iShares Trust - iShares 20+ Year Tr.. (TLTW)

The iShares Trust - iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) is an exchange-traded fund (ETF) that employs a unique investment strategy. The fund's primary goal is to generate income by writing call options on its underlying holdings.

Here's how it works: the fund buys shares of an underlying fund, which in this case is focused on 20+ year Treasury bonds. Then, the fund writes (or sells) call options on those shares, but only up to the amount of shares it holds. This means that for every call option written, the fund has a corresponding share of the underlying fund to back it up, effectively 'covering' the short position.

This 'buy-write' strategy allows the fund to earn premiums from selling the call options, which can provide a regular stream of income. At the same time, the fund still benefits from any potential capital appreciation of the underlying Treasury bonds. By combining these two approaches, the fund aims to provide a more consistent and stable source of returns for its investors.

It's worth noting that the fund's strategy is designed to be relatively conservative, focusing on high-quality, long-term Treasury bonds. This can help reduce the overall risk of the portfolio and provide a more stable foundation for investors seeking income and capital preservation.