It has consistently yielded more than 10% since its inception more than three years ago. It expectedly sank when interest rates gyrated lower. And it is in one of the hottest styles the ETF market has ever seen, covered-call-writing funds. But despite all of that, you probably have not heard of it. So it’s time you did.
I’m talking about the iShares 20+ Year T-Bond Buywrite Strategy ETF (TLTW), a $1.5 billion fund. That’s not a small number, but nothing compared to the uber-popular proxy for long bonds, the nearly $50 billion iShares 20+ Year Treasury ETF (TLT). TLT owns the longest end of the Treasury curve, 20-30 year maturities. Those typically offer higher yields than short-term bonds, although in recent years that has not been the case.
