Reddit Posts
Are income etf safe for longterm? Such as jepi, schd, xyld and similar income stragedy ETFs?
Using cover call ETF’s like QYLD as an alternative to savings account?
BST/SCHD/Quadfecta -38y/o feedback/input on approach?
Anybody use an IUL style strategy in their personal accounts?
Best way to un-lose money: Risk-managed covered PUT strategy
I know we need to have some cash reserve in a savings account, but...
Anyone else have a portion of their portfolio in dividend etfs?
Option strategies that are optimized to reduce risk with consistent (small) profit.
Best Flat/Bearish Option Strategy with large sum of money?
Mentions
IXHL management got the stock burnt. We have examples like DVLT and NUSI
NUSI had similar drop and then after hours back up.
Now NUSI glitched? What a weird day for the market
Nationwide Nasdaq-100 Risk-Managed Income ETF (NUSI) is an example of an ETF being acquired by NEOS. Although in this example NEOS has been the subadvisor for the NUSI fund.
46yo in US currently employed with hopefully another 14yrs to retirement. I have a high risk tolerance as I'm still fairly 'young'. Taxable account - VTI\\QQQM 50\\50 Traditional IRA (401K rollver) - NUSI, JEPI, QYLD, DIVO - 25% each Roth 401K (Fidelity) - Maxing this out every year. Currently in Target Date fund. Looking for advice on best growth strategy for IRA. Just discovered BrokerageLink so I want to change my Roth 401K to something better as well. Hit me with what you would do...
I certainly understand your point given the limited data associated with JEPQ. I don't fully understand the intricacies and difference between JEPQ and QYLD, but their performance just in the past couple years has been fairly divergent. I suspect you are correct in your conclusion though. NUSI this year has been doing comparatively to VOO, but has still severely underperformed in the past 5 years.
I watched more of this video and it seems to be a rant on people criticising his plan mostly. The main issue for me with this is that if a big drop happens his portfolio won’t recover as fast as the indexes and margin would make it worse assuming most of this is covered call ETFs. Essentially he loses most of the upside after a crash because he is selling covered calls. Even actively managed funds that sell covered calls don’t always behave how you might expect them to. Just look at NUSI. I tried it and it didn’t work except in very specific scenarios. If you don’t want to work I would instead just look at geo arbitrage and moving to somewhere cheaper in a different country and keeping your expenses under the 3% SWR. Just joining theta gang yourself would also be a better option if you’re inclined to do the work.
You can get 5% or 6% on short term treasuries for no risk. You can get cheap utilities like T or VZ or a Consumer Needs like WBA ($2 below Book value) for extremely low risk (already bottomed), for 5-8% yield and basically only upside (especially of growth stocks pull in and market rotation occurs). If you believe in indexes, NUSI or JEPI provide 7-9% yield in exchange for little up or downside movement. Basically, if you are looking for safe dividend yield there are huge opportunities right now, that even come with some upside.
Yeah that expense ratio is trash. I wouldn't doubt this thing ends up performing like NUSI. Curious to see what people over on dividends think about this sht. Kind of tired of these firms trying to copy each other and 1 up each other with these options selling ETF's. Wonder what the yield will be. I honestly don't think this ETF will be good.
JEPI has only been around for 2 years, not sure what you are referring to. It is not a company, but a fund. It is up since inception. It has an extremely high correlation to the SPY/QQQ indexes (like NUSI), but trades market positive or negative movement for yield return. This is done using option spreads. Basically excess return is converted into monthly yield. If you are near retirement or want mitigated risk or monthly payout this is more ideal. If you understand options delta and volatility you could even sell low delta premium even further against a net portion of this and your overall portfolio delta. You have not seen funds like JEPI see massive gains the past quarter from this gamma-squeezed hype rally, as previously noted, all up and down moves are mitigated by the options managed against this. However if you plot the chart against the other indexes and you will see near 100% correlation, just much lower beta (or weight to the correlation). ETf's like this have their place. Others in this thread seem to be referring to various leveraged ETF's that provide twice or multiples time the exposure to SPY, QQQ, or VIX. These products produce their leverage (> 1.0 beta) via rolling futures contracts. Problem being built in-difference between front month and next month contracts of the ETF future has a difference and slowly eats into the ETF, causing them to have a inverse-logarithmic profile over many years. So they have high swings vs S&P500 and Nasdaq, but slowly bleed over time. They usually die after a few years and are re-built by the same or other managers with a new ticker. If you read the prospectus of these you will find they specifically warn against long duration, and imply they should be used as intra-day hedging only. In this sense they are like a ponzi scheme, and if somebody wants severe leverage I would simply recommend the ETF futures themselves or the micro-futures. Some high yield stocks right now also have good value and growth potential. A lot of utilities have been beat up. They are not sexy growth, but still have growth built in as they have inherently floored, and despite nobody liking AT&T or their utility company, there is inherent value behind the assets that isn't "0". Maybe you should not buy specifically for the dividend, but it is a nice sweetener as they have much more upside than downside vs the rest of the market, and if someone is looking for an alternative to the 5% treasuries and willing to take some risk, it is a much better risk reward than many other overbought 52-week high stocks which are barely holding the market up.
