TLTW / TLTW: Covered Call Treasury ETF, Excessively Risky, Sell

The iShares 20+ Year Treasury Bond BuyWrite Strategy ETF declined by over 8% due to increased treasury bond issuances and rising yields. The Treasury more_horizontal

The iShares 20+ Year Treasury Bond Buywrite Strategy ETF offers investors the ability to add a passive buy-write options overlay to their position in more_horizontal

Growing fears over the government's ability to pay its debt due to a large budget deficit and heavy Treasury issuance has pressured bonds. The iShares more_horizontal

Future decreases in interest rates and controlled inflation support the equity value of existing treasury bills. This makes investing in TLTW an attra more_horizontal

TLTW has outperformed TLT since its inception, but its performance may not tell the whole story as we have only seen a period when yields went up. The more_horizontal

TLTW is currently generating an average monthly yield of 1.56% by using a buy-write strategy on TLT. Year to date, it is outperforming its underlying more_horizontal

The iShares 20+ Year Treasury Bond BuyWrite Strategy ETF offers investors a yield of 19.6% annually from coupons and income from option sales. Since i more_horizontal

Covered call strategies often underperform in the long term because they are too aggressive at earning yield and sacrificing capital appreciation. TLT more_horizontal