TLT vs. TLTW
TLT (iShares 20+ Year Treasury Bond ETF) and TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) are both exchange-traded funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond 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, TLT returned -1.61%/yr vs 0.80%/yr for TLTW. With a 0.95 correlation, they move nearly in lockstep. TLT charges 0.15%/yr vs 0.35%/yr for TLTW.
Performance
TLT vs. TLTW - Performance Comparison
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Returns By Period
In the year-to-date period, TLT achieves a 0.92% return, which is significantly lower than TLTW's 2.45% return.
TLT
- 1D
- 0.16%
- 1M
- 3.72%
- YTD
- 0.92%
- 6M
- 0.58%
- 1Y
- 4.36%
- 3Y*
- -1.61%
- 5Y*
- -6.85%
- 10Y*
- -1.71%
TLTW
- 1D
- 0.13%
- 1M
- 3.59%
- YTD
- 2.45%
- 6M
- 2.30%
- 1Y
- 9.70%
- 3Y*
- 0.80%
- 5Y*
- —
- 10Y*
- —
TLT vs. TLTW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 0.92% | 4.25% | -8.05% | 2.77% | -10.88% |
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 2.45% | 11.36% | -2.18% | 0.73% | -11.14% |
Correlation
The correlation between TLT and TLTW is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.96 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (All Time) Calculated using the full available price history since Aug 22, 2022 | 0.95 |
The correlation between TLT and TLTW has been stable across timeframes, ranging from 0.95 to 0.96 - a consistent structural relationship.
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Return for Risk
TLT vs. TLTW — Risk / Return Rank
TLT
TLTW
TLT vs. TLTW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) 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.
| TLT | TLTW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.82 | ||
| Sortino ratioReturn per unit of downside risk | -1.11 | ||
| Omega ratioGain probability vs. loss probability | 1.08 | 1.23 | -0.15 |
| Calmar ratioReturn relative to maximum drawdown | 0.58 | 1.63 | -1.05 |
| Martin ratioReturn relative to average drawdown | 1.38 | 4.71 | -3.33 |
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Drawdowns
TLT vs. TLTW - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, which is greater than TLTW's maximum drawdown of -18.61%. Use the drawdown chart below to compare losses from any high point for TLT and TLTW.
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Drawdown Indicators
| TLT | TLTW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -18.61% | -29.74% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -5.97% | -1.61% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -17.19% | -1.99% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | — | — |
Current DrawdownCurrent decline from peak | -39.73% | -2.01% | -37.72% |
Average DrawdownAverage peak-to-trough decline | -13.86% | -8.19% | -5.67% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.16% | 2.06% | +1.10% |
Volatility
TLT vs. TLTW - Volatility Comparison
iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.33% compared to iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) at 1.80%. This indicates that TLT'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.
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Volatility by Period
| TLT | TLTW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.33% | 1.80% | +0.53% |
Volatility (6M)Calculated over the trailing 6-month period | 6.59% | 5.79% | +0.80% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.51% | 7.62% | +1.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.85% | 11.34% | +4.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.91% | 11.34% | +3.57% |
TLT vs. TLTW - Expense Ratio Comparison
TLT has a 0.15% expense ratio, which is lower than TLTW's 0.35% expense ratio.
Dividends
TLT vs. TLTW - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.53%, less than TLTW's 11.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.53% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 11.61% | 14.82% | 14.47% | 19.59% | 8.71% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.96, TLT and TLTW move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
TLT has higher volatility (2.33%) compared to TLTW (1.80%). In terms of maximum drawdown, TLT dropped -48.35% vs TLTW's -18.61%.
On 3-year performance, TLTW leads with 0.80% vs -1.61% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, TLTW has been the lower-risk option at 1.80%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, TLTW has performed better with a 0.80% return vs -1.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT is cheaper with a 0.15% expense ratio, compared with 0.35% for TLTW.
TLTW has the higher dividend yield at 11.61%, compared with 4.53% for TLT.
TLT is categorized as Government Bonds, while TLTW is Derivative Income. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while TLTW tracks CBOE TLT 2% OTM Buywrite Index (USD). Their fees differ too: 0.15% for TLT and 0.35% for TLTW.
TLTW currently has the higher Sharpe Ratio (1.29 vs 0.46), 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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