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Horizons Nasdaq 100 Covered Call ETF (QYLD)

WHY QYLD?


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– Dividend Income: QYLD seeks to receive 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 0.43% – 1.08% per month since inception on 12/11/2013.

– Volatility Enhances Income:  Historically as volatility rises, so too does the level of premium that can be generated on call writing. This additional premium could potentially reduce the volatility of the ETF compared to non-covered call strategies, however, covered call writing can limit the upside potential of the underlying security.

– 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.

API Data Table
FUND DETAILS (As Of Dec 13, 2018)
Ticker QYLD
Exchange Nasdaq
CUSIP 44053G108
Inception Date 12/11/13
Fund Net Assets $411,199,370
Trading Volume 84,805
Bloomberg Ticker BXNT
Total Gross Expense Ratio 0.60%
Currency USD
Eligibility Dividend Reinvestment Plan
Benchmark Cboe Nasdaq 100 BuyWrite V2 Index

Investment Objective

The Horizons 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.

 Morningstar Rating™ – QYLD received a 5 star rating for the overall & 3 year period out of 82 funds in the Options Writing category via Morningstar as of 10/31/18

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.

Index Methodolody

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 that is 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 is 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 the 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.

MONTH END PERFORMANCE (11/30/18)

1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr SIR*
QYLD (NAV) 0.42% -4.37% 0.46% 5.43% 7.12% 9.62% 8.44%
QYLD (Market Price) 0.17% -4.56% 0.12% 5.30% 6.93% 9.52% 8.44%
BXN** 0.42% -4.71% 0.22% 5.48% 6.65% 9.88% 8.58%
BXNT** 0.41% -4.44% 0.55% 5.99% 7.79% 10.51% 10.16%
Nasdaq 100 -0.09% -8.79% 0.25% 9.72% 10.29% 15.54% 16.38%

 

QUARTER END PERFORMANCE (9/30/18)

1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr SIR*
QYLD (NAV) 0.81% 7.33% 11.13% 11.15% 16.56% 14.35% 9.95%
QYLD (Market Price) 0.72% 7.10% 11.11% 11.12% 16.53% 14.34% 9.97%
BXN** 0.58% 6.96% 11.44% 11.34% 15.69% 14.41% 10.12%
BXNT** 0.87% 7.54% 11.55% 11.88% 17.64% 15.46% 12.54%
Nasdaq 100 -0.29% 8.61% 16.51% 20.18% 28.91% 23.63% 19.23%

 


Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. An investor cannot invest directly in an index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.

NAV: The dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day.

Market Price: The current price at which shares are bought and sold. Market returns are based upon the last trade price.

*Performance since inception return on December 11, 2013.

**Since inception performance of the fund compared to the BXNT Index will differ since the BXNT Index has an inception of 06/18/2015.

**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. 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.

PRICE INFO (As Of Dec 13, 2018)
Day End NAV $23.23
Nav Change ($) $0.05
Nav Change (%) 0.24%
Day End Market Price $23.25
Market Price Change ($) $0.05
Market Price Change (%) 0.22%
Premium or Discount (%) 0.08%
Shares Outstanding 17,700,000
RISK METRICS (As Of November 30, 2018)
Metric QYLD Nasdaq 100
Volatility (annualized) 9.65% 15.99%
Sharpe Ratio (annualized) 0.56 0.57
Beta 0.52 1.00
Correlation 0.86 1.00

 

The VXN reflects a market estimate of future volatility, based on the  weighted average of the implied volatilities for a wide range of strikes. 1st and 2nd month expirations are used until eight days from expiration, then the 2nd and 3rd month expirations are used.

