GREENWICH, Conn.--(BUSINESS WIRE)--Designed to provide above average distributions to income-oriented investors, the Recon Capital NASDAQ 100 Covered Call ETF (QYLD) had a distribution yield of 10.4 percent in 2014, news which comes on the heels of its first anniversary. The fund’s monthly distributions totaled more than 10 percent for the year.
QYLD, which seeks to track the CBOE NASDAQ 100 BuyWrite Index (BXN), began trading on the NASDAQ on Dec. 12, 2013, and was created as a fixed income alternative for retail investors and financial advisors.
The monthly options premiums collected were designed to serve as a buffer from market downswings, lowering the volatility and offering increased portfolio protection.
“Unlike many fixed income investments, QYLD faces no headwinds from rising interest rates, nor is it susceptible to duration risk,” says Kevin R. Kelly, Managing Partner of Recon Capital. “Rather, QYLD seeks to provide investors with a low volatility, non-leveraged, tax-efficient product that pays out a monthly income, instead of making distributions by quarter or on an annual basis. We are proud to round out 2014 – and the first year of QYLD trading -- with a 10.4 percent yield for our investors, particularly as the 30 Year Treasury sits below 2.75 percent.”
The index consists of innovative companies in each of their respective sectors, including Apple, Google, Gilead, Starbucks and Facebook.
For more information about QYLD, please visit http://reconfunds.com/QYLD. Its sister product is the Recon Capital DAX Germany ETF (NASDAQ: DAX), the only U.S.-listed ETF that is benchmarked to DAX Index.
About Recon Capital Partners
Recon Capital Partners, LLC is an SEC Registered Investment Adviser headquartered in Greenwich, CT that focuses on bringing innovative, efficient and niche products to the exchange traded fund universe. Recon’s funds are for institutional investors, financial professionals, and individual investors that need liquid, transparent, and cost effective strategies.
Recon Capital uses its investment expertise and operational infrastructures to deliver market-driven, value-added products that meet the evolving needs of global investors.
To visit the fund manager’s website, please visit, ReconCapitalPartners.com.
You should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact Recon Capital Advisors at 1-203-900-1400 or visit www.ReconFunds.com to obtain a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.
Performance data quoted represents past performance. Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and Shares, when redeemed, may be worth more or less than their original cost. See www.reconfunds.com to find the most recent month-end performance numbers.
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.
By writing covered call options, in return for the receipt of premiums, the Fund will give up the opportunity to benefit from potential increases in the value of the NASDAQ-100 Index above the exercise prices of such options, but will continue to bear the risk of declines in the value of the NASDAQ-100 Index. The premiums received from the options may not be sufficient to offset any losses sustained from the volatility of the underlying stocks over time. The Fund is considered non-diversified and may be subject to greater risks than a diversified fund. Recon Capital Advisors, LLC is the Investment Adviser of the Fund.
The Fund is distributed by ETF Distributors LLC, which is not affiliated with Recon Capital Advisors, LLC or any of its affiliates.