Invesco's IQQQ ETF offers more Nasdaq upside than typical covered-call funds with daily call resets.

The ProShares Nasdaq-100 High Income ETF (IQQQ) uses a unique daily-reset covered call strategy via total return swaps, allowing it to capture more of the Nasdaq-100's upside compared to traditional monthly covered-call ETFs like QYLD. Over the past year, IQQQ returned 23%, closer to the Nasdaq's 26% gain, outperforming QYLD's 20%. The fund pays monthly distributions and has a 0.55% fee, higher than plain Nasdaq ETFs but typical for covered-call funds. While it offers better upside participation, it still caps daily gains and carries risks in volatile or bear markets, making it suitable for income-focused investors who accept trade-offs in long-term growth.