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

Nasdaq 100 Covered Call ETF

Invest in QYLD
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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 8 Dec 2023

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 8 Dec 2023

NAV/Unit (A$) 11.25900000
Currency (NAV) AUD
Shares Outstanding 235,276
AUM (A$) 2,648,967.69

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 31 Oct 2023

12-Month Yield 5.23%
12-Month Franking Level 0.00%
Distribution Frequency Monthly
Distribution History View

Performance Table As of 8 Dec 2023

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month -0.89% -0.67% -0.22% 0.20%
3 Months -2.25% -1.73% -0.52% 0.34%
1 Year -- -- -- --
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception 19.39% 21.99% -2.60% 0.71%

Top Holdings As of 11 Dec 2023

Full Holdings (.xlsx)
Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
11.46 APPLE INC 2046251 195.71 1,022 303,612
10.42 MICROSOFT CORP 2588173 374.23 486 275,888
5.70 AMAZON.COM INC 2000019 147.42 674 150,886
4.39 NVIDIA CORP 2379504 475.06 161 116,384
3.88 META PLATFORMS-A B7TL820 332.75 204 102,815
3.12 BROADCOM INC BDZ78H9 944.30 58 82,711
2.99 ALPHABET INC-A BYVY8G0 134.99 387 79,308
2.96 ALPHABET INC-C BYY88Y7 136.64 378 78,491
2.89 TESLA INC B616C79 243.84 207 76,670
2.23 ADOBE INC 2008154 610.01 64 59,200
2.18 COSTCO WHOLESALE 2701271 610.78 62 57,702
1.84 PEPSICO INC 2681511 165.68 193 48,638
1.68 ADV MICRO DEVICE 2007849 128.92 227 44,506
1.62 NETFLIX INC 2857817 453.76 62 42,937
1.59 CISCO SYSTEMS 2198163 48.38 574 42,129
1.49 T-MOBILE US INC B94Q9V0 156.40 166 39,376
1.44 INTEL CORP 2463247 42.70 590 38,252
1.40 COMCAST CORP-A 2044545 42.10 580 37,079
1.30 INTUIT INC 2459020 573.90 40 34,441
1.20 QUALCOMM INC 2714923 132.97 158 31,848
1.17 AMGEN INC 2023607 269.12 76 30,899
1.16 TEXAS INSTRUMENT 2885409 157.03 128 30,616
1.05 HONEYWELL INTL 2020459 194.61 94 27,797
1.00 APPLIED MATERIAL 2046552 147.72 118 26,559
0.97 BOOKING HOLDINGS BDRXDB4 3,275.00 5 25,603
0.90 STARBUCKS CORP 2842255 96.61 162 23,816
0.90 INTUITIVE SURGIC 2871301 310.42 50 23,711
0.80 GILEAD SCIENCES 2369174 79.02 178 21,308
0.79 MONDELEZ INTER-A B8CKK03 71.09 194 20,946
0.77 AUTOMATIC DATA 2065308 229.27 59 20,454
0.76 LAM RESEARCH 2502247 703.17 19 20,135
0.75 ANALOG DEVICES 2032067 184.88 71 19,889
0.74 PALO ALTO NETWOR B87ZMX0 298.42 43 19,538
0.74 VERTEX PHARM 2931034 350.15 37 19,521
0.73 PDD HOLDINGS INC BYVW0F7 138.96 92 19,318
0.73 REGENERON PHARM 2730190 840.14 15 19,318
0.67 MICRON TECH 2588184 74.96 155 17,656
0.66 SYNOPSYS INC 2867719 535.93 21 17,474
0.63 MERCADOLIBRE INC B23X1H3 1,577.98 7 16,787
0.59 KLA CORP 2480138 534.43 19 15,573
0.57 CADENCE DESIGN 2302232 259.93 38 15,025
0.53 CSX CORP 2160753 32.96 278 13,908
0.51 PAYPAL HOLDINGS BYW36M8 58.94 152 13,635
0.49 MARRIOTT INTL-A 2210614 209.40 41 13,096
0.48 ASML HOLDING-NY B908F01 696.43 12 12,651
0.47 AIRBNB INC-A BMGYYH4 140.68 58 12,473
0.46 LULULEMON ATH B23FN39 489.64 17 12,294
0.45 O'REILLY AUTOMOT B65LWX6 945.88 8 11,918
0.45 MONSTER BEVERAGE BZ07BW4 53.92 144 11,806
0.44 CINTAS CORP 2197137 553.33 14 11,739
0.44 WORKDAY INC-A B8K6ZD1 273.41 28 11,601
0.44 CROWDSTRIKE HO-A BJJP138 242.55 31 11,582
0.44 CHARTER COMMUN-A BZ6VT82 367.55 21 11,573
0.43 NXP SEMICONDUCTO B505PN7 215.55 35 11,472
0.39 PACCAR INC 2665861 95.38 70 10,204
0.38 AUTODESK INC 2065159 224.01 30 10,109
0.37 MICROCHIP TECH 2592174 86.08 76 9,891
0.36 DEXCOM B0796X4 116.97 54 9,573
0.36 COPART INC 2208073 47.39 133 9,558
0.36 ROSS STORES INC 2746711 132.08 47 9,496
0.36 KEURIG DR PEPPER BD3W133 32.11 194 9,471
0.36 PAYCHEX INC 2674458 124.02 50 9,435
0.35 KRAFT HEINZ CO/T BYRY499 36.23 171 9,387
0.35 MARVELL TECHNOLO BNKJSM5 52.88 117 9,377
0.35 IDEXX LABS 2459202 531.35 12 9,302
0.33 SEAGEN INC BLPK4D2 218.98 26 8,664
0.33 AMERICAN ELECTRI 2026242 79.64 72 8,653
0.33 FORTINET INC B5B2106 52.16 109 8,638
0.32 OLD DOMINION FRT 2656423 369.45 15 8,512
0.31 EXELON CORP 2670519 39.21 138 8,227
0.30 ELECTRONIC ARTS 2310194 137.14 38 7,824
0.29 ASTRAZENECA-ADR 2989044 63.25 81 7,766
0.28 CONSTELLATION EN BMH4FS1 111.21 45 7,543
0.28 FASTENAL CO 2332262 62.29 79 7,495
0.28 COGNIZANT TECH-A 2257019 70.33 70 7,481
0.28 BIOGEN INC 2455965 239.29 20 7,292
0.27 DATADOG INC-A BKT9Y49 113.83 41 7,165
0.27 VERISK ANALYTI B4P9W92 232.92 20 7,112
0.27 COSTAR GROUP INC 2262864 82.39 57 7,081
0.27 XCEL ENERGY INC 2614807 60.91 76 7,071
0.26 ON SEMICONDUCTOR 2583576 76.14 60 6,908
0.26 BAKER HUGHES CO BDHLTQ5 32.24 140 6,854
0.25 TRADE DESK INC-A BD8FDD1 70.63 62 6,625
0.25 GE HEALTHCARE TE BL6JPG8 68.52 63 6,561
0.24 MODERNA INC BGSXTS3 80.32 53 6,426
0.23 ATLASSIAN CORP-A BQ1PC76 192.36 21 6,195
0.23 ZSCALER INC BZ00V34 198.80 20 6,092
0.23 GLOBALFOUNDRIES BMW7F63 52.50 76 6,047
0.22 WARNER BROS DISC BM8JYX3 11.47 337 5,866
0.22 DOLLAR TREE INC 2272476 124.41 30 5,742
0.21 DIAMONDBACK ENER B7Y8YR3 148.73 25 5,590
0.20 ANSYS INC 2045623 287.20 12 5,235
0.17 EBAY INC 2293819 41.29 73 4,597
0.16 WALGREENS BOOTS BTN1Y44 23.16 119 4,170
0.15 ZOOM VIDEO COM-A BGSP7M9 73.06 35 3,863
0.14 SIRIUS XM HOLDIN BGLDK10 4.64 528 3,723
0.14 ILLUMINA INC 2613990 112.94 22 3,712
0.13 ALIGN TECHNOLOGY 2679204 221.23 10 3,520
0.11 ENPHASE ENERGY B65SQW4 103.01 19 2,901
0.09 JD.COM INC-ADR BMM27D9 26.45 62 2,479
0.08 LUCID GROUP INC BP0TR77 4.73 306 2,199
NDX 12 C15825 305.50 -1 -51,045
Holdings are subject to change.

