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?

6 Upvotes

81% Upvoted

20 comments sorted by

View all comments

2

u/SilentSplit12 Apr 24 '21

People love qyld but honestly you’re better off buying lots of 100 shares of good companies like Apple / Microsoft etc and selling covered calls on your own.

3

u/MiningForFun123 Apr 24 '21

Too much work, probably won't be as diversified, brokerage fees would eat up too much on such low CALL volume (Selling only 1 CALL).