(TLTW) iShares Trust - iShares 20+ - Ratings and Ratios

The iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) employs a covered call strategy, writing call options on the underlying Treasury bonds it holds. This approach aims to generate income from option premiums while maintaining exposure to long-duration Treasuries.

TLTW focuses on long-term U.S. Treasury bonds, typically with maturities exceeding 20 years. By selling call options, the fund seeks to enhance returns through premiums, which can be particularly attractive in low-yield environments. This strategy balances income generation with interest rate risk management.

Investors should be aware that while the buy-write strategy can provide steady income, it limits potential upside during bond price increases. Additionally, the funds performance is sensitive to interest rate changes, with long-duration bonds being more volatile when rates shift.

With an AUM of over $1 billion, TLTW is a substantial player in the Long Government ETF category. It offers a targeted approach for those seeking income and exposure to long-term Treasuries, making it a consideration for investors looking to balance yield and duration risk in their portfolios.