Sector Breakdown As of 11 Dec 2023

Sector Weight (%)
Information Technology 50.9
Communication Services 15.7
Consumer Discretionary 14.4
Health Care 6.7
Consumer Staples 6.4
Industrials 4.8
Utilities 1.2
Financials 0.5
Energy 0.5
Real Estate 0.3

Country Breakdown As of 11 Dec 2023

Country Weight (%)
United States 97.9
Netherlands 0.9
Ireland 0.7
Uruguay 0.6
Canada 0.5
Britain 0.3
Australia 0.2

Research

QYLD: Exploring the Nasdaq 100 Covered Call Strategy

Read More

Three Ways to Enhance Portfolio Income with ETFs

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How to Enhance Income Potential with Covered Call ETFs

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Documents

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.

Investments may go up or down in value and you may lose some or all of the amount invested. Past performance is not necessarily a guide to future performance. Any advice provided by Global X Management (AUS) Limited (“Global X”) is general advice and does not take into account your personal objectives, financial situation or needs. You should consult an independent investment adviser prior to making an investment in order to determine its suitability to your circumstances. This material may contain links to third party websites. Global X does not control and is not responsible for the information contained within third party websites. None of these links imply Global X’s support, endorsement or recommendation of any other company, product or service.

Global X Management (AUS) Limited ACN 150 433 828 AFSL No 466778

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