2018 Distributions

Ex-dividend Date Record Date Payment Date Amount ($) Amount (%) Distribution Period
01/24/18 01/25/18 01/30/18 $0.25020 1.01% Monthly
02/21/18 02/22/18 02/27/18 $0.24870 1.01% Monthly
03/21/18 03/22/18 03/27/18 $0.24870 1.00% Monthly
04/25/18 04/26/18 05/01/18 $0.23410 0.99% Monthly
05/23/18 05/24/18 05/29/18 $0.21626 0.89% Monthly
06/20/18 06/21/18 06/26/18 $0.19952 0.82% Monthly
07/25/18 07/26/18 07/31/18 $0.18144 0.73% Monthly
08/22/18 08/23/18 08/28/18 $0.22585 0.91% Monthly
09/26/18 09/27/18 10/02/18 $0.20142 0.80% Monthly
10/24/18 10/25/18 10/30/18 $0.24697 1.08% Monthly
11/21/18 11/23/18 11/27/18 $0.22500 1.00% Monthly
12/27/18 12/28/18 12/31/18 Monthly

A portion of the distribution may include a return of capital. These do not imply rates for any future distributions. The ETF is not required to make distributions.

2017 Distributions

Ex-dividend Date Record Date Payment Date Amount ($) Amount (%) Distribution Period
01/25/17 01/27/17 01/31/17 $0.12751 0.56% Monthly
02/22/17 02/24/17 02/28/17 $0.09988 0.43% Monthly
03/22/17 03/24/17 03/28/17 $0.12327 0.54% Monthly
04/26/17 04/28/17 05/02/17 $0.14451 0.62% Monthly
05/24/17 05/26/17 05/30/17 $0.12598 0.53% Monthly
06/21/17 06/23/17 06/27/17 $0.22142 0.93% Monthly
07/26/17 07/28/17 08/01/17 $0.15853 0.67% Monthly
08/23/17 08/25/17 08/29/17 $0.20276 0.86% Monthly
09/20/17 09/22/17 09/26/17 $0.15374 0.65% Monthly
10/25/17 10/27/17 10/31/17 $0.14901 0.63% Monthly
11/22/17 11/27/17 11/28/17 $0.13217 0.54% Monthly
12/20/17 12/22/17 12/26/17 $0.24657 1.00% Monthly

A portion of the distribution may include a return of capital. These do not imply rates for any future distributions. The ETF is not required to make distributions.

2016 Distributions

Ex-dividend Date Record Date Payment Date Amount ($) Amount (%) Distribution Period
01/20/16 01/22/16 01/26/16 $0.21392 1.01% Monthly
02/24/16 02/26/16 03/01/16 $0.22029 1.01% Monthly
03/23/16 03/28/16 03/29/16 $0.15788 0.72% Monthly
04/20/16 04/22/16 04/26/16 $0.15556 0.70% Monthly
05/25/16 05/27/16 05/31/16 $0.17132 0.79% Monthly
06/22/16 06/24/16 06/28/16 $0.20241 0.94% Monthly
07/20/16 07/22/16 07/26/16 $0.14142 0.65% Monthly
08/24/16 08/26/16 08/30/16 $0.12980 0.59% Monthly
09/21/16 09/23/16 09/27/16 $0.19448 0.88% Monthly
10/26/16 10/28/16 11/01/16 $0.14939 0.67% Monthly
11/23/16 11/28/16 11/29/16 $0.16203 0.73% Monthly
12/21/16 12/23/16 12/27/16 $0.14551 0.65% Monthly

A portion of the distribution may include a return of capital. These do not imply rates for any future distributions. The ETF is not required to make distributions.

2015 Distributions

Ex-dividend Date Record Date Payment Date Amount ($) Amount (%) Distribution Period
01/21/15 01/23/15 01/28/15 $0.23022 0.99% Monthly
02/25/15 02/27/15 03/04/15 $0.15423 0.65% Monthly
03/25/15 03/27/15 04/01/15 $0.15965 0.69% Monthly
04/22/15 04/24/15 04/29/15 $0.15331 0.65% Monthly
05/20/15 05/22/15 05/27/15 $0.16942 0.72% Monthly
06/24/15 06/26/15 07/01/15 $0.15028 0.63% Monthly
07/22/15 07/24/15 07/29/15 $0.15206 0.64% Monthly
08/26/15 08/28/15 09/02/15 $0.20353 0.93% Monthly
09/23/15 09/25/15 09/30/15 $0.22156 0.98% Monthly
10/21/15 10/23/15 10/28/15 $0.21418 0.93% Monthly
11/25/15 11/30/15 12/02/15 $0.18099 0.77% Monthly
12/23/15 12/28/15 12/30/15 $0.21453 0.92% Monthly

