What is a covered call ETF?

A covered call ETF is a fund that holds a portfolio of shares, often tracking an index, and simultaneously sells call options on those shares. This strategy generates additional income from option premiums, which is paid out as distributions. However, it caps the potential for capital appreciation if the underlying stocks rise significantly, as the fund may need to sell at a fixed price. Investors generally choose this type of fund for income rather than maximum growth.

What does the name Global X QYLG stand for?

The ticker QYLG stands for Global X Nasdaq 100 Covered Call & Growth ETF. It is managed by Global X and tracks a strategy based on the Nasdaq 100 index, enhanced with covered call options. The fund generates income from option premiums. It also retains some growth potential from the underlying index but limits it due to the covered call strategy.

What does the name Global X XYLG stand for?

The ticker XYLG stands for Global X S&P 500 Covered Call & Growth ETF. It is managed by Global X and tracks a strategy based on the S&P 500 index, enhanced with covered call options. The fund generates income from option premiums. It also retains some growth potential from the underlying index but limits it due to the covered call strategy.

How do the expense ratios of QYLG and XYLG compare?

Both QYLG and XYLG have an expense ratio of 0.35%. This means that for every £1,000 invested, both funds charge £3.50 annually to cover management fees, administrative costs, and other operational expenses. Since the fees are identical, the cost of owning each fund is the same over time. There is no advantage in terms of expense ratios when comparing these two ETFs.

Which fund offers more exposure to technology stocks?

QYLG provides more exposure to technology stocks due to its tracking of the Nasdaq 100 index, which is heavily weighted towards tech companies. In contrast, XYLG tracks the broader S&P 500, which includes more diverse sectors like healthcare and financials. Therefore, investors seeking higher tech exposure might find QYLG more aligned with their goals.

Which ETF has a larger net asset value?

QYLG has a larger net asset value of $175 million compared to XYLG's $65 million. This indicates that QYLG may offer better liquidity and potentially more stable trading volumes. Larger asset sizes can make it easier to buy and sell shares without significantly impacting the price, which is a factor for active traders to consider.

How do the dividend yields of QYLG and XYLG differ?

QYLG offers a higher dividend yield of 16.72% compared to XYLG's 12.72%. Both funds generate income from option premiums and dividends from underlying stocks, but QYLG’s focus on the Nasdaq 100, a growth-oriented index, allows it to distribute more. Investors prioritising higher income might find QYLG more suitable.

What are the main differences between the Nasdaq 100 and S&P 500?

The Nasdaq 100 consists of the largest 100 non-financial companies listed on the Nasdaq exchange, heavily weighted towards technology, making it more growth-focused but potentially more volatile. The S&P 500 includes 500 large-cap US companies across all sectors, offering broader diversification. Investors may choose Nasdaq for tech exposure and S&P 500 for a balanced market representation.

How does the market performance differ for QYLG and XYLG?

QYLG’s performance is closely tied to the Nasdaq 100, which tends to outperform during tech-driven bull markets but may struggle in downturns. XYLG’s performance mirrors the broader S&P 500, offering more stability due to its sector diversification. Investors should consider their market outlook and risk tolerance when choosing between these two funds.

Are there any specific risks associated with these covered call strategies?

Covered call strategies, as employed by QYLG and XYLG, cap potential gains in a rising market and reduce downside protection in a falling market. These funds are suitable for income-focused investors willing to accept limited growth and market risk. Investors should understand that these funds do not offer the same capital appreciation as traditional equity ETFs.

What should I consider before investing in QYLG or XYLG?

Before investing in QYLG or XYLG, consider your income needs, risk tolerance, and market outlook. Evaluate the differences in dividend yields, expense ratios, and asset sizes. Understand how covered call strategies cap upside potential and may not suit growth-focused portfolios. Also, assess the sector concentration and ensure it aligns with your investment goals.

Is investing in these ETFs suitable for beginners?

Investing in ETFs like QYLG and XYLG can be suitable for beginners interested in income strategies, provided they understand the risks of covered call options. These funds offer diversified exposure through a single transaction, making them easier to manage than individual stock portfolios. However, beginners should thoroughly research and consider consulting a financial advisor.

QYLG vs XYLG

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare QYLG and XYLG: fee structures, holdings, dividend yields, and how each fund tracks Nasdaq 100 or S&P 500 markets. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

QYLG

Metric

XYLG

0.35%

Expense Ratio

0.35%

16.72%

Dividend Yield

12.72%

$174.84M

Net Assets

$65.27M

104

Holdings

506

Sep 18, 2020

Inception Date

Sep 18, 2020

–

Index Tracked

–

Derivative Income

Fund Category

Derivative Income

Both funds charge the same annual fee.

