iShares 20+ Year Treasury Bond BuyWrite Strategy ETF
TLTW

$27.24

0%

Market Cap: $1.13B

0

Funds holding %

of 6,710 funds

–

Analysts bullish %

Fund manager confidence

Based on 2024 Q2 SEC filings by fund managers ($100M+ AUM)

9% more repeat investments, than reductions

Existing positions increased: 25 | Existing positions reduced: 23

0.46% more ownership

Funds ownership: 21.33% [Q1] → 21.79% (+0.46%) [Q2]

1% less capital invested

Capital invested by funds: $194M [Q1] → $192M (-$2.47M) [Q2]

6% less funds holding

Funds holding: 68 [Q1] → 64 (-4) [Q2]

33% less funds holding in top 10

Funds holding in top 10: 3 [Q1] → 2 (-1) [Q2]

36% less first-time investments, than exits

New positions opened: 7 | Existing positions closed: 11

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Research analyst outlook

We haven’t received any recent analyst ratings for TLTW.

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Financial journalist opinion

TLTW: Covered Call ETF Focusing On Long-Term Treasuries, Strong 14.9% Yield, Risks Abound

TLTW invests in long-term treasuries and sells covered calls on its holdings. The fund's high duration and covered call strategy result in substantial income but also consistent capital losses and distribution cuts. Its 14.9% distribution yield and potential outperformance during stable or slightly declining interest rates make it a buy despite significant risks.

TLTW: Covered Call ETF Focusing On Long-Term Treasuries, Strong 14.9% Yield, Risks Abound

TLTW Makes Sense For Income And Rate Cut Speculation

Long-term Treasury bonds are performing well with the possibility of a rate cut cycle, making exposure to them beneficial. The iShares 20+ Year Treasury Bond BuyWrite Strategy ETF offers enhanced income through covered call options. TLTW provides higher income compared to traditional Treasury bonds, with potential for outperformance if rates remain stable or decline.

TLTW Makes Sense For Income And Rate Cut Speculation

TLTW: Time To Go Long With Long Treasury ETFs

The TLTW ETF is a great way to get income (until it isn't), under the current rate conditions. TLTW features a 15.5% monthly dividend from its covered call selling, a very reliable income source due to the volatility of TLT. TLT should also be part of the core holding to build wealth in a possible rate decline cycle.

TLTW: Time To Go Long With Long Treasury ETFs

Undercovered Dozen ETF Edition: China, Bitcoin, Cybersecurity, Motley Fool +

This ETF Edition highlights 12 less covered exchange-traded fund ideas on Seeking Alpha from June 1st - July 15th. ETFs in our first edition include Saba Closed-End Funds, iShares 20+ Year Treasury Bond BuyWrite Strategy, Global X Russell 2000 Covered Call, Invesco S&P 500 GARP, and more. Managed futures are in focus with one ETF idea where the author writes they "offer potential for maximizing income, boosting returns, and reducing volatility in a portfolio".

Undercovered Dozen ETF Edition: China, Bitcoin, Cybersecurity, Motley Fool +

TLTW: A Buy Until Recession Imminent

Major rallies in long-term Treasuries that cause TLTW's covered call strategy to underperform are rare. iShares 20+ Year Treasury Bond Buywrite Strategy ETF offers an attractive monthly distribution with a yield above 10%. The Fund utilizes a covered call options strategy with the iShares 20+ Year Treasury Bond Buywrite Strategy ETF as its core asset to enhance income.

TLTW: A Buy Until Recession Imminent

Why I'm Fading The 11.58% Distribution Yield Of The TLTW ETF

iShares 20+ Year Treasury Bond Buywrite Strategy ETF offers exposure to 20-year treasury bonds and higher income through call options. The TLTW product captures volatility premium and coupons while giving up on potential price rallies. The yield on the TLTW ETF has decreased due to lower volatility, and future call selling may result in lower returns.

Why I'm Fading The 11.58% Distribution Yield Of The TLTW ETF

TLTW: Covered Call ETF With 11% Yield Plus Upside Potential

Amid the popularity of covered call writing equity ETFs, TLTW, which does so with TLT as its base, is more intriguing to me currently.

TLTW: Covered Call ETF With 11% Yield Plus Upside Potential

TLTW: Not The Right Way To Trade Long Rates Or Volatility

The iShares 20+ Year Treasury Bond Buy-Write Strategy ETF has not performed well compared to TLT since long rates peaked in October 2020. As long rates moved lower from their October 2023 highs, TLT outperformed TLTW by a factor of 3x. TLTW is hampered by the low implied volatility of TLT and the systematic strategy it employs to write covered calls.

TLTW: Not The Right Way To Trade Long Rates Or Volatility

TLTW Is For Speculators, Not Income Investors

"Investment products" offering double-digit yields, such as buy-write or option strategy ETFs, are almost always unsuitable for individual retired investors. The iShares 20+ Year Treasury Bond BuyWrite Strategy ETF has a high yield, but it is not an actual dividend but a return of capital. Today, TLTW's accurate dividend yield is 3.5%. Any gains after that are from option premiums, which must be reinvested to maintain a steady capital base.

TLTW Is For Speculators, Not Income Investors

TLTW: Weakness Of Strategy On Full Display

TLTW's buy/write strategy has led to underperformance, with TLT returning 14% compared to TLTW's 5% since October. This is because TLTW's monthly returns are capped. Modeling long-term yields as short-term yields plus term premium, the 10-year yield has recently reached neutral and is unlikely to decline further. In the long-run, long-term yields are expected to rise due to persistently large government deficits swamping demand for treasuries.

TLTW: Weakness Of Strategy On Full Display

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