SHDG vs. TLTW

Last updated Aug 5, 2026

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 12.35%/yr vs 1.27%/yr for TLTW. Their 0.17 correlation means their historical movements had little consistent relationship. SHDG charges 0.53%/yr vs 0.35%/yr for TLTW.

Performance

SHDG vs. TLTW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Soundwatch Hedged Equity ETF (SHDG) 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, SHDG achieves a 3.73% return, which is significantly higher than TLTW's -0.40% return.

SHDG

• 1D: 1.20%
• 1M: 2.60%
• 6M: 2.72%
• YTD: 3.73%
• 1Y: 10.89%
• 3Y*: 12.35%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 14.57%

TLTW

• 1D: 0.74%
• 1M: -2.52%
• 6M: -0.64%
• YTD: -0.40%
• 1Y: 4.06%
• 3Y*: 1.27%
• 5Y*: —
• 10Y*: —
• ALL TIME*: -0.74%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SHDG Soundwatch Hedged Equity ETF	$64.49K	$89.27K	$138.51K
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF	$25.71M	$26.59M	$32.19M

SHDG vs. TLTW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SHDG Soundwatch Hedged Equity ETF	3.73%	11.46%	19.66%	17.84%	2.55%
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF	-0.40%	11.36%	-2.18%	0.73%	4.08%

Correlation

The correlation between SHDG and TLTW is 0.23, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.23
Correlation (3Y) Balances recent behavior with more history.	0.19
Correlation (All Time) Calculated using the full available price history since Oct 24, 2022	0.17

Return for Risk

SHDG vs. TLTW — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SHDG

SHDG Risk / Return Rank: 46
SHDG Sharpe Ratio Rank: 48
SHDG Sortino Ratio Rank: 46
SHDG Omega Ratio Rank: 50
SHDG Calmar Ratio Rank: 41
SHDG Martin Ratio Rank: 47

TLTW

TLTW Risk / Return Rank: 21
TLTW Sharpe Ratio Rank: 22
TLTW Sortino Ratio Rank: 20
TLTW Omega Ratio Rank: 20
TLTW Calmar Ratio Rank: 22
TLTW Martin Ratio Rank: 22

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

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 ratio: Return per unit of total volatility	1.37	0.53	+0.84
Sortino ratio: Return per unit of downside risk	1.92	0.78	+1.14
Omega ratio: Gain probability vs. loss probability	1.26	1.10	+0.17
Calmar ratio: Return relative to maximum drawdown	1.65	0.68	+0.97
Martin ratio: Return relative to average drawdown	6.04	1.68	+4.35

SHDG vs. TLTW - Sharpe Ratio Comparison

The current SHDG Sharpe Ratio is 1.37, which is higher than the TLTW Sharpe Ratio of 0.53. The chart below compares the historical Sharpe Ratios of SHDG 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.

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.

Drawdown Indicators

	SHDG	TLTW	Difference
Max Drawdown Largest 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%	-12.93%	-2.89%
Current Drawdown Current decline from peak	0.00%	-4.74%	+4.74%
Average Drawdown Average peak-to-trough decline	-1.69%	-8.03%	+6.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.81%	2.42%	-0.61%

Volatility

SHDG vs. TLTW - Volatility Comparison

Soundwatch Hedged Equity ETF (SHDG) has a higher volatility of 3.11% compared to iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) at 2.44%. This indicates that SHDG'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.

Volatility by Period

	SHDG	TLTW	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.11%	2.44%	+0.67%
Volatility (6M) Calculated over the trailing 6-month period	5.63%	5.97%	-0.34%
Volatility (1Y) Calculated over the trailing 1-year period	8.08%	7.72%	+0.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.86%	11.26%	-0.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.86%	11.26%	-0.40%

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 0.48%, less than TLTW's 10.90% yield.

Position	TTM	2025	2024	2023	2022
SHDG Soundwatch Hedged Equity ETF	0.48%	0.49%	0.62%	1.24%	0.90%
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF	10.90%	14.82%	14.47%	19.59%	8.71%

Frequently Asked Questions

Can I hold both SHDG and TLTW in my portfolio?

SHDG and TLTW have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SHDG or TLTW?

SHDG has higher volatility (3.11%) compared to TLTW (2.44%). In terms of maximum drawdown, SHDG dropped -15.82% vs TLTW's -18.61%.

Which ETF is better, SHDG or TLTW?

On 3-year performance, SHDG leads with 12.35% vs 1.27% for TLTW. On fees, TLTW is cheaper at 0.35% per year. On volatility, TLTW has been the lower-risk option at 2.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SHDG or TLTW?

Over the 3-year period, SHDG has performed better with a 12.35% return vs 1.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SHDG or TLTW?

TLTW is cheaper with a 0.35% expense ratio, compared with 0.53% for SHDG.

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

TLTW has the higher dividend yield at 10.90%, compared with 0.48% for SHDG.

What is the main difference between SHDG and TLTW?

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.

Which has better risk-adjusted returns?

SHDG currently has the higher Sharpe Ratio (1.37 vs 0.53), 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.