In a Golden Era of Covered Call ETFs, Don’t Miss This 1 Overlooked Fund

Core Insights - The iShares 20+ Year T-Bond Buywrite Strategy ETF (TLTW) has consistently yielded more than 10% since its inception over three years ago, despite fluctuations in interest rates [1][6] - TLTW is a $1.5 billion fund that employs a covered-call-writing strategy on the iShares 20+ Year Treasury ETF (TLT), which has nearly $50 billion in assets [2] - The bond market is transitioning to a more normal upward-sloping yield curve, enhancing the potential for long-term bonds to appreciate in price while providing attractive yields [3] Fund Strategy - TLTW primarily holds TLT and cash, selling covered call options on TLT using custom-designed FLEX options, which generates additional income on top of TLT's current yield of around 4% [4] - The technical outlook for TLT appears positive, with indicators suggesting a potential bullish trend [4] Market Context - Recent Federal Reserve interest rate actions and discussions regarding market conditions can influence long-term bond prices, providing traders with insights into TLT's price movements [5] - A comparison of the yield curve from four months ago to the current week indicates a yield drop, contributing to TLTW's overall return, which includes both covered call income and TLT's regular income [6] Risk Considerations - TLTW's performance is sensitive to price shocks from rising long-term bond rates, which can impact its income yield [7]