No I don't believe it does, it just goes into over drive at a higher RPM.
Don
the only thing i've noticed tow/haul does is hold the lower gears to about 2500 rpm under steady throttle before shifting, enabling you to apply more throttle while under acceleration w/o downshifting as easily. I have noticed zero benefit of tow/haul when engaged in 4th gear(od). I think it is a good idea but really a manual shift mode would be way better in my opinion. The current generation HD's and mega-dollar GFM rides seem to be the only people who get that feature and ironically, probably are the vehicles which need that feature the least...