QYLD vs QQQ Stock Comparison: AI Score, Valuation, Performance and Upside
QYLD and QQQ are dramatically different investment strategies on the same Nasdaq-100 underlying. QYLD sacrifices capital appreciation for 10-12% income; QQQ captures full capital appreciation with minimal income. Over any meaningful long-term period, QQQ's total return (appreciation + small dividend) has dramatically outpaced QYLD's income-focused approach — because the capped upside misses the Nasdaq-100's strongest bull market years. QYLD is for income-specific needs where total return is secondary.
QYLD vs QQQ — QYLD (the Nasdaq-100 covered call ETF selling monthly call options for 10-12% income distribution at the cost of capped upside participation) versus QQQ (the Nasdaq-100 index ETF with full bull market participation in Apple, Nvidia, and Microsoft at the cost of minimal current income).
QYLD holds the edge across 3 of 5 key metrics in this comparison. QYLD has delivered stronger 1-year price return (+23.15% vs +21.45% for QQQ).
- need maximum current income from Nasdaq-100 exposure and are willing to sacrifice capital appreciation — retirees living on portfolio income may value monthly distributions over total return
- believe the Nasdaq-100 will be flat to slightly declining — in range-bound markets, QYLD's premium income outperforms QQQ's price decline
- understand return of capital tax mechanics and the NAV erosion implications of distributing more than true income
- have carefully evaluated that QYLD's total return including distributions still underperforms QQQ over time and accept this tradeoff for cash flow purposes
- want full participation in Nasdaq-100 technology sector bull markets without the upside cap that QYLD's covered calls impose
- prioritize total return over current income — QQQ's long-term compounding of capital appreciation dramatically outpaces QYLD's income focus over 5+ year periods
- use Nasdaq-100 as a growth allocation separate from income allocation — letting capital compound without dividend drag while income comes from other portfolio sources
- are comfortable with QQQ's 0.20% expense ratio and technology sector concentration risk for long-term growth positioning
| Metric | QYLD | QQQ |
|---|---|---|
| ETF scorei | 26.9 | 29.1 |
| Latest closei | $18.74 | $728.00 |
| 1M returni | +3.67% | +3.44% |
| 3M returni | +7.07% | +3.23% |
| 6M returni | +12.66% | +13.91% |
| 1Y returni | +23.15% | +21.45% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | QYLD | QQQ |
|---|---|---|
| 1Y ago | $13.98K (+39.8%) started 2025-10-15 | $12.2K (+22.0%) started 2025-10-15 |
| 5Y ago | $35.76K (+257.6%) started 2021-10-15 | $20.95K (+109.5%) started 2021-10-15 |
| 10Y ago | $205.34K (+1953.4%) started 2016-10-17 | $71.52K (+615.2%) started 2016-10-17 |
Hypothetical — past performance does not guarantee future results.
