Built for Income: How QQQI Uses the NASDAQ-100 to Pay a 15% Yield
NYSEARCA:QQQI is no ordinary covered call ETF. It’s one of the rare funds that delivers high income without sacrificing NAV protection, making it a top pick for investors seeking monthly cash flow. At its current price of $21.43, QQQI offers a 14.9% dividend yield, achieved through its covered call strategy on the NASDAQ-100. This yield puts it well above competitors like JEPQ (12.3%), QYLD (11.5%), and QDTY (9.8%).
QQQI’s core innovation is reinvesting a portion of the premiums from covered calls into out-of-the-money call options. This lets it regain partial upside in bullish markets—a major edge over peers that sell naked calls and miss rebounds. Unlike QYLD, which gets punished in sharp rallies due to capped gains, QQQI’s hybrid strategy allows it to outperform in both sideways and climbing markets, without bleeding NAV like an annuity.
Consistent Payouts Without Price Erosion — A Rare Feat in Covered Call ETFs
While most high-yield ETFs see erosion of their net asset value over time, QQQI has defied that pattern. Despite choppy macro conditions and multiple NASDAQ pullbacks, it has managed to deliver a 14.87% total return over the past 12 months—nearly identical to QQQ’s 14.88%, even though QQQI distributes monthly income while QQQ doesn’t.
This result is not a coincidence. It stems from smart, active option management, not mechanical selling. During volatile months, QQQI adjusts the number and strike of its options contracts, sidestepping the pitfalls of systematic covered call funds like XYLD, which underperformed heavily after the COVID-19 crash due to overexposure to suppressed upside.
Performance Since Launch: QQQI Beats the Covered Call Pack
Since launching in 2022, QQQI has crushed other NASDAQ-based income ETFs. In less than two years, it’s accumulated over $1.7 billion in AUM, outpacing QYLD, JEPQ, and even newer entrants like GPIQ. Its return has been nearly 3x that of QYLD, despite offering a higher dividend.
Where others like QYLD pay out 11–12% but lose capital year over year, QQQI delivers monthly payouts near $0.26 per share while maintaining price stability. That's a rare equilibrium that income investors desperately seek—especially in retirement accounts.
Unlike YieldMax ETFs such as NVDY or TSLY that offer nosebleed yields at the expense of steady NAV, QQQI has struck a smart balance between cash flow and principal stability. Its ability to do so is largely credited to its risk-controlled upside participation and deliberate call-writing flexibility.
Expense Ratio, Liquidity, and Market Access: What You Need to Know
Despite being actively managed, QQQI charges just 0.70%, which is reasonable considering its trading strategy. With over $50 million traded daily, the ETF offers ample liquidity for institutional and retail investors alike. Investors looking to enter or exit positions at scale won't encounter slippage or wide bid-ask spreads—a key factor for tactical positioning.
For those concerned about “getting in at the top,” QQQI’s structure actually minimizes timing risk. Because it generates income through volatility, it tends to outperform in neutral or slightly bearish conditions—a rare trait in the ETF landscape.
Risk Profile: What Happens If NASDAQ-100 Crashes?
QQQI isn't a shield against a tech-led crash. If QQQ falls 20%, expect QQQI to drop as well—though likely less thanks to income cushions. In April 2024, when QQQ saw a sharp drop, QQQI’s price mirrored it. But the fund was much quicker to recover due to reinvestment of option income and upside participation through calls.
The key difference? Other ETFs got stuck under water for years. QQQI clawed back NAV within months, making it less vulnerable to V-shaped recovery traps. This is a major advantage for retirees depending on consistent income and capital preservation.
Why QQQI Beats the Competition in Retirement Portfolios
When comparing to JEPQ or QYLD, QQQI simply offers more. Higher yield, better NAV retention, faster recovery, and smarter call writing. It behaves like a tactical income generator, not a static annuity vehicle.
Its active management team doesn’t blindly sell weekly options for headline yield—they time it, scale it, and use option income to stay exposed to upside. It’s this nuanced approach that makes QQQI the top covered call ETF linked to the NASDAQ-100.
Investors focusing on monthly cash flow, NAV protection, and liquidity will find QQQI hard to beat. It's designed not just to pay—but to pay smartly, across market cycles.
Final Verdict: NYSEARCA:QQQI Is a Confident Buy
With a 15% dividend yield, smart protection against NAV loss, and superior performance against peers, NYSEARCA:QQQI stands out as the most compelling high-income ETF built on the NASDAQ-100. Its hybrid call strategy, active management, and strong recovery metrics set it apart in a crowded field of income funds.
For investors seeking reliable income without giving up upside potential, QQQI is a Buy. It’s not just another covered call ETF—it’s the next evolution of high-yield income investing.
