QYLD $24.09

Change $0.04 +0.17%

Volume 29243

Last Close $24.05


Prices delayed by 15 minutes.
Last traded market price: Aug 16, 2017 04:17 PM

Inception Date:

CUSIP:

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Consolidated Prior Day Volume:

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December 11, 2013

44053G108

QYLD

134,167,806 (as at 2017-08-15)

22,781 (for 2017-08-15)

NASDAQ

DIVIDEND REINVESTMENT PLAN

CBOE NASDAQ-100® BuyWrite V2 Index

BXNT

0.60

USD

Found In

ETFs

Covered Call

Investment Objective

Horizons NASDAQ 100 Covered Call ETF (“Fund”) seeks to provide investment results that will closely correspond, before fees and expenses, generally to the price and yield performance of the CBOE NASDAQ-100® BuyWrite V2 Index.

WHY QYLD?

• Dividend Income: QYLD receives all dividends of the constituents of the NASDAQ-100 and more than half of the constituents pay dividends.
• Monthly Options Income*: QYLD has distributed between 0.43% - 1.06% per month since inception on 12/11/2013.
• Volatility Enhances Income:  Historically as volatility rises, so too does the level of premium that can be generated on call writing. This additional premium could potentially reduce the volatility of the ETF compared to non-covered call strategies, however, covered call writing can limit the upside potential of the underlying security.
• Options Execution: The ETF vehicle is beneficial to investors as it allows the ETF issuer to write the call options on the NASDAQ-100 Index, rather than an individual investor needing to undertake a potentially expensive, time consuming, and complex call writing process.

INDEX DESCRIPTION

The CBOE NASDAQ-100® BuyWrite V2 Index (“Index”) measures the total return of a portfolio consisting of equity securities of the 100 companies included in the NASDAQ-100® Index and call options systematically written on those securities through a “buy-write” or covered call strategy.

A “buy-write” strategy is an investment strategy in which the Fund buys a specific basket of stocks (such as the NASDAQ-100® Index) and sells covered call options that correspond to that basket of stocks.

The BXNT Index information can be found here.

INDEX METHODOLOGY

QYLD tracks the BXNT index, which is a passive total return index based on (1) buying a NASDAQ-100 stock index portfolio, and (2) “writing” (or selling) the near-term NASDAQ-100 Index (NDX) “covered” call option, generally on the third Friday of each month. The NDX call that is written will have about one month remaining to expiration, with an exercise price just above the prevailing index level (i.e., slightly out of the money). The NDX call is held until one day prior to expiration and is liquidated at a volume-weighted average price determined at the close. The NDX call option is settled in cash, at which time a new one-month, near-the-money call is written.

After the close of trading on 10/14/2015, QYLD switched its index from CBOE NASDAQ-100 BuyWrite Index (BXN) to CBOE NASDAQ-100 BuyWrite V2 Index (BXNT).  The BXNT index replicates the methodology used to calculate the BXN index, with one exception: In BXNT the written NASDAQ-100 index covered call options are held until one day prior to the expiration date and in BXN the written NASDAQ-100 index covered call options are held until expiration.

Daily NAV

The NAV chart above only shows the historical daily net asset value per unit (NAV) of the ETF, and identifies the various distributions made by the ETF, if any. The distributions are not treated as reinvested, and it does not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder. The NAV values do contemplate management fees and other fund expenses. The chart is not a performance chart and is not indicative of future NAV values which will vary.

Month End Performance 07/31/2017

 

Quarter End Performance 06/30/2017

*Performance since inception return on December 11, 2013.

**On 10/14/2015, the Advisor changed the Fund’s primary benchmark from BXN index to BXNT index in connection with a change in the Fund’s principal strategies. The Advisor believes the BXNT index is a better measure of the Fund’s performance. Performance of the Fund compared BXNT index will differ since BXNT has an inception of 6/18/2015 and the Fund having an inception on 12/11/2013. 
 

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. An investor cannot invest directly in an index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.

NAV: The dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day.

