QYLD has been running the covered call playbook on the Nasdaq-100 since December 2013, and with $8.3 billion in assets, it remains the dominant fund in this category. The strategy is straightforward: hold the Nasdaq-100 and sell covered call options against the entire index each month, collecting premium that gets distributed to shareholders as income.
The beauty of passive income grows with time, especially in the current economic climate. Investors have been facing a perfect storm of trade path changes, elevated interest rates, and persistent inflation, leaving many between a rock and a hard place in search of outperformance. Passive income, where you can earn money 24/7, is a sure-fire way to combat the economic uncertainty, but it can be hard to come by unless you know where to look.
The Invesco QQQ Trust tracks the performance of the Nasdaq 100 index and gives access to the 100 largest non-financial companies on the index. QQQ gives access to the top 100 tech stocks in a single ETF. The fund is rebalanced quarterly and reconstituted annually. The Invesco QQQ Trust is a weighted capitalization ETF which means that the companies with a larger market cap have a higher weightage in the ETF.
But that doesn't mean you should pass up on a chance to make a big swing on the bigger opportunities that fly through your strike zone. In this piece, we'll look at three great large-cap tech stocks that have already fallen far more than the rest of the market and the Nasdaq 100 and might be spared if they have already "ripped the band-aid off," so to speak.
With all the chatter and commentary about the internet (or dot-com) bubble burst and even the great stock market crash of 1929, it's quite an unsettling time to be an investor in the markets, as the S&P nears new highs after a 2.3% gain for the month of October. For the tech-heavy Nasdaq 100, it was an even brighter month, with the index nearly rising 5% in a month.
We've likely all heard about the Dogs of the Dow strategy by now, which entails buying up the highest-yielding, often worst-performing stocks within the Dow Jones Industrial Average at the start of the new year. And while the approach might not help investors gain a market-beating leg up, I do think that some variant of the approach can be applied to other indices.
ProShares UltraPro QQQ ( NASDAQ:TQQQ) is proof positive that you don't need sophisticated trading know-how to get leverage in the financial markets. Instead of delving into NASDAQ 100 futures contracts or individual stock picking, you can simply use ProShares UltraPro QQQ to get magnified exposure to the biggest names in American technology. While there are other triple-leveraged funds available on the market today, ProShares claims that its ProShares UltraPro QQQ is the "only ETF that targets 3x the daily returns of the Nasdaq-100 Index."
