Global X S&P 500 Covered Call ETF (XYLD): Complete Beginner's Guide
Last updated: March 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% |
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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%
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.
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.
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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.