Great ariticle, would you like to share it?TLTW versus TLT ETF - Which is Better?
@koolgal:$iShares 20+ Year Treasury Bond Buywrite Strategy ETF(TLTW)$ is a Turbo Charged version of this year 's most popular bond ETF $iShares 20+ Year Treasury Bond ETF(TLT)$ $iShares 20+ Year Treasury Bond Buywrite Strategy ETF(TLTW)$ ETF seeks to track the investment results of an index that reflects a strategy of holding $iShares 20+ Year Treasury Bond ETF(TLT)$ while writing (selling) one month covered call options to generate income. TLTW provides a convenient, easy access and cost effective way to options strategy on the US Treasury Market normally the domain of institutions and experienced traders. Even though TLTW was just launched last year on August 18 2022, it has registered inflows of USD 819 million which is rather exceptional. However TLT is more popular with inflows of USD 17.8 billion on bets for a long bond rebound. What is the difference between TLT and TLTW? TLT ETF is primarily invested in longer duration US Treasury Bonds of over 20 years. In contrast TLTW targets Treasury Bonds with variable interest rates, often appealing to investors seeking protection against rising interest rates. So TLTW focuses on capitalising on the performance of floating rate Treasury Bonds. The expense ratio of TLTW is 0.35% versus 0.15% for TLT. Distributions are paid monthly for both TLTW and TLT. TLTW distribution yield is a huge 17.91% versus 3.55% received by TLT. At the last closing price of USD 28.45, TLTW has a lower price point than TLT which closes at USD 92.99. TLTW is certainly easier on the pockets. So for investors who are seeking dividend income, TLTW is a great ETF. However for investors who are seeking capital growth TLT is a much better option. Performance wise TLTW is up 1.4% in the past 5 days but down 13% year todate. In contrast TLT is up 2.9% in the past 5 days but down 8% year todate. TLTW versus TLT - which is better? The choice is up to individual investor. Everyone has different goals in investing and different risk appetite. Investing is very much a personal decision and both TLTW and TLTW offer attractive regular dividends on a monthly basis which is a great source of passive income. @Daily_Discussion @TigerStars @MillionaireTiger @CaptainTiger @Tiger_comments @Tiger_Earnings @TigerClub @Tiger_SG
TLTW versus TLT ETF - Which is Better? Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.