TLTW vs. TLT
TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - TLTW is a Derivative Income fund tracking the CBOE TLT 2% OTM Buywrite Index (USD), while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 3 years, TLTW returned 0.85%/yr vs -1.67%/yr for TLT. With a 0.95 correlation, they move nearly in lockstep. TLTW charges 0.35%/yr vs 0.15%/yr for TLT.
Performance
TLTW vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, TLTW achieves a 1.44% return, which is significantly higher than TLT's -0.05% return.
TLTW
- 1D
- 0.23%
- 1M
- 0.48%
- YTD
- 1.44%
- 6M
- 0.46%
- 1Y
- 9.58%
- 3Y*
- 0.85%
- 5Y*
- —
- 10Y*
- —
TLT
- 1D
- 0.22%
- 1M
- 0.48%
- YTD
- -0.05%
- 6M
- -1.27%
- 1Y
- 3.48%
- 3Y*
- -1.67%
- 5Y*
- -6.27%
- 10Y*
- -1.56%
TLTW vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 1.44% | 11.36% | -2.18% | 0.73% | -11.09% |
TLT iShares 20+ Year Treasury Bond ETF | -0.05% | 4.25% | -8.05% | 2.77% | -10.58% |
Correlation
The correlation between TLTW and TLT 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 23, 2022 | 0.95 |
The correlation between TLTW and TLT has been stable across timeframes, ranging from 0.95 to 0.96 - a consistent structural relationship.
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Return for Risk
TLTW vs. TLT — Risk / Return Rank
TLTW
TLT
TLTW vs. TLT - 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 20+ Year Treasury Bond ETF (TLT). 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.
| TLTW | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.90 | ||
| Sortino ratioReturn per unit of downside risk | +1.22 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.07 | +0.16 |
| Calmar ratioReturn relative to maximum drawdown | 1.61 | 0.46 | +1.15 |
| Martin ratioReturn relative to average drawdown | 4.81 | 1.14 | +3.67 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TLTW | TLT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.26 | 0.36 | +0.90 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | -0.40 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | -0.11 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.02 | 0.26 | -0.28 |
Drawdowns
TLTW vs. TLT - Drawdown Comparison
The maximum TLTW drawdown since its inception was -18.61%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for TLTW and TLT.
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Drawdown Indicators
| TLTW | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.61% | -48.35% | +29.74% |
Max Drawdown (1Y)Largest decline over 1 year | -5.97% | -7.58% | +1.61% |
Max Drawdown (3Y)Largest decline over 3 years | -17.19% | -19.18% | +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 | -2.98% | -40.31% | +37.33% |
Average DrawdownAverage peak-to-trough decline | -8.25% | -13.82% | +5.57% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.00% | 3.05% | -1.05% |
Volatility
TLTW vs. TLT - Volatility Comparison
The current volatility for iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) is 2.44%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.71%. This indicates that TLTW experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLTW | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.44% | 2.71% | -0.27% |
Volatility (6M)Calculated over the trailing 6-month period | 5.79% | 6.50% | -0.71% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.70% | 9.77% | -2.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.39% | 15.86% | -4.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.39% | 14.90% | -3.51% |
TLTW vs. TLT - Expense Ratio Comparison
TLTW has a 0.35% expense ratio, which is higher than TLT's 0.15% expense ratio.
Dividends
TLTW vs. TLT - Dividend Comparison
TLTW's dividend yield for the trailing twelve months is around 11.73%, more than TLT's 4.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.58% | 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 | 11.73% | 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, TLTW and TLT 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 (2.71%) compared to TLTW (2.44%). In terms of maximum drawdown, TLTW dropped -18.61% vs TLT's -48.35%.
On 3-year performance, TLTW leads with 0.85% vs -1.67% for TLT. On fees, TLT is cheaper at 0.15% 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.
Over the 3-year period, TLTW has performed better with a 0.85% return vs -1.67%. 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 11.73%, compared with 4.58% for TLT.
TLTW is categorized as Derivative Income, while TLT is Government Bonds. TLTW tracks CBOE TLT 2% OTM Buywrite Index (USD), while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. Their fees differ too: 0.35% for TLTW and 0.15% for TLT.
TLTW currently has the higher Sharpe Ratio (1.26 vs 0.36), 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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