QYLG ETF

QYLG provides monthly income by using a covered call strategy on half of its Nasdaq 100 portfolio, which helps balance income and some capital growth. This approach limits potential gains, making it a better choice for investors looking for income rather than long-term growth. Other options like QYLD, JEPQ, and QQQI may offer higher yields but tend to have lower total returns.

QYLG sells at-the-money call options on 50% of its portfolio, balancing capital appreciation and income, unlike QYLD, which erodes principal over time. The fund has performed as expected and provided a middle ground to capture both capital appreciation and income. Despite QYLG's performance, it is not recommended for long-term investors due to its inability to adapt to market conditions.

Global X Nasdaq 100 Covered Call & Growth ETF implements a 50% buy-write strategy on the Nasdaq 100. Its objective is to generate income while keeping more growth potential than a 100% buy-write ETF like QYLD. QYLG has performed quite well compared to its peers over the last 2 years, although it is lagging a bit behind JEPQ.

The Global X Nasdaq 100 Covered Call & Growth ETF combines covered calls with capital growth potential. QYLG aims to generate income through selling call options while maintaining exposure to the Nasdaq 100 Index's growth prospects. QYLG offers a balance between income generation and capital appreciation, appealing to investors seeking a middle ground between high-yield and growth-focused funds.

Global X Nasdaq 100 Covered Call & Growth ETF writes covered calls on 50% of its holdings, offering better returns and participation in upside compared to its sister QYLD. QYLG offers less protection in bear markets compared to QYLD, resulting in lower total returns during market downturns. QYLG's NAV has shown no decay and its dividends have remained stable, making it a potentially attractive option for long-term investors.

When it comes to equity income, there's a perception that dividend-paying companies are light on growth. The recent space of debuted and growing payouts among tech giants such as Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), among others, has altered that scenario for the better.

This article provides an overview of the Global X Nasdaq 100 Covered Call & Growth ETF. The QYLG ETF shares operating similarities with the QYLD ETF that I am cautious on. However, the key difference is that QYLG only overwrites 50% of its portfolio. This allows for modest capital appreciation and an attractive distribution. Compared to the SPY ETF, the QYLG ETF may be a better mouse trap with higher total returns and yield.