SHDG vs. TLTW
SHDG (Soundwatch Hedged Equity ETF) and TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) are both exchange-traded funds - SHDG is a Options Trading fund actively managed by SoundWatch Capital, while TLTW is a Derivative Income fund tracking the CBOE TLT 2% OTM Buywrite Index (USD). SHDG is actively managed, while TLTW is passively managed. Over the past 3 years, SHDG returned 12.13%/yr vs 0.52%/yr for TLTW. At a 0.16 correlation, their price movements are largely independent. SHDG charges 0.53%/yr vs 0.35%/yr for TLTW.
Performance
SHDG vs. TLTW - Performance Comparison
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Returns By Period
In the year-to-date period, SHDG achieves a 1.16% return, which is significantly lower than TLTW's 2.17% return.
SHDG
- 1D
- 0.02%
- 1M
- 0.58%
- YTD
- 1.16%
- 6M
- 0.76%
- 1Y
- 12.02%
- 3Y*
- 12.13%
- 5Y*
- —
- 10Y*
- —
TLTW
- 1D
- -0.71%
- 1M
- 2.04%
- YTD
- 2.17%
- 6M
- 2.05%
- 1Y
- 9.22%
- 3Y*
- 0.52%
- 5Y*
- —
- 10Y*
- —
SHDG vs. TLTW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
SHDG Soundwatch Hedged Equity ETF | 1.16% | 11.46% | 19.66% | 17.84% | 2.55% |
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 2.17% | 11.36% | -2.18% | 0.73% | 4.08% |
Correlation
The correlation between SHDG and TLTW is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.22 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.20 |
Correlation (All Time) Calculated using the full available price history since Oct 24, 2022 | 0.16 |
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Return for Risk
SHDG vs. TLTW — Risk / Return Rank
SHDG
TLTW
SHDG vs. TLTW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Soundwatch Hedged Equity ETF (SHDG) 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.
| SHDG | TLTW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.35 | ||
| Sortino ratioReturn per unit of downside risk | +0.41 | ||
| Omega ratioGain probability vs. loss probability | 1.31 | 1.22 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.82 | 1.55 | +0.27 |
| Martin ratioReturn relative to average drawdown | 6.74 | 4.46 | +2.28 |
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Drawdowns
SHDG vs. TLTW - Drawdown Comparison
The maximum SHDG drawdown since its inception was -15.82%, smaller than the maximum TLTW drawdown of -18.61%. Use the drawdown chart below to compare losses from any high point for SHDG and TLTW.
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Drawdown Indicators
| SHDG | TLTW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.82% | -18.61% | +2.79% |
Max Drawdown (1Y)Largest decline over 1 year | -6.62% | -5.97% | -0.65% |
Max Drawdown (3Y)Largest decline over 3 years | -15.82% | -17.19% | +1.37% |
Current DrawdownCurrent decline from peak | -0.48% | -2.28% | +1.80% |
Average DrawdownAverage peak-to-trough decline | -1.72% | -8.17% | +6.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.79% | 2.07% | -0.28% |
Volatility
SHDG vs. TLTW - Volatility Comparison
The current volatility for Soundwatch Hedged Equity ETF (SHDG) is 0.64%, while iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) has a volatility of 1.68%. This indicates that SHDG 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
| SHDG | TLTW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.64% | 1.68% | -1.04% |
Volatility (6M)Calculated over the trailing 6-month period | 5.40% | 5.82% | -0.42% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.70% | 7.63% | +0.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.91% | 11.34% | -0.43% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.91% | 11.34% | -0.43% |
SHDG vs. TLTW - Expense Ratio Comparison
SHDG has a 0.53% expense ratio, which is higher than TLTW's 0.35% expense ratio.
Dividends
SHDG vs. TLTW - Dividend Comparison
SHDG's dividend yield for the trailing twelve months is around 0.49%, less than TLTW's 11.64% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
SHDG Soundwatch Hedged Equity ETF | 0.49% | 0.49% | 0.62% | 1.24% | 0.90% |
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 11.64% | 14.82% | 14.47% | 19.59% | 8.71% |
Frequently Asked Questions
SHDG and TLTW have a correlation of 0.22, 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 SHDG (0.64%). In terms of maximum drawdown, SHDG dropped -15.82% vs TLTW's -18.61%.
On 3-year performance, SHDG leads with 12.13% vs 0.52% for TLTW. On fees, TLTW is cheaper at 0.35% per year. On volatility, SHDG has been the lower-risk option at 0.64%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, SHDG has performed better with a 12.13% return vs 0.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLTW is cheaper with a 0.35% expense ratio, compared with 0.53% for SHDG.
TLTW has the higher dividend yield at 11.64%, compared with 0.49% for SHDG.
SHDG is categorized as Options Trading, while TLTW is Derivative Income. They also come from different issuers: SoundWatch Capital and iShares. Their fees differ too: 0.53% for SHDG and 0.35% for TLTW.
SHDG currently has the higher Sharpe Ratio (1.57 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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