⚖️ QYLD vs XYLD Comparison · Free & No Signup

QYLD vs XYLD: High Yield Covered Call ETFs — Income Now, Growth Later?

QYLD and XYLD both sell covered calls to generate monthly income of 10%+. The strategy is real — but understanding what you're trading away is critical.

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🤝 BFF Take
XYLD Has Better Risk-Adjusted Returns — QYLD Sacrifices Too Much Upside

QYLD (Global X Nasdaq 100 Covered Call ETF) and XYLD (Global X S&P 500 Covered Call ETF) both generate income by holding their respective index and systematically selling call options against it — capturing the option premium as monthly income. QYLD writes calls on the Nasdaq-100 and yields around 11-13%; XYLD writes calls on the S&P 500 and yields around 9-11%. Both charge 0.60%. The fundamental tradeoff: by selling calls, both funds cap their upside. When markets rally, they don't participate fully — the option buyer captures those gains. Over the past decade, QYLD has significantly underperformed a simple QQQ on total return basis because it gave away Nasdaq's explosive upside. XYLD's S&P 500 base has similar but less extreme dynamics. Neither is appropriate as a core holding; they serve income-first investors who need monthly cash flow and can accept capped appreciation.

📋 Quick Takeaways
💵QYLD yields ~11-13% monthly income; XYLD yields ~9-11% — high income, but you cap your upside to get it
📉In bull markets, QYLD/XYLD significantly underperform their underlying indexes — the covered call cap limits gains
⚖️Both cost 0.60%; XYLD's S&P 500 base is less volatile than QYLD's Nasdaq-100 — better risk-adjusted tradeoff
📊 Data-Based Take: XYLD has the lower fee

Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.

Reviewed by a CFA® Charterholder · Data as of Jul 14, 2026 · Educational only, not financial advice
QYLD
Global X NASDAQ 100 Covered Call ETF
Expense Ratio
0.60%
1-Year Return
+9.9%
AUM
$8.4B
Holdings
101
XYLD
Global X S&P 500 Covered Call ETF
Expense Ratio
0.60%
1-Year Return
+5.4%
AUM
$3.2B
Holdings
503

📋 QYLD vs XYLD — Key Facts Side by Side

Metric QYLD XYLD
Fund Name Global X NASDAQ 100 Covered Call ETF Global X S&P 500 Covered Call ETF
Issuer Global X Global X
Tracks Index Nasdaq-100 (Covered Call) S&P 500 (Covered Call)
Expense Ratio 0.60% 0.60%
Cost per $10K/yr $60.00 $60.00
AUM $8.4B $3.2B
Holdings 101 503
Inception 2013 2013
1-Year Return +9.95% +5.42%
3-Year Return +14.37% +11.76%
5-Year Return +8.57% +7.69%
Dividend Yield 5.94% 9.29%
Holdings Overlap See holdings overlap →
Avg Bid-Ask Spread 0.01% 0.02%

Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 QYLD vs XYLD — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...
QYLD
  • want the specific exposure defined by the Nasdaq-100 (Covered Call)
Often fits investors who...
XYLD
  • want broader diversification (503 holdings vs 101)
  • want focused large-cap US stock exposure via S&P 500 (Covered Call)

💰 What the Fee Difference Actually Costs

Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.

Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.

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❓ QYLD vs XYLD — Frequently Asked Questions

Both ETFs generate income by selling (writing) call options on their respective index. QYLD holds the Nasdaq-100 stocks and sells monthly at-the-money call options; XYLD holds S&P 500 stocks and does the same. The option buyer pays a premium (income) for the right to buy the index at today's price. If the market rises above that price, the ETF doesn't participate in those gains — they go to the option buyer. The premiums collected are distributed as monthly income.
The primary downside is sacrificed upside participation. When the Nasdaq-100 rises 30% in a year (as it often has), QYLD captures only the option premium — perhaps 12% income — while a regular QQQ holder gets the full 30%. Over a decade of a bull market, this compounding loss of upside has made QYLD a poor total return vehicle compared to QQQ. Both funds also still fall with their underlying indexes in bear markets — you don't lose less on the downside.
For investors who truly need current income and are willing to accept limited appreciation, QYLD or XYLD can serve a specific purpose. The monthly distributions are predictable. However, the funds don't grow with inflation over time the way dividend growth ETFs do. A retiree relying on QYLD/XYLD for income may find their purchasing power eroding. These ETFs work best for investors who also have growth-oriented holdings elsewhere.
Not significantly. In a market decline, both funds fall with their underlying indexes. The only cushion is the option premium already collected that month — a small offset against a potentially large decline. During 2022, both QYLD and XYLD fell substantially along with their indexes. The covered call strategy reduces but does not eliminate downside risk.
No — option income is generally taxed as ordinary income, not qualified dividends. This makes QYLD and XYLD particularly tax-inefficient in taxable accounts. Their distributions receive the same tax treatment as interest income. If you want to hold QYLD or XYLD, a tax-advantaged account (IRA) is strongly preferred to avoid the ordinary income tax drag each month.

New to ETF investing? See answers to the most common ETF questions →

📄 QYLD & XYLD Fact Sheets

QYLD Fact Sheet XYLD Fact Sheet
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.