QYLD

The Global X NASDAQ 100 Covered Call ETF (QYLD) is an exchange-traded fund that seeks to generate high current income through an option-writing strategy on the equities of the NASDAQ-100 Index. The ETF is managed by Global X Management Company and trades under the ticker QYLD on NYSE Arca.

Classified as a U.S. equity ETF focused on income generation, QYLD aims to provide distributable income, before fees and expenses, through a systematic covered call strategy applied to Nasdaq-100 equities.

QYLD uses the Nasdaq-100 as its reference universe, maintaining exposure to the index’s constituent equities while systematically selling covered call options. The fund does not seek to passively replicate the Nasdaq-100’s performance, as the option overlay strategy materially affects the portfolio’s return and risk profile over time.

Diversification and sector exposure

QYLD provides exposure to the U.S. equity market with an income orientation, including sectors represented in the Nasdaq-100 such as:

• Information technology.

• Communication services.

• Consumer discretionary.

• Health care.

• Industrials.

Structure and costs

Shares of QYLD are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).

The fund carries an expense ratio consistent with income-oriented and derivative-based ETFs, reflecting the cost of the covered call strategy, and does not charge a performance fee. 

QYLD makes periodic income distributions, primarily derived from option premiums and secondarily from dividends on the underlying stocks. The ETF has a single share class and trades exclusively under the ticker QYLD.

History and evolution of the ETF

The Global X NASDAQ 100 Covered Call ETF was launched in 2013, amid growing investor interest in alternative income strategies that combine equity exposure with premium generation through options.

Since its inception, QYLD has been widely used by institutional and individual investors seeking high current income in equity markets, leveraging the liquidity and volatility of technology and growth companies within the Nasdaq-100 Index.

Between 2020 and 2024, QYLD’s behavior reflected periods of heightened volatility and shifts in monetary policy, during which covered call strategies gained relevance as income-generating tools. 

The fund’s dynamics were closely tied to Nasdaq-100 equity volatility and the systematic capture of option premiums.