Market Price: The current price at which shares are bought and sold. Market returns are based upon the last trade price.

*On 10/14/2015 the fund Advisor changed the Funds primary benchmark from BXN to BXNT index in connection with a change in the Fund's principal strategies. The Advisor believes the BXNT index is a better measure of the Fund's performance. Performance of the Fund compared to BXNT will differ due to BXNT having an inception of 6/18/2015 and the Fund having an inception on 12/12/2013. **The Fund typically earns income dividends from stocks and interest from debt securities. These amounts, net of expenses, are typically passed along to Fund shareholders as dividends from net investment income. The Fund realizes capital gains from writing options and capital gains or losses whenever it sells securities. Any net realized long-term capital gains are distributed to shareholders as ‘‘capital gain distributions.’’ These do not imply rates for any future distributions. The ETF is not required to make distributions.

 

Month End Performance 07/31/2017

 

Quarter End Performance 06/30/2017

*Performance since inception return on December 11, 2013.


**On 10/14/2015, the Advisor changed the Fund’s primary benchmark from BXN index to BXNT index in connection with a change in the Fund’s principal strategies. The Advisor believes the BXNT index is a better measure of the Fund’s performance. Performance of the Fund compared BXNT index will differ since BXNT has an inception of 6/18/2015 and the Fund having an inception on 12/11/2013. 
***Since inception performance of the Fund compared BXNT Index will differ since BXNT has an inception of 6/18/2015.

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. An investor cannot invest directly in an index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.

NAV: The dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day.

Market Price: The current price at which shares are bought and sold. Market returns are based upon the last trade price.

 

*On 10/14/2015 the fund Advisor changed the Funds primary benchmark from BXN to BXNT index in connection with a change in the Fund's principal strategies. The Advisor believes the BXNT index is a better measure of the Fund's performance. Performance of the Fund compared to BXNT will differ due to BXNT having an inception of 6/18/2015 and the Fund having an inception on 12/12/2013. **The Fund typically earns income dividends from stocks and interest from debt securities. These amounts, net of expenses, are typically passed along to Fund shareholders as dividends from net investment income. The Fund realizes capital gains from writing options and capital gains or losses whenever it sells securities. Any net realized long-term capital gains are distributed to shareholders as ‘‘capital gain distributions.’’ These do not imply rates for any future distributions. The ETF is not required to make distributions.

 

Distributions

Year

 
Portion of the distribution may include a return of capital. These do not imply rates for any future distributions. The ETF is not required to make distributions.

Sector Allocation

as at August 16, 2017

Geographic Allocation

as at August 16, 2017

Top 10 Holdings

as at August 16, 2017

Holdings are subject to change. Download prior business day Holdings

 

Nav/Unit: $23.96000

Price: $24.05

Premium Discount: $0.09

Premium Discount Percentage: 0.38%

Outstanding Shares: 5,599,658

as at August 15, 2017

★ ★ ★ ★ ★ 

5 Star Rated for the overall & 3 year period out of 75 funds in the OPTIONS WRITING category via Morningstar as of 06/30/17

Performance data quoted represents past performance and is no guarantee of future results.

Distributions Paid  Monthly
Last Payment Amount $0.15853
30-day SEC yield  0.53%
12-month trailing yield  7.48%
Monthly Distribution  0.67%
YTD Distribution  4.20%
2016 Distribution  9.20%
2015 Distribution  9.49%
2014 Distribution  10.81%
Annualized Distribution  7.98%


As at July 31, 2017
Portion of the distribution may include a return of capital. These do not imply rates for any future distributions. The ETF is not required to make distributions.

Risk Metrics Since Inception
As of 7/31/2017
 
Metric  QYLD  Nasdaq 100
Volatility  10.35%  15.07%
Sharpe Ratio     0.67  1.06
Beta  0.47  1.00
Correlation  0.6896  1.0000

The VXN reflects a market estimate of future volatility, based on the  weighted average of the implied volatilities for a wide range of strikes. 1st and 2nd month expirations are used until eight days from expiration, then the 2nd and 3rd month expirations are used.