QYLD

cnflakegrl

A few things to look into: 1. Roth Conversions - you can roll money into becoming Roth money. This has tax implications in the year you do it, as it counts as ordinary income, but if the math works out, you take the one-time hit and then have a lifetime of untaxed gains. You will want to dig into this more, there are some details that can be 'gotchas' depending on if you have other IRAs. 2. For high yield ETF, look at covered call ETFs - like QYLD or JEPI (QYLD seems to be paying out more right now, but this can change). But you'll pay tax on the 10% return monthly/quarterly, unless you put it in a Roth or have it in 401k. 3. There are plenty of 5%+ 5-10 year bonds and CDs right now. 4. 401k comes with its own set of game rules - if you hold it too long in 401k, you'll have to take minimum distributions from the 401k at some point in retirement years, which could push you into a higher tax bracket in retirement. Sometimes it is advantageous to strategize a non-working year (Jan - Dec) to reduce income to 0. This is all a game, gotta look at options outside of the box.

LookIPickedAUsername

What hostility? It's easy to misread tone over text; I don't know what I said that sounded hostile, but I assure you it wasn't intended to. And you could have bought all sorts of underperforming investments and still be doing "fine". I'm not arguing that people investing in QYLD are not making money, merely that they've significantly underperformed the market.

LookIPickedAUsername

QYLD certainly isn't the worst buy you could have made, but you'd have been far better off just investing in the S&P 500 even before considering tax drag. And I'm not sure what "You sound invested" is supposed to mean. I'm doing the exact same thing as you are - wasting time on Reddit. What makes you think I'm any more invested in this than you or anyone else here? I don't give the slightest shit what you invest in.

Sufficient-Rate8914

QYLD has been a solid buy since inception, and fairly inexpensive to mitigate the loss of capital.

McKnuckle_Brewery

Assuming you will buy VFV in a brokerage account, the simplest approach is to find the highest post-tax yielding, stable asset that you can purchase in the same account. Using a U.S. example, I would purchase U.S. Treasury bills either in an ETF (e.g. USFR, SGOV) or money market fund (e.g. FDLXX, SNSXX). These are exempt from state tax where I live. If I had a longer term DCA strategy, I would be constantly watching bond offerings with appropriate maturity dates. I would either use government agency bonds which are, again, exempt from state tax; or I would use corporate bonds. Right now is also a good time to consider new issue callable bonds with the highest yield, as these will likely be called when rates drop. Not a guarantee and this involves market timing, but I like the approach regardless. While a bit more risky, I also like high yield bond funds such as SPHY which has a mix of investment grade and below corporate bonds. I would not put the money into anything that tracked the actual equities market, and I would not use anything with an eroding NAV like QYLD and its ilk. Hopefully you can extrapolate from this U.S. based info and apply the ideas to Canadian options.

LookIPickedAUsername

Obviously you have to compare apples to apples; selling 4% of your stock is equivalent to receiving a 4% dividend and not reinvesting it. Clearly that isn’t something you do while still in the accumulation phase, but at the end when you’re trying to live off of it. And yes, obviously you should focus on long term performance, but I’m talking about people who have lost 50% of their principal while receiving much less than that in dividends during an up market, who seem to think they’re doing fine because, hey, free money every month. You know, the sort of people who think QYLD has been a good buy.

NefariousOctet

Not against individual stocks, but why IIPR and why so allocated to it? Same for Home Depot, allocation amount isn't a risk but curious at to whether there is a strategy behind. Not sure I see the point of QYLD, even accounting for dividends it doesn't outperform QQQ. And it has the same underlying. And I think it's more expensive. Just 100 USD in total world index... Either make it a conscious investing decision and allocate more or cut it off.

brosiedon7

This same conversation happens on the dividend subreddit. There's nothing bad about dividends or growth investing. You should invest in a good company regardless if it has a good dividend or not. The problem with people and dividend investing is they pick these companies with high dividends but the share price devalues more than you get from the dividends. So you're at a net negative. QYLD and T are prime examples

ElephantFriendly

QYLD. They make money selling covered calls and pocketing the premium. The actual stock offers little in the way of capital appreciation, but the divvie is, like, .17 monthly on an $18-ish share. Based on your 450k, you'd actually get around 4k/month.

