iShares 20+ Year Treasury Bond BuyWrite Strategy ETF

TLTW

Market cap $1.67B

A record number of retirees are deciding to retire every day as those born during the baby boom are turning into the retirement boom.

TLTW has been one of the best-performing bond ETFs of the year. Its long-term treasury investments have seen some gains as rates trend downwards, its covered calls have generated a massive amount of income. It should continue to perform well, barring an increase in rates, or significant, unfavorable rate fluctuations.

Interest rate cuts are finally materializing, and growth is expected to slow, with 2026 expected to be a policy transition year.

US Treasury Bonds present a compelling opportunity, with falling yields likely to drive significant price appreciation, potentially outpacing stock market gains. TBT, an inversed and 2x leveraged ETF, can create a powerful combination for yield investors, when deployed in combination with TLTW. This is not without risk, but I strongly believe it represents the type of investing (ETF pairs, offense-defense) that more investors should be considering.

iShares 20+ Year Treasury Bond Buywrite Strategy ETF replicates TLT and sells monthly calls. This turns volatility into income, at the expense of capital appreciation. Today the curve is steepening (bear steepening) due to higher inflation expectations, also driven by Trump's tariffs. A scenario that makes me think of TLTW as an alternative solution to TLT.

iShares 20+ Year Treasury Bond Buywrite Strategy ETF offers an attractive entry point as the Fed begins its rate-cutting cycle. TLTW's income-focused strategy, combining TLT exposure with a buywrite overlay, currently delivers a double-digit yield and potential for capital appreciation. A gradual rebound in TLT, rather than a sharp rally, favors TLTW's options strategy and supports sustained income generation.

Imagine stocks and funds paying you dividends monthly! Your angst awaiting dividend payout is reduced 300%, or more, compared to quarterly, semi-annual, or (ugh) annual doles! September U.S. exchange-traded-monthly-paid (MoPay) dividends, upsides, and net-gains include: 1. Stocks-by-yield (77); 2. Stocks-by price-upside (30); 3. Closed-End-Investments, Exchange-Traded-Funds & Notes (CEICs/ETFs/ETNs) by-yield >10% (80); 4. ‘Safer' Ideal-Dividend-Equities by Cash Flow Margins (31). Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs. Equities; 4. Fund risks/rewards. 5. Safer Equity Rankings All per prices as of 8/29/25.

Let's talk about a terrific 12.2% dividend that is paid monthly.

Recent BLS jobs data revisions and declining survey response rates increase labor market uncertainty, supporting a dovish Fed pivot and potential rate cuts in September. A sharp rally in long-term Treasuries ahead of the Fed meeting could disadvantage TLTW's covered call strategy, capping its upside versus TLT. Given the current environment, I recommend holding a mix of TLT and TLTW to balance premium income with potential for price appreciation.

TLTW invests in long-term treasuries and writes covered calls on its holdings. TLTW's strategy results in a sky-high 17.3% distribution yield, but also consistent distribution cuts and declining prices. Current market conditions favor the fund, as broadly stable interest rates minimize price losses while distributions remain high.