Understanding the Global X NASDAQ 100 Covered Call & Growth ETF (QYLG)

What this ETF is trying to do

The QYLG ETF is designed to follow the NASDAQ 100. It uses a strategy called "covered calls." This means it tries to provide investors with both the growth of the stocks in the NASDAQ 100 and extra income through regular payments.

What the numbers show

As of July 10, 2026, the current price of one share is $30.16. Looking back at the last year, the price has grown by about 7.83%. If you look at the "total return"—which includes both the price growth and the money paid out—the one-year return is much higher at 27.97%.

To see how this works with a real amount of money, imagine you invested $10,000 exactly one year ago when the estimated price was about $27.97 per share. Before any extra payments were added, your $10,000 would have grown to roughly $10,783 based on the price change alone.

Income and distribution explanation

This ETF is known for paying out a lot of money to investors. The distribution yield is 16.32%. This means the amount paid out relative to the price is quite high. Over the last 12 months, it made 13 distributions, which usually happen every month.

It is important to remember that a high yield alone can be misleading. A very high percentage might look great, but you must always check if the actual value of the ETF is staying healthy or if it is shrinking.

NAV erosion explanation

"NAV erosion" happens when the price of an ETF's shares drops significantly over time because the fund is paying out more than it is earning. If an ETF’s share price falls from a high number to a much lower number, it can destroy your "principal." Principal is the original money you put in. If your $10,000 turns into $5,000 because the price collapsed, even a high dividend might not be enough to make up for that loss.

Fortunately, for QYLG, there is no severe erosion detected. The data shows "No price erosion detected," meaning the share price has been growing rather than collapsing.

Pros

• It offers a high distribution yield of 16.32%.

• The total return over three years has been very strong at 74.84%.

• The price has shown growth rather than shrinking.

Cons

• High-yield investments can be complex and carry risks.

• Investors must watch closely to ensure the high payments aren't coming at the expense of the share price.

Beginner takeaway

Income investors usually prefer ETFs that go sideways (stay at the same price) or move slightly up. They prefer this over ETFs that "collapse" in price. This is because if the price crashes, you lose your original investment. QYLG has shown growth in its price alongside its high payments, which is different from many high-yield funds that suffer from NAV erosion.