ETF's

 

Recon Capital NASDAQ 100 Covered Call ETF (NASDAQ: QYLD)

Why QYLD ?

  • Dividend Income
    QYLD receives all dividends of the constituents of the NASDAQ-100 and more than half of the constituents pay dividends.
  • Monthly Options Income**
    QYLD has distributed between 0.59% - 1.06% per month since inception on 12/12/2013.
  • Seeks a Measure of Portfolio Protection
    The monthly options premiums collected may serve as a buffer from market downswings in the NASDAQ-100 Index lowering the volatility of the portfolio. 
  • Options Execution
    The ETF vehicle is beneficial to investors as it allows the ETF issuer to write the call options on the NASDAQ-100 Index, rather than an individual investor needing to undertake a potentially expensive, time consuming, and complex call writing process.
  • Pricing
    QYLD offers the benefits of professional options management at a 0.60% expense ratio, a relatively low cost when compared to a self-directed account. Covered call strategies can have higher transaction costs over traditional buy and hold strategies
 

Investment Objective

The Recon Capital NASDAQ 100 Covered Call ETF (“Fund”) seeks to provide investment results that will closely correspond, before fees and expenses, generally to the price and yield performance of the CBOE NASDAQ-100® BuyWrite V2 Index.

 

Index Methodology

QYLD tracks the BXNT index which is a passive total return index based on (1) buying a NASDAQ-100 stock index portfolio, and (2) “writing” (or selling) the near-term NASDAQ-100 Index (NDX) “covered” call option, generally on the third Friday of each month. The NDX call written will have about one month remaining to expiration, with an exercise price just above the prevailing index level (i.e., slightly out of the money). The NDX call is held until one day prior to expiration and are liquidated at a volume-weighted average price determined at the close. The NDX call option is settled in cash, at which time a new one-month, near-the-money call is written.

After close of trading on 10/14/2015, QYLD switched its index from CBOE NASDAQ-100 BuyWrite Index (BXN) to CBOE NASDAQ-100 BuyWrite V2 Index (BXNT).  The BXNT index replicates the methodology used to calculate the BXN index, with one exception: In BXNT the written NASDAQ-100 index covered call options are held until one day prior to the expiration date and in BXN the written NASDAQ-100 index covered call options are held until expiration.

 

Index Description

The CBOE NASDAQ-100® BuyWrite V2 Index (“Index”) measures the total return of a portfolio consisting of equity securities of the 100 companies included in the NASDAQ-100® Index and call options systematically written on those securities through a “buy-write” or covered call strategy.

A “buy-write” strategy is an investment strategy in which the Fund buys a specific basket of stocks (such as the NASDAQ-100® Index) and sells covered call options that correspond to that basket of stocks.

The BXNT Index information can be found here.

 

Fund Information as of 02/21/2017

Inception Date 12/12/2013
Ticker Symbol QYLD
CUSIP 75623U102
Listing Exchange Nasdaq
Gross Expense Ratio 0.6 %
IOPV Symbol QYLD.IV
NAV Symbol QYLD.NV
NAV $ 23.03
Premium Discount $0.21
Premium Discount Percentage 0.90%
Volume 29,837
Closing Price $ 23.24
Bid Ask Midpoint $ 23.235
Shares Outstanding 3,000,000
All Data as-of Date 02/21/2017
 

Underlying Index Information

Index CBOE NASDAQ-100® BuyWrite V2 Index
Index Symbol BXNT
Index Provider CBOE
Index Inception 06/18/2015
No. of Securities 101

Top 10 Holdings as of 02/21/2017

Ticker Company % of Fund
AAPL APPLE INC 11.76 %
MSFT MICROSOFT CORP 8.05 %
AMZN AMAZON COM INC 6.54 %
FB FACEBOOK INC 5.12 %
GOOG ALPHABET INC 4.61 %
GOOGL ALPHABET INC 4.05 %
CMCSA COMCAST CORP NEW 2.91 %
INTC INTEL CORP 2.75 %
CSCO CISCO SYS INC 2.74 %
AMGN AMGEN INC 2.07 %
Download Holdings

Downloadable Links

Prospectus
Annual Report
SAI
Fact Sheet
Monthly Performance
Holdings
XBRL
 

Performance Table

As of 01/31/2017 (Inception 12/12/2013) 1 Month 3 Month YTD 1 Year 3 Year 5 Year Since Inception
QYLD (Market Price) 3.03% 5.39% 3.03% 15.35% 6.67% - 6.88%
QYLD (NAV) 3.31% 5.47% 3.31% 15.24% 6.64% - 6.77%
BXN (CBOE Nasdaq-100 BuyWrite Index)* 2.86% 4.94% 2.86% 15.88% 6.79% - 6.93%
BXNT (CBOE Nasdaq-100 BuyWrite V2 Index)* 3.39% 5.76% 3.39% 16.48% - - 7.91%*
 

