1D·

Next dividend title

And on it goes

25.04

Global X NASDAQ 100 Covered Call ETF

Bought at €13.77

11 Comments

Epi@Epi

Note: at -21% YTD, this ETF is underperforming the Nasdaq100 with its -17%.
Is it worth it?

•

Marcus@Helleone

@Epi You can certainly discuss the ETF. But if I compare it with a current dividend of 13%... yes, the dividend can also be discussed. Cover all only yields around 7%.
But I assume that the stock will go back towards 15/16 euros and then it will be sold off

•

Epi@Epi

@Helleone Hmm, I don't know. 🤔
Even including distributions, the CC ETF performs significantly worse than the original: https://extraetf.com/de/etf-profile/IE00BM8R0J59?tab=chart

Why would you want something like that?

•

❤️DIST-LOVE@DISTLOVE

@Epi Well YTD just ~3% difference. I find the monthly distributions very attractive. You can make a good living from it. Of course, it's not a growth stock.

Since comparison (30.10.2024) the covered calls are doing even better:
iShares NASDAQ 100: -12%
Global X CC NASDAQ 100: -7.5%
JPM CC NASDAQ 100: -8.2%

https://extraetf.com/de/etf-comparison?products=IE00BM8R0J59-etf,IE000U9J8HX9-etf,IE00B53SZB19-etf

Covered calls tend to perform better and better, except in strongly rising markets. The upside is then capped.

•

Epi@Epi

@DISTLOVE Better compare the CC since the beginning of the CC, not since the beginning of a weird active Nasdaq fund.
https://extraetf.com/de/etf-comparison?products=IE00BM8R0J59-etf,IE00B53SZB19-etf

••

❤️DIST-LOVE@DISTLOVE

@Epi Yes, in strongly rising markets a CC stinks because of the upside limit.

•

Epi@Epi

@DISTLOVE... and in falling markets it offers no advantage over the original.

So why should you do this to yourself? 🤔

••

❤️DIST-LOVE@DISTLOVE

@Epi doch, Cashflow.