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ADX is a closed end fund that consistently beats the sp500, for almost 100 years now. One of the good CEFS
I don't personally plan to use just one asset. I plan to spread it around multiple cc ETFs in various sectors with expected good performance and nav retention plus CEFS, maybe some PBDC, QDVO, and whatever else I find interesting. In addition to sp500 funds and I'll probably keep a reduced presence in SCHD, hoping it fares better in the future than it has in 2025. I have too much in SCHD right now and it's been a drag in this bull market. But hey, it could be an interesting ride if you put $1 M in BTCI getting $250k+ per year income. 😸 Then again that might be too much like betting it all on red. 😇
You can invest in ETFS CEFS and multi funds as well as individual stocks on fidelity. Have used them for years with no issues.
You might want to look into CEFS an actively managed closed end fund ETF. Armchair Income on YouTube just did a review of it. Seems like a great diversified way to get the top performance with low volatility and goos yield.
Not an expert, may be put the 401K in GPIX, GPIQ, SCHD, PBDC, SPYI, QQQI and CEFS. May be some part of it in IWY/SCHG to leave room for growth.
Not an expert, may be put the 401K in GPIX, GPIQ, SCHD, PBDC and CEFS. May be some part of it IWY/SCHG to leave room for growth.
I wonder if I'll get a tasty discount on some CEFS too
Most people start out with a retirment account, Some use taxable and some have both for various reasons. Many start out with index funds Like a S&P500 fund. These are good and reliable but they don't produce income so you have to sell shares to get money. But if you have to sell when the market is down you could loose money. Because they produce very little income your yearly taxes are small. You can save up 2 million in index funds and pay ver little in taxes. For the Most part you pay most of the tax when you sell. r/ Bogleheads is a good site to discuss index fund investing. Others want income from their investments and if they want this income before age 60 they have to use a taxable brokerage account. r/dividends is a good site for discussing dividend investing. There are also books like The Income Factory which is a good reference. Armchair income on you tube is also good. In europe you can still invest in ETFs or funds. EFTs are exchange traded funds Maning they show up one exchanges were people by hand sell shares of stock VOO, PBDC , SPYI are some examples. Now use funds are typically listed on USE exchanges so in europe you may not have direct access to USE exchanges. Only European evangel. But there are still ways to do it. But I live in the US and don't know much about that. There are also CEFS that trade like stock but are also funds. And Europe has some european specific funds.
CEFS has suffered some epic drawdowns. So if someone is living dividend to dividend, that's not very stable. Also, they are small funds at around 200M. Which doesn't inspire confidence. I've been burned by a small fund with high dividend yield before. It was great for years, until it wasn't when the price of the stock nosedived.
Many retirees use closed end funds to a achieve what you’re looking for. You might try CEFS, an ETF of closed end funds. Dividend yield of 9.86% which is reasonable given that many CEFs have yields above 10%. You could also look at BDCs, a special type of lenders that have to be 90% of their profits In dividends. PBDC is a fund of those. Dividend yield of 10.18%. On $400,000 if those maintain their historic performance, your net in dividends would be around $40,000 per year.
Stock slices. I've basically built my own dividend ETFs over the years. My portfolio looks like this \-BDCS \-Bonds I & II \-CEFS I & II \-Covered Calls I & II \-US Dividends I & II \-International Dividends I & II \-Select High Yield \-REITs I & II
Robinhood got in trouble years back for having bad tax accounting on closed end funds. Instead of fixing it, they banned them. Luckily, I bought CEFS as a stuff you and suddenly it spiked like crazy after the dividend. Should let you know that you are the product not the consumer. Avoid if you can.
CEFS, USOI, SLVO, GLDI great income generators. Buy them at the right price, can't beat the yield.
I believe Saba's CEF does activism - symbol CEFS.
> there are activist investors that look out for when the discount becomes too steep and swoop in to buy enough shares to be able to convince management to liquidate the fund. I believe the SABA cef fund does this - symbol CEFS.
ETFS and CEFS. Buy and hold, easy 10-12% a year . It’s not that hard.
I invest in CEFS , I do what you are talking about. Buy in bear markets when no one wants them . I have about 500k worth . They sell off heavy at times . But don't listen to the 2008 70 to 80 percent draw down guy who posted . You don't have to buy the top. It's easier to remain rational and average in when things are down. It's hard to time the bottom but try to buy them when they are trading under NAV. You can also put your money in VTI. Then leverage that position to buy CEFs and generate the dividends and keep the spread .good luck
In the case where we have a typical bear market, or stock market correction, the advice is to simply stay the course. The average investor stays with a 4 fund portfolio and rides it out. But this might not be the typical bear market. We could see double-digit inflation, severe recession, and major trouble in the housing market. That isn't a bear market --that is a crisis. I can only say what I am doing: 1. Holding municipal and some corporate bonds to maturity. Yes, the yields will not keep up with inflation,but that isn't the objective. In this environment, you are protecting capital and trying to get \*some\* return. 2. Look at preferreds for maybe 10% of the portfolio. 3. Invest in ETFS/CEFS that use covered call strategies, such as DIAX 4. Devote 30% of the portfolio to value stocks, energy and commodities, etc. I also like CEFs such as PEO and ASA 5. Don't be afraid to hold cash --you didn't want to be anywhere near securities in 2007-2010. We could easily see another "lost decade" like we suffered in 2000-2010, when stocks were negative over a 10 year period. So while trying to time the market is typically a fool's errand, simply staying the course and ignoring what is going on isn't a good idea either. I watched people get completely wrecked in 2000-2004, especially those who were overweight in the NASDAQ I am not an economist, but I think this is the worst investing environment since 2008 and 2000. We have problems all over the place, and there is simply no bull case to be made.
The dividend is set yearly , it will pay that dividend all year , then it will reset. If you buy shares at below NAV , you get a deal . If you buy above NAV you are paying more than the share is worth. In the event the fund closes or gets bought out , you will only get paid out on NAV. I have no position in CLM . But I am long in several other CEFS.
QYLD, RYLD, CEFS, IGLB, LQD, HYG - dividends are safest way through these times
Just go to cef connect and filter. If you don't know how CEFS work with pricing you should research them they are not like etf and mutual funds where market makers correct the price. Are you looking for equity ROC or premium from covered calls or just leverage in your funds to juice returns? Holding 30% leveraged assets with inflation rising is risky if you are not planning on holding at least ten years.
Why bst or stk it's been trading at an extreme premium to nav. Do you not know how CEFS work? There are other CEFs that are almost the exact same holdings and leverage trading at a discount.
* Rollover to a regular or roth IRA, to match whatever your current plan is, to a great broker like Schwab or Fidelity, * Consider a mix of stocks, REITS, ETFs and CEFS * Check out the monthly CEF payers, many pay 5-10% monthly dividends/distributions. Just google "best monthly dividend closed end funds" to find out more. Good luck, sounds like you already have a good head on your shoulders. Congrats on the new gig too.