QQQI: Sounds Like A Good Idea But It Isn't Worth The Fees - Sell

Doodad Capital
153 Followers

Summary

  • QQQI offers monthly income via options on Nasdaq 100 constituents, but its returns lag behind QQQ, which tracks the same index without options.
  • Top holdings like NVDA, MSFT, and AAPL are strong, but QQQI's options strategy fails to deliver superior performance or justify higher fees.
  • QQQI marginally outperforms QQQ during market downturns, but overall, QQQ provides better long-term returns with lower complexity and cost.
  • Given high management fees and lackluster performance, we rate QQQI a sell and recommend investors stick with QQQ for tech exposure.

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MoMo Productions

Introduction

The NEOS Nasdaq 100 High Income ETF (NASDAQ:QQQI) is a fund that seeks to deliver monthly income from investing in the constituents of the Nasdaq 100 by buying and selling options on the underlying index, NDX. This

This article was written by

153 Followers
I am a young individual investor specializing in finding and analyzing deep value and growth opportunities. I focus primarily on event or news driven research with a large emphasis on fundamental analysis.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not a registered investment, tax or legal advisor or broker and therefore cannot promise or guarantee any financial returns from my opinions on this page or site. The content of this article is based on my own personal thoughts and research, and you should do your own due diligence before making any investment decisions. This article may be structured as such, but it is not financial or investment advice. While I do make my best effort to ensure that all information in my articles is accurate and up to date, occasionally unintended errors or misprints may occur. Remember that all investments in the market face the risk of going to $0. The writer of this article has no business or personal relationship with any company mentioned in the above article.

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