A portion of the distribution may include a return of capital. These do not imply rates for any future distributions. The ETF is not required to make distributions.

2014 Distributions

Ex-dividend Date Record Date Payment Date Amount ($) Amount (%) Distribution Period
01/22/14 01/24/14 02/06/14 $0.25740 1.01% Monthly
02/26/14 02/28/14 03/13/14 $0.19328 0.75% Monthly
03/26/14 03/28/14 04/10/14 $0.19342 0.77% Monthly
04/23/14 04/25/14 05/08/14 $0.26250 1.06% Monthly
05/21/14 05/23/14 06/05/14 $0.24450 0.98% Monthly
06/25/14 06/27/14 07/02/14 $0.21250 0.85% Monthly
07/23/14 07/25/14 07/30/14 $0.20938 0.83% Monthly
08/20/14 08/22/14 08/27/14 $0.22185 0.88% Monthly
09/24/14 09/26/14 10/01/14 $0.19482 0.78% Monthly
10/22/14 10/24/14 10/29/14 $0.24125 1.02% Monthly
11/26/14 12/01/14 12/03/14 $0.20341 0.85% Monthly
12/24/14 12/29/14 12/31/14 $0.14463 0.60% Monthly

A portion of the distribution may include a return of capital. These do not imply rates for any future distributions. The ETF is not required to make distributions.

Distribution Summary As Of 11/30/18
Distributions Paid Monthly
Last Payment Amount $0.22500
30-day SEC Yield 0.55%
12-month Trailing Yield 12.10%
Monthly Distribution 1.00%
YTD Distribution 11.00%
Annualized Distribution 11.99%
2017 Distribution 7.70%
2016 Distribution 9.20%
2015 Distribution 9.49%
2014 Distribution 10.81%
Top 10 Holdings

Company Weighting
Microsoft Corp 10.85%
Apple Inc 10.51%
Amazon.com Inc 10.48%
Alphabet Inc Class C 4.81%
Facebook Inc A 4.44%
Alphabet Inc A 4.13%
Cisco Systems Inc 2.90%
Intel Corp 2.85%
Comcast Corp Class A 2.17%
PepsiCo Inc 2.13%

Holdings are subject to change. Download full holdings file here 

Fund Materials

Investor Guide to Covered Call ETFs (PDF) Horizons Nasdaq 100 Covered Call ETF


Monthly Fact Sheet (PDF) Horizons Nasdaq 100 Covered Call ETF


Quarterly Fact Sheet (PDF) Horizons Nasdaq 100 Covered Call ETF


Prospectus (PDF) Horizons Nasdaq 100 Covered Call ETF


Summary Prospectus (PDF) Horizons Nasdaq 100 Covered Call ETF


Statement of Additional Information (PDF) Horizons Nasdaq 100 Covered Call ETF


Semi-Annual Report (PDF) 2018


Annual Report (PDF) 2017


XRBL (PDF)

