Nasdaq 100 Covered Call ETF - Global X ETFs - Australia

QYLD


Nasdaq 100 Covered Call ETF

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 23 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 23 May 2024

NAV/Unit (A$) 11.63130000
Currency (NAV) AUD
Shares Outstanding 385,893
AUM (A$) 4,488,419.12
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 30 Apr 2024

12-Month Yield 8.41%
12-Month Franking Level 0.00%
Distribution Frequency Monthly
Distribution History View

Performance Table As of 23 May 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month -0.32% -0.41% 0.08% 0.53%
3 Months 0.41% 0.58% -0.17% 0.78%
1 Year 12.10% 14.43% -2.33% 1.04%
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception p.a. 20.49% 23.26% -2.77% 0.98%

Top Holdings As of 24 May 2024

Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
8.72 MICROSOFT CORP 2588173 427.00 607 391,486
7.93 APPLE INC 2046251 186.88 1,263 356,085
7.13 NVIDIA CORP 2379504 1,037.99 204 320,167
5.17 AMAZON.COM INC 2000019 181.05 849 232,042
4.58 BROADCOM INC BDZ78H9 1,393.29 98 205,769
4.48 META PLATFORMS-A B7TL820 465.78 286 201,132
2.81 ALPHABET INC-A BYVY8G0 173.55 482 126,169
2.73 ALPHABET INC-C BYY88Y7 175.06 464 122,472
2.51 COSTCO WHOLESALE 2701271 796.34 94 112,611
2.30 TESLA INC B616C79 173.74 394 103,323
1.95 NETFLIX INC 2857817 635.67 91 87,616
1.84 ADV MICRO DEVICE 2007849 160.43 341 82,576
1.75 PEPSICO INC 2681511 179.27 290 78,487
1.60 QUALCOMM INC 2714923 201.76 236 71,719
1.55 ADOBE INC 2008154 483.31 95 69,600
1.48 LINDE PLC BNZHB81 432.30 102 66,306
1.39 T-MOBILE US INC B94Q9V0 164.97 250 62,366
1.34 CISCO SYSTEMS 2198163 46.60 855 60,100
1.32 INTUIT INC 2459020 662.26 59 59,074
1.29 APPLIED MATERIAL 2046552 217.95 175 57,687
1.27 TEXAS INSTRUMENT 2885409 197.29 192 57,145
1.17 AMGEN INC 2023607 306.50 113 52,317
1.09 COMCAST CORP-A 2044545 38.68 836 48,808
1.00 INTUITIVE SURGIC 2871301 398.39 74 44,682
0.99 MICRON TECH 2588184 126.27 232 44,233
0.92 HONEYWELL INTL 2020459 199.39 137 41,264
0.91 BOOKING HOLDINGS BDRXDB4 3,752.68 7 40,661
0.90 INTEL CORP 2463247 30.08 889 40,364
0.89 LAM RESEARCH 2502247 958.13 28 39,981
0.82 VERTEX PHARM 2931034 450.80 54 36,974
0.82 ANALOG DEVICES 2032067 234.56 104 36,964
0.75 REGENERON PHARM 2730190 980.57 23 33,554
0.73 KLA CORP 2480138 765.10 29 32,967
0.73 AUTOMATIC DATA 2065308 251.49 87 32,845
0.73 PDD HOLDINGS INC BYVW0F7 153.63 141 32,634
0.71 PALO ALTO NETWOR B87ZMX0 311.44 68 31,995
0.66 MONDELEZ INTER-A B8CKK03 68.85 284 29,496
0.63 SYNOPSYS INC 2867719 586.30 32 28,498
0.63 STARBUCKS CORP 2842255 78.31 239 28,235
0.62 MERCADOLIBRE INC B23X1H3 1,707.40 11 27,750
0.59 GILEAD SCIENCES 2369174 66.17 263 26,266
0.57 ASML HOLDING-NY B908F01 934.25 18 25,683
0.57 CADENCE DESIGN 2302232 294.69 57 25,537
0.55 CROWDSTRIKE HO-A BJJP138 342.35 48 24,862
0.50 CINTAS CORP 2197137 696.07 21 22,468
0.50 CONSTELLATION EN BMH4FS1 221.16 67 22,358
0.50 NXP SEMICONDUCTO B505PN7 272.72 54 22,307
