Can Treasuries Pay You Like Stocks? Global X Thinks So With The New TLTX ETF

In an economy where investors seek income but are wary of interest rate risk, Global X‘s newest ETF is betting that Treasuries can deliver both.

The new Global X Treasury Bond Enhanced Income ETF (BATS:TLTX) seeks to maximize U.S. government bond debt through the addition of a tactical twist: weekly writing of covered calls. The fund leverages both classic exposure to Treasuries and Treasury STRIPS, as well as short-duration options on Treasury ETFs, to generate premium income that mitigates the impact of interest rate increases.

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In contrast to traditional bond funds, which rely solely on yield, TLTX proactively manages interest-rate sensitivity and seeks to smooth returns without compromising upside potential in a segment of its portfolio.

Pedro Palandrani, Global X’s Head of Product Research & Development explained that premiums from weekly call options can offset drawdowns during volatile rate periods.

The launch is a continuation of Global X’s push into options-enhanced ETFs. The firm now has 15 covered call products with TLTX. Through June 30, 2025, Global X’s covered call suite had amassed over $21 billion in assets under management.

TLTX Fund Snapshot:

• Strategy: Treasuries + weekly covered calls
• Payout Frequency: Monthly
• Expense Ratio: 0.29%
• Structure: Actively managed

The hybrid structure of the fund exposes investors to a well-established asset class, U.S. Treasury bonds, while also tapping into a potential secondary income source through options. And by writing calls on only half of the portfolio, TLTX retains flexibility for capital gain, setting it apart from funds that fully take in upside in exchange for yield.

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