You could throw it all into Treasuries and get a guaranteed 5% while riding out uncertainty. Then after all this BS flushes out in one year place it into JEPI or NUSI and print yourself 8% (read: 80,000) per year and think about retiring early. Or you can take the risk to squeeze out maybe 10% for 50% drawdown risk and loose half. bUt iT iSnT gOiNg aNyWhReRe so why the shit not, go ahead and gamble a awful 10% reward for 50% risk in a high interest rate environment.
Its a dividend ETF that sells covered calls against the Nasdaq 100. The objective is income, not growth, as any gains in the underlying will be capped due to the nature of the options being exercised at the strike price. If you don't want to sell them yourselves, you can just buy a fund that does it for you. QYLD, RYLD, JEPI, and NUSI are considered the 4-horsemen of income dividend ETFs
You can look at TastyTrade research. Or look at NUSI - which is a collar strategy on QQQs, underperformed. But in any case, the economics do not support entering a position with a collar immediately for protection. E.g. trading range $50-60. I buy shares at $50. Sell OTM CC at $60 (top of range). To fund a ATM Put at $50-48 cost more than my CC premium. https://www.tastylive.com/shows/the-skinny-on-options-data-science/episodes/do-collars-choke-profits-12-08-2016
I lost a lot with ARKK, but that was probably my least worse loss. MSOS, IWM, and NUSI were bigger losses for me. I have several years worth of losses due to the $3k per year limit.
NUSI. Down a few grand. Bought it with the "Quadfecta" a while back when all the 'YLD stuff was popular thinking it would hedge the downside. Guess what, the NUSI hedge doesn't help in a declining market. My bad. Well, it's still paying, not ready to tax lost harvest yet. So, I'll just hang on for now.
Check out r/qyldgang for some passive income advice. They are big fans of QYLD, JEPI, NUSI, and SCHD for the most part.
My high div etfs are in another account. Approx 35% SCHD, 25% VTI, 20% JEPI and then some random stuff like QYLD and NUSI
I have qyld, ryld & NUSI in my IRA and dividends go into my settlement account while automatically withdraw every month to supplement my retirement income along with social security…CC etfs is 15% of my portfolio and I don’t plan on selling any of them until maybe 10 years from now because of my IRA RMD requirement by the IRS…for now I don’t care about etf nav just the incoming dividends every month…as bad as it’s been for the stock market the dividends have been consistent take or give a few cents
Ok so it looks like you need to create an asset allocation for yourself. At 28 you are what would be considered a long-term investor meaning your investment horizon is at least 30-40 years (age 58-68 years). Now keeping that in mind you want to have a growth-oriented asset allocation. Reason being that over such a long time horizon you are able to ride out the down years. As you grow older the asset allocation would change. First thing - calculate what you need as an emergency fund (normally people do 6 months worth of expenses for this). Put this in a high-yield savings account. Next decide on your asset allocation. I would suggest at least 80-90% in stocks. The allocation to stocks would be in ETFs following various strategies. If I were in your position I would build my portfolio like this - 45% in an S&P500 ETF (tickers IVF, VOO have low expenses and should be easy to trade), 20% in a mid-cap growth ETF (ticker VOT), and 25% in a covered call ETF - these are basically income ETFs with dividend yields averaging 11-12% (tickers QYLD, JEPI, NUSI), and the final 10% in a bond ETF, or in cash if you are expecting some expenses. This asset allocation should cover at least 90% of the market. Also keep in mind you should review it every year and as and when your financial situation changes.
