JEPQ - Why 11.7%-Yielding QYLD Is A Poor Passive Income Machine
2024-06-08 08:15:00 ET
Summary
- Global X NASDAQ 100 Covered Call ETF offers an attractive combination of a high dividend yield and exposure to mega-cap technology stocks.
- It also pays out its distributions monthly.
- However, we share four reasons why it is a poor passive income machine.
- We also share three better alternatives.
On its surface, the Global X NASDAQ 100 Covered Call ETF ( QYLD ) looks like an attractive income machine as it offers investors an 11.65% trailing 12-month dividend yield with dividends paid out monthly. Additionally, over 50% of its portfolio is invested in the technology sector, with its top holdings including 8.72% allocated to Microsoft ( MSFT ), 8.47% allocated to Nvidia ( NVDA ), 8.37% allocated to Apple ( AAPL ), 5.21% allocated to Amazon ( AMZN ), and 4.79% allocated to Meta Platforms ( META ). As a result, it offers investors a rare combination of significant exposure to mega-cap technology stocks along with attractive monthly income that they would not be able to achieve if they were to simply invest in those stocks themselves....
Why 11.7%-Yielding QYLD Is A Poor Passive Income Machine