Diving Deep into Dividends: Unraveling RYLD and Global X Russell 2000 Covered Call ETFs in 2024
RYLD - Market Position
| Ticker Symbol | Product Type | Asset Class | Strategy | Payment Frequency | Geographic Focus | Expense Ratio | Sponsor |
|---|---|---|---|---|---|---|---|
| RYLD | ETF | Equity Dividend ETF | Covered Call | Monthly | Global | 0.60% | Global X |
RYLD Overview - The Global X Russell 2000 Covered Call ETF
The Global X Russell 2000 Covered Call ETF (RYLD) is designed to provide investors with income through an options strategy that involves writing covered call options on the Russell 2000 Index. By utilizing covered call options, RYLD aims to enhance the income potential of the portfolio while potentially providing downside protection during market downturns.
RYLD's investment strategy involves investing in a diversified portfolio of U.S. small-cap stocks represented by the Russell 2000 Index and then writing covered call options on a portion of those holdings. This approach allows RYLD to capture option premiums while still participating in the potential upside of the underlying stocks.
Managed by Global X, RYLD is suitable for investors seeking income generation from their investments while maintaining exposure to small-cap equities. As of the current date, RYLD's dividend yield stood at 12.45% according to Morningstar, making it an attractive option for income-focused investors.
While past performance is not indicative of future results, RYLD's strategy of blending small-cap equity exposure with covered call options may appeal to investors looking for income generation and potential capital appreciation in the small-cap segment of the market.
People also follow RYLD's latest stock price and dividend history on platforms like TipRanks.
RYLD - Price / Yield
RYLD - Portfolio and Asset Allocation
The Global X Russell 2000 Covered Call ETF (RYLD) offers a diverse portfolio consisting of various holdings across different sectors. Among its top holdings are prominent companies like Vanguard Russell 2000 ETF (VTWO), Super Micro Computer (SMCI), and Microstrategy (MSTR), reflecting a blend of small-cap equities and established dividend-paying stocks.
RYLD's asset allocation is strategically designed to balance income generation and growth potential while managing risk through sector diversification. The largest allocations are in sectors such as Technology (21.25%), Industrials (13.14%), and Financial (12.76%), followed by Healthcare (11.72%) and Consumer Cyclical (9.09%). This allocation strategy aims to capture opportunities across various sectors while mitigating risks associated with sector-specific fluctuations.
The presence of holdings like Carvana (CVNA) and Comfort Systems USA (FIX) among the top holdings underscores RYLD's focus on companies with strong growth potential and dividend-paying capabilities. Additionally, with a significant portion of its holdings in sectors like General and Technology, RYLD aims to capitalize on the growth prospects of these industries while maintaining a diversified portfolio.
It's noteworthy that RYLD also maintains exposure to sectors like Energy and Real Estate, albeit with relatively lower allocations, demonstrating a cautious approach towards potentially volatile sectors while seeking to optimize overall portfolio performance.
