Witch of these two are the better ones qyld or occi?
10/26/2024 08:54am
**QYLD and OCCI have different characteristics and appeal to different types of investors, so the "better" option depends on individual investment goals and risk tolerance.** Here's a comparison to help you decide:
1. **Investment Strategy and Risk Profile**:
- **QYLD**: A covered call ETF, which typically involves selling call options on stocks to generate income. Covered call ETFs can offer a higher yield than traditional dividend-focused ETFs due to the additional option premium. QYLD's investment direction and strategy are not explicitly disclosed, but its high dividend yield suggests a relatively conservative approach.
- **OCCI**: A CLO-focused closed-end fund with a high dividend yield, which indicates a focus on generating current income. CLOs are a type of structured credit that can offer attractive yields but also carries higher risk due to the underlying loan obligations. OCCI's investment direction and strategy emphasize the importance of interest rate conditions and the quality of the collateralized loan obligation (CLO) assets.
2. **Dividend Yield and Frequency**:
- **QYLD**: Offers a high dividend yield of 11.51% as of October 24, 2024, with a monthly dividend frequency.
- **OCCI**: Provides a higher dividend yield of 18.6% as of April 1, 2024, also with a monthly dividend frequency.
3. **Performance and NAV Trends**:
- **QYLD**: Has a YTD performance of 12.61% with -$37M in YTD flows, indicating moderate performance and outflows.
- **OCCI**: Has a history of negative total returns on NAV over 1, 3, and 5 years, but its recent distribution policy change may improve investor confidence.
4. **Market Position and Liquidity**:
- **QYLD**: Has an assets under management (AUM) of $8.13 billion as of October 23, 2024, and is part of the Global X suite of ETFs, which suggests good liquidity and market presence.
- **OCCI**: Has an AUM not publicly disclosed, but it is a closed-end fund, which can mean lower liquidity compared to ETFs like QYLD.
5. **Institutional Interest and Activity**:
- **QYLD**: Has seen significant institutional interest, with several large investors increasing their stakes, including Strategic Financial Concepts LLC, which raised its position by 1,161.4%.
- **OCCI**: Also has institutional interest, with various investors buying and selling shares, including Commonwealth Equity Services LLC, which increased its holdings by 3.0%.
In conclusion, if you prioritize dividend yield, liquidity, and institutional confidence, **QYLD** might be the better choice. However, if you are willing to accept higher risk for the potential of greater returns, and you value the high dividend yield and monthly payouts, **OCCI** could be the better option. It's important to align your choice with your investment objectives, risk tolerance, and the current market conditions.