For traders in search of momentum, World X Nasdaq 100 Lined Name & Progress ETF QYLG might be on the radar. The fund simply hit a 52-week excessive and has moved up 21.3% from its 52-week low of $28.12 per share.
Are extra positive factors in retailer for this ETF? Allow us to take a fast take a look at the fund and the near-term outlook on it to get a greater concept of the place it is likely to be headed:
QYLG in Focus
World X Nasdaq 100 Lined Name & Progress ETF follows a “lined name” or “buy-write” technique, through which the fund buys shares within the Nasdaq 100 Index and “writes” or “sells” corresponding name choices on roughly 50% of the worth of the portfolio of shares in the identical index. It costs 35 bps in charges per yr (see: all the Long-Short ETFs here).
Why the Transfer?
The covered-call technique has been an space to look at these days as inventory volatility surged after the Fed signaled fewer charge cuts for 2025. A lined name is an funding technique to generate revenue and probably hedge towards draw back danger. It includes shopping for a inventory or a basket of shares after which promoting or writing name choices on those self same belongings. These choices give the client the precise, however not the duty, to buy shares at a predetermined worth earlier than a specified date.
Extra Features Forward?
QYLG would possibly stay robust, given a weighted alpha of 18.82 and a decrease 20-day volatility of 11.50%. There’s undoubtedly nonetheless some promise for traders who need to trip on this surging ETF.
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Global X Nasdaq 100 Covered Call & Growth ETF (QYLG): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
