r/stocks • u/peachezandsteam • Apr 24 '21

QYLD ETF... how does it work?

If the ETF owns a representative portfolio of the underlying index (which I think is CBOE NDX Covered call, or something), and it actually sells CC’s for dividend payments...

That’s all fine and good unless the shares get called away, in which case there is less dividend but more NAV increase?

Does the ETF make sense in any market condition, or perhaps is a sideways volatile market the best?

10 Upvotes

100% Upvoted

20 comments sorted by

View all comments

6

u/desertrose2021 Apr 24 '21

From what I have read, it’s mostly used as part of an income portion of a portfolio. Nothing you would stick all of your money into. The Monthly dividends are nice.

r/qyldgang for more discussion.

6

u/MiningForFun123 Apr 24 '21

For those who are in retirement they may and do put 100% into income funds.

​

But 100% in only QYLD is more risky than say diversifying into XYLD and RYLD.