A few months ago, one of my readers asked what I think of this Nasdaq 100 Covered Call ETF (QYLD).
The most appealing thing about this strategy is that it gives us a prevailing distribution yield of 11% currently.
Readers that are more prudent would be more cautious and sceptical about the yield. This is one of the reasons the reader asked for my opinion about.
I think I can see the appeal of this ETF’s strategy for some readers looking for income.
However, I think if we view from the total returns perspective and not a dividend income perspective, this ETF may have the same less than desirable characteristics that stop us from investing in the underlying index.
Let us go deeper into it.
This post was originally posted here. The writer is a veteran community member and blogger on InvestingNote, with a username known as @Kyith.
What is the Nasdaq 100 Covered Call ETF (QYLD)?...