At a glance
IQQQ charges 0.55% a year, below the 0.58% average of the 8 funds most like it (the 3rd cheapest of 9). It has $406.8M in assets, the 3rd largest of that group; it paid 6.28% of its price in distributions over the past 12 months, monthly. Over the past year it returned +9.8% with distributions reinvested (S&P 500: +11.5%), 4th of those 9 funds. Its ten largest positions make up 39.5% of the fund, out of 107 in all.
The short version
ProShares Nasdaq-100 High Income ETF (IQQQ) tracks the Nasdaq-100 Daily Covered Call Index. It owns Nasdaq-100 stocks and, through swap agreements, takes the other side of call options that expire the next day. It pays income monthly and targets a minimum yield of 6% a year. Its 0.55% expense ratio is below the 0.58% average of similar Nasdaq-100 option-income funds.
Price history
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IQQQ +9.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IQQQ official prospectus, to Dec 31, 2025 | — | +16.94% | — | — | — | +18.04% |
| IQQQ price data to Oct 27, 2026 | +12.4% | +9.8% | — | — | — | +16.6% |
- Over the year to Oct 27, 2026, IQQQ returned +9.8%, 4th of 9 among similar funds.
- Its worst full calendar year was 2025 (+17.0%); its best was 2025 (+17.0%).
- The deepest fall in its price history was 20.4% (Dec 16, 2024 to Apr 8, 2025), recovered by Jun 30, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +12.4% | — |
| 2025 | +17.0% | — |
| 2024 | — | +16.94% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.4500 | |
| 2025 | $4.6000 |
What's inside
As of Aug 31, 2026, the fund held 107 securities; the ten largest made up 39.5% of assets, and 11.65% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| NVIDIA Corp. | 7.26% | |
| Apple, Inc. | 6.32% | |
| Microsoft Corp. | 5.12% | |
| Micron Technology, Inc. | 4.06% | |
| Amazon.com, Inc. | 3.80% | |
| Advanced Micro Devices, Inc. | 2.88% | |
| Alphabet, Inc. Class A | 2.69% | |
| Tesla, Inc. | 2.50% | |
| Alphabet, Inc. Class C | 2.49% | |
| Broadcom, Inc. | 2.39% | |
| Meta Platforms, Inc. | 2.30% | |
| Repurchase Agreement RA | 2.28% | |
| Walmart, Inc. | 1.92% | |
| Intel Corp. | 1.69% | |
| Cisco Systems, Inc. | 1.63% |
By country
United States 86.38%Ireland 1.55%Netherlands 1.12%Canada 0.83%United Kingdom 0.57%By asset type
Stocks 85.17%RA 5.49%By sector
Sectors of the companies held, for the 76.2% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $344K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.32%, -6.32%, +3.18%.
How it works
The fund follows the Nasdaq-100 Daily Covered Call Index, which Nasdaq, Inc. builds and maintains. The index has two parts. The first part owns the Nasdaq-100: the 100 largest non-financial companies listed on Nasdaq, both U.S. and foreign, weighted by market value. As of August 31, 2026, the largest positions were NVIDIA (7.3%), Apple (6.3%), Microsoft (5.1%), Micron Technology (4.1%) and Amazon (3.8%). The top 10 made up 39.5% of assets.
The second part sells Nasdaq-100 call options. A call option gives its buyer the right to buy at a set price, called the strike. The seller collects a cash payment, called a premium, but gives up any gains above the strike. These calls are out-of-the-money, which means the strike is above the index level. They expire after one day and are sold again at the end of each day. ProShares does not sell the options itself. It gets this exposure through swap agreements with large financial institutions, which adds counterparty risk. It may also use Nasdaq-100 futures.
The index is rebalanced daily. Each month the fund aims to pay out the dividend and option-premium income the index earns, with a minimum yield of 6% a year. If a payment is larger than the income earned, later payments are cut. Some payments may count as return of capital, meaning money handed back from the investment itself rather than from earnings.
What it really costs
- IQQQ charges 0.55% a year, versus an average of 0.58% for the similar funds below (3rd of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $56 in the first year and $689 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IQQQ | $56 | $176 | $307 | $689 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
In a retirement portfolio
The fund is built to turn Nasdaq-100 stock exposure into monthly cash payments, with a stated minimum yield target of 6% a year.
IQQQ may add monthly cash flow to the stock side of a portfolio. Its trailing 12-month yield was 6.28% as of October 27, 2026, or $2.98 a share. This income is usually taxed as ordinary income, not as qualified dividends, and some of it may be return of capital. The fund charges 0.55% a year. In the SEC's standard example, that is $56 in the first year on $10,000.