XCLR is -7.7% YTD while VOO is -13.8%. That's a relative win. QCLR is -8.7% YTD while QQQ is -22.6%. That's a relative win. NUSI and QQQ are about the same on price, but NUSI has a 10.3% div yield. That's a win. TAIL is the worst, but still outperforming VOO by about 3.5%. All in all, they're doing what they're supposed to do, which is mitigating risk, not eliminating it. If you wanted to go nuts on a bearish bet, SQQQ is +40.9% while QQQ is -22.6%.
XCLR--S&P 500 options collar strategy ETF (sells calls, buys puts) QCLR--NASDAQ 100 options collar ETF NUSI--NASDAQ 100 options collar TAIL--S&P 500 Put options strat (holds mainly treasuries, buys puts) XTR--S&P 500 Put options strat (holds S&P 500, buys puts)
NUSI has been a disaster this year. Collar, my ass. I expected a drop in early 2022, wanted to be more conservative. Switched to some NUSI. It dropped pretty much the same as the underlying. I sold that thing very quickly after they did not deliver on the strategy. I am just much better at building my own hedges with options. I did not need the income, I wanted some protection and not miss a bounce back. Oh well.
I think the call ETFs OP is referring to are QYLD, NUSI, etc which are fine for retirement when you just want cash and don't care about the underlying assets value. That being said, if we hit stagnation the price won't fluctuate much on these and it's a consistent 12% dividend
So do covered call ETFs make sense right now? JEPI NUSI JEPQ etc???
Avoid NUSI and QYLD. JEPI has proven to be pretty solid.
dont play w/ options, get into income producing, monthly dividend stocks like QYLD, NUSI, DIVO, JEPI. If you DRIP the dividends back into shares you can snowball a fairly large monthly check pretty quick. These are NOT Growth stocks, dont expect to see massive share price appreciation, they tend to follow their underlying index's pretty closely. GL chimp, hope this makes you a true WSB Ape
Finally dumped NUSI in my income account. up 3 cents with the Nasdaq+2%. Fuck me ever buying this "downside protection."
I had NUSI for the collar play, and it completely underperformed the expectations. Very disappointing. I don’t know where was the collar part. After distributions, the return was just a tad higher than QQQ. Not the risk profile I wanted. I should have built my own position with options. I sold NUSI and bought QQQ instead. NUSI will underperform significantly if QQQ bounces back up sharply.
For those of you that think collars are low risk, take a look at the performance of the NUSI ETF this year.
Depends on the stock. Usually you can just Google ex dividend date. I did that for NUSI and found > NUSI has a dividend yield of 9.62% and paid $1.91 per share in the past year. The dividend is paid every month and the last ex-dividend date was May 25, 2022. https://stockanalysis.com/etf/nusi/dividend/
A dividend yield stock that pays quarterly or monthly doesn’t pay the entire % listed on those quarterly or monthly payments, correct? For example NUSI has around a 10% yield, paid monthly. So if I buy 100k worth of NUSI, I’m not getting a dividend of 10k each month, I’m getting 1/12th of that each month, roughly $833. Have I got that right?
I bought into NUSI - for a while. It did provide "some downside protection" during the March 2020 downturn however that was just after its inception ($25/share in 12/2019) . The total dividend payout since 1/2020 is just over $5 per share. It's now at about $22/share. High yield with downside protection? No free lunch anywhere.
It was $40 a quarter for having the IRA account open. They also annoyingly limited what I could buy. I couldn’t, for example, buy QYLD or even VOO. I had just under a quarter million in the account, and they said if I could get the balance higher than that then I could ask to have the fees waived, but to open up more investment options, I would have to pay fees that were a percentage of the balance. Screw that. I started an ACATS transfer to Schwab. They screwed that up and sold everything which wasn’t all bad since some of the funds were weird Fidelity-only funds that I wouldn’t have wanted to keep anyway. Fidelity never again. At least with Wells Fargo I have one local guy I deal with that I’ve known for over forty years and he looks out for me. Wells Fargo still annoyingly limits what I can buy. I can’t buy NUSI or RYLD through them like I can with Schwab.
My humble opinion - QYLD, NUSI, and such are trash. I bought into QYLD at the beginning of this year, Yup, I've been getting the 10% dividends - and I will have to pay regular income tax on those dividends. Meanwhile the share price of QYLD has continued to decline.
You want NUSI for more downside protection. Uses some of the covered call premium to buy puts. So gains are smaller than JEPI but smaller losses. I think it’s a collar strategy but don’t quote me.
