- I reviewed QQQX and QYLD and came to the conclusion that in September 2020 QQQX made more sense.
- Looking where shares are now conservative investors would be better off shifting their portfolio to QYLD because I see far less market upside than I did one year ago.
- Both funds are similar in composition (both focus on the Nasdaq-100) but QYLD is a overwrite fund that uses covered calls over 100% of the portfolio.
- QQQX isn't a bad investment for retirees but the potential upside isn't there to justify buying at all-time highs.
- The distribution paid is primarily from option fees which is how these funds can pay such a hefty yield on holdings with extremely low yields.
For further details see:
QQQX Or QYLD: Which Fund Makes More Sense (One Year Later)