1Wk·

Let's move on. Next rent safe

24.01

Other Global X NASDAQ 100 Covered Call ETF

Received x5233.72 Dividends at $0.177

$926.24

21 Comments

Epi@Epi

1Wk

With a simple Nasdaq100 ETF you would have made 2.5% YTD. With your investment sum of just under 90k, that would have been over 2000€. So rent for February secured at the same time.

I somehow don't understand the hype about covered call ETFs. 🤷

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SemiGrowth@SemiGrowth

1Wk

@Epi it has also made another 2.2% price gain

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Oleg@ScorpionfromBW

1Wk

@SemiGrowth even. Plus 1% distribution

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Epi@Epi

1Wk

@SemiGrowth True, the overall difference over a month is not significant. Although price gains are not decisive for CC investors anyway. Over a year, the difference is already considerable and over a decade it is likely to be unbelievably large.

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Oleg@ScorpionfromBW

1Wk

@Epi It's a test, not hype. It's going well at the moment. As for the future, we'll see

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SemiGrowth@SemiGrowth

1Wk

@Epi But isn't the point of covered call ETFs that you are hedged downwards? Of course it underperforms in a good year

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SemiGrowth@SemiGrowth

1Wk

@Epi well, 6% over one year. In 2021/2022 it will certainly have performed significantly better than the Nasdaq

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SemiGrowth@SemiGrowth

1Wk

@Epi but yes, in the long term you are of course right. But you should perhaps also put performance in relation to volatility. The risk-free return should be higher

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Epi@Epi

1Wk

@SemiGrowth Hedged to the downside? How did it perform in 2008-9 and 2020?
In the summer of 2024, it also lost around 10% - similar to the original.

Nothing seems hedged to me.

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Epi@Epi

1Wk

@SemiGrowth What is the risk-free return over the last 25 years?

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SemiGrowth@SemiGrowth

1Wk

@Epi I did a bit of research, it seems to be extremely difficult to find out. Found 7 covered call ETFs with widely varying performance. Most of them are significantly worse than the Nasdaq. So you're probably right.

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Thoŕton@Notroht

1Wk

I'm also starting with $QYLG this year, let's see how it develops...

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Oleg@ScorpionfromBW

1Wk

@Notroht that's really cool. May I ask where you trade it?

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Thoŕton@Notroht

1Wk

@ScorpionfromBW As a Swiss citizen with Interactive Brokers England. You can buy directly from any stock exchange, whether in the EU, Switzerland, America, England, etc...it's super cheap and offers everything else you need for trading....

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