Timely-Article-6829

I know a lot of folks like the income - I’ve been burned a few times by good dividend payers Now if I want income I go for the monthly payers like QYLD and XYLD. They pay a monthly income of approx 10-12%.. the % was higher but they’ve increased in value the last 6 months Obviously it depends on the level of risk…. You can get 5.3-5.4% on treasury bills (call it 5.75% because there’s no state tax on these) so that’s the baseline of any income stream

papakong88

The concept of using index options to generate income is not unique. It is used by covered call ETFs that pays a high rate of dividends. For example, XYLD owns all 500 stocks in the S&P 500 index but sells only SPX calls. QYLD sells NDX calls and RYLD sells RUT calls. All option strategies have risk. We have to plan to mitigate the risk. First, we do a worst case scenario evaluation. Each person has his own perception of worst case. My worst case is when the put becomes ITM. When the puts become ITM, the margin required increases while the BP decreases. So we will analyze how much margin is required if the put becomes ITM. (Each broker has different requirement.) Sell 4870 put for 5.50. NDX is at 5254. The initial MR of the put is 50 K. It increases to 125 K if put becomes ITM. When the put becomes ITM, NDX has dropped 7.5%. Assuming BP has also dropped 7.5% to 278 K means the account can support 2 puts. Next, we look at delta. The 4870 put has a delta of 0.05. It is 7.5% OTM and sells for 5.40. If we lower the delta to 0.04 and sell the 4820 put for 4.55. The put is 8% OTM. Is the return acceptable for the extra safety? (I use 0.04 delta.) Finally, the exit strategy. The puts have very low delta. My exit strategy is simply to roll out. These are naked puts so it can always roll out for a credit. I rolled out of the pandemic months.

easyplants

If I had $10,000 cash to invest with today I’d focus on a growth strategy, buy liquid assets and create passive non-retirement income. For stocks, make it a habit to dollar-cost average and buy up to 100 shares+ of each, trust me on this, you'll thank me later: 1. $5,000 (50%) into money printer stocks, great companies and high quality ETF’S (Vangaurd first, Boogle-Head loving fiduciary for all) - Procter & Gamble, $QYLD, $VOO 2. $2,500 (25%) into TIPS (US treasury bonds) TBILLS - Currently 5%+ for 6 month maturity, Public app has an great platform (not an endorsement, just my personal experience) 3. $2,500 (25%) on unicorns/ promising new companies - $JOBY, $GABA LABS (expected) and Art-alternatives, Land and/ or Crypto - Banksy, Groundfloor app has the lowest fees (not an endorsement, a fact), ETH, BTC and SHIBA INU (Own 1 million of something goddamnitt!)

S7EFEN

> That's gibberish. If your dividends grow faster than the underlying stock, the capital gains are what is doing the "dragging". it's not gibberish unless you don't understand what 'tax drag' is. you are paying long term capital gains on dividends. if a stock pays out say a flat 2% dividend you are incurring a .3% tax drag. if a stock goes up 2% you are accumulating gains... but these are not taxed, and will not likely be realized unless you have losses to offset, or you are in a lower tax bracket (0% ltcg is very generous). well sure. but a lot of people are NOT doing that. in a tax advantaged account the dividend is just a wash either way but it's an active net negative in a taxable one. if you assume only high dividend paying stocks/funds in tax advantaged accounts you'd still have to contend with the whole 'dividend funds like schd do not outperform the broader market' and obviously just plain bad funds like the various covered call 'income' etfs. and other points like 'a company choosing to distribute its profits isn't necessarily a good signal' and 'retail has created a market inefficiency via dividend investment strategies due to poor financial knowledge' which is especially the case with funds like QYLD popping up and people applying 'buy and hold' strategies to them. the only good way to view dividends is to consider them functionally irrelevant to your investment decision and to try to avoid heavy dividends in anything taxable if something you plan to invest in happens to have them. which i think we're at least on the same page about the latter part of that.

