Global X NASDAQ 100 Covered Call ETF [QYLD] Stock Forecast

In the sea of 427 new ETFs launched last year, it can be easy to miss some of the more quietly innovative funds that outperform.

VettaFi's vice chairman Tom Lydon discussed the JPMorgan Equity Premium Income ETF (JEPI) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” JEPI has the distinction of having appeared on “ETF of the Week” before, but there's plenty of reason for its repeat performance.

The QYLD is an ideal ETF for investors who want exposure to tech stocks while willing to forego capital gains in exchange for substantial income from call option sales. Since the December 2021 NDX peak, the QYLD has generated 15% of additional income from call sale premiums, which has allowed the QYLD to outperform the NDX by over 20%.

QYLD offers a very high income yield due to a unique strategy. But that strategy has a downside and causes capital erosion over time.

Financial markets are set to close a difficult year amid the war in Ukraine, pandemic aftershocks, and inflation-eroding purchasing power. As always, the first rule for every investor is to try to survive and avoid making mistakes that could prove fatal.

It's that time of year again, when we reflect on where we've gone and how far we've come. When I look back at all that VettaFi has accomplished this year, well, it's hard not to get a little starry-eyed.

QYLD has outperformed its respective index in 2022 in addition to big tech. The main bear thesis continues to be disproven as QYLD has declined less than the Nasdaq in 2022 and its covered-call strategy hasn't created additional volatility.

The Columbia Seligman Premium Technology Growth Fund and Global X NASDAQ 100 Covered Call ETF both write call options on the NASDAQ 100 Index. QYLD showed up on our radar because its yields have surged to 15%+.

As CDs and 1-year T-bills offer yields between 4% and 5%, high yielding ETFs such as QYLD are more attractive than looking for yield in equities yielding 2-3%. QYLD has paid distributions for 106 consecutive months since its inception, as its buy-write covered call methodology isn't dependent on economic cycles.

The QYLD ETF owns the stocks within the Nasdaq 100 Index. It generates high current income through selling ATM call options on 100% of the notional of the fund.

Global X NASDAQ 100 Covered Call ETF is a US stock and trading under the symbol QYLD

Global X NASDAQ 100 Covered Call ETF stock price is $16.955 today.

Yes, Global X NASDAQ 100 Covered Call ETF is a publicly traded company.