Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.
TLT has lagged TLTW over the trailing twelve months, posting a -9.20% total return against -4.60%. The lead holds up over 3 years too: TLTW has compounded at 2.43% a year, against 0.43% for TLT. TLTW has been the steadier holding, though — annualized volatility of 9.9% against 13.3% for TLT. Figures are total returns: price change plus every distribution reinvested.
Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Aug 2022” measures every fund from August 22, 2022 — the start of shared available history — 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.
Side-by-side snapshot
Side-by-side snapshot. Each row is one metric;
each column is one fund.
Provide exposure to the fund's underlying index or strategy per issuer materials.
Seeks monthly income by holding the iShares 20+ Year Treasury Bond ETF (TLT) and writing call options against up to — but not exceeding — the full amount of those shares.
Bottom lineChoose TLT if you want long Treasury exposure without a fund-level call overlay. Choose TLTW if you want a Treasury buy-write strategy and accept reduced upside and changing payouts. TLTW exchanges some potential Treasury appreciation for option premiums. Neither fund promises stable monthly cash flow or repayment of your purchase price, and a rate-cut forecast alone does not determine the better outcome.
Long Treasury exposure with different upside participation
TLT holds long-maturity U.S. Treasuries. As reviewed September 6, 2026, TLTW holds TLT and follows a monthly call-writing index. iShares has announced a forthcoming name and strategy change; check the current prospectus before applying historical results to the revised mandate.
TLT
TLTW
Approach
Long Treasury bond index
TLT holdings plus indexed call writing
Risk review
Long-duration interest-rate risk and price losses
Long-duration risk plus call losses and forgone upside
Expense ratio
0.15%
0.35%
Portfolio fit
Review combined holdings and weights
Review combined holdings and weights
How the risk works
Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.
Capped upside and premium dependence. TLTW generates income by selling options, which trades away part of a strong rally in exchange for premium. Distributions can include return of capital, and a payout the underlying assets cannot sustain shows up as NAV erosion over time — the big yield number is not free.
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.
See our curated list of related YouTube videos on TLT and TLTW.
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 17.34% vs 4.83% 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 ($45.8B), but assets alone do not establish trading costs or liquidity.
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On a $10,000 investment, TLT would generate roughly $40.25 cash per distribution, while TLTW would produce $144.50 cash per distribution, at current distribution rates. Both pay monthly distributions.
TLT yield4.83%
TLTW yield17.34%
Cash diff on $10K$104.25
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 holds long-maturity U.S. Treasuries. As reviewed September 6, 2026, TLTW holds TLT and follows a monthly call-writing index. iShares has announced a forthcoming name and strategy change; check the current prospectus before applying historical results to the revised mandate. Beta describes historical benchmark sensitivity, not guaranteed downside protection.
TLT beta2.39
TLTW beta1.67
Fund details
TLT is managed by iShares (launched 07/22/2002) with $45.8B in assets. TLTW is managed by iShares (launched 08/18/2022) with $1.73B in assets.
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Frequently asked questions
Does TLTW's distribution protect me from rising interest rates?
No. TLTW retains exposure to losses in long Treasuries; option premiums provide only a limited offset. Duration, rather than equity beta, helps assess rate sensitivity. Option obligations sit inside TLTW: buying the ETF does not mean your TLTW shares are called away. Distribution rates are not total returns or promised income. Tax return of capital alone does not establish an economic loss; review net total returns, NAV changes, distribution notices, and final tax reporting together.
What is the difference between TLT and TLTW?
TLT (iShares 20+ Year Treasury Bond ETF) holds 20+ year U.S. Treasuries and takes that duration's rate risk. TLTW (iShares 20+ Year Treasury Bond BuyWrite Strategy ETF) writes calls on the same long-Treasury exposure to seek extra income, giving up some bond rallies. Cost is 0.15% versus 0.35%. Distributions are 4.83% and 17.34% as of October 2026. Duration is shared; the overlay is the live difference. Neither is a cash substitute.
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