RATE vs. TLTW
Compare and contrast key facts about Global X Interest Rate Hedge ETF (RATE) and iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW).
RATE and TLTW are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. RATE is an actively managed fund by Global X. It was launched on Jul 5, 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.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: RATE or TLTW.
Key characteristics
| RATE | TLTW | |
|---|---|---|
| YTD Return | -4.11% | 7.15% |
| 1Y Return | -12.53% | 5.18% |
| Sharpe Ratio | -0.43 | 0.39 |
| Daily Std Dev | 26.91% | 11.84% |
| Max Drawdown | -28.48% | -18.60% |
| Current Drawdown | -27.24% | -4.86% |
Correlation
The correlation between RATE and TLTW is -0.71. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
RATE vs. TLTW - Performance Comparison
In the year-to-date period, RATE achieves a -4.11% return, which is significantly lower than TLTW's 7.15% 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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RATE vs. TLTW - Expense Ratio Comparison
RATE has a 0.50% expense ratio, which is higher than TLTW's 0.35% expense ratio.
Risk-Adjusted Performance
RATE vs. TLTW - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Global X Interest Rate Hedge ETF (RATE) 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
RATE vs. TLTW - Dividend Comparison
RATE's dividend yield for the trailing twelve months is around 34.56%, more than TLTW's 14.80% yield.
| TTM | 2023 | 2022 | |
|---|---|---|---|
RATE Global X Interest Rate Hedge ETF | 34.56% | 35.06% | 15.44% |
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 14.80% | 19.59% | 8.71% |
Drawdowns
RATE vs. TLTW - Drawdown Comparison
The maximum RATE drawdown since its inception was -28.48%, which is greater than TLTW's maximum drawdown of -18.60%. Use the drawdown chart below to compare losses from any high point for RATE and TLTW. For additional features, visit the drawdowns tool.
Volatility
RATE vs. TLTW - Volatility Comparison
Global X Interest Rate Hedge ETF (RATE) has a higher volatility of 4.60% compared to iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) at 2.00%. This indicates that RATE's price experiences larger fluctuations and is considered to be riskier than TLTW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.