| Metric | QYLD | QQQ |
|---|---|---|
| Expense ratioi | 0.60% | 0.18% |
| Total assets (AUM)i | $8.48B | $498.95B |
| Dividend yieldi | 5.71% | 0.42% |
| Trailing P/Ei | 28.61 | 27.88 |
| Betai | 0.61 | 1.24 |
| 52-week change | 23.15% | 21.45% |
| Metric | QYLD | QQQ |
|---|---|---|
| 1Y returni | +23.15% | +21.45% |
| 6M returni | +12.66% | +13.91% |
| 3M returni | +7.07% | +3.23% |
| 1M returni | +3.67% | +3.44% |
| 1Y Sharpe ratio | 1.55 | 0.86 |
| Betai | 0.61 | 1.24 |
| Dividend yieldi | 5.71% | 0.42% |
| 5Y CAGR | +8.92% | +15.25% |
Over the past year, QYLD and QQQ have moved strongly in the same direction (correlation of 0.87), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | QYLD | QQQ |
|---|---|---|---|
| 1Y | Growthi | +23.15% | +21.45% |
| CAGRi | +23.17% | +21.47% | |
| Volatilityi | 10.99% | 19.63% | |
| Sharpe ratioi | 1.55 | 0.86 | |
| Sortino ratioi | 2.34 | 1.27 | |
| Max drawdowni | 5.78% | 11.96% | |
| Current drawdowni | 0.00% | 4.17% | |
| Avg drawdowni | 0.67% | 3.17% | |
| Ulcer Indexi | 1.24% | 4.01% | |
| Max daily dropi | 1.97% | 4.80% | |
| Max wkly dropi | 3.52% | 6.79% | |
| 5Y | Growthi | +53.26% | +103.31% |
| CAGRi | +8.92% | +15.25% | |
| Volatilityi | 14.92% | 22.96% | |
| Sharpe ratioi | 0.35 | 0.54 | |
| Sortino ratioi | 0.48 | 0.77 | |
| Max drawdowni | 24.60% | 35.12% | |
| Current drawdowni | 0.00% | 4.17% | |
| Avg drawdowni | 5.55% | 9.16% | |
| Ulcer Indexi | 8.33% | 13.59% | |
| Max daily dropi | 5.82% | 6.21% | |
| Max wkly dropi | 10.69% | 11.98% | |
| 10Y | Growthi | +160.33% | +566.86% |
| CAGRi | +10.05% | +20.91% | |
| Volatilityi | 15.62% | 22.57% | |
| Sharpe ratioi | 0.40 | 0.76 | |
| Sortino ratioi | 0.55 | 1.07 | |
| Max drawdowni | 24.75% | 35.12% | |
| Current drawdowni | 0.00% | 4.17% | |
| Avg drawdowni | 4.18% | 6.23% | |
| Ulcer Indexi | 6.90% | 10.38% | |
| Max daily dropi | 10.23% | 11.98% | |
| Max wkly dropi | 16.04% | 16.20% |
| Category | QYLD | QQQ |
|---|---|---|
| Fund name | Global X NASDAQ 100 Covered Call ETF | Invesco QQQ Trust |
| Type | ETF | ETF |
| Expense ratioi | 0.60% | 0.18% |
| Total assets (AUM)i | $8.48B | $498.95B |
| Dividend yieldi | 5.71% | 0.42% |
- Monthly income at 10-12% yield: QYLD provides significantly above-market income distributions monthly — one of the highest ETF yield sources available
- Downside buffering from premium income: option premiums provide some cushion against minor declines — in flat to slightly declining markets, QYLD may outperform pure QQQ exposure
- Monthly distribution schedule: 12 monthly payments appeal to income investors managing cash flow needs vs QQQ's quarterly dividends
- Full bull market participation: QQQ captures 100% of Nasdaq-100 upside in technology bull markets — in 2023, QQQ returned 55% while QYLD's capped strategy severely limited gains
- 20-year compounding track record: QQQ has significantly outperformed the S&P 500 over 10-20 year periods through technology earnings growth compounding
- Simpler structure with no options complexity: QQQ's straightforward index tracking is easier to understand than QYLD's covered call mechanics
- Capped upside in bull markets: QYLD's covered call strategy limits the fund's upside to the option strike price — in strong bull markets like 2023 (QQQ up 55%), QYLD significantly underperforms
- Return of capital distributions reduce NAV: some QYLD distributions are classified as return of capital — reducing the fund's NAV over time, creating the appearance of income that is partly principal consumption
- Total return significantly below QQQ over any meaningful period: QYLD's 10-12% yield doesn't compensate for the capital appreciation sacrificed — QQQ's total return has dramatically exceeded QYLD over 5-10 year periods
- Minimal current income: QQQ's dividend yield is under 1% — not suitable for income investors relying on distributions
- High valuation in technology sector: the Nasdaq-100's technology concentration means valuations are cyclically sensitive — bear markets can create 30-40% drawdowns in QQQ
- Higher expense ratio (0.20%) vs passive S&P 500 ETFs: QQQ costs more than VOO or IVV for similar passive exposure to a different index
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