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Strategies & Market Trends : CEF and ETF

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From: Julius Wong12/23/2022 9:28:12 AM
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QYLD Is Still Outperforming The Nasdaq While Generating Double-Digit Yields

I am still bullish on QYLD and continue to reinvest each distribution. I have added to my position throughout 2022, and I plan on continuing to add into 2023. QYLD is strictly an income investment for me, and investors should understand that the upside potential is capped due to the covered call methodology. If you’re looking for a fund that can generate capital appreciation and either replicate or outperform the market when the downturn ends, QYLD isn’t a fund to consider. As we have seen in the past, QYLD will slowly grind higher when the market turns, but it won’t keep pace with traditional index funds. QYLD is part of an overall income strategy within my portfolio. While I wish the markets weren’t down as much as they are, I am happy that QYLD has proven that it can withstand a bear market and not deviate outside of the losses of the underlying index it tracks.

seekingalpha.com
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