What happened
Signal Advisors Wealth, LLC increased its stake in Global X NASDAQ 100 Covered Call ETF(QYLD 0.15%) by 1.4 million shares during Q2 2025, bringing its total stake in the ETF to more than 1.7 million shares, according to a Securities and Exchange Commission (SEC) filing.
The investment adviser held shares worth $29.35 million as of June 30, 2025.
What else to know
The purchase moved the ETF to 2.3% of the firm's reportable 13F assets at the end of the second quarter.
Signal Advisors Weath's top holdings as of June 30, 2025 are:
- SPDR Portfolio S&P 500 ETF: $46,414,082 (3.6% of AUM)
- SPDR S&P 500 ETF: $40,653,614 (3.2% of AUM)
- Aptus Collared Investment Opportunity ETF: $31,337,588 (2.4% of AUM)
- Global X NASDAQ 100 Covered Call ETF: $29,350,953 (2.3% of AUM)
- Vanguard FTSE Developed Markets Index Fund ETF: $27,233,130 (2.1% of AUM)
The fund closed at $16.90 on Aug. 11, 2025, underperforming the S&P 500 by 19.8 percentage points over the past year.
The annualized dividend yield stands at 11.14%; the forward P/E is 31.18
The fund is trading 10.3% below its 52-week high as of Aug. 11, 2025
ETF overview
| Metric | Value |
|---|---|
| Current price | $16.90 |
| Dividend yield | 11.14% |
| One-year price change | (0.53%) |
ETF snapshot
- Offers exposure to the NASDAQ-100® Index through a covered call ETF structure, generating income by writing monthly at-the-money call options on the index constituents.
- Operates a buy-write investment strategy by writing monthly at-the-money call options on the index constituents.
- Targets income-focused investors and institutions seeking consistent monthly distributions and lower volatility from large-cap U.S. equities.
The Global X NASDAQ 100 Covered Call ETF is a large-scale exchange-traded fund with a focus on income generation through a systematic covered call strategy on the NASDAQ-100® Index. The fund's approach enables it to pay a high dividend yield, appealing to investors seeking regular cash flow.
Foolish take
Signal Advisors Wealth increased its position in the Global X Nasdaq 100 Covered Call ETF in the second quarter. It's an interesting ETF that follows a strategy intended to deliver high monthly income to investors. The ETF's literature shows a 11.14% 12-month distribution on the ETF. At the same time, the ETF's price is slightly down over the last year.
The strategy involves buying Nasdaq 100 stocks while writing call options that cover its exposure to the Nasdaq 100. A call option on the Nasdaq 100 is an option for a buyer to buy the index at a specified price (strike price)within a specific time frame. As a "writer" (seller) of a call option, the ETF picks up a premium, and if the index fails to rise above the strike price, the option won't be taken up.
As such, the ETF's equity holdings have some downward protection because when the market falls, the ETF is picking up premiums. When the market is static or rising moderately (not enough to rise above the strike price), the ETF will do well as the equity part is doing okay, and it's picking up premiums. When the market is surging, the ETF will underperform the index due to the need to pay the buyers of the call options it wrote.
It's an interesting strategy designed to suit investors looking for monthly income, and that might suit a lot of Signal Advisors' clients.
Glossary
Covered Call ETF: An exchange-traded fund that generates income by selling call options on its holdings.
Buy-write strategy: An investment approach involving buying securities and simultaneously writing call options on them to generate income.
At-the-money call options: Options contracts where the strike price is equal to the current market price of the underlying asset.
13F assets: Assets reported by institutional investment managers on SEC Form 13F, disclosing their equity holdings.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Dividend yield:The annual dividend income expressed as a percentage of the investment's current price.
Forward P/E: Price-to-earnings ratio based on projected future earnings, used to value a company or fund.
52-week high: The highest price at which a security has traded during the past year.
Moving average: A statistical calculation that smooths price data by averaging it over a specific period, such as 50 days.
Systematic covered call strategy: A rules-based approach to consistently selling call options on portfolio holdings to generate income.
Reportable holdings: Investment positions that must be disclosed to regulators, typically due to size or regulatory requirements.
Income generation: The process of earning regular cash flow from investments, often through dividends or option premiums.