Distribution Schedule

Ex-Dividend Date Record Date Payment Date Payment Amount Distribution Period
    2017
12/20/2017 12/22/2017 12/26/2017 Monthly
11/22/2017 11/27/2017 11/28/2017 Monthly
10/25/2017 10/27/2017 10/31/2017 Monthly
09/20/2017 09/22/2017 09/26/2017 Monthly
08/23/2017 08/25/2017 08/29/2017 Monthly
07/26/2017 07/28/2017 08/01/2017 Monthly
06/21/2017 06/23/2017 06/27/2017 Monthly
05/24/2017 05/26/2017 05/30/2017 Monthly
04/26/2017 04/28/2017 05/02/2017 Monthly
03/22/2017 03/24/2017 03/28/2017 Monthly
02/22/2017 02/24/2017 02/28/2017 $0.099880 Monthly
01/25/2017 01/27/2017 01/31/2017 $0.127510 Monthly
    2016
    2015
    2014
 

FAQ's

1. What is a Covered Call?

A “covered call” is an income-producing strategy where you sell, or “write”, call options against shares of stock you already own. Typically, you'll sell one contract for every 100 shares of stock. In exchange for selling the call options, you collect an option premium. But that premium comes with an obligation.

Performance data quoted represents past performance, which does not guarantee future results.  Investment return and principal value will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost; and the current performance may be lower or higher than the performance data quoted.  Please call 1-844-RC-FUNDS/ 1-844-723-8637 or visit www.reconfunds.com/QYLD

*On 10/14/2015 the fund Advisor changed the Funds primary benchmark from BXN to BXNT index in connection with a change in the Fund's principal strategies. The Advisor believes the BXNT index is a better measure of the Fund's performance. Performance of the Fund compared to BXNT will differ due to BXNT having an inception of 6/18/2015 and the Fund having an inception on 12/12/2013.

**The Fund typically earns income dividends from stocks and interest from debt securities. These amounts, net of expenses, are typically passed along to Fund shareholders as dividends from net investment income. The Fund realizes capital gains from writing options and capital gains or losses whenever it sells securities. Any net realized long-term capital gains are distributed to shareholders as ‘‘capital gain distributions.’’ These do not imply rates for any future distributions. The ETF is not required to make distributions. 

Before you invest in Recon Capital's Funds, please refer to the prospectus for important information about the investment company, including investment objectives, risks, charges and expenses.To obtain a prospectus containing this and other important information, please call 1-844-RC-FUNDS/ 1-844-723-8637 or visit investor materials to view or download a prospectus online. Read the prospectus carefully before you invest. There are risks involved with investing including the possible loss of principal. Past performance does not guarantee future results. 

The Fund engages in writing covered call Index options on the NASDAQ-100 Index. By selling covered call options, the Fund limits its opportunity to profit from an increase in the price of the underlying Index above the exercise price, but continues to bear the risk of a decline in the index. A liquid market may not exist for options held by the Fund. While the Fund receives premiums for writing the call options, the price it realizes from the exercise of an option could be substantially below the indices current market price.

 

Shares are bought and sold at market price (not NAV), are not individually redeemable, and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, consisting of 50,000 Shares. Brokerage commissions will reduce returns.

Recon Capital ETFs are distributed by Foreside Fund Services, LLC. Foreside Fund Services, LLC is not affiliated with Recon Capital Advisors, LLC or any of its affiliates..

The Product is not sponsored, endorsed, sold or promoted by The NASDAQ OMX Group, Inc. (“NASDAQ OMX”), Chicago Board of Options Exchanges, Incorporated (“CBOE”) or its affilia-tes (NASDAQ OMX, CBOE with its affiliates, are referred to as the “Corporations”). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of descriptions and disclosures relating to, the Product. The Corporations make no representation or warranty, express or implied to the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product particularly, or the ability of the Nasdaq-100 Index® to track general stock market performance. The Corporations only relationship to Recon Capital Partners, LLC (“Licensee”) is in the licensing of the CBOE NASDAQ-100 BuyWrite Index® registered trademarks, and certain trade names of the Corporations and the use of the CBOE NASDAQ-100 BuyWrite Index® which is determined, composed and calculated by CBOE without regard to Licensee or the Product. The Corporations have no obligation to take the needs of the Licensee or the owners of the Product into consideration in determining, composing or calculating the CBOE NASDAQ-100 BuyWrite Index®. The Corporations are not responsible for and have not participated in the determination of the timing of, prices at, or quantities of the Product to be issued or in the determination or calculation of the equation by which the Product is to be converted into cash. The Corporations have no liability in connection with the administration, marketing or trading of the Product.

THE CORPORATIONS DO NOT GUARANTEE THE ACCURACY AND/OR UNINTERRUPTED CALCULATION OF THE CBOE NASDAQ-100 BUYWRITE INDEX® OR ANY DATA INCLUDED THEREIN. THE CORPORATIONS MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OF THE PRODUCT, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE CBOE NASDAQ-100 BUYWRITE INDEX® OR ANY DATA INCLUDED THEREIN. THE CORPORATIONS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE NASDAQ-100 INDEX® OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL THE CORPORATIONS HAVE ANY LIABILITY FOR ANY LOST PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

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