Investors in New York City now have access to a unique Exchange-Traded Fund (ETF) strategy with the Global X Nasdaq 100 Covered Call & Growth ETF (QYLG), which began operating on September 18, 2020. This ETF tracks the Cboe Nasdaq 100 Half BuyWrite V2 Index, offering investors a 12-month distribution yield of 5.61%. With a 30-day SEC yield of 0.52% and an expense ratio of 0.35%, QYLG focuses on generating monthly distributions for its investors.

According to Global X’s prospectus, the underlying index of QYLG involves a strategy that holds a portfolio of stocks from the NASDAQ 100 Index while simultaneously selling covered call options on the index. This strategy allows investors to benefit from income generation through call options while still having exposure to potential growth in the underlying stocks. Additionally, the portfolio turnover rate for QYLG in the most recent fiscal year was 28%, indicating some level of activity within the fund.

The current portfolio of QYLG consists of 101 stocks, primarily from U.S.-based companies, with a significant concentration in the information technology sector at 51.7%. Other sectors in the portfolio include communication services at 15.6% and consumer discretionary at 12.8%. When comparing QYLG to its competitors, it is evident that the ETF has a lower fee structure, making it an attractive option for investors seeking income through option strategies in the Nasdaq universe.

In terms of performance, QYLG has shown strength in total returns, especially when compared to ETFs like QYLD and FTQI. While QYLG has been a top performer since its inception, FTQI closely follows behind with less volatility. Despite variations in collected option premiums due to market conditions, QYLG has managed to maintain a consistent distribution history over the years, providing investors with a steady income stream.

Overall, the Global X Nasdaq 100 Covered Call & Growth ETF offers investors a unique opportunity to participate in a buy-write strategy on the Nasdaq 100. With a focus on income generation while preserving growth potential, QYLG has demonstrated solid performance compared to its peers in the ETF space. Investors in New York City and beyond may find value in considering this ETF as part of their investment portfolio.