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 1.27%/yr vs -0.90%/yr for TLT. Their 0.95 correlation means they have historically moved very closely together. 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 -0.40% return, which is significantly higher than TLT's -2.43% return.
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%
TLT
- 1D
- 0.77%
- 1M
- -2.76%
- 6M
- -2.36%
- YTD
- -2.43%
- 1Y
- -1.64%
- 3Y*
- -0.90%
- 5Y*
- -8.10%
- 10Y*
- -2.25%
- ALL TIME*
- 3.51%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $2.59B | $2.11B | $2.22B | |
| $25.71M | $26.59M | $32.19M |
TLTW vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | -0.40% | 11.36% | -2.18% | 0.73% | -11.14% |
TLT iShares 20+ Year Treasury Bond ETF | -2.43% | 4.25% | -8.05% | 2.77% | -10.88% |
Correlation
The correlation between TLTW and TLT is 0.96 - they have historically moved very closely together. At this level, their price movements offset little of one another.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.96 |
Correlation (3Y) Balances recent behavior with more history. | 0.95 |
Correlation (All Time) Calculated using the full available price history since Aug 22, 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.
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 | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.71 | ||
| Sortino ratioReturn per unit of downside risk | +0.97 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 0.98 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 0.68 | -0.21 | +0.90 |
| Martin ratioReturn relative to average drawdown | 1.68 | -0.45 | +2.14 |
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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% | -7.74% | +1.77% |
Max Drawdown (3Y)Largest decline over 3 years | -12.93% | -14.79% | +1.86% |
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 | -4.74% | -41.73% | +36.99% |
Average DrawdownAverage peak-to-trough decline | -8.03% | -14.00% | +5.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.42% | 3.63% | -1.21% |
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 2.67%. 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% | 2.67% | -0.23% |
Volatility (6M)Calculated over the trailing 6-month period | 5.97% | 6.88% | -0.91% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.72% | 9.25% | -1.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.26% | 15.75% | -4.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.26% | 14.83% | -3.57% |
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 10.90%, more than TLT's 4.71% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.71% | 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 | 10.90% | 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 (2.67%) 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 1.27% vs -0.90% 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 1.27% return vs -0.90%. 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 10.90%, compared with 4.71% 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 (0.53 vs -0.18), 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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