Has anybody considered buying income etf's like QYLD or NUSI instead of holding cash? They produce about about a 10-15% yield which helps counter the nav decrease during the downturn. I've been considering putting a fair chunk into one of these for the time being instead of losing 8% to inflation by holding cash.
Anyone know why NUSI is down so much less today than the NASDAQ 100? Did their protective puts get exercised?
If you don't understand the risks with VC etf'sz then I'd avoid them. If you don't understand the differences between JEPI and QYLD or NUSI then I'd avoid them. They can at times have significant risk. I am not s fiduciary and don't care what happens to your portfolio..nobody else really does either. So take any advice with a trust but verify at best. Even if u talk to a fiduciary... Ask questions. Make sure u understand what ur getting into. Blind faith off a cliff still ends the same way no matter how smart the leader is. That all being said I like diversification. (This isn't investment advice even if it sounds like it) Any one asset class or sector or market can suffer. Look as nasdaw. Total stock market goes by market cap. So ur heavily concentrated in large cap. Generally large cap is more defensive and less volatile but at the cost of reduced growth . I'd suggest you look into diversifying by market cap. Small and large. Maybe also look into factor tilts. They have historically beaten the market. Value. Dividends. Size. Momentum. Low Volatility. I think there are 2 more. Dollar cost average maybe? Save some dry powder maybe? Don't forget the treasuries. They okay an important role. Markets crash and investors flick to safety. More buyers then sellers drives yields down... And prices up. So treasuries are usually not very correlated with market therefore a decent hedge. Good luck in whatever u choose. And when in doubt, talk to a fiduciary financial advisor. Must be fiduciary. But event then, u know ur needs better then anyone so no blind faith.
When is the best time to sell some or all of your holdings in a position when they are in the red? I know there are some tax benefits to selling at a loss, so how best do I take advantage of that? For example, I am considering cutting some or all of my deep red NUSI, PBW, MSOS, and IBUY to buy more Google. NUSI isn't down as much as the others (50% or more), so I might hold that one for the dividend at least, but I know that has tax consequences as well. Last year, I was going to owe taxes on my gains, but the woman that files my return used my student loan deduction to cancel it out. That deduction will only be around for another year, so while I won't make anywhere near what I made last year, I do wonder when is best to dump my losers. Thanks!
Oh I've plenty of bags - 7 shares at 188 on PYPL, 100 shares at 12.85 on SOFI, 2 shares at 1200 on SHOP, 6 shares at 315 on FB, 203 shares at 27.8 on NUSI, 270 shares at 22.7 on QYLD. Glad I have a few decades (hopefully) before I retire.
This is wsb so I'd say QYLD or NUSI
The protective put on NUSI only serves a purpose if there is a black swan event (e.g, COVID crash of March 2020) where it will prevent the underlying instruments from drawing down further than 10% that month (or whatever downside floor the put option is set at). If we are in a bear market where NDX is drifting down an average of 1-2% a month,, the protective put on NUSI is useless because the underlying instruments in NUSI will still realize that 1-2% decline in value each month, and yet you're giving up part of the CC premium (and thus, the dividend yield) by spending part of it on that put. At least with QYLD you'd be retaining the entire CC premium in a bear market, albeit without the extreme downside protection in the event of a crash, which is why I don't think any of these CC ETFs would fare well at all in a sustained bear market. At best, the yield would simply offset the decline in the NAV each month, in which case you're probably better off holding a treasury bond.
NUSI, QYLD are dividend stocks that don't really move
I get where you're coming from, but not losing money due to another great depression is also important. With that said, I keep buying the max in I bonds, but I think I hold almost twice as much in QYLD in my Roth for those nice dividends. Also, NUSI is nice for their crash protection.
I agree with covered calls that they might not be the best hedge against recession. Also while QYLD and NUSI don’t tend to grow, JEPI and DIVO do. I don’t think I would say qyld and divo do depreciate in value tho. Although at some certain points it might seem like they do, after a lot of lengthy discussions on this topic on the r/qyldgand and the performance of RYLD in 2021 (which actually beat Russel) it doesn’t seem they’re lossy in long term. However, I do believe that investing into Div Aristocrats is a hedge strategy if your goal is to have steady cash flow as the assumption is that they will pay same div per share even during market downturn therefore giving spare cash (with higher PPP at market lows) to invest at market lows. IMO it’s better than sitting on cash and buying puts because timing the market is a very risky strategy. I think Cash can only work u have a lot of it and have a very strict DCA regimen. That’s not the case for me. If I have cash and I think something is a good value I’ll buy a bunch of it. So at the end of the day it depends on your strategy I guess
I made many mistakes and I kept changing my strategies trying to get amazing returns. I went from ARKK to growth funds to a mix of QLD and NUSI, also bought 300 shares or SOFI at 20$ (big mistake lol). I now own a mix of HFEA (upro/tmf) and index funds. I would have been very green still if I had just put everyting in SPY and called it a day but that was just too boring to me.
