QQQY ETF

QQQY's distribution rate includes a portion of capital returned to investors, which can influence how its distribution yield is perceived. The fund's short-put strategy limits upside potential, making it less effective in capturing gains from Nasdaq's growth. The Nasdaq's 37% return outpaced QQQY's 20% in the past year, primarily due to QQQY's limited upside potential and its allocation to low-interest government bonds.

MIAMI, Sept. 30, 2024 (GLOBE NEWSWIRE) -- 09-30-2024 Distributions Ex & Record Date 10/1/2024.

QQQY employs a cash-secured puts strategy, which involves selling put options on the Nasdaq 100 index and holding cash as collateral. This strategy aims to generate income from option premiums. I criticize QQQY's high distribution rate, which is primarily composed of return of capital. The ETF is distributing more than it earns, leading to capital erosion over time. The Fund has performed reasonably well in a rising market, but may face challenges in a declining market, mirroring the index performance.

Defiance Nasdaq 100 Enhanced Options Income ETF offers a headline distribution yield of 52.6% by systematically writing daily put options on the Nasdaq 100 Index. QQQY ETF's put-write strategy is similar to buy-write strategies, but it may outperform in a rising market as its written puts are less likely to expire in-the-money. Despite its high distribution yield, the QQQY ETF still suffers from a capped upside/uncapped downside problem and underperforms the QQQ over the long run.

QQQY offers a massive yield but has experienced consistent price and NAV decline since inception. QQQY's at-the-money option strategy limits upside potential and may not capture price gains of the Nasdaq-100 Index. ATM option strategies remain inferior to OTM options strategies which allow for greater price upside and general stability.

MIAMI, May 31, 2024 (GLOBE NEWSWIRE) -- Defiance ETFs, a leader in thematic and income ETFs, is proud to announce monthly distributions for the QQQY - Defiance Nasdaq-100 Enhanced Options Income ETF, JEPY - Defiance S&P 500 Enhanced Options Income ETF, IWMY – Defiance R2000 Enhanced Options Income ETF, TRES – Defiance Treasury Alternative Yield ETF, and SPYT – Defiance S&P 500 Target Income ETF. Distribution as of 05/31/2024 ETF Ticker Distribution per Share Distribution Rate * Ex-Date Record Date Payment Date QQQY $0.8013 63.63% 06/03/2024 06/03/2024 06/05/2024 JEPY $0.5532 40.72% 06/03/2024 06/03/2024 06/05/2024 IWMY $0.9100 71.40% 06/03/2024 06/03/2024 06/05/2024 TRES $0.1600 11.29% 06/03/2024 06/03/2024 06/05/2024 SPYT $0.3302 20.05% 06/03/2024 06/03/2024 06/05/2024 QQQY Inception Date: 9/13/2023 Click here for QQQY Standardized Performance JEPY Inception Date: 9/18/2023 Click here for JEPY Standardized Performance IWMY Inception Date: 10/30/2023 Click here for IWMY Standardized Performance TRES Inception Date: 01/24/2024 Click here for TRES Standardized Performance SPYT Inception Date: 03/07/2024 Click here for SPYT Standardized Performance The performance data quoted above represents past performance.

The Defiance Nasdaq 100 Enhanced Options Income ETF provides monthly payouts through the sale of put options and investment in U.S. Treasuries. Since its launch, QQQY has delivered total returns of 11.37%, compared to the Nasdaq 100 index's gain of 19.65% over the same period. QQQY is expected to excel in a market with stable fluctuations and heightened volatility, making it a favorable choice for income-seeking investors.

The Defiance NASDAQ 100 Enhanced Options Income ETF (QQQY) writes options against QQQ expiring the same day they are written, aiming for consistent monthly yield distributions.

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.