Ericjr321

SPYI VOO FEPI IWMY SPYT SCHD QYLD JEPQ JEPI JEPY. Research them.

The_Dreams

QYLD. Tracks the market, gives a monthly dividend, and is fairly stable. I don’t want it to sell for money, but instead to get an extra free 100 dollars a month. Over the last year I’ve put about 16k into it and every paycheck half of my left over goes there. I’d love to be able to get about 500 a month from it at some point.

butlerdm

Exactly the opposite. They sell options specifically for yield to distribute to shareholders. Go look at something like QYLD that’s been around longer. You’ll notice a general down trend between they put everything into ATM CCs. JEPI/JEPQ however only put 80% into ATM CC while the rest remains invested, so they have upside potential to benefit from a rising market while still generating a large yield. As long as you expect the market to go flat or better it would be a good bet over HYSA or tbills/notes. If you expect it to go down then yeah, stay away for that short of a time span.

proret4rd

It's gonna V. QYLD buy write etf has to buyback their NDX 17750 calls today. It's in their prospectus

proret4rd

QYLD has to buy back their sold calls today. We Ving

jigglypuff111

I've taken some risk off recently, but yes generally I use deep itm LEAPS long dated and roll them with a year to go, rather than owning ETFs of QQQ and SPY. I also use LEAPS for speculative investments, if, there is sufficient liquidity and the spread isn't too large. I keep the rest in cash and IWDA. I planned to keep the rest in QYLD but got burnt pretty badly when I started buying it.

Archie_Flowers

QYLD

HGDuck

I heard QYLD has some good returns.

8ADollar

I have been closing all my positions at 11:00 AM on Friday and put on positions after 11:00 AM on Monday. I keep my Yolos open https://preview.redd.it/290zglreybnc1.jpeg?width=1290&format=pjpg&auto=webp&s=072035b1b944b2ecc0126177aa6d8d70d097b21e This months results - 8 days. All gains go to bonds, QYLD and TQQQ calls 2 years out x65

willklintin

Money market funds and hysa are around 5%. Some reits and income etfs are even higher. I currently hold JEPI, O, ADC, SCHD, QYLD as well as individual stocks that pay a decent dividend like T, VZ, MCD, KO, WEN. It is pretty passive. I just reinvest the dividends at this point.

CryptoeKeeper

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...

Stock_Atmosphere_114

If you're happy, your happy. I still have some significant overlaps in three funds. QYLD, QQQM, and VOO. All three have significant overlap, but each offeres me something I'm looking for. They work well in tandem towards my goals, but I count them essentially an one fund with three facets: income, growth and stability. You do you.

Any-Panda2219

This or QYLD

PapaCharlie9

I take a very different approach. I don't set a fixed profit goal. I have a profit **benchmark**, which is not the same thing. My goal is to meet or beat the benchmark on an annual average basis. Ideally, the benchmark is a risk-adjusted metric, like the Sortino Ratio. This is not my actual benchmark, but it is an easier-to-understand proxy: The historical trailing (5Y) Sortino Ratio of QYLD is 0.4623. I would try to beat that. https://ycharts.com/companies/QYLD/max_drawdown_5y That benchmark is only considered at the year-end review. During the year, I don't look at the benchmark and I for sure don't let the behavior of the benchmark influence my trading decisions. I want my trading decisions to be as blind to the benchmark as possible. Instead, I focus on making good decisions based on facts (not hopes and dreams) and let the profit/loss fall where it may. If I make good decisions with respect to risk/reward and trade with enough frequency to factor out luck as much as possible, I should do well for the year. Whether it beats the benchmark or not is a different story. If I miss, I go back and figure out what I could do better. If I beat, I try to do the same thing in the next year.

