So when QQQY, the Nasdaq 100 Enhanced Options and Zero DTE Income ETF, launched in September
of 2023, I thought it could have something special. After all, it did happen to be the first put-right ETF to use daily options that didn't hold
the actual stock, but instead held cash. And then some time passed, and then a little bit more time passed, and due to the eroding
nature of the price per share, there was a reverse stock split on August 1st, 2024
a 1-3 reverse stock split. Then in October 2024, they transitioned to weekly distributions instead of monthly distributions
So the biggest thing on my mind since all of these things have transpired, and maybe the biggest thing on your mind as the average Joe investor is
has QQQY figured it out? What's up you guys? Welcome back to the Average Joe Investor
On this channel, we're all about helping average Joe investors create income. And there are so many different ways to do that
You can own dividend stocks or dividend ETFs. You can own REITs, BDCs, you can create income yourself
by selling covered calls or cash-secured puts, and you can also purchase other ETFs and investments
that create income for you by selling options. As we look at the history of QQQY we can see that ever since it was launched in September 2023 the price per share has gone down in value Now that not to say that the overall total returns are negative for QQQY This blue
line here shows you just the price of QQQY since it was launched, with these red little dots being
those distributions that were monthly up until a certain point. But right here, this is the actual
total return of the investment. If you assume a starting value of $100,000 in September of 2023
It's actually, when you factor in all distributions, it's actually worth more than that
But the truth of the matter is, if you own this type of investment, you're going to be living on the distributions, not reinvesting them
So what I wanted to do was start with all of the data right here since September 15th, 2023
And this is all, by the way, adjusted for that reverse stock split, as well as all of the
distributions as well. We're going to look at the different timeframes just from the entire history, but also we're
going to look at here since the reverse stock split in August of 2024, and then also since
that changed to weekly distributions in October 2024. Then we're gonna also look at
what if we modify this result instead of reinvesting all distributions and reinvesting no distributions
what if we did some sort of a modified distribution strategy where we reinvest 25% of the distributions or more
and we live on 75%. How does that positively impact the returns This is what the actual price history looks like price per share compared to the total returns right So if we started at if we looking at just the price the actual capital value went from down to what I think
where if you factor in all the distributions, that $100,000 would be worth $114,195. Again
that's reinvesting all of our distributions along the way. But then you might be thinking to yourself, well, what about comparisons to the actual QQQ, right? This is what it's trying to track on some
level because it's selling put options on QQQ. Again, let me just make sure we're clear on that
This is the actual fundamental strategy coming over here to the prospectus for QQQY. The goal
here is to seek current income while maintaining the opportunity for indirect exposure to the value
of the index. And this is done via selling put options. It says right here, the fund uses an at
the money and an in the money put selling strategy to provide income and exposure to the value of the
index subject to a limit on potential investment gains as a result of the nature of the options
strategy. I wanted to also show you this right here. So this is QQQ, the NASDAQ 100 versus QQQY
And this is first total returns since origination. So blue is QQQ, orange is QQQY. Again, this is
total returns factoring in all the distributions as well. QQQ was gone from 100 up to 133
but it was worth as high as 150 Whereas QQQY has been from 100 it was actually actually as high as right here but ultimately what ended up being worth This is the same look QQQ versus
QQQY, but since October of 2024, right after the reverse stock split. And what we see here is that
QQQ went from 100 to what? Down to 98,644, whereas QQQY went from 100 down to 93,743. And again
this is factoring in all of the distributions as well. And not only factoring in those distributions
but reinvesting them at the time they're received. Here's that time frame since August 1st, 2024 to
present. So what we see here is, and the pink is the total returns versus the green is the price
actually, right? So we expect that with the fact that they're paying out distributions, that the
price is going to go down when those things occur because they're just holding cash. There's no
investment to gain value here unless they're going to withhold some of those distributions and hold
onto them and reinvest into more treasuries. They just hold cash. All they're doing is creating
income. There's no real mechanism for the fund to actually grow, again, unless they're retaining
some of that income and actually putting it back into more treasuries as opposed to distributing
all of it to shareholders. So I've added this red light in, which is QQQ, just to show you what is
happening with the underlying index because that's the one they're selling options on