Is AYLD a good ETF?
AYLD is the Global X S&P/ASX 200 Covered Call ETF from Global X. We classify it under AU, Thematic, and Dividend. With about $112 million in assets it is a solidly established fund.
On a total-return basis, AYLD has delivered 10.3% a year over 3 years (ranked 115th of 226 ETFs we track) and 10.25% a year over 1 year (ranked 126th of 308 ETFs we track).
The management fee of 0.6% is on the higher side. For comparison, similar ETFs average around 0.39%. If cost is your priority, SYI (0.2%), IHD (0.22%), and ZYAU (0.24%) cover similar ground for less. It pays a high 9.43% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase, though 35% franking softens the blow for Australian residents.
Over the past 3 years its volatility has been low (annualised standard deviation around 4.99%), meaning a relatively smooth ride. Its 3-year Sharpe ratio of 1.18 is strong — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is low at about 18% a year — it trades only a small slice of its holdings each year, so trading costs and tax on realised gains stay modest — typical of a passive index strategy.
Strengths
- High 9.43% income yield — good for investors who want regular cash flow.
- Strong risk-adjusted returns (3-year Sharpe ratio 1.18).
- Low volatility (4.99% over 3 years) for a smoother ride.
Things to watch
- Pricier than similar ETFs, which average around 0.39%.
- Cheaper alternatives exist: SYI, IHD, and ZYAU.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
- Highly concentrated single-theme bet — keep the position size small.
Good to know
- Distributions are 35% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What AYLD's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Australian shares. Home-market familiarity, fully franked dividends and no currency risk for local investors — but very concentrated in banks and miners, which dominate the index.
- Market regime
- Sensitive to commodity prices, Chinese demand and domestic interest rates. Generous income, but narrow sector diversification.
- In a portfolio
- A natural core for Australian investors thanks to franking, but should be paired with global exposure so you aren't over-reliant on a handful of banks and resource giants.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
Targets higher-yielding, cash-generative companies. Popular with retirees and income investors, and in Australia often comes with valuable franking credits.
- Market regime
- Tilts toward 'value' sectors such as banks, resources and utilities. Can lag in growth-led bull markets and concentrate risk, but tends to be more defensive when markets fall.
- In a portfolio
- Good for investors who want income now. Note the higher distributions are taxable each year, which is less efficient for those in higher brackets and in the accumulation phase.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.