% |
Frequently Asked Questions
LQDW and TLTW have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLTW has higher volatility (1.68%) compared to LQDW (0.99%). In terms of maximum drawdown, LQDW dropped -9.20% vs TLTW's -18.61%.
On 3-year performance, LQDW leads with 3.64% vs 0.52% for TLTW. On fees, LQDW is cheaper at 0.34% per year. On volatility, LQDW has been the lower-risk option at 0.99%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, LQDW has performed better with a 3.64% return vs 0.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LQDW is cheaper with a 0.34% expense ratio, compared with 0.35% for TLTW.
LQDW has the higher dividend yield at 12.52%, compared with 11.64% for TLTW.
LQDW is categorized as Corporate Bonds, while TLTW is Derivative Income. LQDW tracks CBOE LQD BuyWrite Index, while TLTW tracks CBOE TLT 2% OTM Buywrite Index (USD). Their fees differ too: 0.34% for LQDW and 0.35% for TLTW.
LQDW currently has the higher Sharpe Ratio (1.80 vs 1.22), 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.
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