They charged me $160 a year for a "no fee" account. Screw that. I moved to Schwab, and they've been great. Their website is also much better and has many more options on what you can buy. For example, I couldn't buy NUSI or NTSX with Fidelity.
I sold everything today. I had too many positions to be able to afford to effectively DCA all of them so I’m just gonna get out for a bit. I’d rather miss a little growth than wait for any loses to recover. Plus now I can readjust what I was doing. I’m gonna try a M1 pie split 50% a 70-30 split between VOO and VEA; 40% split evenly between JEPI, NUSI, QYLD, and another 70-30 split of SCHD and SCHY; and then 10% into individual picks split up into market sectors.
QYLD is good if you're expecting a sideways market, which is quite possible for the coming years. But if the market tanks, you won't be benefitting much from its recovery due to NAV erosion. I like NUSI more for this reason. It's essentially QYLD but with an addition of a protective put, ie. a collar strategy over purely covered calls. The yield is smaller but the downside protection is also built into the yield. The options structure on NUSI makes it effectively a pure income fund.
Put half in an ETF now. Put the other half in QYLD or NUSI and move 10% of what's remaining each quarter to the ETF for the next couple years.
I like NUSI and it’s new counterparts NSPI and NDJI because they track Nasdaq, S&P, and Dow Jones, generate income from covered calls, and offer downside protection by using a protective out strategy such that their losses will generally be less than that of the underlying index in a downturn. And in a sharp downturn such as occurred at the start of Covid, the protective puts perform incredibly well and limit losses to 10-15% when the underlying drops 30% or more. Yields are 7.0-7.5%.
Companies with high dividends tend to be older companies with slower growth. The JEPI NUSI DIVO are all relatively new ETFs so a long backtest in portfoliovisualizer.com is not possible, but if you look at older ETFs and mutual funds like SCHD you will see that their returns, with dividends reinvested, have consistently lagged the overall market. My main point though is that some people erroneously believe that they are much safer than other stocks, which history show is not really true.
Here's what made me stay away from NUSI and it might help you. NUSI typically buys a monthly put 10% OTM. If the market doesn't drop below that within the given month, then the put is wasted. So you are really hedging against a black swan event rather than "downside" protection. NUSI will underperform the market and QYLD when the market drops but doesn't drop below 10 percent. In this case, at least QYLD is paying the entire option premium and not buying the put. But, don't get me wrong, I am not advocating for QYLD either. QYLD is good for retirement but not for long term hold in a taxable account or if you are really young. NUSI was great to hold during the Covid crash but how often does an event like that happen.
1. Cash secured puts and covered calls are basically the same strategy with different actors. same outcomes. 2. if the share price goes down, you'll go down with it. 3. if it goes up too quickly, you lose out on capital appreciation Basically, you have all the downside and limited upside. Good for a trade, terrible as a long term investment vehicle. Look at the performance of covered call funds like NUSI or QYLD
I suggest investing in funds like NUSI or QYLD if you want exposure to that kind of stuff.
Instead of QYLD, use NUSI. The yield is less but there's downside protection which is what you want if you're seeking yield on margin.
I disagree. If you're wealthy enough already, your main goal isn't big returns. It's not losing money so they make sense. I worked for a family office for a while, and they very well understood the concept of buying options to hedge and understood what it was costing them to do so. Same reason my friend that just retired with more than enough money to live the rest of of his life just bought NUSI instead of QYLD despite the lower return. It has downside protection.
Covered call ETFs or trade options yourself: QYLD, RYLD, XYLD, JEPI, NUSI, DIVO, etc … Take your picks !
Yeah it is right now, but friggin NUSI, QYLD, RYLD and XYLD have been slowly twisting my titty for like a month already
Don't murder me, but I hold some NUSI as a small percentage of my total holdings, and I feel pretty comfortable with it. Yield is around 11% I believe.
HDIV and TXF, though they're closer to JEPI and NUSI respectively.