The track record is short. The fund launched in March 2024, so it missed the 2008, 2020 and 2022 downturns. Its only full calendar year, 2025, returned about 17%. Its deepest drop was 20.4%, from December 16, 2024 to April 8, 2025, and it recovered by June 30, 2025. A retiree who sells shares near a low locks in the loss, and the daily calls limit how much of a sharp rebound the fund captures. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want monthly income from Nasdaq-100 stocks, with a 6% minimum yield target and a 6.28% trailing yield as of October 27, 2026.
- People holding it in tax-deferred accounts such as IRAs, where option income that is usually taxed as ordinary income matters less.
- Cost-conscious income investors: its 0.55% expense ratio is below QYLD's 0.60% and QQQI's 0.68%.
Look elsewhere if
- Growth investors who want the full upside of the Nasdaq-100. Selling daily calls gives up gains above the strike in strong markets.
- Anyone who wants a long track record. The fund launched in March 2024 and has not been through a crisis like 2008 or 2022.
- Investors wary of tech concentration or derivatives. NVIDIA, Apple and Microsoft were 7.3%, 6.3% and 5.1% of assets, and swaps add counterparty risk.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| IQQQ this fund | — | 0.55% | $406.8M | +9.8% | — |
| QRMI Global X NASDAQ 100 Risk Managed Income ETF | 85% | 0.6% | $14.3M | +5.1% | +9.2% |
| QYLD Global X NASDAQ 100 Covered Call ETF | 85% | 0.6% | $8.09B | +18.9% | +17.4% |
| QYLG Global X Nasdaq 100 Covered Call & Growth E… | 85% | 0.35% | $158.3M | +17.3% | +23.1% |
| QCLR Global X NASDAQ 100 Collar 95-110 ETF | 84% | 0.25% | $3.3M | -0.6% | +15.2% |
| QQQI NEOS Nasdaq 100 High Income ETF | 82% | 0.68% | $13.11B | +5.8% | — |
| QQQH NEOS Nasdaq 100 Hedged Equity Income ETF | 82% | 0.68% | $389.0M | +7.4% | — |
| QHDG Innovator Hedged Nasdaq-100 ETF | 80% | 0.79% | $3.0M | +1.1% | — |
Questions investors ask
Does IQQQ pay monthly dividends?
Yes. IQQQ pays monthly. Its trailing 12-month yield was 6.28% as of October 27, 2026, or $2.98 a share. The payments come mostly from option premiums plus stock dividends, and the fund targets a minimum yield of 6% a year. If a payment is larger than the income the index earned, later payments are reduced. Some payments may count as return of capital, meaning part of the investor's own money is handed back.
What's the difference between IQQQ and QYLD?
Both sell call options on Nasdaq-100 stocks, and their holdings overlap by about 85%. IQQQ sells one-day options each day through swaps and charges 0.55%, compared with 0.60% for the Global X NASDAQ 100 Covered Call ETF (QYLD). QYLD is much larger: $8.09 billion as of July 31, 2026, against IQQQ's $406.8 million as of August 31, 2026. Over the year to October 27, 2026, QYLD's price return was 18.9% and IQQQ's was 9.8%.
Is IQQQ good for retirement income?
It can supply steady monthly income, but it still carries stock-market risk. The yield was 6.28% as of October 27, 2026. The fund fell 20.4% between December 2024 and April 2025 before it recovered. Selling calls caps gains in strong markets, and the fund has existed only since March 2024. It may suit retirees who want income from Nasdaq-100 stocks and accept giving up some growth. It is worth comparing with other option-income funds.
Are IQQQ distributions qualified dividends?
Usually not, for the most part. Most of IQQQ's income comes from option premiums, which are generally taxed as ordinary income rather than at the lower qualified-dividend rate. Some distributions may also be classed as return of capital. That part is not taxed when paid, but it lowers the investor's cost basis. Because of this, the fund's after-tax income in a taxable account can differ from its stated yield. A tax-deferred account avoids most of this issue.
What is IQQQ's return?
According to its prospectus, IQQQ returned 16.94% in the year ended December 31, 2025, and 18.04% a year from its March 2024 launch to that date. Its strongest quarter gained 13.38% (ended June 30, 2025) and its weakest lost 7.3% (ended March 31, 2025). Based on price, the fund returned 9.8% over the year to October 27, 2026, and 12.4% year to date through that date.