Pin_ups

QYLD, SPYD, SPYG, AMD, and Amazon.

mrvile

lol QYLD is so 2021, we’re all in JEPQ now, get with the program

s1owpoke

>QYLD Bill Cosby likes this ETF, quaaludes

ChiggaOG

That’s why they say to have a bunch of other stuff in the portfolio and keep tossing money into known ETFs even if market crashes. I tossed a bunch of money into QYLD with losses until it bottomed out. Due to DRIP, bought enough shares to turn green currently. It’s an ETF for Nasdaq 100 covered calls that pays monthly. This has a low annual percentage yield based on SEC 30 day yield number. Not recommended because purely income and zero growth as a dividend.

codeartha

Agreed or just half in QYLD for monthly income and the other half in VOO for capital appreciation over the years and to be sure you'll have something left in 30 years.

codeartha

Consider this, lets say you have enough to entirely payback your mortgage. If you put than money in something like QYLD, you get about 11% per year in dividends. That's almost double the interest on your mortgage. So you can pay your monthly mortgage payment and keep the difference, so you make about 5% more per year by not repaying your mortgage early. I'm not saying you to put it all in QYLD or follow this strategy or anything. You have to factor in risk as well. Risk is harder to quantify and your acceptance of risk is even harder. I'm just saying that IMO as long as your money is invested in something that pays more than your mortgage interest there is no point in early repayment. I would even argue that even if your investments are yielding slightly less than your mortgage, it's still interesting to keep your mortgage. That's because your loan capital is invested as well, in your property that is. So it also, hopefully, produce some gains. So you're winning both in the markets and on your property gains. Mortgages are a form of leverage allowing you to invest money you don't have, which is brilliant and you should exploit them as much as possible.

Pau1basaur

QYLD is down 30% all time and lagged S&P last year

StonkGoUp

Dividend investors are so fucking dumb sometimes. I stumble into their subs and there’s 20 y/o dudes with their entire portfolio in QYLD like “duuurrr look I’m making so much money off dividends!”. QYLD is down 18% over 5 years QQQ is up 161%. At least the regards in here know they’re regarded

Z_BabbleBlox

Similar boat.. This is what I decided on. Make double and triple principal only payments until the principal payment, on a normal payment, is higher than the interest payment in the amortization schedule. Just a few years. Once that is done, only make minimal/normal payments on the loan. Take the extra from the normal/triple payment you have been making, and monthly and put it into something paying a monthly dividend with a good rate (QYLD, RYLD, JEPQ, etc) that is relatively stable. QYLD is doing \~12% In a while the monthly dividend will pay your minimal payment on the mortgage. Let that keep happening until the mortgage is paid to completion. Now your mortgage is paid off and you still have all the capital you accumulated in the stock paying the dividend. For me, it was around 250k and took about 5 years (after the tip over point above - where principal paid is greater than interest paid). The mortgage has \~12 years left on it, but I don't care. I have enough capital in the stock to pay it off anytime I want. But if I let it cruise at this point I'll have that capital to do other things or if the NPV calcs don't make sense anymore.

McKnuckle_Brewery

JEPI, 0.35 JNK 0.40 QYLD 0.60 Won’t bother listing more. They are easily discovered. An index fund is an index fund. It makes no difference whether it’s a mutual fund or an ETF as long as it’s net return matches the index. Go look up, VOO, SPY, FXAIX, and VFIAX which all track the S&P. Again, you’re confusing the distinction between managed funds versus index funds – not between mutual funds and exchange-traded funds.

JacketCivil

Thoughts, changes, and suggestions on current holdings. Percentage of total account. RCKT. 18.45% QYLD. 17.24% AMD. 13.98% FANG. 12.64% SBLK. 11.87% ACHR. 8.20% FSLR. 5.87% GOGL. 4.99% KGC. 3.80% MS. 2.91% ACHR & FSLR are my only losers, but down 20.45% and 28.57% AMD & RCKT are my biggest hits, up 62.36% and 31.02%.

