TLTW vs. LQDW
TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) and LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) are both exchange-traded funds - TLTW is a Derivative Income fund tracking the CBOE TLT 2% OTM Buywrite Index (USD), while LQDW is a Corporate Bonds fund tracking the CBOE LQD BuyWrite Index. Both are passively managed. Over the past 3 years, TLTW returned 0.58%/yr vs 3.70%/yr for LQDW. A 0.80 correlation means they provide meaningful diversification when combined. TLTW charges 0.35%/yr vs 0.34%/yr for LQDW.
Performance
TLTW vs. LQDW - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, TLTW achieves a 2.36% return, which is significantly higher than LQDW's 1.88% return.
TLTW
- 1D
- 0.18%
- 1M
- 2.22%
- YTD
- 2.36%
- 6M
- 2.13%
- 1Y
- 9.03%
- 3Y*
- 0.58%
- 5Y*
- —
- 10Y*
- —
LQDW
- 1D
- 0.18%
- 1M
- 1.36%
- YTD
- 1.88%
- 6M
- 2.02%
- 1Y
- 6.49%
- 3Y*
- 3.70%
- 5Y*
- —
- 10Y*
- —
TLTW vs. LQDW - 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% |
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 1.88% | 9.05% | 2.60% | 3.99% | -6.78% |
Correlation
The correlation between TLTW and LQDW is 0.80, 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 | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.80 |
Correlation (All Time) Calculated using the full available price history since Aug 22, 2022 | 0.80 |
The correlation between TLTW and LQDW has been stable across timeframes, ranging from 0.80 to 0.80 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
TLTW vs. LQDW — Risk / Return Rank
TLTW
LQDW
TLTW vs. LQDW - 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 Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW). 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 | LQDW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.61 | ||
| Sortino ratioReturn per unit of downside risk | -0.83 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.36 | -0.15 |
| Calmar ratioReturn relative to maximum drawdown | 1.52 | 2.52 | -1.00 |
| Martin ratioReturn relative to average drawdown | 4.36 | 9.34 | -4.99 |
Loading charts...
Drawdowns
TLTW vs. LQDW - Drawdown Comparison
The maximum TLTW drawdown since its inception was -18.61%, which is greater than LQDW's maximum drawdown of -9.20%. Use the drawdown chart below to compare losses from any high point for TLTW and LQDW.
Loading charts...
Drawdown Indicators
| TLTW | LQDW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.61% | -9.20% | -9.41% |
Max Drawdown (1Y)Largest decline over 1 year | -5.97% | -2.59% | -3.38% |
Max Drawdown (3Y)Largest decline over 3 years | -17.19% | -6.74% | -10.45% |
Current DrawdownCurrent decline from peak | -2.10% | -0.04% | -2.06% |
Average DrawdownAverage peak-to-trough decline | -8.17% | -2.32% | -5.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.08% | 0.70% | +1.38% |
Volatility
TLTW vs. LQDW - Volatility Comparison
iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) has a higher volatility of 1.66% compared to iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) at 1.00%. This indicates that TLTW's price experiences larger fluctuations and is considered to be riskier than LQDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| TLTW | LQDW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.66% | 1.00% | +0.66% |
Volatility (6M)Calculated over the trailing 6-month period | 5.80% | 3.12% | +2.68% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.62% | 3.62% | +4.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.33% | 5.47% | +5.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.33% | 5.47% | +5.86% |
TLTW vs. LQDW - Expense Ratio Comparison
TLTW has a 0.35% expense ratio, which is higher than LQDW's 0.34% expense ratio.
Dividends
TLTW vs. LQDW - Dividend Comparison
TLTW's dividend yield for the trailing twelve months is around 11.62%, less than LQDW's 12.49% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 12.49% | 16.02% | 15.74% | 19.28% | 8.85% |
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 11.62% | 14.82% | 14.47% | 19.59% | 8.71% |
Frequently Asked Questions
TLTW and LQDW have a correlation of 0.80, 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 LQDW (1.00%). In terms of maximum drawdown, TLTW dropped -18.61% vs LQDW's -9.20%.
On 3-year performance, LQDW leads with 3.70% vs 0.58% for TLTW. On fees, LQDW is cheaper at 0.34% per year. On volatility, LQDW has been the lower-risk option at 1.00%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, LQDW has performed better with a 3.70% return vs 0.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LQDW is cheaper with a 0.34% expense ratio, compared with 0.35% for TLTW.
LQDW has the higher dividend yield at 12.49%, compared with 11.62% for TLTW.
TLTW is categorized as Derivative Income, while LQDW is Corporate Bonds. TLTW tracks CBOE TLT 2% OTM Buywrite Index (USD), while LQDW tracks CBOE LQD BuyWrite Index. Their fees differ too: 0.35% for TLTW and 0.34% for LQDW.
LQDW currently has the higher Sharpe Ratio (1.80 vs 1.19), 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.
Find the right allocation for TLTW and LQDW
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer