4Wk·

Feeding the beast

07.07

Global X NASDAQ 100 Covered Call ETF

Bought x74 at €13.45

€995.45

10 Comments

DerDanner@Therapeut

1Wk

Can you explain to me what the negative aspects are here?
I find over 10% return per year as distributions, even paid out monthly, extremely good.
I would like to utilize my lump sum

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Cekay@CMustermann

1Wk

@Therapeut Capped upside, only limited capped downside. It's an experiment for me - so far quite good and it's currently available at a good price

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DerDanner@Therapeut

1Wk

There are better ones on TR, some only run at 6-8%

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Cekay@CMustermann

1Wk

@Therapeut Sorry, do you mean that as a question? If so, feel free to point it out. I haven't found any better CC ETFs yet. It's very difficult to evaluate them anyway, the return is actually irrelevant, but you don't want to make too much of a loss either, as that indicates a distribution from the substance.

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DerDanner@Therapeut

1Wk

@CMustermann $JEPQ this one, for example, only has 6%, is the display missing or what is the difference?

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Cekay@CMustermann

1Wk

@Therapeut do you think it's simply because it's only been running since the beginning of the year?

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DerDanner@Therapeut

1Wk

@CMustermann yes, I think more data is missing here.
Does the ETF consume itself? Will the ETF rise? Or will it stay sideways and fall?

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Cekay@CMustermann

1Wk

@Therapeut That's where it gets spongy for me. The CC Etfs were heavily hyped, but that has clearly subsided. This is in addition to the normal market movements due to tariffs and so on. I think in bad times they will have to eat themselves in order to maintain the return %.

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Aurélie@LuxequityAurelie

@Therapeut there has been one of these in the USA since 2013. unfortunately the chart is very frightening... But I am invested in it myself, the problem is, as already mentioned, its upward performance is very limited because it is "called out" by the constant options... In the event of heavy losses, it takes losses with it and takes all the longer to rise again. So in sideways or upward phases it is certainly quite solid with the monthly premiums. Let's see... 😉

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Cekay@CMustermann

@LuxequityAurelie With the distribution yield, performance is rather secondary, it is more interesting whether it performs the same over 5 years with distributions as the normal index...

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