QQQI: Beware Of Buying This Opaque ETF With A Short Performance Record (Archive)
QQQI’s black-box strategy and short record make its rich yield deceptively risky.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- QQQI is a relatively new covered call ETF that has been gaining in popularity this year.
- QQQI currently has limited active exposure vs QQQ. Its performance is lagging the QQQ but without providing much downside protection either. After-tax, QQQI would fare even worse vs QQQ.
- QQQI's option writing decisions relies on an opaque, rules-based model. We don't know anything about how well it does in a full market cycle due to a limited performance history.
- Technical analysis suggests QQQI is likely to underperform both SPY and QQQ, with weak or absent bullish momentum.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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