PapaCharlie9

I wish he had compared to the underlying funds directly, like QQQ and SPY, instead of the equity-income and dividend growth fund averages. I mean, I get why he did that, as a sort of apples-to-apples comparison for income generating equity funds, but c'mon. Most people are deciding between QQQ and QYLD, not QYLD and VIG.

th3tavv3ga

Covered calls have worse risk adjusted returns as they cap upside and offer minimum downside protection. That’s why covered call ETF like QYLD is garbage

CommentsAreNonsense

I would put $1 million into QYLD or something similar, collect $80K a month in dividends and just treat that like a salary.

patrickswayzemullet

BRK-A does not have options chain. Can't sell calls against it. BRK-B is the better option IMO. Neither will beat SPX, but the defense/value stocks will probably hold up better for bear markets. (They were doing alright till march 2022)... I would do BRK-B 75%, 15% JHEQX (for the excitement), and 10% JEPI/QYLD. Sigh... If I had 7-figure money...

themgmtconsultant

I respect your point of view. For me, I sell itm cc on QYLD and don't care about price movement, it's just a good steady additional div check.

AntiqueDistance5652

>QYLD What an incredibly dumb ETF. Let's use a strategy that gets crushed in bull markets to generate income through writing calls and then distribute that income back to the shareholder so that they can continually pay taxes even if they dont want to, thereby taking away their ability to sell portions of their position and pay taxes as they see fit.

themgmtconsultant

Sell ur AAPL, buy some QYLD and sit on it

Spl00ky

Regardless, covered call ETFs cannibalize the fund which is why when you look at QYLD, it has significantly underperformed.

RampantPrototyping

Anyone have any relatively safe and diversified etfs recommendations that provide a monthly dividend? I'm looking at QYLD and JEPQ

CorneliousTinkleton

QYLD and chill

TwasiHoofHearted

Plenty of ETF's to choose from. Vanguard have plenty options. $ET, $QYLD, $JEPQ, $MO, $O are quite popular. Anything Yieldmax is tempting and risky. *Not financial advice

divexpat

When I got to $300k in assets is when I started feeling like my investments were doing some heavy lifting. At $300k a 10% return is $30k and that was about as much money as I could contribute in a year at the time. Now that I am over $1M it is insane. Making $100k+ in a year is pretty common and that is more than I ever made from my w2 income. My highest w2 income was $75k per year. Now here is the other thing about having assets. The more money you have the more money you can borrow and the cheaper the interest rate you pay. With $1M in assets you can go over to interactive brokers and borrow money at roughly 6% interest right now for a margin loan. So, what you do is you borrow say 10% of your portfolio which IMHO is very conservative. So that is $100k. Your interest rate is 6% per month. So what you do is you can be conservative and buy $100k of an ETF like PFFA which is an ETF of preferred stocks, which are quasi-bonds. With PFFA you make 9.45%. So, PFFA will pay for itself and give you an extra 3.45%. Also because these are preferred stocks the income is mostly going to be qualified dividends taxed at 15%. Anyway by the end of the year you own the $100k of PFFA free and clear and you probably made some extra profit off of it too. Your margin is back down to 0% and you can do it all over again next year... It doesn't have to be PFFA. That is just IMHO a pretty conservative option. You have tons of options. JEPI is 8.35%. JEPQ is 9.90%. JNK is 6.36%. SPYI is 11.94%. QYLD is 11.68%. TLTW is 19.79%. SVOL is 16.18%. Blah blah blah blah... tons of options all which will cover the margin loan rate. So at the end of the year you now have an extra $100k in assets. You can borrow up to 50% on a margin loan but I wouldn't recommend it. IMHO using 10% is very conservative and extremely unlikely to get you into a margin call. Even if your assets fall by 50% then you are still only using 20% margin, and you can always sell some of the assets back to reduce your leverage back to 10% or whatever. There is no need to sell though as what you purchased with the margin debt is going to cash flow enough to pay itself off and then some.

divy-lover

>Yes, it follows the equities market, but it is held for yield - like bonds - not really for trading. The price is not nearly as volatile as the S&P, and while it doesn't allow for large upside growth, neither does it continually erode like QYLD and its ilk. And this is what is attracting me to JEPI/JEPQ. For this particular investment/money, I am not concerned with growth, already have a portfolio for that. My goal now is just stability via income and less volatility.

AQAINU

2 Million in QYLD at $17.49 is around 114,351 shares. At $0.16 cents monthly dividend that's $18296.16 a month or 4574.04 a week. Up front. That can compound every ten years. But I mean go for it.

