VWO vs. TLTW
VWO (Vanguard FTSE Emerging Markets ETF) and TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging 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, VWO returned 16.84%/yr vs 0.63%/yr for TLTW. At a 0.19 correlation, their price movements are largely independent. VWO charges 0.08%/yr vs 0.35%/yr for TLTW.
Performance
VWO vs. TLTW - Performance Comparison
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Returns By Period
In the year-to-date period, VWO achieves a 13.17% return, which is significantly higher than TLTW's 1.94% return.
VWO
- 1D
- 2.17%
- 1M
- 4.11%
- YTD
- 13.17%
- 6M
- 15.35%
- 1Y
- 29.26%
- 3Y*
- 16.84%
- 5Y*
- 5.83%
- 10Y*
- 9.11%
TLTW
- 1D
- 0.05%
- 1M
- 2.89%
- YTD
- 1.94%
- 6M
- 2.24%
- 1Y
- 9.50%
- 3Y*
- 0.63%
- 5Y*
- —
- 10Y*
- —
VWO vs. TLTW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
VWO Vanguard FTSE Emerging Markets ETF | 13.17% | 25.60% | 10.59% | 9.25% | -3.39% |
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 1.94% | 11.36% | -2.18% | 0.73% | -11.14% |
Correlation
The correlation between VWO and TLTW is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.20 |
Correlation (All Time) Calculated using the full available price history since Aug 22, 2022 | 0.19 |
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Return for Risk
VWO vs. TLTW — Risk / Return Rank
VWO
TLTW
VWO vs. TLTW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) 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.
| VWO | TLTW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.52 | ||
| Sortino ratioReturn per unit of downside risk | +0.65 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.22 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 2.63 | 1.60 | +1.03 |
| Martin ratioReturn relative to average drawdown | 9.28 | 4.63 | +4.65 |
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Drawdowns
VWO vs. TLTW - Drawdown Comparison
The maximum VWO drawdown since its inception was -67.68%, which is greater than TLTW's maximum drawdown of -18.61%. Use the drawdown chart below to compare losses from any high point for VWO and TLTW.
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Drawdown Indicators
| VWO | TLTW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -67.68% | -18.61% | -49.07% |
Max Drawdown (1Y)Largest decline over 1 year | -11.17% | -5.97% | -5.20% |
Max Drawdown (3Y)Largest decline over 3 years | -17.37% | -17.19% | -0.18% |
Max Drawdown (5Y)Largest decline over 5 years | -32.60% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -36.39% | — | — |
Current DrawdownCurrent decline from peak | -0.57% | -2.50% | +1.93% |
Average DrawdownAverage peak-to-trough decline | -15.80% | -8.20% | -7.60% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.16% | 2.06% | +1.10% |
Volatility
VWO vs. TLTW - Volatility Comparison
Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 6.98% compared to iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) at 2.31%. This indicates that VWO'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
| VWO | TLTW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.98% | 2.31% | +4.67% |
Volatility (6M)Calculated over the trailing 6-month period | 14.18% | 5.84% | +8.34% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.62% | 7.66% | +8.96% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.51% | 11.35% | +6.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.24% | 11.35% | +7.89% |
VWO vs. TLTW - Expense Ratio Comparison
VWO has a 0.08% expense ratio, which is lower than TLTW's 0.35% expense ratio.
Dividends
VWO vs. TLTW - Dividend Comparison
VWO's dividend yield for the trailing twelve months is around 2.38%, less than TLTW's 11.67% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLTW iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | 11.67% | 14.82% | 14.47% | 19.59% | 8.71% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VWO Vanguard FTSE Emerging Markets ETF | 2.38% | 2.79% | 3.20% | 3.52% | 4.11% | 2.63% | 1.91% | 3.23% | 2.88% | 2.30% | 2.52% | 3.26% |
Frequently Asked Questions
VWO and TLTW have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VWO has higher volatility (6.98%) compared to TLTW (2.31%). In terms of maximum drawdown, VWO dropped -67.68% vs TLTW's -18.61%.
On 3-year performance, VWO leads with 16.84% vs 0.63% for TLTW. On fees, VWO is cheaper at 0.08% per year. On volatility, TLTW has been the lower-risk option at 2.31%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, VWO has performed better with a 16.84% return vs 0.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VWO is cheaper with a 0.08% expense ratio, compared with 0.35% for TLTW.
TLTW has the higher dividend yield at 11.67%, compared with 2.38% for VWO.
VWO is categorized as Emerging Markets Equities, while TLTW is Derivative Income. VWO tracks FTSE Emerging Index, while TLTW tracks CBOE TLT 2% OTM Buywrite Index (USD). They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.08% for VWO and 0.35% for TLTW.
VWO currently has the higher Sharpe Ratio (1.77 vs 1.25), 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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