Global X Nasdaq 100 Covered Call & Growth ETF (QYLG) Covered Calls

The Global X Nasdaq 100 Covered Call & Growth ETF is an exchange-traded fund that seeks to provide a balance between current income and capital appreciation. The fund invests in the stocks of the Nasdaq 100 Index and writes at-the-money call options on only 50% of its holdings. This "half-buy-write" strategy is designed for investors who want a monthly distribution from option premiums while still retaining the potential to participate in half of the upside of the underlying index.

You can sell covered calls on Global X Nasdaq 100 Covered Call & Growth ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for QYLG (prices last updated Fri 4:16 PM ET):

Global X Nasdaq 100 Covered Call & Growth ETF (QYLG) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
27.16 +0.63 26.53 29.50 53K - 0.1
Covered Calls For Global X Nasdaq 100 Covered Call & Growth ETF (QYLG)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 27.22 0.00 29.50 -7.7% -187.4%
Mar 20 27 0.00 29.50 -8.5% -72.2%
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Extended Business Description

Global X Nasdaq 100 Covered Call & Growth ETF is a hybrid income vehicle designed for investors who find themselves caught between the desire for high cash flow and the fear of missing out on technological growth. While its sibling fund, Global X NASDAQ 100 Covered Call ETF, sells calls against 100% of its portfolio to maximize income, QYLG intentionally limits its option coverage to 50%, providing a "middle ground" strategy that combines growth and yield.

Core Strategy and Operations

  1. Dual-Objective Methodology: The fund seeks to track the Cboe Nasdaq 100 Half BuyWrite V2 Index. It achieves this by purchasing the component securities of the Nasdaq-100, including major innovation drivers like NVIDIA, Apple, and Microsoft. It then writes monthly at-the-money index call options, but only on half of the total value of its equity holdings.
  2. Upside Participation: By covering only half the portfolio, the fund theoretically captures 50% of the price appreciation of the underlying index. This makes it more attractive during strong bull markets compared to fully-covered funds, which often see their gains "capped" once the index rises above the strike price of the sold calls.
  3. Income Generation: The fund collects premiums from the sold options, which are then distributed to shareholders on a monthly basis. Because it sells fewer options than a fully-covered fund, its yield is generally lower than that of its sister fund, but it remains significantly higher than the dividend yield of the standard index.

Competitive Landscape

QYLG competes primarily in the "growth and income" category of derivative-enhanced ETFs. Its most direct sibling rival is the Global X S&P 500 Covered Call & Growth ETF, which applies the same 50% coverage logic to the S&P 500. It also competes for the attention of tech-income investors with the JPMorgan Nasdaq Equity Premium Income ETF and the NEOS Nasdaq-100 High Income ETF, both of which use active management or different option structures to balance yield and growth. For investors seeking a similar balance without the covered call mechanism, it is often compared to high-dividend growth funds or index products like the Invesco QQQ Trust.

Strategic Outlook and Innovation

The fund remains a tactical choice for investors who are bullish on the long-term prospects of big tech but require current cash flow. Management focuses on the efficiency of its systematic replication, ensuring that the 50% coverage ratio is maintained through monthly rebalancing. The strategy is particularly effective in environments characterized by moderate growth or high volatility, where the premiums collected can act as a partial buffer during downturns. As the technology sector continues to be a primary driver of market returns, the fund provides a disciplined framework for "renting" growth to generate income while staying invested for the long-term thematic rally.