Nasdaq 100 Covered Call ETF - Global X ETFs - Australia
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QYLD

Nasdaq 100 Covered Call ETF

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Reasons to Consider QYLD

High Income Potential

QYLD seeks to generate income through covered call writing, which historically produces higher yields in periods of volatility.

Efficient Options Execution

QYLD writes call options on the Nasdaq 100 Index, saving investors the time and potential expense of doing so individually.

Potential Downside Mitigation

The premiums QYLD generates may partly cushion drawdowns.

Product Information As of 2 May 2024

Inception Date 30 Jan 2023
Management Costs (% p.a.) 0.60
Currency Hedged No
Domicile Australia
Legal Form Managed Investment Scheme
SMSF Eligible Yes

NAV Information As of 2 May 2024

NAV/Unit (A$) 11.68560000
Currency (NAV) AUD
Shares Outstanding 435,777
AUM (A$) 5,092,295.24
NAV History File View

Product Summary

The Global X Nasdaq 100 Covered Call ETF (QYLD) follows a “covered call” or “buy-write” strategy, in which the fund buys the stocks in the Nasdaq 100 Index and “writes” or “sells” corresponding call options on the same index to generate income over and above dividends.

Product Objective

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. The Cboe Nasdaq 100 BuyWrite V2 Index is designed to represent a hypothetical buy-write strategy. The “long” Nasdaq 100 Index component and the “short” Covered Call Option component are held in equal notional amounts. 

Trading Details

Ticker QYLD
Bloomberg Code QYLD AU Equity
ISIN AU0000251886
Trading Hours 10:00AM – 4:00PM

Management & Administration

Issuer Global X Management (AUS) Limited
Custodian The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Registrar Computershare Investor Services Pty Limited
Trustee Global X Management (AUS) Limited

Benchmark Information

Benchmark Cboe NASDAQ-100 BuyWrite V2 Index
Provider Nasdaq Inc.

Distributions As of 28 Mar 2024

12-Month Yield 8.37%
12-Month Franking Level 0.00%
Distribution Frequency Monthly
Distribution History View

Performance Table As of 2 May 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month -1.38% -1.60% 0.22% 0.66%
3 Months 0.92% 1.13% -0.21% 0.77%
1 Year 14.54% 16.95% -2.40% 1.02%
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception p.a. 21.97% 24.73% -2.76% 0.98%

