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Performance QYLE vs. Index Nasdaq 100

$QYLE (-0.95%) I haven't been around long, so I don't understand why the Nasdaq 100 (Index) has recovered and the NASDAQ 100 Covered Call USD (Dist) is still doing so badly. Is it simply because of the high distribution?

16 Comments

Mo@BigMo

Because he regularly gives up upside potential by selling call options in order to collect premiums (high payout). This works well in sideways or slightly falling markets, but in strong bull markets, growth is capped. In addition, the high dividend visually reduces the share price because it is paid out instead of continuing in the share price. In net terms, there is less price return, but current income.

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wealth_strategist_1953@wealth_strategist_1953

@BigMo Ah okay, is the ETF therefore a bad buy (as some say) or is it okay as a regular income? Does it eventually deplete completely like a savings account with regular withdrawals?

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Mo@BigMo

In bull markets, the normal index simply performs MUCH better.
Personally, I would rather realize profits by selling... In bear markets, you need a thicker skin 😬

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Dividendenopi👴@Dividendenopi

@wealth_strategist_1953 To achieve performance, this ETF is clearly to be avoided. In such volatile times as now, it depends on personal performance 😇😉, so far well suited for cash flow, but should be constantly monitored. I have now bought it in several tranches since the beginning of 2020. The price losses have been offset by the reliable distributions. Not so satisfactory. The plan was cash flow with capital preservation. That hasn't worked out so far. I remain invested, but the position is at the top of my watch list.

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wealth_strategist_1953@wealth_strategist_1953

@Dividendenopi The ETF makes up 10-11 percent of my portfolio. I hope my loss will disappear permanently at some point. After all, the dividends will make up for it. Unless they spontaneously close the ETF and you're left with the losses. It can happen, can't it?

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Dividend_Buddha@Marcel76

I pursue a consistent dividend-oriented investment strategy with a portfolio that currently pays a net dividend of 6%. For me, the key figure is the stable monthly cash flow. I also have the ETF with around 18K in my portfolio. The focus here should not be on price performance - but on the distribution. In my portfolio, this amounts to around €200 net per month - a suitable component of my dividend strategy for me ...

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Mo@BigMo

@Marcel76 Total return (including reinvested dividends):

10 years p. a.
QYLD +7.63 %
QQQ +17.67 %

Total return (2013-2025)
QYLD +126.6 %
QQQ +575.5 %

Stable cash flow or not: that's how much performance you're leaving behind with QYLD.

https://totalrealreturns.com/n/QYLD,QQQ

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Dividend_Buddha@Marcel76

@BigMo Everything is understandable! That is also well known. As an income-oriented investor, this is actually secondary for me ...

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Stulle 🥪@Stullen-Portfolio

It doesn't read like you understood the product before investing...and somehow it doesn't look like it's the right product for you either.... 🤷

Greetings
🥪

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wealth_strategist_1953@wealth_strategist_1953

@Stullen-Portfolio I don't think there are many private investors who are well versed in this. Not even the so-called financial advisors.

I had only read that the NASDAQ 100 (index) continues to rise in perspective (forecast for 2030 to 2050), so I don't actually expect a total loss.

But everything actually rises in perspective if you live long enough. And what these forecasts are supposed to be - well.

I would just have been interested to know whether the ETF will be closed if it performs too poorly or similar.

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Stulle 🥪@Stullen-Portfolio

@wealth_strategist_1953
...some financial advisors actually make you wonder what they do for a living 🙈🙄

Greetings
🥪

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Banana M.@Banana_Millionaire

If a CC ETF on the Nasdaq, then rather the $JEPQ.
At least it looks much better there.
But even this will of course not be able to keep up with the normal Nasdaq.

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Dividendenopi👴@Dividendenopi

@Banana_Millionaire I don't really see anything significantly better 🤔

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Banana M.@Banana_Millionaire

@Dividendenopi So -15% to -22% on YTD or -4.5% to +2.9% on 1M, I see as much better. Especially because the ETF pursues the same goal.

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Dividendenopi👴@Dividendenopi

@Ratio Hm, I can pick out a period for each investment where one performs better than the other. Having invested in $JEPQ since the beginning, a minus of a good 10% compared to around minus 6.5%, both are low performers. The distributions from $QYLE are around three times as high.🤷‍♂️

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Banana M.@Banana_Millionaire

@Dividendenopi Well, if I invest in an ETF for a specific reason, then of course I also compare it with the competition.
I have to put the two in relation to each other. I think the difference is significant for these short periods of time.
Your minus is individual and is due to your entry point.
I am also invested in JEPQ and am up almost 7% and also enjoy the monthly distribution.

Three times as high?
Compare the months January to June 😉
QYLE JEPQ
0.98% to 0.72%
0.99% to 0.72%
0.88% to 0.48%
1.00% to 1.00%
0.96% to 0.90%
0.99% to 1.28%

The total payout ratio for the JEPQ is of course not yet correctly defined, as it has not yet distributed dividends for a single year.
But the trend shows that it will also level off at ~10%.

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