Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: TLTW is ratedTier 4 (Harvest)while TMF is ratedTier 5 (Octane).TLTW is structurally lower risk than TMF.
| Metric | TLTW | TMF |
|---|---|---|
| Total Return (1Y) | 0.00% | 0.00% |
| NAV Change (1Y) | 0.00% | 0.00% |
| Max Drawdown | -18.50% | -45.60% |
| Beta | 0.90 | 2.85 |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
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.
TMF (Direxion Daily 20+ Year Treasury Bull 3X Shares) is a high-risk synthetic income fund managed by Direxion Funds. It tracks the 20+ Year Treasury (3x) index across approximately 40 positions. With $3.4B in assets under management, this fund has been operational since Apr 2009.
Strategy: Uses aggressive derivative strategies on single stocks to produce yields far above market averages, with corresponding volatility.
In the head-to-head battle of TLTW vs TMF, the choice depends on your specific goal. TLTW wins for Immediate Income with a 9.91% yield. However, TMF 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:
TLTW
Annual Yield: 9.91%
$825/mo
($9,905/year)
Frequency: monthly
TMF
Annual Yield: 4.47%
$372/mo
($4,467/year)
Frequency: quarterly
Income Gap: TLTW generates $5,438/year more than TMF on the same $100k investment.
Over 20 years, that's $108,769 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. TMF has delivered a superior Total Return of 0.00% 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
TMF (More Volatile)
Max Drawdown: -45.60%
-$45,600
Worst unrealized loss
Protection Value: TLTW saved investors $27,100 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.
What is Beta? Beta measures how much a fund moves relative to the broader market. A beta of 1.0 means it moves in lockstep with the market. Higher beta = more volatility = more risk.
TLTW EFFICIENCY SCORE
11.01%
Beta: 0.90 | Yield: 9.91%
TMF EFFICIENCY SCORE
1.57%
Beta: 2.85 | Yield: 4.47%
Winner: TLTW generates 11.01% yield per unit of market risk, compared to TMF's 1.57%.
Practical Application: For defensive portfolios (retirees, conservative investors), TLTW delivers more income per "unit of stress." This makes it the superior choice for sleep-well-at-night income generation.