Top Holdings As of 3 May 2024

Full Holdings (.xlsx)
Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
0.00 ADOBE INC 2008154 476.57 102 74,293
0.00 ADV MICRO DEVICE 2007849 146.16 364 81,459
0.00 AIRBNB INC-A BMGYYH4 158.33 99 23,926
0.00 ALPHABET INC-A BYVY8G0 166.62 514 131,124
0.00 ALPHABET INC-C BYY88Y7 168.46 495 127,581
0.00 AMAZON.COM INC 2000019 184.72 907 256,217
0.00 AMERICAN ELECTRI 2026242 88.25 119 16,014
0.00 AMGEN INC 2023607 278.39 121 51,448
0.00 ANALOG DEVICES 2032067 196.49 112 33,617
0.00 ANSYS INC 2045623 314.53 19 9,255
0.00 APPLE INC 2046251 173.03 1,348 356,807
0.00 APPLIED MATERIAL 2046552 197.91 187 56,710
0.00 ASML HOLDING-NY B908F01 870.28 19 25,898
0.00 ASTRAZENECA-ADR 2989044 75.80 131 15,226
0.00 ATLASSIAN CORP-A BQ1PC76 183.55 35 9,785
0.00 AUTODESK INC 2065159 209.95 48 15,493
0.00 AUTOMATIC DATA 2065308 242.03 93 34,305
0.00 BAKER HUGHES CO BDHLTQ5 31.93 226 11,025
0.00 BIOGEN INC 2455965 213.51 32 10,531
0.00 BOOKING HOLDINGS BDRXDB4 3,472.91 8 40,718
0.00 BROADCOM INC BDZ78H9 1,238.57 104 197,922
0.00 CADENCE DESIGN 2302232 276.44 61 25,971
0.00 CDW CORP/DE BBM5MD6 218.41 30 9,964
0.00 CHARTER COMMUN-A BZ6VT82 262.00 33 13,124
0.00 CINTAS CORP 2197137 662.29 23 23,126
0.00 CISCO SYSTEMS 2198163 46.79 913 65,350
0.00 COCA-COLA EUROPA BYQQ3P5 71.53 101 11,080
0.00 COGNIZANT TECH-A 2257019 66.27 111 11,209
0.00 COMCAST CORP-A 2044545 38.36 893 52,428
0.00 CONSTELLATION EN BMH4FS1 186.18 71 20,326
0.00 COPART INC 2208073 54.40 217 18,041
0.00 COSTAR GROUP INC 2262864 89.76 92 12,652
0.00 COSTCO WHOLESALE 2701271 732.44 100 112,104
0.00 CROWDSTRIKE HO-A BJJP138 303.54 51 23,826
0.00 CSX CORP 2160753 33.57 442 22,681
0.00 DATADOG INC-A BKT9Y49 125.46 69 13,235
0.00 DEXCOM B0796X4 126.65 87 16,835
0.00 DIAMONDBACK ENER B7Y8YR3 197.63 40 12,151
0.00 DOLLAR TREE INC 2272476 119.78 48 8,848
0.00 DOORDASH INC-A BN13P03 114.31 85 14,853
0.00 ELECTRONIC ARTS 2310194 128.50 59 11,685
0.00 EXELON CORP 2670519 37.89 225 13,060
0.00 FASTENAL CO 2332262 68.09 129 13,441
0.00 FORTINET INC B5B2106 65.20 172 17,156
0.00 GE HEALTHCARE TE BL6JPG8 77.83 103 12,222
0.00 GILEAD SCIENCES 2369174 65.33 281 28,073
0.00 GLOBALFOUNDRIES BMW7F63 48.28 121 8,957
0.00 HONEYWELL INTL 2020459 193.64 147 43,561
0.00 IDEXX LABS 2459202 475.82 19 13,625
0.00 ILLUMINA INC 2613990 123.99 35 6,654
0.00 INTEL CORP 2463247 30.51 953 44,492
0.00 INTUIT INC 2459020 614.04 63 59,319
0.00 INTUITIVE SURGIC 2871301 377.65 79 45,907
0.00 KEURIG DR PEPPER BD3W133 33.56 313 16,063
0.00 KLA CORP 2480138 682.05 31 31,830
0.00 KRAFT HEINZ CO/T BYRY499 36.72 273 15,362
0.00 LAM RESEARCH 2502247 883.68 30 39,998
0.00 LINDE PLC BNZHB81 419.62 109 69,735
0.00 LULULEMON ATH B23FN39 350.80 27 14,498
0.00 MARRIOTT INTL-A 2210614 235.56 65 23,520
0.00 MARVELL TECHNOLO BNKJSM5 66.67 195 19,882
0.00 MERCADOLIBRE INC B23X1H3 1,505.99 11 26,389
0.00 META PLATFORMS-A B7TL820 441.68 305 206,415
0.00 MICROCHIP TECH 2592174 89.46 122 16,670
0.00 MICRON TECH 2588184 112.33 249 42,770
0.00 MICROSOFT CORP 2588173 397.84 649 394,759
0.00 MODERNA INC BGSXTS3 125.59 86 16,547
0.00 MONDELEZ INTER-A B8CKK03 70.50 304 32,739
0.00 MONGODB INC BF2FJ99 363.17 16 8,887
0.00 MONSTER BEVERAGE BZ07BW4 53.39 235 19,162
0.00 NETFLIX INC 2857817 565.15 98 84,363
0.00 NVIDIA CORP 2379504 858.17 218 286,479
0.00 NXP SEMICONDUCTO B505PN7 254.26 58 22,471
0.00 O'REILLY AUTOMOT B65LWX6 1,006.23 13 20,511
0.00 OLD DOMINION FRT 2656423 183.40 49 13,773
0.00 ON SEMICONDUCTOR 2583576 70.01 95 10,156
0.00 PACCAR INC 2665861 106.46 118 19,234
0.00 PALO ALTO NETWOR B87ZMX0 295.32 73 32,897
0.00 PAYCHEX INC 2674458 118.45 81 14,759
0.00 PAYPAL HOLDINGS BYW36M8 66.98 242 24,755
0.00 PDD HOLDINGS INC BYVW0F7 137.54 151 31,686
0.00 PEPSICO INC 2681511 175.45 310 83,183
0.00 QUALCOMM INC 2714923 180.10 252 69,323
0.00 REGENERON PHARM 2730190 937.61 24 34,847
0.00 ROPER TECHNOLOGI 2749602 510.82 24 18,828
0.00 ROSS STORES INC 2746711 127.68 76 14,836
0.00 SIRIUS XM HOLDIN BGLDK10 3.05 847 3,953
0.00 STARBUCKS CORP 2842255 74.93 255 29,257
0.00 SYNOPSYS INC 2867719 523.38 34 27,527
0.00 T-MOBILE US INC B94Q9V0 164.91 268 67,507
0.00 TAKE-TWO INTERAC 2122117 143.07 38 8,248
0.00 TESLA INC B616C79 180.01 421 115,876
0.00 TEXAS INSTRUMENT 2885409 175.80 205 55,126
0.00 TRADE DESK INC-A BD8FDD1 88.12 100 13,526
0.00 VERISK ANALYTI B4P9W92 233.76 32 11,381
0.00 VERTEX PHARM 2931034 400.16 58 35,622
0.00 WALGREENS BOOTS BTN1Y44 17.53 191 5,110
0.00 WARNER BROS DISC BM8JYX3 7.95 539 6,561
0.00 WORKDAY INC-A B8K6ZD1 250.85 47 18,089
0.00 XCEL ENERGY INC 2614807 53.79 123 10,112
0.00 ZSCALER INC BZ00V34 176.37 33 8,871
NDX 5 C17250 451.10 -2 -117,531
Holdings are subject to change.

