Wait, $QQQI pays dividends monthly?
I always thought it was just QQQ in different clothes. I clicked in to check the corporate actions and was stunned—
One in April
One in May
One in June
One in July
One in August
One in September
Every month, without missing a beat.
The September payment was $0.6339 per share, and the current share price is $56.445. I punched it into a calculator:
Monthly yield: 1.12%
Annualized: 13.5%
It gets interesting when you compare it with QQQ.
I own QQQ too. The Nasdaq has been on a tear these past few years, and its net asset value has just kept climbing. It’s genuinely satisfying to watch. But those gains depend on U.S. stocks continuing to rise. If the market reverses and the Nasdaq pulls back, QQQ is outright long—when it falls, you take the full hit. Whatever your unrealized loss is on paper, that’s what it is, with no cushion at all.
QQQI is different. It sells covered call options on the Nasdaq 100 as a hedge, essentially selling off some of its upside in exchange for option premiums.
The tradeoff is that it definitely won’t keep up with QQQ in a bull market, so you won’t make money by doubling your investment.
The upside is that if the market really takes a nosedive, it has that options cushion, so its net asset value falls much more gently than QQQ’s.
Look at the sell-off in the first chart: it plunged from 57 to 41, then rebounded to 56. Now it’s holding steady sideways. It doesn’t give you that heart-stopping feeling of having to watch the market every day.
In short—
QQQ is betting that the market will keep going up, so you profit from capital appreciation.
QQQI gives up some of that appreciation in exchange for a relatively stable net asset value, plus monthly dividends.
The difference in dividends is even bigger.
QQQ pays quarterly, four times a year, with a yield of at most 0.6%—better than nothing, but not by much.
QQQI pays monthly, 12 times a year, with an annualized yield of 13.5%—more than 20 times as much.
Based on $200,000:
You’d buy about 3,543 shares of QQQI
$2,246 deposited each month
$26,953 a year
You don’t have to do a thing. It deposits money every month. When the market falls, the paper losses won’t look too ugly; when it rises, you may not keep up with QQQ, but at least you’ll get a little of the upside.
I’ve started adding it as a core income holding in my U.S. stock portfolio. I’m not expecting to double my money—I just want monthly cash flow. If it falls, I’ll actually add more and build up my share count.
Anyone else holding it? Could they suddenly slash the dividend one month?
$QQQI $QQQ #美股 #ETF #分红 #被动收入 #Nasdaq
I always thought it was just QQQ in different clothes. I clicked in to check the corporate actions and was stunned—
One in April
One in May
One in June
One in July
One in August
One in September
Every month, without missing a beat.
The September payment was $0.6339 per share, and the current share price is $56.445. I punched it into a calculator:
Monthly yield: 1.12%
Annualized: 13.5%
It gets interesting when you compare it with QQQ.
I own QQQ too. The Nasdaq has been on a tear these past few years, and its net asset value has just kept climbing. It’s genuinely satisfying to watch. But those gains depend on U.S. stocks continuing to rise. If the market reverses and the Nasdaq pulls back, QQQ is outright long—when it falls, you take the full hit. Whatever your unrealized loss is on paper, that’s what it is, with no cushion at all.
QQQI is different. It sells covered call options on the Nasdaq 100 as a hedge, essentially selling off some of its upside in exchange for option premiums.
The tradeoff is that it definitely won’t keep up with QQQ in a bull market, so you won’t make money by doubling your investment.
The upside is that if the market really takes a nosedive, it has that options cushion, so its net asset value falls much more gently than QQQ’s.
Look at the sell-off in the first chart: it plunged from 57 to 41, then rebounded to 56. Now it’s holding steady sideways. It doesn’t give you that heart-stopping feeling of having to watch the market every day.
In short—
QQQ is betting that the market will keep going up, so you profit from capital appreciation.
QQQI gives up some of that appreciation in exchange for a relatively stable net asset value, plus monthly dividends.
The difference in dividends is even bigger.
QQQ pays quarterly, four times a year, with a yield of at most 0.6%—better than nothing, but not by much.
QQQI pays monthly, 12 times a year, with an annualized yield of 13.5%—more than 20 times as much.
Based on $200,000:
You’d buy about 3,543 shares of QQQI
$2,246 deposited each month
$26,953 a year
You don’t have to do a thing. It deposits money every month. When the market falls, the paper losses won’t look too ugly; when it rises, you may not keep up with QQQ, but at least you’ll get a little of the upside.
I’ve started adding it as a core income holding in my U.S. stock portfolio. I’m not expecting to double my money—I just want monthly cash flow. If it falls, I’ll actually add more and build up my share count.
Anyone else holding it? Could they suddenly slash the dividend one month?
$QQQI $QQQ #美股 #ETF #分红 #被动收入 #Nasdaq
