What is so exciting about the ETF?
Put simply, is it a shrunken S&P500 that also tries to generate "income" with call options?
Put simply, is it a shrunken S&P500 that also tries to generate "income" with call options?
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@MoneyISnotREAL Yes. Less suitable for growth, but for regular cash flow yes
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@MoneyISnotREAL Understanding the ETFs
Both ETFs, A2QR39 and IE000U9J8HX9, are based on the Nasdaq 100 index and follow a similar strategy: they write (sell) call options on the index to generate regular income. This strategy is known as a "covered call" and can limit returns in rising markets, while offering protection in falling markets.
Main differences
1. management:
A2QR39 (Global X): This ETF generally follows a passive approach, i.e. it attempts to track the underlying index as closely as possible. The option strategies are implemented according to predefined rules.
IE000U9J8HX9 (JPMorgan): This ETF is actively managed. This means that the portfolio managers can flexibly adjust the option strategies in order to optimize returns and reduce risk. This can have both advantages and disadvantages.
Factsheet from jp Morgan:The sub-fund aims to invest at least 67% of its assets (excluding cash, which
cash held as ancillary liquid assets) in equities issued by companies that
issued by companies that are domiciled in the USA or have their
based in the USA or which conduct the majority of their business
business activities there.
(ii) Call options on equities / call options on equity indices
The Investment Manager seeks to generate additional income through the use of an
an overlay strategy with derivatives ("DFI"). Its implementation
is implemented through the systematic sale of call options on equities
and/or equity indices, which generally have an exposure to indices
indices that are composed of benchmark index securities.
securities.
Due to the methodology of the two, I think that it can follow the index better than the QYLD, which always has a cap on the upside.
Both ETFs, A2QR39 and IE000U9J8HX9, are based on the Nasdaq 100 index and follow a similar strategy: they write (sell) call options on the index to generate regular income. This strategy is known as a "covered call" and can limit returns in rising markets, while offering protection in falling markets.
Main differences
1. management:
A2QR39 (Global X): This ETF generally follows a passive approach, i.e. it attempts to track the underlying index as closely as possible. The option strategies are implemented according to predefined rules.
IE000U9J8HX9 (JPMorgan): This ETF is actively managed. This means that the portfolio managers can flexibly adjust the option strategies in order to optimize returns and reduce risk. This can have both advantages and disadvantages.
Factsheet from jp Morgan:The sub-fund aims to invest at least 67% of its assets (excluding cash, which
cash held as ancillary liquid assets) in equities issued by companies that
issued by companies that are domiciled in the USA or have their
based in the USA or which conduct the majority of their business
business activities there.
(ii) Call options on equities / call options on equity indices
The Investment Manager seeks to generate additional income through the use of an
an overlay strategy with derivatives ("DFI"). Its implementation
is implemented through the systematic sale of call options on equities
and/or equity indices, which generally have an exposure to indices
indices that are composed of benchmark index securities.
securities.
Due to the methodology of the two, I think that it can follow the index better than the QYLD, which always has a cap on the upside.
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@MoneyISnotREAL NASDAQ not s&p 500
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