QYLD is a covered call ETF. They write calls on stock they own to bring in more consistent and predictable income. They do this to generate returns via options, this is helpful if you don't know how or aren't comfortable writing calls on your stock. It would behoove you to establish small positions after they pay their dividend should you choose to buy in. This happens monthly so you'll have more opportunities down the road to add onto your position.
Their top holdings are VERY concentrated in the FAANG stocks.
*Does well in neutral markets.
*QYLD pays a hefty dividend of 11.94% or about 2.70/share annually
Here is the wise way to buy this ETF. Wait until the dividend is paid (monthly in this case), and then spread out your buys across the next several days. There is no sure way to tell when the sellers will be done selling, so you want to be strategic - be careful of how long you wait because you may miss the dip all together.
Note: QQQ returns are significantly higher over the long term. QYLD is NOT in my opinion a buy and hold forever investment. Use is as a hedge if you want, but however you use it I hope that this short idea helps clarify how to maximize your return with QYLD.
Well, I've been waiting to buy this, it's 50 cents away from a low. Time to buy?
yuirene
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is good for retirement saving?
michael301981virgo
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@yuirene, good for retirement income...and cefs like clm crf pty are also good for retirement income but none are forever buy and holds. If you want your investment to increase in value then you obviously want to sell it for more than you bought it for. Others dont care if their acct value goes down as long as they get steady sources of income. It pays monthly..last month 0.1809 per share..changes every month. I am generating just under 3k a month with only about 145k...This is because I am in all covered call etfs like qyld as well as cefs pty, clm and crf.. clm under 10/share pays .1808/share for the rest of the year and crf 0.1734/share for the rest of the year... Plus I have a large position in usoi under 5/share it it is an etn that sells covered calls on oil futures and last month paid 0.1695/share..it changes every month.. for cefs like clm and crf they have rights offerings..wont go into detail but thats when they tank in price..so clm and crf are good to hold until Feb March ...when the rights offering is announced in April and during the actual rights offering it tanks...so its good to buy back in May or June so you dont go down in value, rinse and repeat. If you look on discussion forums many people that have invested in these funds for years just hold them for so long that eventually the income generated eventually returns your intial investment plus profits....for example if you held usoi for the lastt 5 years the yield is so high that you could still come out ahead even if it went to 0. Gone are the days you need a million dollar stock portfolio to make 4 to 6k a month in dividends