NAV decay erases dividend appeal
QYLD is a bad deal for dividend-chasing because the NAV decay is substantial and the total return versus QQQ is “garbage,” making it a negative-trade structure over time.
QYLD's covered-call structure systematically erodes NAV over time, and total returns versus QQQ are described as garbage, meaning the headline yield masks a structurally negative trade. Dividend chasers are giving up far more in capital appreciation than the distribution income can compensate.