Shared Top Holdings

Holding	QYLG	XYLG
NVDANVIDIA Corporation	8.44%	8.20%
AAPLApple Inc.	7.73%	7.50%
MSFTMicrosoft Corporation	5.77%	5.59%
MUMicron Technology, Inc.	4.99%	1.75%
AMZNAmazon.com, Inc.	4.31%	3.81%
GOOGLAlphabet Inc.	3.23%	3.12%
METAMeta Platforms, Inc.	3.11%	2.24%
TSLATesla, Inc.	3.01%	1.57%
GOOGAlphabet Inc.	3.00%	2.48%

Discover More Comparisons

XYLD vs XYLG

Compare XYLD and XYLG on fees, dividends, holdings and tracking methods to understand key differences between these Global X covered call ETFs.

Investment Analysis

QYLG

Pros

QYLG offers a high dividend yield of 16.72 per cent, providing substantial current income potential for investors.
The fund has accumulated net assets of $175 million, which is larger than the comparable S&P 500 derivative income fund.
It provides exposure to the Nasdaq 100 growth engine, with its top holdings including major technology names like NVDA and AAPL.

Considerations

QYLG employs a covered call strategy which typically caps upside potential during strong bull market rallies.
The top ten holdings represent a significant concentration in technology and semiconductor firms, increasing sector-specific volatility risk.
Information regarding the specific index methodology or sector weights is not available in the provided fund data.

XYLG

Pros

XYLG generates a dividend yield of 12.72 per cent, offering a consistent income stream derived from option premiums.
The fund tracks the S&P 500, which generally provides broader diversification across market sectors than the Nasdaq 100.
With an expense ratio of 0.35 per cent, the fund maintains a competitive cost structure similar to its Nasdaq counterpart.

Considerations

The fund's net assets are relatively small at $65 million, which could impact liquidity compared to larger peers.
Like its sibling fund, XYLG restricts capital appreciation potential due to the nature of covered call strategies.
Specific details on sector weights are not available, limiting a complete assessment of industry diversification beyond top holdings.

About QYLG and XYLG

QYLG (QYLG)

The Global X Nasdaq 100 Covered Call & Growth ETF (QYLG) aims to generate income and potential capital growth by investing in the Nasdaq-100 Index. This ETF uses a covered call strategy, selling call options on the underlying index to earn option premiums. A key distinction is that it only sells 50% of the index's upside, potentially allowing for more capital appreciation compared to standard covered call ETFs. It appeals to investors seeking regular income from a high-growth sector while balancing upside potential. However, the dividend yield can fluctuate, and performance is capped by the strategy. Investors should be aware that while this approach targets income and growth, it involves risks associated with options, market volatility, and the specific performance of the Nasdaq-100 companies. Returns are not guaranteed, and values can rise and fall.

XYLG (XYLG)

The Global X S&P 500 Covered Call & Growth ETF (XYLG) is an exchange-traded fund designed to provide monthly income through a covered call strategy on the S&P 500 index. By selling call options on approximately half of its portfolio while retaining growth exposure on the other half, it aims to balance income generation with potential capital appreciation. This fund appeals to investors seeking higher yields, historically offering a notable dividend yield, though it is important to note that this income can come with capped upside during strong bull markets. With a low expense ratio of 0.35% and over 500 holdings, it offers broad diversification within the US large-cap market. Investors should be aware that returns are not guaranteed, and the value of the fund, along with its income payouts, can fluctuate due to market conditions and options performance.

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QYLG vs XYLG

Fund Snapshot

Discover More Comparisons

XYLD vs XYLG

Investment Analysis

QYLG

Pros

Considerations

XYLG

Pros

Considerations

About QYLG and XYLG

Buy QYLG or XYLG in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What is a covered call ETF?

What does the name Global X QYLG stand for?

What does the name Global X XYLG stand for?

How do the expense ratios of QYLG and XYLG compare?

Which fund offers more exposure to technology stocks?

Which ETF has a larger net asset value?

How do the dividend yields of QYLG and XYLG differ?

What are the main differences between the Nasdaq 100 and S&P 500?

How does the market performance differ for QYLG and XYLG?

Are there any specific risks associated with these covered call strategies?

What should I consider before investing in QYLG or XYLG?

Is investing in these ETFs suitable for beginners?

Fund Snapshot

About QYLG and XYLG

Discover More Comparisons

XYLD vs XYLG