TLTW vs. GOVT
TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) and GOVT (iShares U.S. Treasury Bond ETF) are both exchange-traded funds - TLTW is a Derivative Income fund tracking the CBOE TLT 2% OTM Buywrite Index (USD), while GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index. Both are passively managed. Over the past 3 years, TLTW returned 0.58%/yr vs 2.92%/yr for GOVT. Their correlation of 0.89 suggests significant overlap in exposure. TLTW charges 0.35%/yr vs 0.05%/yr for GOVT.
Performance
TLTW vs. GOVT - Performance Comparison
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Returns By Period
In the year-to-date period, TLTW achieves a 2.36% return, which is significantly higher than GOVT's 0.11% return.
TLTW
- 1D
- 0.18%
- 1M
- 2.22%
- YTD
- 2.36%
- 6M
- 2.13%
- 1Y
- 9.03%
- 3Y*
- 0.58%
- 5Y*
- —
- 10Y*
- —
GOVT
- 1D
- 0.13%
- 1M
- 0.58%
- YTD
- 0.11%
- 6M
- 0.22%
- 1Y
- 3.14%
- 3Y*
- 2.92%
- 5Y*
- -0.48%
- 10Y*
- 0.80%
TLTW vs. GOVT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 2.36% | 11.36% | -2.18% | 0.73% | -11.14% |
GOVT iShares U.S. Treasury Bond ETF | 0.11% | 3.77% | 2.95% | 4.17% | -3.71% |
Correlation
The correlation between TLTW and GOVT is 0.90, 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 | 0.90 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (All Time) Calculated using the full available price history since Aug 22, 2022 | 0.89 |
The correlation between TLTW and GOVT has been stable across timeframes, ranging from 0.89 to 0.90 - a consistent structural relationship.
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Return for Risk
TLTW vs. GOVT — Risk / Return Rank
TLTW
GOVT
TLTW vs. GOVT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) and iShares U.S. Treasury Bond ETF (GOVT). 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.
| TLTW | GOVT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.31 | ||
| Sortino ratioReturn per unit of downside risk | +0.38 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.15 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 1.52 | 1.11 | +0.41 |
| Martin ratioReturn relative to average drawdown | 4.36 | 3.01 | +1.35 |
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Drawdowns
TLTW vs. GOVT - Drawdown Comparison
The maximum TLTW drawdown since its inception was -18.61%, roughly equal to the maximum GOVT drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for TLTW and GOVT.
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Drawdown Indicators
| TLTW | GOVT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.61% | -19.07% | +0.46% |
Max Drawdown (1Y)Largest decline over 1 year | -5.97% | -2.85% | -3.12% |
Max Drawdown (3Y)Largest decline over 3 years | -17.19% | -5.43% | -11.76% |
Max Drawdown (5Y)Largest decline over 5 years | — | -16.60% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -19.07% | — |
Current DrawdownCurrent decline from peak | -2.10% | -6.97% | +4.87% |
Average DrawdownAverage peak-to-trough decline | -8.17% | -5.26% | -2.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.08% | 1.05% | +1.03% |
Volatility
TLTW vs. GOVT - Volatility Comparison
iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) has a higher volatility of 1.66% compared to iShares U.S. Treasury Bond ETF (GOVT) at 0.97%. This indicates that TLTW's price experiences larger fluctuations and is considered to be riskier than GOVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLTW | GOVT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.66% | 0.97% | +0.69% |
Volatility (6M)Calculated over the trailing 6-month period | 5.80% | 2.60% | +3.20% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.62% | 3.57% | +4.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.33% | 6.04% | +5.29% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.33% | 5.22% | +6.11% |
TLTW vs. GOVT - Expense Ratio Comparison
TLTW has a 0.35% expense ratio, which is higher than GOVT's 0.05% expense ratio.
Dividends
TLTW vs. GOVT - Dividend Comparison
TLTW's dividend yield for the trailing twelve months is around 11.62%, more than GOVT's 3.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 3.58% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 11.62% | 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
TLTW and GOVT have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLTW has higher volatility (1.66%) compared to GOVT (0.97%). In terms of maximum drawdown, TLTW dropped -18.61% vs GOVT's -19.07%.
On 3-year performance, GOVT leads with 2.92% vs 0.58% for TLTW. On fees, GOVT is cheaper at 0.05% per year. On volatility, GOVT has been the lower-risk option at 0.97%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, GOVT has performed better with a 2.92% return vs 0.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVT is cheaper with a 0.05% expense ratio, compared with 0.35% for TLTW.
TLTW has the higher dividend yield at 11.62%, compared with 3.58% for GOVT.
TLTW is categorized as Derivative Income, while GOVT is Government Bonds. TLTW tracks CBOE TLT 2% OTM Buywrite Index (USD), while GOVT tracks ICE U.S. Treasury Core Bond Index. Their fees differ too: 0.35% for TLTW and 0.05% for GOVT.
TLTW currently has the higher Sharpe Ratio (1.19 vs 0.89), 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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