Top 10 Holdings
As of May 3, 2024, the top 10 holdings of the Global X Russell 2000 Covered Call ETF (RYLD) are:
| Name | Weight |
|---|---|
| VTWO | 21.78% |
| Super Micro Computer (SMCI) | 1.27% |
| Microstrategy (MSTR) | 0.54% |
| Carvana (CVNA) | 0.39% |
| Comfort Systems USA (FIX) | 0.35% |
| Onto Innovation (ONTO) | 0.32% |
| Weatherford International Plc (WFRD) | 0.29% |
| Light & Wonder Inc. (LNW) | 0.28% |
| e.l.f. Beauty, Inc. (ELF) | 0.28% |
| Bellring Brands Inc Class A (BRBR) | 0.26% |
Asset Allocation
The Global X Russell 2000 Covered Call ETF (RYLD) has the following asset allocation as of May 3, 2024:
| Sector | Weight |
|---|---|
| Industrials | 21.25% |
| Technology | 13.14% |
| Financials | 11.73% |
| Healthcare | 11.72% |
| Consumer Cyclical | 9.09% |
| Energy | 5.55% |
| Real Estate | 5.25% |
| Basic Materials | 3.72% |
| Utilities | 2.21% |
| Consumer Defensive | 2.12% |
| Communication Services | 1.31% |
| Industrial Goods | 0.15% |
Dividend Yield and Distribution History
| Section | Details |
|---|---|
RYLD Dividend Data |
The Global X Russell 2000 Covered Call ETF (RYLD) pays monthly dividends. The most recent ex-dividend date was on April 15, 2024, with a dividend payment of $0.1229 per share on April 30, 2024. |
RYLD Dividend Yield |
As of April 30, 2024, RYLD has a dividend yield of 12.29%. This indicates that for every $100 invested in the ETF, investors would receive approximately $12.29 in dividends annually, assuming the yield remains constant. |
RYLD Dividend History |
RYLD has a history of paying monthly dividends. The dividend payments may vary based on the performance of the underlying securities and the options strategy employed by the fund. |
RYLD Dividend Growth |
RYLD's dividend payments may be influenced by the performance of the underlying stocks and the options strategy used by the fund. While the ETF aims to generate consistent income through covered call options, dividend growth is not guaranteed and may fluctuate over time. |
RYLD Dividend Stability |
RYLD seeks to provide a relatively stable income stream through its covered call options strategy. However, dividend payments are subject to market conditions and the performance of the underlying securities. Investors should be aware that dividend stability is not guaranteed and may vary. |
RYLD - Chart
RYLD - Comparative Analysis
Let's compare RYLD with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of Apr 2024)
| RYLD | QYLG | QYLD | |
|---|---|---|---|
| Investment Focus | Options strategy on Russell 2000 Index | Options strategy on NASDAQ-100 Index with growth focus | Options strategy on NASDAQ-100 Index |
| Current Yield | 12.29% | 6.00% | 11.60% |
| Expense Ratio | 0.75% | 0.35% | 0.61% |
| Investment Strategy | Options strategy on Russell 2000 Index | Options strategy on NASDAQ-100 Index with growth focus | Options strategy on NASDAQ-100 Index |
| Strengths | High dividend yield, options strategy for income | High income potential, upside potential, monthly distributions | High income potential, efficient options execution, monthly distributions |
| Weaknesses | Higher expense ratio compared to QYLD | Higher expense ratio compared to QYLD | Higher expense ratio compared to QYLG |
Dividend History (Last 5 distributions)
| Ex-Dividend Date | Cash Amount | Record Date | Pay Date |
|---|---|---|---|
| Apr 22, 2024 | $0.16 | Apr 23, 2024 | Apr 30, 2024 |
| Mar 18, 2024 | $0.17 | Mar 19, 2024 | Mar 26, 2024 |
| Feb 20, 2024 | $0.16 | Feb 21, 2024 | Feb 28, 2024 |
| Jan 22, 2024 | $0.17 | Jan 23, 2024 | Jan 30, 2024 |
| Dec 28, 2023 | $0.17 | Dec 29, 2023 | Jan 08, 2024 |
News
Technical Analysis
Additional Information and Risks
Dividend information is crucial for investors in RYLD, the Global X Russell 2000 Covered Call ETF. Understanding the dividend yield history and dividend payout ratio can provide insights into the fund's performance and income potential. Investors can track dividend payments, ex-dividend dates, and payment dates to plan their investments effectively.
The Russell 2000 Covered Call ETF (RYLD) invests in a portfolio of stocks and writes covered call options to enhance income. Its dividend history since 2019 showcases its dividend-paying strategy and dividend payout frequency.
Investors can analyze RYLD's dividend data to assess its dividend yield and track its dividend performance over time. Utilizing tools like TipRanks can help investors stay informed about recent dividends and make informed decisions.
While RYLD offers the potential for income generation, it's essential to consider the investment and trading risks. Factors such as market volatility, economic conditions, and stock price fluctuations can impact dividend payments and overall portfolio performance.
Investors should carefully evaluate RYYG's dividend history, payout ratio, and fundamental analysis to make informed decisions. While RYLD aims to provide income, it's crucial to assess individual investment goals and risk tolerance.