- Last Ratings Update:03/31/2016
- Price as of 03/31/2016 :$18.48
- Net Assets:$730.62 Million
- Peer Rank:73 of 269
- Investment Rating:B+
We rate Nuveen Nasdaq 100 Dynamic Overwrite at B+. Positive factors that influence this rating include a well above average total return, low price volatility and low expense structure. The fund invests approximately 100% of its assets in stocks and may be considered for investors seeking an Equity Income strategy.
POSITIVES AND RISKS
Total return ranks very high in comparison with peers over the last three years. The Nuveen Nasdaq 100 Dynamic Overwrite has returned an annual rate of 9.07% since inception. More recently, the fund has generated a total return of 13.15% in the last five years, 14.23% in the last three years, and 8.22% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 83% of them. It has also outpaced 92% of its competitors on a three year basis and 85% of them over the last year for the period ending 3/31/2016. On a year to date basis, QQQX has returned -1.96%.
Downside risk has been below average. QQQX has a draw down risk of -19.64%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 15.8%. This fund has had moderate volatility in its monthly performance over the last 36 months. As of 3/31/2016, the fund was trading at a price of $18.48, which is 0.8% below its 52-week high of $18.63 and 5.6% above its 52-week low of $17.50.
High expense ratio hinders performance. On total assets of $730.62 million, QQQX maintains a high expense ratio compared to its Equity Income peers of 0.93% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As QQQX is a closed end fund, it has no front end or back end load.
Manager lacks tenure but performance is a net positive. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The Nuveen Nasdaq 100 Dynamic Overwrite has been managed by James A. Colon for only 5 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than 55% of other fund managers.
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