iShares 20+ Year Treasury Bond BuyWrite Strategy ETF

Frequently Asked Questions About TLTW

What does TLTW invest in?

The iShares 20+ Year Treasury Bond BuyWrite Strategy ETF aims to replicate the performance of an index that implements a dual investment strategy. This strategy involves holding positions in the iShares 20+ Year Treasury Bond ETF while simultaneously generating income through the routine sale of one-month covered call options on those underlying assets.

What is the expense ratio of TLTW?

iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) charges an expense ratio of 0.35%. This is the annual fee deducted from fund assets to cover management and operations.

What is TLTW's distribution yield?

TLTW's trailing-twelve-month yield is 11.35%, calculated from the sum of distributions over the past year divided by the current price.

How does TLTW's covered-call strategy work?

TLTW sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of TLTW?

Effective duration measures TLTW's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. TLTW's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of TLTW?

TLTW's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.