McKnuckle_Brewery

I am retired so I look at this a bit differently than some. During accumulation I would *not* hold JEPI. It's going to be a drag on your long term performance, and its ordinary dividends are a tax burden. But when you are retired, you will adjust your asset allocation to have a portion of bonds. And I believe that income based products such as JEPI are attractive for such investors, as they can be considered "bond-like" in that they produce useful yield and are (typically) less volatile. I am 78% equities and 22% "other" - which includes 15% bonds, 4.5% income, and 2.5% cash. The income portion is almost all JEPI. Yes, it follows the equities market, but it is held for yield - like bonds - not really for trading. The price is not nearly as volatile as the S&P, and while it doesn't allow for large upside growth, neither does it continually erode like QYLD and its ilk.

EtiologicalSpearhead

Monthly Dividends and tax loss harvest is your best friend to recoup any investment imo. Cut your losses on meme stocks for tax harvest and focus on getting back as much as capital through monthly dividend payouts. Highly recommending QYLD and JEPI for monthly drips to average out on some of these losses.

Arcite1

It's just spending cash you already have, not generating income. As another commenter said, QYLD has been around for 10 years. Look at its lifetime chart. If that trend continues, any initial investment, without reinvesting at least some of the dividends, would eventually dwindle away to nothing.

trader_dennis

I’m in a phone so it’s hard to run portfolio vizualizer. Yahoo lists QYLD around 12 percent per year. So even at 15 you are very far behind what QQQ has done.

trader_dennis

QYLD has been around for close to 10 years. Look at the five year chart that is down 30 percent versus QQQ up 150%. That is good enough for me to not use this unless I am over 80 and need more yearly income.

S7EFEN

\>What exactly do you mean by gimmick funds ​ the funds that are paying out huge dividends, again, i assume you mean something like the nasdaq covered call etf, are paying these dividends out at the cost of share price and actually just underperforming the index which theyre selling CCs on. \>It sounds like you are trying to say that dividend stocks aren't good to invest in for some reason ​ i don't know why it sounds like I'm saying that, I'm not. I'm saying that if your 'dividend chasing' involves 'buying good, stable companies with histories of dividends' then sure, it's a nice strategy. if it means holding QYLD instead of a nasdaq or tech index fund then you are just falling into a dividend trap.

McKnuckle_Brewery

Besides the fact that it's overly complex, the thing that stands out the most as being highly inefficient is the large proportion of SCHD and QYLD in your taxable account. Why? QYLD's capital depreciates over time and produces either ordinary dividends or, even worse, return of capital. Both will limit growth. SCHD is not a big deal *per se* but you hold it as more than half the account. I would fold both of those into FXAIX, which will then be 92.34% and then you can do whatever you like with the remaining bits. The UTMA, ironically, is arguably the best setup. ;)

patrickswayzemullet

the strongest as in "goes up 100% every year" or "not going down more than 5% weekly on a slight pressure in the market"? they are mutually exclusive. for the latter, AAPL and BRK.B and any QYLD covered call variants...

themgmtconsultant

Mix in a little QYLD XYLD JEPI JEPQ

Ok_Good3255

Please stop buying QYLD. This thing doesn’t make you any money and it’s a major tax drag. Keep majority of your money in SPY. And you don’t need to invest everyday, once a month is better.

wild_b_cat

Against my better judgment - because it would be *really* fun to see this blow up on you - I'm going to educate you. Whenever you see an ETF or whatnot implementing a covered call strategy, it is always instructive to see how its performance relates to the underlying. Compare XYLD vs. SPY, for example, or QYLD vs. QQQ. What you will see, time and again, is that over the long run the CC ETF underperforms its underlying security. And guess what? That's true with TSLY too. You're looking at one year of performance: 40% from inception to the present. Meanwhile, its underlying stock, TSLA, has done even better! Depending on your starting up, it's up almost double from its low point last December. In other words, TSLY has done worse than TSLA. That will be true in most years. So let's revamp your strategy: would you be comfortable borrowing at 13% to buy TSLA, and then selling it off in small chunks to pay off the loan? And continuing that for 7 years?

