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Strategies & Market Trends : High Yield Investing - CEF's

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To: jritz0 who wrote (194)4/11/2022 10:34:58 AM
From: chowder2 Recommendations

Recommended By
misscbd
red cardinal

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Re: Observations of QQQX vs QYLD and XYLD

The performance is tied to the structure of the funds. QYLD for example is a covered call fund thus any upside is capped due to options causing the positions being taken away. The option strategy protects the downside better and the reason I own those ETF's is because in addition to income, capital preservation is the secondary goal.

QQQX doesn't have the upside limitation by having stocks called away, therefore there is more downside risk while receiving less income for the potential upside QQQX can bring.

I hold both because I wish to have balance between protecting downside, getting higher yield when combined, and still have part of the combined position to benefit from upside moves.
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