ETF Comparison

TLT vs TLTW: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares 20+ Year Treasury Bond ETF and iShares 20+ Year Treasury Bond BuyWrite Strategy ETF covering yield, cost, risk, and income potential.

Data updated July 4, 2026

iShares

ETFs481

Total AUM$4451B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

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Side-by-side snapshot

	TLT	TLTW
Full name	iShares 20+ Year Treasury Bond ETF	iShares 20+ Year Treasury Bond BuyWrite Strategy ETF
Issuer	iShares	iShares
Last Close	$85.51 as of July 4, 2026	$22.09 as of July 4, 2026
Distribution yield	4.46%	7.31%
Distribution Safety Score	96	52
Expense ratio	0.15%	0.35%
AUM	$40.7B	$1.95B
Distribution frequency	Monthly	Monthly
Underlying index	ICE U.S. Treasury 20+ Year Bond Index	ICE U.S. Treasury 20+ Year Bond Index
Objective	Provide exposure to the fund's underlying index or strategy per issuer materials.	Covered Call
Asset class	Fixed Income	Equity
Inception date	07/22/2002	08/18/2022
Beta	2.38	1.65
Last dividend	$0.3180	$0.1346
Ex-dividend date	08/03/2026	08/04/2026

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

TLT has lagged TLTW over the trailing twelve months, posting a 0.67% total return against 4.98%. The lead holds up over 3 years too: TLTW has compounded at -0.15% a year, against -1.97% for TLT. TLTW has been the steadier holding, though — annualized volatility of 10.4% against 13.9% for TLT. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	Since Aug 2022	Volatility	Sharpe	Sortino	Max drawdown
TLT	-0.28%	0.67%	-1.97%	-3.34%	13.9%	-0.47	-0.64	-18.9%
TLTW	0.11%	4.98%	-0.15%	-0.63%	10.4%	-0.45	-0.57	-17.2%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Aug 2022” measures every fund from August 22, 2022 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

TLT (iShares 20+ Year Treasury Bond ETF) and TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) are both monthly-pay dividend ETFs, but they take different approaches.

TLTW offers the higher yield at 7.31% vs 4.46% for TLT. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

TLT is cheaper with an expense ratio of 0.15% compared to 0.35%.

TLT is the larger fund by assets ($40.7B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, TLT would generate roughly $37.17/month, while TLTW would produce $60.92/month, at current distribution rates. Both pay monthly distributions.

TLT yield4.46%

TLTW yield7.31%

Monthly diff on $10K$23.75

Cost & efficiency

Over 10 years on $10,000, TLT would cost approximately $150 in fees vs $350 for TLTW (simplified, not compounded). The $200.00 difference may be offset by yield or performance.

TLT ER0.15%

TLTW ER0.35%

Strategy & risk

TLT tracks ICE U.S. Treasury 20+ Year Bond Index with a treasury approach, while TLTW tracks ICE U.S. Treasury 20+ Year Bond Index with a covered call approach. Beta is 2.38 for TLT and 1.65 for TLTW, indicating TLTW is less volatile relative to the market.

TLT beta2.38

TLTW beta1.65

Fund details

TLT is managed by iShares (launched 07/22/2002) with $40.7B in assets. TLTW is managed by iShares (launched 08/18/2022) with $1.95B in assets.

TLT AUM$40.7B

TLTW AUM$1.95B

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Frequently asked questions

Is TLT or TLTW better for dividend income?

It depends on your goals. TLTW currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between TLT and TLTW?

TLT (iShares 20+ Year Treasury Bond ETF) tracks ICE U.S. Treasury 20+ Year Bond Index with a treasury approach, while TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) tracks ICE U.S. Treasury 20+ Year Bond Index with a covered call approach. They are issued by iShares and iShares respectively.

Can I hold both TLT and TLTW?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, TLT or TLTW?

TLT has an expense ratio of 0.15% while TLTW charges 0.35%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in TLT vs TLTW generate?

At current rates, $10,000 in TLT would generate roughly $37.17 per month ($446.00 annually). The same in TLTW would produce about $60.92 per month ($731.00 annually).

Which has performed better historically, TLT or TLTW?

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TLT vs TLTW — at a glance

Generated June 2026 from current fund data.

Overview

TLT is a vanilla Treasury bond ETF tracking the 20+ year U.S. Treasury index. TLTW wraps the same Treasury exposure in a covered-call (buywrite) strategy, selling monthly call options against its holdings to generate extra income. Both hold the same underlying bonds, but TLTW trades yield for principal upside in exchange for the option premium it collects.

How they differ

The fundamental difference is strategy: TLT is a buy-and-hold Treasury fund, while TLTW is a call-selling overlay on the same Treasury index. That translates directly to yield: TLTW's 11.58% distribution rate versus TLT's 4.62% comes entirely from option premium, not underlying coupon growth. The cost of that extra income appears in TLTW's higher expense ratio (0.35% vs. 0.15%) and, more importantly, a structural cap on price appreciation—if Treasuries rally sharply, TLTW's short calls will be exercised, capping gains. TLTW is also far smaller ($1.95B vs. $40.7B in AUM) and newer (launched August 2022), so it has less trading history and liquidity.

Who each is best for

TLT: Fits investors seeking long-duration Treasury exposure with modest current income and full participation in principal appreciation if rates fall, particularly those with a multi-year horizon.

TLTW: Designed for income-focused investors willing to exchange price-upside potential for significantly higher monthly cash flow, assuming a range-bound or modestly rising rate environment.

Key risks to know

Options assignment and price cap: If long-term Treasury yields fall and bond prices rise, TLTW's short calls expire in-the-money and shares may be called away or price appreciation capped, forcing a choice between taking losses or reinvesting at lower yields.

NAV erosion at synthetic-income yields: TLTW's 11.58% distribution yield approaches levels where distributions may include meaningful return-of-capital, potentially eroding NAV over time if option premiums and Treasury coupons don't fully sustain the payout.

Rolldown and duration compression: Both funds face negative carry if the Treasury yield curve flattens or inverts; TLTW's call-hedged structure may amplify this drag by locking in lower reinvestment yields as calls are rolled monthly.

Liquidity and tracking: TLTW's $1.95B AUM and newer inception date mean wider bid-ask spreads and less predictable liquidity during stressed fixed-income markets, whereas TLT's scale offers tighter spreads.

Interest-rate sensitivity: TLT's beta of 2.38 reflects high duration risk—falling rates amplify gains, but rising rates amplify losses. TLTW's beta of 1.65 is lower, reflecting the dampening effect of short calls, but that cushion comes at the cost of capped upside.

Bottom line

If you want to maximize monthly income and can live with capped principal gains, TLTW's nearly 11.6% yield trades upside for cash. If you prioritize long-term price appreciation and are comfortable with modest Treasury coupons, TLT offers cleaner exposure and deeper liquidity. Past performance does not guarantee future results, and call-eligible option assignments remain a live risk in down-markets for long-duration Treasuries.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.