QQQX - QQQX: Getting A Dollar For 90 Cents

2024-05-13 20:42:41 ET

Summary

• QQQX utilizes a call-overwrite strategy to generate income for investors and reduce portfolio volatility.
• QQQX has continued to lag the S&P 500, as the Nasdaq 100 Index has been a relative underperformer YTD and QQQX's discount to NAV has widened.
• I believe QQQX's 10% discount to NAV presents an excellent 'margin of safety' for investors.

In January, I raised my recommendation on the Nuveen NASDAQ 100 Dynamic Overwrite Fund ( QQQX ) to a buy, as the QQQX fund had fallen to a historically wide 7% discount to net asset value ("NAV"). While I had some misgivings about the 'dynamic' nature of QQQX's call-writing strategy, I believed QQQX's discount to NAV was irrationally wide....

For further details see: