Should I Buy QQQY (QQQY)? Finance YouTuber Analysis

The YouTuber strongly advises against investing in QQQY, despite its high dividend yield of 46%. He cites its short history (launched September 2023), highest expense ratio among the three (0.99%), and low liquidity. Crucially, the fund's price has been declining faster than the dividend yield can compensate, resulting in a poor overall return year-to-date. He sees no good reason to pay a high expense ratio for a fund that is losing value.

“in my opinion there is no good reason to have this fund... based on what I see yeah it's a hard pass”

The YouTuber advises avoiding QQQY for most investors due to its strategy of selling daily in-the-money put options, which is likely to lead to a continuously falling share price over the long term. While it aims for high dividends, the fund's reliance on cash and treasuries for most of its assets, combined with the option strategy, means it will struggle to maintain its high dividend yield without eroding its principal. The dividends are also taxed as ordinary income, not capital gains.

“My fear here is that if this ETF is going to try to keep up with those daily those double- digigit dividend yields it's going to have to continuously dig into its cash to pay for it that's going to mean that the share price continuously goes nowhere but down even if the NASDAQ Rises.”