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Global X NASDAQ 100 Covered Call ETF

QYLD tracks an index that holds Nasdaq 100 stocks and sells call options on those stocks to collect the premiums.

My Long QYLD / Short Nasdaq 100 Futures combination remains viable for enhanced income, but has delivered mediocre results over the past three months due to big stock price moves. Implied volatility increases the return potential of this strategy, but reduced contango in the futures curve will nullify some of that. Investors who remain bearish, or who don't foresee material stock market upside, may wish to consider this unique income combination strategy.

15% Yield Remains Possible By Mixing QYLD With Futures - Hoping For Milder Stock Price Action

This fund is well positioned to benefit from increasing volatility, and the VIX should rise significantly in the back half of the year for multiple reasons. QYLD ETF has an expense ratio of .61%, $8.8 billion in assets under management, and a trailing yield of 11.50%. The fund holds 51.58% in technology, 15.49% in communication, and monthly payouts are generated by selling at-the-money call options against the Nasdaq 100.

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Income-focused investors have flocked to covered call Exchange Traded Funds (ETFs) that promise higher distributions while limiting potential downside. These funds also promise to benefit from the rally in the stock market.

Are covered call ETFs like QYLD, TSLY, and JEPI good for investors?

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Global X NASDAQ 100 Covered Call ETF is popular among income investors for high-yield and monthly payouts. Its current dividend yield of ~11% is indeed highly attractive in absolute terms. However, when benchmarked against risk-free rates, the yield spread is currently among the thinnest levels in multiple years.

QYLD: Two More Reasons To Sell

More restrictive interest rate environment has created a wider option space for yield-seeking investors to select the right assets. Yet, finding something that produces close to double-digit yield is not that easy and often times comes with a lot of risk. Covered call ETFs can offer both - abnormal income and relatively stable income profile.

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Global X NASDAQ 100 Covered Call ETF offers an attractive combination of a high dividend yield and exposure to mega-cap technology stocks. It also pays out its distributions monthly. However, we share four reasons why it is a poor passive income machine.

Why 11.7%-Yielding QYLD Is A Poor Passive Income Machine

The Global X NASDAQ 100 Covered Call ETF offers a high dividend yield above 11% and exposure to top companies. QYLD's option strategy limits upside potential but generates income through covered call writing. QYLD is best suited for investors prioritizing income and looking to complement their portfolio with additional diversification.

QYLD: Likely To Thrive Off Volatility Throughout The Remainder Of 2024

The Global X NASDAQ 100 Covered Call (QYLD) ETF total return has continued to lag behind the Nasdaq 100 index this year. It has returned just 0.98% while the Invesco QQQ and the SPDR S&P 500 ETF (SPY) have risen by over 11%.

Nasdaq 100 covered call ETF (QYLD) yields 11.8% but is it a buy?

Covered Call ETFs allow retail investors to capitalize on covered call strategies without managing call writing themselves. An investment position in QYLD exclusively can currently allow investors to earn an estimated ~11.8% yield, while being exposed to downside risks. Combining QYLD with a Short Nasdaq Futures position can allow investors to earn an estimated ~15% yield, while being exposed to upside risks (instead of downside risks).

QYLD And Contango Capture For Possible 15% Yield

QYLD ETF writes ATM call options on the Nasdaq 100 Index to generate high distribution yields. The Fund has underperformed because it trades off all of the index's upside. Instead of QYLD, investors may want to consider the JEPQ, which also writes call options on the Nasdaq 100 Index, but sells OTM calls and retains some upside.

QYLD: Consider JEPQ As An Alternative

The Nasdaq 100 Covered Call ETF (QYLD) has slowly become one of the biggest covered call ETFs in the market. It has grown to accumulate over $8.45 billion in assets, making it one of the top active funds in Wall Street.

QYLD ETF has an 11% yield but is lagging QQQ and JEPQ

QYLD is a covered call ETF that underperformed the S&P 500 index fund in 2024. QYLD's strategy focuses on generating income rather than capital appreciation. QYLD has consistently distributed monthly income and may be attractive for income-focused investors.

QYLD: Opportunity Cost May Not Outweigh The 11.55% Yield For Income Investors

Global X NASDAQ 100 Covered Call ETF has gained popularity among investors for its covered-call strategy. However, the current dividend yield of ~11.6% may not be sufficient to compensate for the downside risks. The current option premium is relatively low (because of the low implied volatility) while downside risk is high given the elevated P/E of the Nasdaq index.

QYLD: Risks Outweigh Upside Potential

The Global X Nasdaq 100 Covered Call ETF pays a dividend yield of nearly 12%. It owns large-cap tech stocks but uses options to generate income.

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Surrounded by the smoothness of the Tuscan landscape, I have always thought that the pursuit of harmony in human activities is the first step toward happiness. I also chase a balance in investments, seeking to create a portfolio whose securities provide a steady cash flow over time and grow the nominal capital invested.

My 9% Income Portfolio - Harmony In Investment

Covered call ETFs, such as QYLD, have provided stable income for dividend investors despite market challenges. QYLD focuses on offering consistent income rather than maximizing total returns. QYLD is expected to perform well in a market with elevated volatility levels.

QYLD: 2024 Should Be A Banner Year For This Fund

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Investors interested in options income have many choices, including two popular funds, QYLD and QQQY. This article assesses the strategy of each fund, including their methodology and composition. It also looks at the differences between the two trades, calls vs puts, and analyses which is more efficient for generating income.

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The Global X Nasdaq 100 Covered Call ETF has consistently lagged behind the Nasdaq-100 index in terms of performance. The current dividend yield of QYLD has dropped, making it less attractive for investors. However, QYLD offers a high dividend yield of ~11.5% and lower volatility compared to the index, making it a solid choice for yield-seeking investors.

QYLD: Solid Double Digit Yield Choice For Conservative Investors

The Nasdaq 100 had a strong year in 2023, with a 55% increase, but its dividend yield is only around 1%. Income investors can invest in Nasdaq 100-based funds that sell covered calls to generate income. The Global X Nasdaq 100 Covered Call ETF, Nuveen Nasdaq 100 Dynamic Overwrite Fund, and Global X Nasdaq 100 Covered Call & Growth ETF are popular funds that use this strategy.

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