QQQI vs QYLD

QQQIANEOS Nasdaq-100 High Income ETF

QYLDAGlobal X - Nasdaq 100 Covered Call ETF

In short

QQQI A Nasdaq-100 income fund built around the tax code: it holds the index's stocks and sells NDX index options that qualify as Section 1256 contracts, taxed 60/40 long/short term, then pays monthly. Launched 2024, now a multi-billion-dollar fund.

QYLD Running since 2013, QYLD is the no-frills version of the Nasdaq-100 income trade: own the index, sell calls against it, pay out monthly. No stock picking, no manager discretion, just a rules-based buy-write index followed closely.

Stated mandate

QQQI The Fund seeks high monthly income in a tax-efficient manner while allowing for equity appreciation. It invests in Nasdaq-100 constituents and uses NDX call options, including written calls and possible call spreads, to generate option-premium income.

QYLD QYLD seeks, before fees and expenses, to generally match the price and yield performance of the Cboe NASDAQ-100® BuyWrite V2 Index. It uses a buy-write strategy that holds NASDAQ-100 stocks and sells corresponding call options.

Why people hold it

• QQQI Income engine runs on index options treated as Section 1256 contracts (60% long-term, 40% short-term rates), with managers also hunting tax-loss harvesting opportunities.neosfunds.comneosfunds.com
• Not a plain covered-call sleeve: the strategy can buy out-of-the-money NDX calls against the ones it sells, leaving room to capture part of a Nasdaq-100 rise.neosfunds.com
• Pays monthly, trades very actively, and is one of the larger funds in the Nasdaq-100 income aisle, so getting in and out is rarely the hard part.
• Does what the label says: Nasdaq-100 constituents plus an NDX call program, run actively rather than on a fixed monthly formula.neosfunds.com

• QYLD Simple machine: holds Nasdaq-100 stocks, sells the matching calls, and tracks the Cboe NASDAQ-100 BuyWrite V2 Index closely. Nothing to second-guess.
• Income arrives monthly, and the 0.60% fee sits under the median for Nasdaq-100 options-income funds.
• A multi-billion-dollar fund that trades very actively, so getting in and out is rarely the hard part.

Worth knowing

• QQQI Costs 0.68% a year. That matches the cohort median, but the biggest rivals run cheaper: QQA at 0.33%, GPIQ and JEPQ at 0.35%.
• Distributions have been classified as return of capital. That can defer tax, but it also trims your cost basis; the 19a-1 notices show the breakdown.neosfunds.com
• Written calls trade away part of a big Nasdaq-100 rally, and the fund only opened in January 2024, so its record spans one market regime.neosfunds.com

• QYLD Writing calls sells the upside. When the Nasdaq-100 runs past the strike, that gain goes to the option buyer, not the fund.
• Leaner options on the same index: QQA at 0.33%, GPIQ and JEPQ at 0.35%.
• Payouts are funded by option premium and no target rate is declared, so the monthly check varies with volatility.

Full QQQI profile⁠

Full QYLD profile⁠