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Looking beyond traditional bonds: the rapid rise of income-oriented ETFs
CNBC Television· 2025-10-06 21:06
Let's also turn to one of the fastest growing parts of the ETF ecosystem and that is income. You both have products for investors looking for that as well. Christian, you have DIVO, QDVO and IDVO.What are these products. Yeah, these are actively managed stock portfolios either international for IDVO, growth oriented for QVO or just US blue chip for D. VO.And the active uh approach there selects the stocks but then has the ability to tactically write covered calls on those individual stocks. So what that doe ...
QDVO: You Can Have It All
Seeking Alpha· 2025-09-23 19:39
I recently wrote about the Fidelity High Dividend ETF ( FDVV ), which attempts to deliver strong capital growth and a high dividend, but does neither very well. Investors can't have it all - including growth stocks lowers the yield, and including dividend payers hurtsMy approach is long-term and I focus on investing in macro ideas through low risk ETFs and CEFs. I have traded stocks and currencies for nearly ten years and currently run a family fund with my partner and fellow SA contributor Andrew McElroy. ...
Nasdaq Covered Call ETFs for Growth & Income
Zacks Investment Research· 2025-07-29 21:13
ETF Market Trends and Popularity - Option income ETFs have gained significant popularity this year due to investors' demand for high income, leading to a surge in launches [2] - These ETFs aim to provide high yields and lower portfolio volatility, but it's important to remember that there is no free lunch in investing [2] - Option income ETFs tend to perform best in sideways markets, offering some protection during stock falls but underperforming in strong bull runs [3] - Investors are increasingly seeking exposure to high-growth technology stocks through NASDAQ 100-based ETFs, leading to increased popularity compared to S&P 500-based ETFs [5] ETF Strategies and Holdings - JPMORGAN's JEPIQ ETF mirrors the NASDAQ 100 index and uses a data science-driven approach to select stocks, aiming for favorable risk and reward characteristics, and generates income by writing call options using equity-linked notes (ELNs) [7] - NEOS's QQQI ETF also provides exposure to NASDAQ 100 stocks and uses call options, focusing on tax-loss harvesting opportunities [8][10] - AMPLIFY's QDVO ETF focuses on large-cap dividend growth stocks and writes covered calls on individual stocks, with a more concentrated portfolio [12][13] ETF Performance Comparison - Since its inception in August of last year, AMPLIFY's QDVO ETF has returned approximately 25%, outperforming the NASDAQ 100 index (up about 20%), NEOS's product (up about 19%), the S&P 500 index (up about 16%), JEPQ (up about 15%), while GLOBAL X product significantly underperformed (up about 6%) [14][15][16] - Over a longer term (approximately 3 years), option income products tend to underperform broad indexes; during this period, the NASDAQ 100 index surged about 76%, JEPQ delivered performance similar to the S&P 500 index (both up about 55%), while JEPPY was up about 29% [17] ETF Expense Ratios and Yields - JPMORGAN's JEPIQ ETF has an expense ratio of 35 basis points and a 30-day SEC yield of over 11% [7][8] - NEOS's QQQI ETF is the most expensive of the three highlighted, with an expense ratio of 68 basis points [9] - AMPLIFY's QDVO ETF charges 55 basis points [12] ETF Asset Under Management (AUM) - JPMORGAN's JEPIQ ETF has $28 billion in assets, with $8 billion inflows this year [5] - NEOS's QQQI ETF has $34 billion in assets, with $26 billion inflows this year [8] - AMPLIFY's QDVO ETF has $143 million in assets, with $125 million inflows this year [12]