Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both AGNC and TLTW fall intoTier 4: Harvest. This suggests they share a similar risk profile and volatility expectation.
| Metric | AGNC | TLTW |
|---|---|---|
| Total Return (1Y) | 24.81% | 0.00% |
| NAV Change (1Y) | 12.18% | 0.00% |
| Max Drawdown | -33.28% | -18.50% |
| Beta | - | 0.90 |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
AGNC (AGNC Investment Corp.) is a options-based income fund managed by mREIT. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Generates enhanced income through covered call options on equity holdings, trading upside potential for premium income.
TLTW (iShares 20+ Year Treasury Bond Buywrite Strategy ETF) is a options-based income fund managed by iShares. It tracks the 20+ Year Treasury index across approximately 40 positions. With $1.7B in assets under management, this fund has been operational since May 2023.
Strategy: Generates enhanced income through covered call options on equity holdings, trading upside potential for premium income.
In the head-to-head battle of AGNC vs TLTW, the choice depends on your specific goal. AGNC wins for Immediate Income with a 12.63% yield. However, AGNC is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
AGNC
Annual Yield: 12.63%
$1,053/mo
($12,632/year)
Frequency: monthly
TLTW
Annual Yield: 9.91%
$825/mo
($9,905/year)
Frequency: monthly
Income Gap: AGNC generates $2,726/year more than TLTW on the same $100k investment.
Over 20 years, that's $54,525 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. AGNC has delivered a superior Total Return of 24.81% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
TLTW (More Resilient)
Max Drawdown: -18.50%
-$18,500
Worst unrealized loss
AGNC (More Volatile)
Max Drawdown: -33.28%
-$33,280
Worst unrealized loss
Protection Value: TLTW saved investors $14,780 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: TLTW demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.