TLTW: A Convenient Way to Execute Covered Call Strategies on Bonds
For investors looking to implement a covered call strategy without the hassle of managing multiple transactions, TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) offers a streamlined solution. This ETF combines exposure to long-term U.S. Treasury bonds with an embedded covered call overlay, allowing investors to generate additional income while holding a single ticker symbol.
As of March 7, 2025, TLTW boasts a monthly dividend yield of approximately 13%, making it an attractive option for income-focused investors. The fund’s strategy helps enhance yield potential while maintaining exposure to long-duration Treasuries, providing a unique blend of fixed-income stability and options premium income.
TLTW vs. TLT: Total Return Comparison
The image below illustrates the comparative total return performance between TLTW and TLT, showing that TLTW’s total return has outperformed that of TLT over time. The covered call strategy enhances yield, contributing to this superior performance.
For those seeking a hands-off approach to covered calls with a bond-focused twist, TLTW simplifies execution while offering compelling yield opportunities.