0.48 MARRIOTT INTL-A 2210614 232.06 61 21,472
0.47 PAYPAL HOLDINGS BYW36M8 61.58 227 21,069
0.47 CSX CORP 2160753 33.50 414 20,937
0.46 MARVELL TECHNOLO BNKJSM5 75.02 181 20,544
0.44 MODERNA INC BGSXTS3 164.01 80 19,920
0.44 AIRBNB INC-A BMGYYH4 141.04 92 19,675
0.41 ROPER TECHNOLOGI 2749602 544.62 23 18,513
0.41 O'REILLY AUTOMOT B65LWX6 975.87 12 18,320
0.40 PACCAR INC 2665861 108.87 110 17,996
0.39 WORKDAY INC-A B8K6ZD1 260.90 44 17,343
0.38 MONSTER BEVERAGE BZ07BW4 52.64 217 17,273
0.38 MICROCHIP TECH 2592174 98.14 114 16,860
0.36 COPART INC 2208073 53.52 203 16,357
0.34 DEXCOM B0796X4 125.60 81 15,394
0.33 KEURIG DR PEPPER BD3W133 33.98 292 14,986
0.33 AMERICAN ELECTRI 2026242 89.28 111 14,933
0.33 FORTINET INC B5B2106 60.93 161 14,777
0.33 AUTODESK INC 2065159 215.16 45 14,633
0.32 ASTRAZENECA-ADR 2989044 78.18 123 14,464
0.32 PAYCHEX INC 2674458 125.66 76 14,429
0.31 ROSS STORES INC 2746711 131.86 71 14,104
0.31 KRAFT HEINZ CO/T BYRY499 35.80 255 13,797
0.30 IDEXX LABS 2459202 516.10 17 13,629
0.29 DOORDASH INC-A BN13P03 110.39 79 13,218
0.29 TRADE DESK INC-A BD8FDD1 92.51 94 13,082
0.28 CHARTER COMMUN-A BZ6VT82 268.41 31 12,384
0.27 FASTENAL CO 2332262 65.80 120 11,956
0.26 OLD DOMINION FRT 2656423 171.57 46 11,867
0.26 DATADOG INC-A BKT9Y49 122.12 64 11,866
0.26 EXELON CORP 2670519 37.03 210 11,756
0.26 LULULEMON ATH B23FN39 299.74 26 11,541
0.26 GE HEALTHCARE TE BL6JPG8 79.33 96 11,472
0.25 ELECTRONIC ARTS 2310194 134.40 56 11,403
0.25 VERISK ANALYTI B4P9W92 249.25 30 11,349
0.25 COSTAR GROUP INC 2262864 85.69 86 11,111
0.24 DIAMONDBACK ENER B7Y8YR3 191.96 38 10,874
0.24 COGNIZANT TECH-A 2257019 68.47 105 10,819
0.24 COCA-COLA EUROPA BYQQ3P5 72.94 96 10,577
0.23 BAKER HUGHES CO BDHLTQ5 31.81 211 10,108
0.22 BIOGEN INC 2455965 218.06 31 10,066
0.22 CDW CORP/DE BBM5MD6 231.57 28 9,867
0.22 ON SEMICONDUCTOR 2583576 71.65 90 9,713
0.21 XCEL ENERGY INC 2614807 54.05 117 9,521
0.20 ANSYS INC 2045623 328.18 18 9,055
0.20 GLOBALFOUNDRIES BMW7F63 50.49 115 8,773
0.19 ATLASSIAN CORP-A BQ1PC76 174.18 33 8,695
0.18 TAKE-TWO INTERAC 2122117 152.33 36 8,233
0.18 MONGODB INC BF2FJ99 355.18 15 8,135
0.18 ZSCALER INC BZ00V34 171.91 31 8,087
0.18 DOLLAR TREE INC 2272476 114.60 46 7,918
0.13 WARNER BROS DISC BM8JYX3 7.70 512 5,946
0.12 ILLUMINA INC 2613990 105.85 33 5,318
0.10 WALGREENS BOOTS BTN1Y44 15.95 181 4,346
0.07 SIRIUS XM HOLDIN BGLDK10 2.73 802 3,304
NDX 6 C18600 348.10 -2 -84,206
Holdings are subject to change.

Sector Breakdown As of 24 May 2024

Sector Weight (%)
Information Technology 50.6
Communication Services 15.7
Consumer Discretionary 12.6
Consumer Staples 6.5
Health Care 6.3
Industrials 4.5
Materials 1.5
Utilities 1.3
Financials 0.5
Energy 0.5
Real Estate 0.3

Country Breakdown As of 24 May 2024

Country Weight (%)
United States 96.6
Netherlands 1.1
Ireland 0.7
Uruguay 0.6
Britain 0.6
Canada 0.3
Australia 0.2

Research

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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