LQDW News & Analysis

TLTW and LQDW Bond ETFs Pay Over 12% Annual Distribution Yields

The iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (BATS:TLTW) and the iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (BATS:LQDW) each generate over 12% annual distribution yields by selling covered calls. Treasury yields are near 5%, contributing to richer option premiums for these funds. TLTW reported a trailing payout of $2.41 per share over the last 12 months, translating into a distribution rate above 10% based on a share price of approximately $22. High yields and a volatile rate backdrop may attract income-focused investors looking for reliable cash flows from bond ETFs.