Global X NASDAQ-100 Covered Call ETF

QYLD

Market cap $8.04B

High-yield CEFs and covered call ETFs lure in investors with juicy yields. However, there are several hidden dangers lurking beneath the surface of many of these funds. There is a better way to generate high-yielding passive income and potential long-term total return outperformance.

Covered call ETFs have surged in popularity, but most are heavily concentrated in AI-driven indices, like QQQ and SPY. AI valuations appear stretched, and a correction could hit covered call ETF investors, as hard as pure index, or AI stockholders. The question is how to navigate this.

ETF Action founding partner Mike Akins says thematic ETFs could be headed for a comeback thanks to the explosive growth of AI. He digs into what's behind the revolution and why he thinks they could also replace sectors.

The firm's covered-call ETFs have been outperforming competitors.

Increased holding by 1,752,324 shares; estimated $29.43 million trade based on average pricing for the period ended September 30, 2025 Transaction value represented 2.55% of Global X Japan's reportable AUM Post-trade stake: 13,275,162 shares valued at $225.81 million QYLD remains Global X Japan's 1st-largest holding, accounting for 19.5% of AUM

If a pure equity exchange-traded fund (ETF) might be too volatile as broader economic concerns grow and fixed income is still struggling to maintain pace with inflation, a multi-asset fund might offer a suitable middle ground for investors. These funds aim to provide a combination of reliable income as well as growth potential.

Goldman Sachs Nasdaq-100 Premium Income ETF is a Buy for its dynamic call writing and superior risk-reward balance across market regimes. GPIQ's active, flexible coverage outperforms QYLD in bull and flat markets while still providing reasonable downside protection during drawdowns. QYLD's full portfolio coverage offers only marginal drawdown benefits but significantly lags in upside capture, making it suitable only for tactical use.

Many investors in 2025 need dependable passive income, and one outstanding way to achieve this is to invest in exchange-traded funds (ETFs).

According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate.

The NEOs Nasdaq-100 High Income ETF (QQQI) offers superior total returns and comparable income to the Global X NASDAQ 100 Covered Call ETF (QYLD). QQQI employs a more sophisticated options strategy, capturing more upside while maintaining strong income and better net asset value preservation than QYLD. Despite QQQI's aggressive approach, it performed in line with QYLD during recent market sell-offs, demonstrating resilience in volatile conditions.