Global X Nasdaq 100 Covered Call ETF (0U20)
XBER 
Summary
0U20 Chart
QYLD's 12 Percent Yield Has Quietly Eroded NAV by 35 Percent Over a Decade While the Nasdaq Tripled
If you bought Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD) a decade ago for the headline yield, the monthly checks have arrived on schedule.
QYLD's 12% Yield Looks Generous, But Its 10 Year Total Return Tells a Harder Story
The Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD) advertises a trailing distribution yield around 12%, which is roughly ten times what the broad market pays.
This Under The Radar ETF Bets On Tech And Pays 11% Dividends
Monthly income checks from a tech-heavy portfolio sound appealing, but the mechanics behind how QYLD generates that income determine whether it belongs in your portfolio.
Global X Nasdaq 100 Covered Call ETF (0U20) FAQ
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Global X Nasdaq 100 Covered Call ETF Profile
| XBER Exchange | US Country |
Overview
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.
Products and Services
- Securities of the Underlying Index
- Covered Call Options Strategy
- Non-Diversified Investment Portfolio
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.
