Why I Buy QYLD ETF
QYLD is a reliable income-generating ETF that writes covered call options on the Nasdaq 100. Its strategy offers steady monthly dividends, making it an ideal choice for income-focused investors. Despite the trade-off of limited price appreciation, the high yield compensates for this, especially during volatile or sideways markets.
5 Reasons to Dollar-Cost Average During Market Drops
1. Lower Your Cost Basis
When markets fall, buying more QYLD allows you to lower your average purchase price. This positions you to benefit more significantly from future income or market recoveries.
2. Take Advantage of Volatility
QYLD generates income from covered call premiums, which increase during market volatility. A market downturn enhances the ETF’s income potential, boosting dividend payouts.
3. Steady Income Regardless of Market Conditions
The appeal of QYLD lies in its consistent income. By averaging down, you secure a higher yield on your investment since the dividend payout is proportional to the lower share price.
4. Diversification in Tech-Heavy Nasdaq
As QYLD tracks the Nasdaq 100, averaging down during market dips ensures you’re capitalizing on the strength of tech companies, which historically recover robustly after downturns.
5. Disciplined Investing Strategy
Dollar-cost averaging removes emotions from investing. By sticking to a systematic approach, you reduce the risk of mistiming the market while taking advantage of lower prices over time.
Summary
QYLD remains a compelling income-focused ETF, particularly for those who value steady dividends. Market corrections offer an excellent opportunity to lower your cost basis and increase your yield, ensuring you benefit more during eventual recoveries$Global X Nasdaq 100 Covered Call ETF(QYLD)$ @TigerTradingNotes @TigerStars @CaptainTiger thanks thanks
| Side | Price | Realized P&L |
|---|---|---|
| Buy Open | 18.18 | +1.88% Holding |
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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