iShares 20+ Year Treasury Bond BuyWrite Strategy ETF
TLTW
Market cap $1.01B

23.21 USD

-0.10

0.43%

At close Apr 17, 4:00 PM EDT

After hours

23.10

-0.11

0.47%

1 day

-0.43%

5 days

2.61%

1 month

-3.29%

3 months

-1.28%

6 months

-9.79%

Year to date

-1.61%

1 year

-7.75%

5 years

-41.26%

10 years

-41.26%

0

Funds holding %

of 7,407 funds

–

Analysts bullish %

Fund manager confidence

Based on 2024 Q4 regulatory disclosures by fund managers ($100M+ AUM)

150% more first-time investments, than exits

New positions opened: 25 | Existing positions closed: 10

20% more repeat investments, than reductions

Existing positions increased: 30 | Existing positions reduced: 25

14% more funds holding

Funds holding: 76 [Q3] → 87 (+11) [Q4]

0.64% less ownership

Funds ownership: 24.25% [Q3] → 23.62% (-0.64%) [Q4]

17% less capital invested

Capital invested by funds: $280M [Q3] → $232M (-$47.3M) [Q4]

50% less funds holding in top 10

Funds holding in top 10: 2 [Q3] → 1 (-1) [Q4]

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Research analyst outlook

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

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Financial journalist opinion

Based on 3 articles about TLTW published over the past 30 days

TLTW: A Sharp Rally In Bonds Is A Risk (Double Rating Downgrade)

I am downgrading the iShares 20+ Year Treasury Bond BuyWrite Strategy ETF from Strong Buy to Hold due to rising risks of a significant rally in long-term Treasuries. TLTW employs a covered call strategy, which performs best in a sideways trading range but limits upside in strong rallies, making TLT a better option now. The recent sell-off in Treasuries appears driven by liquidity needs rather than fundamentals, suggesting the potential for a substantial recovery in TLT, which TLTW may underperform.

TLTW: A Sharp Rally In Bonds Is A Risk (Double Rating Downgrade)

TLTW: Investors Losing Confidence

President Trump's tariffs may spur inflation, prompting a hawkish Federal Reserve response, which could negatively impact long-term bonds like TLTW. The U.S. budget deficit may worsen due to Trump's tax cuts, increasing long-term default risk and reducing international demand for treasuries. Antagonizing major trading partners like China could further reduce demand for U.S. treasuries, making long-term bonds less attractive.

TLTW: Investors Losing Confidence

TLTW: Long Bonds Might Be Under Pressure For A While (Rating Upgrade)

Long-term Treasury bonds have experienced significant drawdowns due to rising yields, driven by concerns over increasing U.S. debt and persistent inflation. TLTW, a buy-write ETF that holds TLT and sells covered calls, offers downside protection and income generation, outperforming TLT during periods of rising yields and range bound markets. The recent decline in long-term yields is likely temporary, and yields are expected to rise again due to persistent inflation and the delayed effects of government spending cuts.

TLTW: Long Bonds Might Be Under Pressure For A While (Rating Upgrade)

TLTW: DOGE Cuts May Benefit Bonds

The TLTW ETF has lost 9.0% in market value over the past year but earned enough premium income to achieve a modest 4.9% total return. The ETF's strategy of writing covered call options caps upside returns while retaining most downside risks, leading to a 40% market value decline since inception. President Trump's administration, with Elon Musk's DOGE, aims to cut $2 trillion from the federal budget. This could significantly slow down economic growth and lead to lower bond yields.

TLTW: DOGE Cuts May Benefit Bonds

Instead Of TLTW, I Chose This Strategy For Better Leverage On TLT

TLTW, with its slightly OTM covered call strategy, performs better than LQDW or HYGW compared to its underlying ETF but has had a negative total return since its inception. While in the very short term the picture is blurred, mid- to long-term I have a neutral-to-bullish stance on TLT. Implementing a personalized covered call strategy on TLT should bring gradually better returns than TLTW, which faces problems in at least 50% of the scenarios.

Instead Of TLTW, I Chose This Strategy For Better Leverage On TLT

TLTW: Soft Landing And A Trading Range For Yields

TLTW has outperformed TLT, losing only 2% compared to TLT's 4.4% decline, thanks to its covered call strategy generating additional income. A trading range in long-term Treasury bonds, similar to the late 1990s, is the ideal environment for TLTW's covered call strategy. The current yield curve and Fed policy mirror the late 1990s, suggesting a prolonged period of near-zero slope, beneficial for TLTW.

TLTW: Soft Landing And A Trading Range For Yields

TLTW: You Don't Need This Fund For Income

iShares 20+ Year Treasury Bond Buywrite Strategy ETF sells 2% OTM monthly calls on TLT, yielding up to 20%, but has seen a 40.84% decline since inception and a 12% loss in total returns. TLTW's rigid options strategy and volatile distributions make it a poor fit for passive income investors; active management is required. Despite a 14.52% yield, TLTW's performance and strategy limitations lead to a Sell rating and recommendation for buy-and-hold income investors to seek option funds with more active approaches.

TLTW: You Don't Need This Fund For Income

TLTW: Bullish Bonds? Then Avoid TLTW

TLTW, a passively managed fund with a 0.35% expense ratio, writes one-month covered call options on TLT, boosting yield but capping gains. TLTW's TTM yield is 14.16%, significantly higher than TLT's 3.95%, making it attractive for income-focused investors despite its price downtrend. TLTW outperforms TLT in downtrends due to its income from premiums but underperforms in rapid recoveries.

TLTW: Bullish Bonds? Then Avoid TLTW

TLTW: 15% Yield With Favorable Macro

iShares 20+ Year Treasury Bond Buywrite Strategy ETF buys TLT and sells call options, generating higher income but capping upside potential. TLTW has underperformed in price return but offers significantly higher income, making it attractive for aggressive income investors despite volatility risks. Its total return has eclipsed its underlying. The Fund's passive strategy involves selling ATM options monthly, which has outperformed TLT in total return but may result in increased capital losses.

TLTW: 15% Yield With Favorable Macro

TLTW ETF: Maybe It's Time To Accumulate

TLTW's high yield (15.34%) and effective rolling method make it an attractive investment, despite potential risks from sudden TLT price increases. In my opinion, is a good time to accumulate TLTW as a hedge for fixed-rate portfolios due to the current macroeconomic scenario and yield curve steepening. The steepening yield curve and ongoing Fed rate cuts suggest long-duration Treasury yields may not decrease significantly, making TLTW a strategic addition.

TLTW ETF: Maybe It's Time To Accumulate

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