Specific-Machine2021

This is good advice, some Dividend ETFs are good on dips. I buy QYLD whenever it has a dip. Great job! Keep it up, your future self won’t regret it.

MrKhutz

The siren call of "income" through covered calls is difficult for some to resist. But I suggest you plug your ears with the wax of total returns. Here's a comparison of a couple covered call ETFs vs the underlying: QYLD 5 year total return 5.6%, QQQ 19.02%. XYLD 10 year 6.08%, SPY 11.68% If you're looking for "income" you will most likely get the best returns by concentrating on total returns rather than dividends or "income" or option premium and then obtaining your income from a combination of dividends and selling stock as needed. If you are concerned about selling your holdings vs getting income from the covered calls but retaining the underlying, I encourage you to look at the long term charts for any covered call ETFs with a long history. Also keep in mind that many countries offer more favorable tax treatment for capital gains (selling stock for income) vs option premium.

GhettoChemist

QYLD

Specific-Machine2021

QYLD, is a nice buy on any dip in price. It pays over 10% apr and compounds monthly…not financial advice. Just saying something that I do with spare cash.

GhettoChemist

QYLD and chill. Turn that $100k into $100

artemiusgreat

There is a dude in r/qyldgang posting on a regular basis his progress. I think this is one of the posts. [Journey to financial freedom with yieldmax \*\*\* November update\*\*\* : qyldgang (reddit.com)](https://www.reddit.com/r/qyldgang/comments/17pz9k4/journey_to_financial_freedom_with_yieldmax/) TLDR: Total loan is around $60K, all invested in QYLD, started when he had two jobs in 2020 and now he's fired from both and is trying to survive on $1K per month coming as monthly dividends.

VoiceoOfReason

You can put that 100k in a high yield etf like JEPI and earn 1k a month of dividends. If you want something less riskier invest in QYLD

00Anonymous

With Jepi and jepq, the use of ELNs is an additional risk because there is no easy way to find out the terms of the notes held in those portfolios and so there's no way for the average investor know if the risk is worth the reward. In my own research into ELNs over the past 6 months I have seen none which offer any principal protection (though in the past some have offered this) and so with a strong enough downward movement in the underlying index, the whole position could become entirely worthless. So it's important to note that unlike QYLD which actually sells covered calls, JEPI and JEPQ are using black box investments to produce returns similar to covered calls but with potentially much greater risk because usually covered call premiums act as a brake on fund losses, reducing drawdowns whereas many current ELNs have the potential to accelerate losses and drawdowns. The other key weakness to funds that use derivatives is the lack of active position management. Most prospectuses that I have seen indicate that they simply roll at the money month to month at opex. So they don't take profit when it's available, which increases the chances of making trading losses and dragging down returns. This type of trade management is generally going to be as successful as a coin flip, except losses will usually be greater that wins because short calls are defined payouts with unlimited risk, so the overall EV of this trade should be negative over the long term. In general, a good rule of thumb for understanding wall st is complexity is made to favor the seller or manager at the expense of the investor. And good addendum would that you shouldn't own assets whose underlying trades you wouldn't be able to execute profitably yourself.

nkyguy1988

JEPQ only has been around since 5/3/22. Barely 1.5 years so to use it as a part of any serious comparison is wildly skewed. There just isn't enough data. Both JEPQ and QYLD are NASDAQ covered call ETFs. There are some differences as the performance since JEPQ inception is different. Here are all three just for fun since JEPQ inception. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=4KHUxqwATpduG7tyFuZF57 If absolute returns are your target objective, covered call ETFs are not a suitable investment.

a-wilting-houseplant

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.

nkyguy1988

Using QYLD as a substitute for JEPQ for a longer time since inception vs VOO since 2013, you are looking at a CAGR of VOO at 10.70% and QYLD at 6.37%. That's with dividends reinvested. I'm not saying covered call ETFs are dumb or pointless, but they absolutely underperform a standard index fund. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=k27QJDC4MQEKuWDOlrcWS

GhettoChemist

QYLD and chill. Turn that $20k into $2k

Alarming_Bridge_6357

Should have played it safe and just bought QYLD or jepi or some shit

Lazy_Guest_7759

I mean I already deposit my paychecks into QYLD and pay my bills with loans. Totally not financial advice though.