Sector Breakdown As of 3 May 2024

Sector Weight (%)
Other/Cash 100.0

Country Breakdown As of 3 May 2024

Country Weight (%)
Other/Cash 100.0

Research

QYLD: Exploring the Nasdaq 100 Covered Call Strategy

Read More

Three Ways to Enhance Portfolio Income with ETFs

Read More

How to Enhance Income Potential with Covered Call ETFs

Read More

Documents




Announcements/Notices

FAQs

  • What is a covered call strategy?

    Covered calls are an investment strategy where investors buy a stock, or group of stocks, and sell call options on them. Selling call options can generate additional income for a fund, as buyers pay “premiums” for the right to buy assets at a fixed (“strike”) price. The logic behind selling call options against assets investors already own is that it ensures investors are “covered” from a margin call perspective – hence the term “covered call”.

  • What are the potential benefits of covered call strategies?

    The primary benefit of covered calls is that they can generate more income, and on a more diversified basis, than just owning dividend-paying stocks. This is because covered call sellers receive two income streams: first the dividends, second the premiums from the calls they sell. The premiums not only provide an income uplift, but also a second stream to draw from if dividends fall or dry up. Furthermore, options premiums tend to be inversely correlated to dividend yields—with lower dividend yielding stocks producing higher premiums – creating a natural hedge.

    Covered call income is also hedged against volatility and interest rates. All else being equal, when volatility rises, option premiums rise as options traders price higher probabilities of sharp share price movements into calls. And when interest rates rise, call option premiums mechanically rise too, as call sellers provide, in effect, a loan to buyers. The economics of which gets priced into premiums.

  • What are the potential risks of covered call strategies?

    By writing covered call options in return for the receipt of premiums, investors forego the opportunity to benefit from potential increases in the value of the Nasdaq 100 Index above the exercise prices of such options but will continue to bear the risk of declines in the value of the Nasdaq 100 Index.

    The premiums received from the options may not be sufficient to offset any losses sustained from the volatility of the underlying stocks over time. As a result, the risks associated with writing covered call options may be similar to the risks associated with writing put options. In addition, QYLD’s ability to sell the securities underlying the options will be limited while the options are in effect unless QYLD cancels out the option positions through the purchase of offsetting identical options prior to the expiration of the written options.

  • What are the advantages of writing covered calls on the Nasdaq 100 Index?

    The Nasdaq 100 is a familiar index to many Australians. The major benchmark of the US technology sector, it plays home to Microsoft, Amazon, Apple, Netflix and Tesla. Despite its strong performance the past decade, many Australians have steered clear as the Nasdaq pays a lower dividend yield than other indexes. The lower yield owes to the fact that many US tech companies choose to pay no dividends and opt to reinvest cash into creating new products and services, or conducting share buybacks. In this setting, covered call strategies provide something of a solution, and provide a way to invest in the Nasdaq 100 while also generating yield.

  • Which options does the fund sell and at what price?

    The fund invests in the Nasdaq 100 Index on a fully replicated basis. It then sells monthly exchange traded Nasdaq 100 Index call options at-the-money worth roughly 100% of the value of the portfolio, with the cash received from option sales reinvested into the Nasdaq 100 Index. “At-the-money” options are those options with strike prices identical to the price of their underlying securities. Options are rolled the day before expiry, with expiring options bought back at the volume weighted average price determined at the close.

  • What is the cut-off date to receive a distribution from QYLD?

    To receive a distribution, you must own the ETF – the trade must have fully settled – on the record date. This means that you should aim to buy QYLD at least two business days before the record date (as ETF trades take two business days to settle) should you wish to receive a distribution.

    The record date is the date on which Computershare, the share registry, records who owns which ETFs and therefore who is entitled to distributions. As QYLD has multiple distributions throughout the year, it has multiple record dates throughout the year too.

  • When do I receive my distributions from QYLD?

    Distributions are paid on the payment date, which is announced ahead of time on the ASX’s website. Generally speaking, the payment date falls two weeks after the record date. On the payment date, investors will receive the cash – or new ETFs, if they choose to reinvest their distributions. Details of payment dates and frequencies are available on the fund’s website.

  • How can I know the size of a distribution?

    We (Global X) will usually forecast how big we expect a distribution to be around one week prior to the ex-distribution date. This forecast is made public on the announcement date. While these forecasts will be as accurate as practically possible, they are only estimates and are subject to corrections and revisions.

    The size of distributions is primarily determined by markets in the fund’s underlying assets. Variables include – but are not limited to – dividends and price movements in the fund's underlying shares, the size of option premiums, prevailing interest rates and market volatility.

    Fund operations can also impact distribution sizes. Management fees, transactional and operating costs typically lower a distribution. Distributions can also be impacted by the number of units in the fund on issue on the ex-distribution date. Where the number of units on issue declines in the leadup to the ex-distribution date, the distribution yield should be expected to expand. (Income accumulated between distributions is therefore spread over fewer units). An opposite dilutive effect occurs when the number of units on issue increases in the leadup to ex-distribution dates.

Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778, ACN 150 433 828) is the product issuer. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS). In respect of each retail product, Global X has prepared a target market determination (TMD). Each PDS and TMD is available at www.globalxetfs.com.au. The information on this website is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

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