QYLD Took Most of QQQ’s April 2025 Drop but Less Than Half Its Rebound. Covered Calls Are Why
QYLD holders collected monthly income checks while the Nasdaq-100 crashed and then roared back in spring 2025, but the math on what they actually kept versus what they gave up tells a story most covered call investors never think to…
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For anyone holding a Nasdaq-100 covered call fund for its monthly checks, April 2025 showed what that income costs. From April 2, 2025, to April 8, 2025, during the tariff selloff, Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD) lost 10.84%. That was nearly as far as the 12.62% drop in Invesco QQQ Trust (NASDAQ:QQQ). Then the Nasdaq-100 turned around.
From April 8, 2025 through June 30, 2025, the end of that quarter, QQQ returned 32.59%. QYLD returned 15.12%. All figures include dividends.
What the Capped Rebound Cost Per $10,000
Say you put $10,000 into each fund at the April 8 low. By June 30, QQQ had added $3,259. QYLD had added $1,512. That was a shortfall of $1,747 in under three months, from a fund that holds largely the same stocks.
Now run the full round trip from April 2 to June 30. $10,000 in QQQ ended near $11,586. The same $10,000 in QYLD ended near $10,264, a gap of about $1,322. QYLD holders took most of the decline and got a much smaller share of the recovery.
Why QYLD Took Almost the Full Hit
QYLD buys the stocks in the Nasdaq-100 and sells call options on that same index. As of July 31, 2026, its largest positions were NVIDIA at 8.20% of net assets, Apple at 7.65%, and Microsoft at 5.82%. QQQ held the same three at 7.60%, 6.67%, and 4.35% as of June 30, 2026. Holding the same stocks means taking the same downside. The option premium (the cash a fund collects for selling calls) softens a decline only a little. That small buffer is why QYLD fell slightly less than QQQ.
Why the Upside Got Sold Off
Selling a call works like taking cash today in return for promising to sell your house at today’s price anytime this month. If home prices jump, the buyer gets the gain, and you keep only the upfront payment. QYLD writes these calls on a monthly cycle. When the index rises above the strike price (the agreed sale price), the gains above that level go to the option buyer. Its July 31, 2026 filing shows the trade: 2,893 short Nasdaq-100 call contracts, carried at negative 1.74% of net assets. Global X notes that covered call writing “can limit the upside potential.”
The income looks large. QYLD paid $2.1404 per share over the trailing 12 months, about 11.96% of its $17.89 closing price on October 30, 2026, and the checks arrive every 30 days (if a monthly payment schedule is what drew you here in the first place, we rounded up seven other monthly payers in a free report). Global X also notes that distributions “may contain return of capital,” meaning some of your own investment comes back to you and reduces your cost basis.
Other Covered Call Funds Kept More of the Rally
JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) fell 11.58% over the same April window, then returned 21.38% through June 30. NEOS Nasdaq-100 High Income ETF (NASDAQ:QQQI) fell 11.46% and then rallied 26.88%. All three income funds fell by similar amounts, but their recoveries were far apart. How much of the portfolio a fund writes calls on, and how it writes them, determines how much rebound it keeps.
What to Weigh Before Treating QYLD Like the Nasdaq
QYLD’s biggest cost is the rebound you give up for monthly income. The trade-off also works in the other direction. Over the month ended October 30, 2026, QYLD slid 2.6% while QQQ’s price fell 6.66%. In a flat or ranging market, the premium can help.
After a sharp selloff, it can work against you. The key question is how much of the recovery you need to keep if the Nasdaq-100 falls fast and then rallies. In the spring of 2025, QYLD kept far less than QQQ.
Contact [email protected] for any questions or corrections.
Ryne Mauck is an investment writer covering exchange-traded funds, retirement planning, and portfolio strategy. Through his work at 24/7 Wall St. and other investment platforms, including Seeking Alpha, he aims to provide clear, research-driven insights that help investors make more informed decisions while maintaining a long-term approach to investing.
Ryne holds a B.Sc. in Finance and an M.A. in Political Science. He is a formerly registered Municipal Advisor Representative and has passed the Series 50, Series 63, and Series 65 exams. His articles are not intended to be, nor should they be interpreted as, financial advice.