19A-1 Notices

19a-1 Notice (PDF) November 2018


19a-1 Notice (PDF) October 2018


19a-1 Notice (PDF) September 2018


19a-1 Notice (PDF) August 2018


19a-1 Notice (PDF) July 2018


19a-1 Notice (PDF) June 2018


19a-1 Notice (PDF) May 2018


19a-1 Notice (PDF) April 2018


19a-1 Notice (PDF) March 2018


19a-1 Notice (PDF) February 2018


19a-1 Notice (PDF) January 2018


19a-1 Notice (PDF) December 2017


19a-1 Notice (PDF) November 2017


19a-1 Notice (PDF) October 2017


19a-1 Notice (PDF) September 2017


19a-1 Notice (PDF) August 2017


19a-1 Notice (PDF) July 2017


19a-1 Notice (PDF) June 2017


19a-1 Notice (PDF) May 2017


19a-1 Notice (PDF) April 2017


19a-1 Notice (PDF) March 2017


19a-1 Notice (PDF) February 2017


19a-1 Notice (PDF) January 2017


19a-1 Notice (PDF) December 2016


19a-1 Notice (PDF) November 2016


19a-1 Notice (PDF) October 2016


19a-1 Notice (PDF) September 2016


19a-1 Notice (PDF) August 2016


19a-1 Notice (PDF) July 2016


19a-1 Notice (PDF) June 2016


19a-1 Notice (PDF) May 2016


19a-1 Notice (PDF) April 2016


19a-1 Notice (PDF) March 2016


19a-1 Notice (PDF) February 2016


19a-1 Notice (PDF) January 2016


19a-1 Notice (PDF) December 2015


19a-1 Notice (PDF) November 2015


19a-1 Notice (PDF) October 2015


19a-1 Notice (PDF) September 2015


19a-1 Notice (PDF) August 2015


19a-1 Notice (PDF) July 2015


19a-1 Notice (PDF) June 2015


19a-1 Notice (PDF) May 2015


19a-1 Notice (PDF) April 2015


19a-1 Notice (PDF) March 2015


19a-1 Notice (PDF) February 2015


19a-1 Notice (PDF) January 2015


19a-1 Notice (PDF) December 2014


19a-1 Notice (PDF) November 2014

© 2018 HORIZONS ETFS MANAGEMENT (US) LLC. ALL RIGHTS RESERVED.

Before investing you should carefully consider the fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained on this website. Please read the prospectus carefully before you invest.

Performance data quoted represents past performance and is no guarantee of future results. Investment return and principle value fluctuate, so that an investors shares, when redeemed, may be worth more or less than their original cost; and current performance may be higher or lower than the performance data quoted. Index returns are for illustrative purposes only. Investors cannot directly invest in an index and unmanaged index returns do not reflect any management fees, transaction costs or expenses. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with investments in the fund. 

There are risks involved with investing, including possible loss of principal. Concentration in a particular industry or sector will subject the funds to loss due to adverse occurrences that may affect that industry or sector. Each sector fund is subject to its own specific risk factors. See prospectus for specific risks regarding fund. Investors in the funds should be willing to accept a high degree of volatility in the price of the fund’s shares and the possibility of significant losses. International investing involves risks, including -risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets or in concentrations of single countries. Diversification may not protect against market risk or loss of principal.

QYLD engages in options trading. An option is a contract sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed upon price within a certain period or on a specific date. A covered call option involves holding a long position in a particular asset, in this case U.S. common equities, and writing a call option on that same asset with the goal of realizing additional income from the option premium. QYLD writes 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.

Horizons ETFs Management (US) LLC is the investment adviser of the HSPX, DAX, QYLD, And USDY. The funds are distributed by Foreside Fund Services LLC, which is not affiliated with Horizons ETFs Management (US) LLC or any of its affiliates.

*Morningstar rating as of 10/31/18. the Morningstar rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life sub-accounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar risk-adjusted return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The overall Morningstar rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Individual shares of the Horizons-branded exchange traded funds (the “funds”) may be purchased or sold in the secondary market throughout the regular trading day on the New York Stock Exchange or Nasdaq Exchange through a brokerage account. However, shares are not individually redeemable directly from the funds. Each fund issues and redeems shares on a continuous basis, at NAV, only in blocks of shares (“creation units”), principally in-kind for securities included in the relevant index. The creation units for DAX, QYLD, HSPX, and USDY are 50,000 shares.