QYLD is one heck of an interesting ETF. Anyone with thoughts on it?

I sometimes use it as a proof that trading covered calls, naked puts, secured puts, and the wheel - don't work.
Theoretically QYLD performance should be very similar to QQQ, but it seems a bit worse:

https://www.barchart.com/etfs-funds/quotes/QYLD/interactive-chart
upload_2021-5-14_21-39-45.png


(blue: QYLD; orange: QQQ)
I believe the chart is adjusted for dividends.
 
guru said:
I sometimes use it as a proof that trading covered calls, naked puts, secured puts, and the wheel - don't work.
Theoretically QYLD performance should be very similar to QQQ, but it seems a bit worse:

I believe the chart is adjusted for dividends.
More...

The chart isnt adjusted for dividends.
QYLD pays currently an 11.73% yield.
QQQ pays currently a 0.52% yield.
 
David Donner said:
The chart isnt adjusted for dividends.
QYLD pays currently an 11.73% yield.
QQQ pays currently a 0.52% yield.
More...


Why do you think the chart isn't adjusted for dividends when I mentioned that I believe it is?
I just checked and my broker shows the same chart and it is adjusted for dividends.

While here is the same chart unadjusted for dividends:
https://finance.yahoo.com/chart/QYLD
upload_2021-5-14_23-15-35.png

(main chart: QYLD; orange: QQQ)

You can see how horrible QYLD would look like when compared to QQQ and unadjusted for dividends. The dividends barely allow it to come close to QQQ in performance.
Either way QYLD doesn't beat QQQ any way you slice it.
 
Last edited:
Isn't the spread exactly the yield David mentioned? Caveat, I have not read the prospectus at all, so have no idea, the numbers just stood out.

guru said:
Why do you think the chart isn't adjusted for dividends when I mentioned that I believe it is?
I just checked and my broker shows the same chart and it is adjusted for dividends.

While here is the same chart unadjusted for dividends:
https://finance.yahoo.com/chart/QYLD
View attachment 258939
(main chart: QYLD; orange: QQQ)

You can see how horrible QYLD would look like when compared to QQQ and unadjusted for dividends. The dividends barely allow it to come close to QQQ in performance.
Either way QYLD doesn't beat QQQ any way you slice it.
More...
 
DiceAreCast said:
Isn't the spread exactly the yield David mentioned?
More...

Yes, the dividend/yield makes up for the difference between QYLD and QQQ, so their performance is very similar, or worse with QLD. Though QYLD may be less volatile.
 
Last edited:
Not a fan. Mechanically selling covered calls is going to result in worse returns than simple buy and hold. Often, the returns are drastically worse because of whipsaw due to selling calls during a market bottom.

If you want to sell covered calls, it's imperative to employ some sort of market timing. Even then, you will struggle to beat buy and hold.
 
You must log in or register to reply here.
Back
Top