Check out this ETF. QYLD. Here is the spec sheet for it. https://www.globalxetfs.com/content/files/QYLD-factsheet.pdf Does anyone have any thoughts on it? Good to buy/hold?
I sometimes use it as a proof that trading covered calls, naked puts, secured puts, and the wheel - don't work. Theoretically QYLD performance should be very similar to QQQ, but it seems a bit worse: https://www.barchart.com/etfs-funds/quotes/QYLD/interactive-chart (blue: QYLD; orange: QQQ) I believe the chart is adjusted for dividends.
The chart isnt adjusted for dividends. QYLD pays currently an 11.73% yield. QQQ pays currently a 0.52% yield.
Why do you think the chart isn't adjusted for dividends when I mentioned that I believe it is? I just checked and my broker shows the same chart and it is adjusted for dividends. While here is the same chart unadjusted for dividends: https://finance.yahoo.com/chart/QYLD (main chart: QYLD; orange: QQQ) You can see how horrible QYLD would look like when compared to QQQ and unadjusted for dividends. The dividends barely allow it to come close to QQQ in performance. Either way QYLD doesn't beat QQQ any way you slice it.
Isn't the spread exactly the yield David mentioned? Caveat, I have not read the prospectus at all, so have no idea, the numbers just stood out.
Yes, the dividend/yield makes up for the difference between QYLD and QQQ, so their performance is very similar, or worse with QLD. Though QYLD may be less volatile.
Not a fan. Mechanically selling covered calls is going to result in worse returns than simple buy and hold. Often, the returns are drastically worse because of whipsaw due to selling calls during a market bottom. If you want to sell covered calls, it's imperative to employ some sort of market timing. Even then, you will struggle to beat buy and hold.