What does the difference in expense ratios mean for investors?

XYLG has a lower expense ratio of 0.35% compared to XYLD's 0.60%, a difference of 0.25 percentage points. Over time, this difference can impact total returns, as lower fees theoretically allow more of the fund's gross returns to be realised for the investor. While not the sole factor, cost efficiency is an important consideration when comparing funds with similar strategies.

Why is track record length relevant when comparing these funds?

XYLD has a significantly longer track record, having been launched in 2013, whereas XYLG was launched in 2020. A longer history provides more data on how the fund has performed across various market conditions. This historical context can help investors understand potential risks and returns, although it does not guarantee future performance.

How does net asset size influence liquidity and stability?

XYLD has net assets of $3.4 billion, compared to XYLG's $65 million. Generally, larger fund sizes can offer better liquidity, meaning it may be easier to buy or sell shares without significantly affecting the price. Smaller funds might experience wider bid-ask spreads or higher sensitivity to large trades, which is an important practical consideration for investors.

What do the dividend yields tell us about these funds?

XYLG has a higher dividend yield of 12.72% compared to XYLD's 10.38%. A higher yield can be attractive for income-focused investors. However, it is essential to consider the sustainability of these distributions and the underlying fund strategy. Yield alone does not determine the total return or risk profile of the investment.

What is the significance of the shared top holdings between the two funds?

The top 10 holdings for both XYLD and XYLG are identical, including mega-cap tech stocks like NVDA, AAPL, and MSFT, among others. This overlap indicates that both funds are heavily influenced by the same underlying assets. While this can be efficient, it also suggests that sector diversification might be limited and similar, meaning their performance may move in tandem during market shifts.

How do these funds compare in terms of sector diversification?

Sector weight data is not available for either XYLD or XYLG. The absence of this information makes it challenging to assess the full diversification benefits of each fund. Investors may wish to consider that the concentration in top tech holdings implies a potential lack of broad sector diversification, which could impact risk and return profiles.

What are the implications of the concentration in top holdings for risk?

Both XYLD and XYLG have top holdings heavily weighted towards a few mega-cap tech stocks. For instance, NVDA is 8.24% for XYLD and 8.20% for XYLG. This concentration means that the performance of both funds is largely dependent on these few companies. If these stocks perform poorly, the funds may experience a significant negative impact.

How does a fund's inception date affect an investor's ability to assess performance?

XYLD, with an inception date in June 2013, has over a decade of performance history. In contrast, XYLG was launched in September 2020, offering less historical data. For investors, a longer track record allows for a more comprehensive analysis of how the fund has weathered different market cycles, though past performance is not always indicative of future results.

What are the differences in fund size and how might that affect trading?

XYLD's $3.4 billion in net assets is significantly larger than XYLG's $65 million. Larger funds generally offer better liquidity and lower trading costs for individual investors due to higher trading volumes and tighter bid-ask spreads. Smaller funds may face higher costs and lower liquidity, potentially impacting an investor's ability to enter or exit positions smoothly.

What does the term 'moderate' mean regarding XYLD's expense ratio?

XYLD's expense ratio of 0.60% is considered moderate for derivative income strategies, which often have higher fees due to their complexity. While it is lower than some, it is higher than passive index funds. An investor's tolerance for fees depends on their overall investment strategy and expected returns.

XYLD vs XYLG

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

Compare Global X S&P 500 Covered Call ETF (XYLD) and Global X S&P 500 Covered Call & Growth ETF (XYLG). This page reviews fees, holdings, dividends and how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

XYLD

Metric

XYLG

0.60%

Expense Ratio

0.35%

10.38%

Dividend Yield

12.72%

$3.38B

Net Assets

$65.27M

507

Holdings

506

Jun 24, 2013

Inception Date

Sep 18, 2020

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Index Tracked

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Derivative Income

Fund Category

Derivative Income

XYLG costs about $25.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	XYLD	XYLG
NVDANVIDIA Corporation	8.24%	8.20%
AAPLApple Inc.	7.55%	7.50%
MSFTMicrosoft Corporation	5.61%	5.59%
AMZNAmazon.com, Inc.	3.83%	3.81%
GOOGLAlphabet Inc.	3.13%	3.12%
AVGOBroadcom Inc.	2.62%	2.59%
GOOGAlphabet Inc.	2.49%	2.48%
METAMeta Platforms, Inc.	2.26%	2.24%
MUMicron Technology, Inc.	1.77%	1.75%
TSLATesla, Inc.	1.58%	1.57%

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QYLG vs XYLG

Compare QYLG and XYLG on fees, holdings and dividend yields. Review tracked indexes to understand Nasdaq 100 and S&P 500 covered call strategies.

Investment Analysis

XYLD

Pros

XYLD has a higher net asset value of $3.4 billion, potentially enhancing liquidity.
XYLD has a longer track record, with an inception date of June 24, 2013.
The fund's moderate expense ratio of 0.60% may be considered acceptable for derivative income strategies.

Considerations

XYLD's lower dividend yield of 10.38% compared to its counterpart.
Top holdings are concentrated in a few mega-cap tech stocks, limiting diversification.
Sector weights are not available, potentially leaving investors uncertain about sector exposure.

XYLG

Pros

XYLG offers a higher dividend yield of 12.72%, appealing for income-focused investors.
The fund has a lower expense ratio of 0.35%, reducing the total cost of ownership.
Shared top holdings indicate alignment with major technology and market-leading firms, though this is not unique.

Considerations

XYLG has significantly lower net assets of $65 million, which may impact liquidity.
The shorter inception date of September 18, 2020, provides less historical performance data.
Sector weights are not available, contributing to uncertainty in sector diversification assessment.

About XYLD and XYLG

XYLD (XYLD)

The Global X S&P 500 Covered Call ETF is designed for investors seeking to generate income through a covered call strategy on the S&P 500 index. By writing monthly call options on approximately all components of the index, the fund aims to collect premium income, which is then distributed to shareholders as monthly dividends. This strategy tends to be most effective in flat or slightly bullish market conditions, where option premiums can enhance returns without significantly capping potential capital appreciation. However, it involves a trade-off: the fund’s upside potential is limited because the call options sold restrict gains during strong bull markets. As such, it is best viewed as an income-generating tool rather than a pure growth vehicle. Investors should note the 0.60% expense ratio and the fund's sensitivity to market volatility. Values can fall as well as rise, and past performance is not indicative of future results. This content is for educational purposes only and does not constitute personalised advice.

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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XYLD vs XYLG

Fund Snapshot

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QYLG vs XYLG

Investment Analysis

XYLD

Pros

Considerations

XYLG

Pros

Considerations

About XYLD and XYLG

Buy XYLD or XYLG in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What does the difference in expense ratios mean for investors?

Why is track record length relevant when comparing these funds?

How does net asset size influence liquidity and stability?

What do the dividend yields tell us about these funds?

What is the significance of the shared top holdings between the two funds?

How do these funds compare in terms of sector diversification?

What are the implications of the concentration in top holdings for risk?

How does a fund's inception date affect an investor's ability to assess performance?

What are the differences in fund size and how might that affect trading?

What does the term 'moderate' mean regarding XYLD's expense ratio?

Fund Snapshot

About XYLD and XYLG

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QYLG vs XYLG