I’ve lately become very interested in these covered call ETFs. Particularly NUSI, which sacrifices some yield for downside protection. Thinking of getting some for the “conservative” part of my portfolio, since bonds look like they’ll have another bad year.
Anyone have thoughts on covered call ETFs like JEPI or NUSI in volatile markets like this?
Covered call ETFs like JEPI, NUSI, and QYLD look really enticing but i can't figure out how they're taxed.
Put it in JEPI and NUSI, that way you at least get a small, reliable bit of income regularly. Use the dividends to make occasional options plays at very little risk, since it's just your little dividend income you are gambling with.
Actually if they do it with NUSI it might be ok though.... 🤔
Ok Ahem Statistically speaking growth stock will out preform dividends making that whole asset class pointless. Position $O $NUSI $MAIN $VYM
Go for NUSI. It has downside protection.
i parked some cash in NUSI…a fund that buys the nasdaq and sells a call/buys a put on the naz for risk protection. by some fucking miracle it does worse then the nasdaq on the downside. how it that even possible.
Bitched out and just threw this weeks money at NUSI and QYLD instead of totally in the garbage. Both have gotten gaped recently. LOL
Bought some more QYLD this morning. I'll be picking up some NUSI, QYLG, and RYLD later this week as well
NUSI and it's related funds uses the collar options strategy. JEPI uses ELNs for downside protection.
Check out NUSI. It's an ETF that uses a collar strategy, so it protect from market draw downs, as well as paying out a nice monthly dividend of around 7%.
Have you considered RYLD, NUSI, JEPI or any other high dividend efs that don't depend on a single business model?
Only lose if you sell, which is why JEPI will outperform in a flat or bear market. The ETF contains a good mix of growth and dividend stocks while also selling covered calls. I have my doubts on QYLD and NUSI because they do terrible when the market dips. JEPI was barely down today while the major indexes got slaughtered.
Just loaded up my annual Roth contribution, what's a good multi month play I can forget about and make tons of tax free money with? Currently have some NUSI, VTIP, ZIM, MATX, SRE and some other assorted detritus in there.
Same, NUSI has proven its downside protection works during the covid crash
If you are looking for security and a yield why not buy several dividend aristocrats? Someone else mentioned NUSI, which did very well in March 2020.
I’m many years away from retirement so my risk tolerance may be a little higher. The allocation I would have in bond funds I have in NUSI. The difference, if not already aware, with this covered call ETF is it also buys puts for some downside protection. I haven’t found anything in the bond market with a yield higher than inflation with an acceptable risk profile. Following this thread to see if someone has a good recommendation.
Bonds and more stable assets make sense the older you are, that’s perfectly reasonable. I’m 27 I spent 2019 learning about the stock market and the basics of investing before I really started investing a week before Covid tanked the market. I know a lot of older investors don’t like to consider it a “crash” due to its quick V-shaped recovery, but it was a great test of investing psychology for me, and I personally am grateful I had that experience, which I recognize a lot of people have only been investing after the meme-stock rally happened and have not even been through a major correction. My portfolio is very aggressive and risk on, I had s significant part of my portfolio in $NUSI which I use as an alternative to bonds, but I decided to cycle out of that and buy Fintech stocks after that sector got hit. If the market takes a 50% dump, I will do the same thing I’ve been doing for the past couple years and just keep holding, I’ve done once already before in March 2020.
For pure dividend plays, QYLD RYLD NUSI JEPI DIVO, and closed end funds, for individual stocks you can write covered calls against to juice the income, XOM, MO, IRM, IBM, RTX.
QYLD, RYLD, SPYD, NUSI, PSEC, and several others. I spread it out and still carry a few quarterly dividend stocks T, WMB, etc... I also have a little bit of some other stocks that I keep just to get a little growth. I have been really happy with the monthly income etf's, if something happens to me it will be easy for my wife to manage.
LOL last year is probably really bad reference to compare anything. I make most of my money from my job, I'm sitting in enough to retire and am almost 40 so I'm usually at around 12/16% per year as I'm on really safe investments. Like 25% of my stash is in JEPI/NUSI and 20% is cash that together with leverage I use to sell puts and target something like 15% YoY. Congrats if you made more than that but I sincerely doubt you'll be able to sustain it with that dick measuring chimp bravado attitude.
