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QYLD VS NDX During Recent Volatility Spikes

WHY QYLD?


– 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% – 1.06% 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 Sep 21, 2018)
Ticker QYLD
Exchange Nasdaq
CUSIP 44053G108
Inception Date 12/11/13
Fund Net Assets $378,195,210
Trading Volume 210,365
Bloomberg Ticker BXNT
Total Gross Expense Ratio 0.60%
Currency USD
Eligibility Dividend Reinvestment Plan
Benchmark Cboe Nasdaq 100 BuyWrite V2 Index

QYLD VS Nasdaq 100 (NDX) | Growth of $10,000 | 2018 Volatility Snapshots


Options premium can potentially serve both as a buffer and a measure of downside protection during market selloffs. This has been visible during the periods displayed in the charts below, which show how an investment of $10,000 would have performed in the Horizons Nasdaq 100 Covered Call ETF (QYLD) compared to the Nasdaq 100 Index (NDX).

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. Writing covered calls limits the upside potential of the underlying security.

QYLD VS Nasdaq 100 (NDX) | NAV Change (%) | 2018 Volatility Snapshots


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. Writing covered calls limits the upside potential of the underlying security.

QYLD has distributed between 0.43%-1.06% per month since inception on 12/11/2013


2018 Monthly 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 Monthly
10/24/18 10/25/18 10/30/18 Monthly
11/21/18 11/23/18 11/27/18 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 Monthly 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 Monthly 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 Monthly 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 Monthly 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.

© 2017 HORIZONS ETFS MANAGEMENT (US) LLC. ALL RIGHTS RESERVED.

1The measure of downside capture can indicate how correlated a fund is to a market, when the market declines. The lower the downside capture, the better the fund preserves wealth during market downturns. This metric is figured by calculating the cumulative return of the fund for each month that the market/benchmark was down and dividing it by the cumulative return of the market/benchmark in the same time frame. Perfect correlation with the market will equate to a 100% downside capture and typically is only possible when comparing the benchmark to itself.

*Morningstar rating as of 1/31/18. THE MORNINGSTAR RATING™ FOR FUNDS, OR “STAR RATING”, IS CALCULATED FOR MANAGED PRODUCTS (INCLUDING MUTUAL FUNDS, VARIABLE ANNUITY AND VARIABLE LIFE SUBACCOUNTS, 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. PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NO GUARANTEE OF FUTURE RESULTS.

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 ARE 50,000 SHARES.

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. DISTRIBUTOR: FORESIDE FUND SERVICES, LLC.

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. THE FUNDS RISK NOT BENEFITING FROM POTENTIAL INCREASES IN THE VALUE OF UNDERLYING SECURITIES ABOVE THE EXERCISE PRICES OF THE WRITTEN COVERED CALL OPTIONS, AND ARE SUBJECT TO THE RISK OF DECLINES IN THE VALUE OF SUCH SECURITIES. EACH SECTOR FUND IS SUBJECT TO ITS OWN SPECIFIC RISK FACTORS. SEE PROSPECTUS FOR SPECIFIC RISKS REGARDING FUND.

QYLD AND HSPX BOTH ENGAGE 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 ENGAGES IN WRITING COVERED CALL INDEX OPTIONS ON THE NASDAQ-100 INDEX. HSPX ENGAGES IN WRITING COVERED CALL INDEX OPTIONS ON OPTION-ELIGIBLE STOCKS IN THE S&P 500® 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, AND QYLD. THE FUNDS ARE DISTRIBUTED BY FORESIDE FUND SERVICES, LLC, WHICH IS NOT AFFILIATED WITH HORIZONS ETFS MANAGEMENT (US) LLC OR ANY OF ITS AFFILIATES.

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. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. INVESTORS IN THE FUND SHOULD BE WILLING TO ACCEPT A HIGH DEGREE OF VOLATILITY IN THE PRICE OF THE FUND’S SHARES AND THE POSSIBILITY OF SIGNIFICANT LOSSES. AN INVESTMENT IN THE FUND INVOLVES A SUBSTANTIAL DEGREE OF RISK. 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. BROKERAGE COMMISSIONS WILL REDUCE RETURNS. DAX AND QYLD ARE CONSIDERED NON-DIVERSIFIED AND MAY BE SUBJECT TO GREATER RISKS THAN A DIVERSIFIED FUND.