QYLD: Why Global X Should Change Its Strategy Even Though The Yield Exceeds 11%
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QYLD, a Global X ETF, offers high yields through a covered call strategy but limits upside potential, making it less appealing in bullish markets. Despite its large AUM, it faces competition and underperformance compared to newer ETFs like QQQI. Global X is advised to update its strategy.
December 27, 2024 | 2:15 pm
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QYLD's covered call strategy provides high yields but limits capital appreciation, making it less attractive in bullish markets. It faces competition and underperformance compared to newer ETFs like QQQI.
QYLD's strategy caps upside potential, which is a disadvantage in bullish markets. The ETF is underperforming compared to competitors like QQQI, suggesting a need for strategic changes to remain competitive.
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