Find a broker with cheap margin rates and put 200k into NUSI, NSPI, NTKI
I would look into I-Bonds: https://www.reddit.com/r/investing/comments/rpqn8i/what_do_you_think_about_inflation_linked_us Also I would look into these ETFs: NUSI, NSPI or NTKI. These are complex ETFs and some are very new. So do your own research. These ETFs use option to generate income, while also have some protection against sudden crashes. I think these fit very good into a portfolio for somebody with your age. Allthough I would also not put everything into them, as their dividend will not grow much over time.
Also, NUSI is very similar to qyld except it has downside protection, uses qqq, and is actively managed
I’m not familiar with all of your tickers, but here’s some to consider if you don’t already have exposure… NUSI is a covered call etf against Nasdaq but it buys puts for downside protection. I’m using it in place of bonds. A bit more risk for a much better yield. XLF if you believe the finance sector will do well in a rising rates environment. XLE if you believe the demand for energy is going to keep prices high. SOXX I’m not knowledgeable enough to pick the microchip winners but I do believe in the sector so I have SOXX etf in my portfolio.
The Quadfecta: $QYLD: $23/share $NUSI: $29/share $DIVO: $37/share $JEPI: $61/share All four pays monthly. Average yearly return: 7.6% If you put $300 equally into these four stocks every month for twenty years, then your final balance would reach ~$164,133.09 Total compound growth: $92,133.09 Since all four of these stocks pay monthly you'll be making $12,474.11/year on average from these four stocks alone after 20 years. Some years will be higher than most. This isn't even including the four stocks appreciating in value after two decades. I'm not a financial advisor. Please do your own research.
Check out the quadfecta portfolio. Here is the analysis. Follow-up Analysis: "Quad-fecta" Covered Call Income Portfolio Per popular request, here's the backtest result of the quad-fecta income portfolio that I posted in prior thread: ​ Please note that since JEPI is a new fund, I had to substitute with JEPIX, which is the mutual fund version of JEPI to get 1 full year of income. Also per popular request, I also put some variation of this portfolio construct: 1. Portfolio 2 in the above link replaces QYLD with RYLD for maximum diversification. Since NUSI is large cap growth, RYLD is small cap, RYLD basically provides the same yield benefit of QYLD but provides diversification in term of market sector. However my only concern with RYLD is lack of AUM, high expense ratio and its drawdown during COVID is much higher than QYLD so using RYLD will introduce more volatility to this portfolio 2. Portfolio 3 replaces DIVO with SCHD for more growth-oriented individuals. It will slightly reduce income but it adds more growth to this portfolio than DIVO. If you are ok with some slight reduction in income, this might be the one for you. Also one more thing to keep in mind is that since SCHD pays quarterly, it might affect the viability of this income portfolio since all the 4 ETFs (NUSI, JEPI, DIVO, QYLD) all pays monthly. For me personally, this portfolio is for income, not growth. I already have a dividend growth portfolio consists of SCHD/SCHY so I don't see the need to add SCHD to this portfolio. Enjoy !
Not sure what you mean by hedging,,, so these actually do try to hedge. Compare Wellington Fund over time against the stock market,, VTI. Wellington Fund Admiral Shares VWENX I think? Is 70% stocks, 30% bonds. Automatic rebalancing for ppl who don’t have the time. Also, Look at NUSI which actually does hedge with active all and puts. Run by Nationwide Insurance.
Don't feel you have to do anything with it. You could just put it in a bond fund and let it sit. For the love of God don't yolo options on stock. Also, a fund like NUSI has downside protections and good return. I would just put it in the bank for a bit and enjoy having that kind of security, no rush.
PSLDX , NTSX, MSFT, NUSI, SPY. I’m bearish, but I don’t fight the data.
NUSI uses a collar strategy. Selling calls, buying puts on QQQ I think.
Basically this all works but just as you said with NUSI they're professionals. This is *what they do* so that's how they get the yield. It is not through lackadaisical Reddit surfing. When you think about it they get paid twice, once to manage, then to actually own, but otherwise it's not great as just an owner. I want to be clear: There is nothing wrong with any of these ideas. Nothing. It's just that if not well laid out and well explained they get complex more quickly than simply buying a stable and well researched firm that effectively manages capital for you and pays you for basically lending it to them.
How about selling covered calls and buying protective outs at the same time say 5% below market price? That’s what NUSI does and it has a 7.5% yield
JEPI and NUSI. Pretty much designed for your purpose.
NUSI, this has downside protection too. If i had to choose div etf this would be the one, and never worry.