Global X S&P 500 Covered Call ETF (XYLD): Complete Beginner's Guide
Global X S&P 500 Covered Call ETF (XYLD) is a covered call/income ETF from Global X with an expense ratio of 0.60% and $3.0B in assets under management. Our Beginner Suitability Score: 10/10 (Great for Beginners). 5-year annualized return: 5.00%.
Last updated: April 2026
Global X • Covered Call/Income
Expense Ratio
0.60%
AUM
$3.0B
Dividend Yield
10.00%
Inception
2013
Beginner Score
10/10
What is Global X S&P 500 Covered Call ETF?
XYLD writes covered call options on the S&P 500 index to generate monthly income for investors. Similar to QYLD but based on the broader S&P 500, it offers slightly more diversified exposure. Beginners should know that the covered call strategy caps your upside but provides consistent monthly distributions.
XYLD is managed by Global X and has been available since 2013. With $3.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.60%, which means for every $10,000 you invest, you pay approximately $60 per year in management fees.
XYLD at a Glance — Key Metrics
| Expense Ratio | 0.60% |
| Total Holdings | 503 |
| P/E Ratio | 25.0 |
| Beta | 0.50 |
| Dividend Yield | 10.00% |
| AUM | $3.0B |
| Inception Year | 2013 |
| Issuer | Global X |
Top 10 Holdings in XYLD
XYLD holds 503 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 7.20% |
| 2 | Microsoft Corp. | MSFT | 6.50% |
| 3 | NVIDIA Corp. | NVDA | 6.20% |
| 4 | Amazon.com Inc. | AMZN | 3.80% |
| 5 | Meta Platforms Inc. | META | 2.70% |
| 6 | Alphabet Inc. Class A | GOOGL | 2.30% |
| 7 | Berkshire Hathaway Inc. | BRK.B | 1.90% |
| 8 | Alphabet Inc. Class C | GOOG | 1.90% |
| 9 | Broadcom Inc. | AVGO | 1.80% |
| 10 | Tesla Inc. | TSLA | 1.70% |
XYLD's top holding is Apple Inc. (AAPL) at 7.20%, followed by Microsoft Corp. (MSFT) at 6.50% and NVIDIA Corp. (NVDA) at 6.20%. The top 10 holdings account for 36.00% of the fund's 503 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 7.20% |
| 2 | Microsoft Corp. | MSFT | 6.50% |
| 3 | NVIDIA Corp. | NVDA | 6.20% |
| 4 | Amazon.com Inc. | AMZN | 3.80% |
| 5 | Meta Platforms Inc. | META | 2.70% |
| 6 | Alphabet Inc. Class A | GOOGL | 2.30% |
| 7 | Berkshire Hathaway Inc. | BRK.B | 1.90% |
| 8 | Alphabet Inc. Class C | GOOG | 1.90% |
| 9 | Broadcom Inc. | AVGO | 1.80% |
| 10 | Tesla Inc. | TSLA | 1.70% |
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XYLD Performance History
Here's how XYLD has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
1.00%
1 Year
8.00%
3 Year
4.00%
5 Year
5.00%
10 Year
5.50%
XYLD has returned 5.00% annualized over 5 years and 5.50% over 10 years. YTD return is 1.00%.
View data table
| Period | Return |
|---|---|
| YTD | 1.00% |
| 1 Year | 8.00% |
| 3 Year | 4.00% |
| 5 Year | 5.00% |
| 10 Year | 5.50% |
Beginner Suitability Score: 10/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
XYLD scores 10/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 503 holdings, and has been available since 2013, giving it a proven track record.
How to Buy XYLD — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "XYLD" — Use the search bar in your brokerage platform to find Global X S&P 500 Covered Call ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
XYLD Sector Allocation
Here's how XYLD distributes its investments across different sectors of the economy:
XYLD's largest sector allocation is Information Technology at 31.8%, followed by Financials at 13.3% and Health Care at 11.7%.
View data table
| Sector | Weight |
|---|---|
| Information Technology | 31.8% |
| Financials | 13.3% |
| Health Care | 11.7% |
| Consumer Discretionary | 10.4% |
| Communication Services | 8.9% |
| Industrials | 8.3% |
| Consumer Staples | 5.7% |
| Energy | 3.5% |
| Utilities | 2.5% |
| Real Estate | 2.2% |
| Materials | 1.7% |
Dollar Cost Averaging Into XYLD
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With XYLD's expense ratio of 0.60%, a $10,000 investment would lose approximately $4,914 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
XYLD's expense ratio of 0.60% costs $4,915 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $41,695.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,290 | $403 |
| 10 | $21,589 | $20,419 | $1,170 |
| 15 | $31,722 | $29,179 | $2,543 |
| 20 | $46,610 | $41,695 | $4,915 |
Pros and Cons of XYLD
Pros
- ✓High monthly income yield around 10% from covered call premiums
- ✓Broader S&P 500 diversification compared to Nasdaq-focused alternatives
- ✓Lower volatility than holding the S&P 500 directly
- ✓Monthly distributions make budgeting and income planning easier
Cons
- ✗Upside is capped during strong market rallies, limiting total return
- ✗Long-term total return trails the S&P 500 significantly
- ✗Options premium income can decline during low-volatility periods
XYLD vs Similar ETFs
See how XYLD stacks up against similar funds:
Frequently Asked Questions
Is XYLD a good ETF for beginners?▾
XYLD has a Beginner Suitability Score of 10/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of XYLD?▾
XYLD has an expense ratio of 0.60%. This means for every $10,000 you invest, you pay approximately $60 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in XYLD?▾
You can invest in XYLD with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does XYLD pay dividends?▾
Yes, XYLD pays dividends with a current yield of approximately 10.00%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in XYLD?▾
The top holdings in XYLD include Apple Inc. (7.20%), Microsoft Corp. (6.50%), NVIDIA Corp. (6.20%), and more. The fund holds 503 total positions, providing broad diversification across many companies.
What sectors does XYLD invest in?▾
XYLD's largest sector allocations are Information Technology (31.80%), Financials (13.30%), Health Care (11.70%). This sector distribution shows a focus on information technology stocks.
How much do XYLD's fees cost over time?▾
With an expense ratio of 0.60%, a $10,000 investment in XYLD would lose approximately $4,914 to fees over 20 years (assuming 8% annual returns). Consider whether the fund's strategy justifies these costs.