Will Beta

Main Menu

  • Volatility
  • Systematic Risk
  • Returns Of Assets
  • Beta Data
  • Finance Debt

Will Beta

Header Banner

Will Beta

  • Volatility
  • Systematic Risk
  • Returns Of Assets
  • Beta Data
  • Finance Debt
Volatility
Home›Volatility›Let volatility bring you income with this ETF

Let volatility bring you income with this ETF

By Rogers Jennifer
April 5, 2022
0
0

MThe madness in the financial markets had less to do with basketball than with volatility. However, this has opened up opportunities for fixed income potential with the Global X Nasdaq 100 Covered Call ETF (QYLD).

The Nasdaq 100, in particular, has been subject to high volatility amid rising inflation. The index entered bearish territory in March as investors dumped risky assets amid the Russian invasion of Ukraine.

“It was a chaotic month as stocks rebounded from the selloff that began at the very end of 2021 and fell 20% in mid-March,” notes an Investing.com article. “The declines were triggered by the Federal Reserve’s decision, reported in November, to bring it under lockdown.”

Income during low rates

The US Federal Reserve raised interest rates by 25 basis points recently, but for fixed income investors it is still a relatively low-yield environment. As such, they are looking for opportunities for more yield – something QYLD has with a 12% payout yield.

QYLD follows a ‘covered call’ or ‘call-sell’ strategy in which QYLD buys shares of the Nasdaq 100 Index and ‘sells’ or ‘sells’ corresponding call options on the same index. As such, not only does QYLD offer equity exposure, but the ETF also offers an income component.

In today’s low interest rate environment, fixed income investors understand how difficult it is to try to extract as much income as possible from public debt. QYLD seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the CBOE Nasdaq-100 BuyWrite V2 Index.

QYLD offers investors:

  • High Income Potential: QYLD seeks to generate income through the writing of covered call options, which historically produces higher returns during periods of volatility.
  • Monthly distributions: QYLD has made monthly distributions for six consecutive years.
  • Efficient Options Execution: QYLD sells call options on the Nasdaq-100 index, saving investors the time and expense of doing so individually.

For more news, insights and strategy, visit the Thematic Investing Channel.

Learn more at ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Related posts:

  1. The downtrend of Canaan Inc. (CAN) shares amid broader cryptocurrency volatility
  2. Window of opportunity: analysis of current volatility and consumer confidence
  3. CBOE volatility index up more than 29% in the last 24 hours
  4. StonMore Inc. (STON) stock continues to trend higher with minimal volatility as pandemic regulation eases

Recent Posts

  • How to Install Windows 11 2H22 Beta Now
  • City of Memphis helps employees with financial wellness programs – InsuranceNewsNet
  • New clashes in Tripoli highlight Libya’s political volatility | Political news
  • Boston Properties Completes Acquisition of Madison Center for $730 Million | News
  • Infected food web and ecological stability

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021

Categories

  • Beta Data
  • Finance Debt
  • Returns Of Assets
  • Systematic Risk
  • Volatility
  • Terms and Conditions
  • Privacy Policy