3Mon·

Next dividend title

And on it goes

25.04

Global X NASDAQ 100 Covered Call ETF

Bought at €13.77

16 Comments

Epi@Epi

3Mon

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

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Marcus@Helleone

3Mon

@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

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Epi@Epi

3Mon

@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?

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❤️DIST-LOVE@DISTLOVE

3Mon

@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.

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Epi@Epi

3Mon

@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

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❤️DIST-LOVE@DISTLOVE

3Mon

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

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Epi@Epi

3Mon

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

So why should you do this to yourself? 🤔

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❤️DIST-LOVE@DISTLOVE

3Mon

@Epi doch, Cashflow.

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Epi@Epi

3Mon

@DISTLOVE You can generate your own cash flow through partial sales. 🤔

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❤️DIST-LOVE@DISTLOVE

3Mon

@Epi I didn't want to start a fundamental discussion about dividends here. There are pros and cons.

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Epi@Epi

3Mon

@DISTLOVE Okay. But without a fundamental discussion, I still only see disadvantages. 🤷

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View all 4 further answers

Matthias@ZaphodB

3Mon

If you get in now, I think so. I've been in it for a while and well..... clearly there have been price losses since the turmoil. but I think they'll come back up again, so now would actually be a good time to buy more. I've already done the same with another ETF from IE: Global X Superdividend UCITS ETF With the fairly stable monthly distributions, I'm not so interested in "slight" price fluctuations. Of course, the dividends must not eat up the return in the long term, no question.

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