I now prefer JEPQ over QYLD due to JEPQ's lower fees and its partial, rather than full, use of option overlays. With VIX volatility subdued, QYLD's 100% option overlay caps upside and reduces income potential, making it less attractive in current conditions. JEPQ has outperformed QYLD in total return (64% vs. 36%) over the past 3 years, and I expect this outperformance to continue.
QYLD offers high income with a balanced payout approach, but NAV erosion remains a concern over the long term. Total returns from holding QQQ and self-generating income outperform QYLD, even after accounting for withdrawals. QYLD only meaningfully outperforms QQQ during sharp market corrections, not during consolidations or bull markets.
I am downgrading Global X NASDAQ 100 Covered Call ETF to a sell due to its rigid, outdated covered-call strategy and consistent underperformance versus peers. QYLD's strategy of selling at-the-money calls on 100% of its portfolio each month limits upside and fails to adapt to market volatility. Newer covered-call ETFs like GPIQ and QQQI use more flexible, discretionary strategies, delivering superior total returns and income with similar risk.
![]() QYLD In 2 weeks Estimated | Other | $0.17 Per Share |
![]() QYLD 1 weeks ago Paid | Other | $0.17 Per Share |
![]() QYLD 1 month ago Paid | Monthly | $0.17 Per Share |
![]() QYLD 2 months ago Paid | Monthly | $0.16 Per Share |
![]() QYLD 3 months ago Paid | Monthly | $0.17 Per Share |
![]() QYLD 4 months ago Paid | Monthly | $0.17 Per Share |
![]() QYLD In 2 weeks Estimated | Other | $0.17 Per Share |
![]() QYLD 1 weeks ago Paid | Other | $0.17 Per Share |
![]() QYLD 1 month ago Paid | Monthly | $0.17 Per Share |
![]() QYLD 2 months ago Paid | Monthly | $0.16 Per Share |
![]() QYLD 3 months ago Paid | Monthly | $0.17 Per Share |
![]() QYLD 4 months ago Paid | Monthly | $0.17 Per Share |
CXA Exchange | US Country |
This investment firm focuses on a distinct approach to generating returns for its investors by primarily committing its assets into the securities that form the CBOE NASDAQ-100® BuyWrite Index. The firm's strategy revolves around the concept of a buy-write, which involves holding a portfolio of stocks while simultaneously writing covered call options on the same index. This methodology is designed to offer investors a unique blend of income generation and potential for capital appreciation, with a focus on the stocks included in the NASDAQ-100® Index. Despite its specialized strategy, the fund remains non-diversified, concentrating its investments in the securities of the underlying index to maintain a targeted investment approach.
The primary investment of the fund involves allocating at least 80% of its total assets in the securities that constitute the CBOE NASDAQ-100® BuyWrite Index. This selection is meticulously curated to reflect the performance of a portfolio that not only holds the stocks included in the NASDAQ-100® Index but also engages in writing one-month at-the-money covered call options on the NASDAQ-100® Index. This strategy aims at capital growth through adherence to the index's performance, complemented by income generated from the options writing.
An integral component of the fund's investment approach is its continuous engagement in writing (or selling) a succession of one-month at-the-money NASDAQ-100® Index covered call options. This systematic writing of covered calls is designed to generate income for the fund, which, when combined with the capital gains from the securities of the underlying index, aims to provide an overall return. The covered call options strategy is a cornerstone of the fund’s operations, highlighting its non-traditional income strategy while maintaining a focused equity exposure.
Despite the prevailing market trend towards diversification, this fund deliberately maintains a non-diversified stance. By focusing on the securities within the CBOE NASDAQ-100® BuyWrite Index, the fund prioritizes a targeted investment strategy over diversification. This approach allows for a concentrated exposure to the performance of the NASDAQ-100® Index and its constituents, aligning closely with the fund's core strategy of leveraging the index's growth potential alongside income from options writing. This focused approach, however, also carries a higher risk due to its less diversified nature.