Johnny-infinity

Something that does have a high dividend but is not regarded is QYLD.

Z_BabbleBlox

The OP was specifically calling out REITs, and the info given about devaluing the asset on the price of the dividend is spot on.. but, would you all give the same advice if it was something like QYLD/RYLD?

roke34442

It is. Some with leverage. Check QYLD

x-Mowens-x

Every time I got a raise in the last 20 years, i put that percentage to my 401k right out of the gate so I would never see it. Since it is pretax, I still get a raise! I’m always looking for a job that pays more money. I ask for a raise, if I don’t get it? I start scouring the job postings. Now that i’m self employed, when I pay myself I take 25% of my gross and drop it in VTI or VOO. Every month, no exceptions. Lately i’ve added QYLD to the mix out of curiosity. I shop at thrift stores for new clothes. I don’t spend money I don’t have in my budget. If it’s not in the budget, I don’t do it. Often when people go out for drinks I just get a water and chat with everyone. They spend 50 bucks and get a beer belly. I do not. I meal prep. I never ever ever ever ever use uber or uber eats. (Or the equivalent) I’ve flipped several houses. While living there I had my friends live with me and pay rent. To afford that, i lived with 5 guys for several years. I never pay retail. Time in the market is what is most important. Do it now, even if its just 5 dollars a day. After doing that a while, make it 10. Etc. it gets easier!

clashpiratepaul

QYLD

GhettoChemist

QYLD and chill. Turn that $1M into $1K.

Individual_Region691

Buy Nasdaq stocks or ETFs, such as the QYLD high-dividend ETF. Reinvest in some stable bonds. Good luck.

mapoupier

QYLD, should bring 3k/m in dividends

Like_A_Bosstonian

$QYLD

Lovesmuggler

Honestly I’d take half of that as a down payment on a fourplex in a good market and house hack it, take the other half and balance it between interest bearing products and dividend stock (I like F, QYLD, RYLD). THEN take your last 10K and get a Robinhood account to you can try out all the regarded stuff that people here will recommend to you.

SirGlass

I will have to "Trust you bro" here but a lot of the mods including myself , greytoc hang out in the daily thread and try to answer the questions we can However another problem is top level post they invite a ton of low quality answers . If you look at any top level post with a person saying "I am 20 what should I invest in" Half the answers are just random ticker symbols with no other explanation and they get upvoted? analpotato: VTI, QQQ, SHCD, QYLD , SDVIC, VYM, JEPI, VT, EXUS A post like that will get a bunch of upvotes , its a total garbage post all it is doing is listing a bunch of tickers with no other explanation So would have a top level post got you an answer to your question ? I am not sure it would have gotten comments , and from my experience several wrong or very poor answers . Why is this problematic , novice investors will get 100 different answers , will they be able to distinguish the garbage answers from the good ones?

big_nate410

What about QYLD? High dividend return I think. Just asking in general, I’m new to all this as well.

qw1ns

>It has similar risk profile of QYLD or JEPQ No, someone nicely explained the difference [https://imgur.com/a/UUCpNpj](https://imgur.com/a/UUCpNpj) This has blow up risk esp in recessionary times !

ApenguinnamedRUA

Tesla Calls and Q3 2021. Figured 5 years down the road Id be sitting pretty. A month later later my account was going up 100,000 a day. The Fuck? A month ago I had 250k, maybe 300k. Monday I had 700k. By Friday five days later I had 1.1M. Dad swears he told me to spread it out. A week after I hit 700k Elon asked Twitter about selling for Taxes -CEO sales almost never dig the stock. Like a week is a panic. I hold wondering what to do. Sell, buy a house, can I put half a million in savings? Is that allowed. Asked a broker @ Morgan Stanley about buying $QYLD- he said dont. No other advice. So I held my Dec options went bust. Down to under 300k. Lost the rest in 2022

IcyAcanthocephala851

Cash is held in treasures. In this high yield environment, it earns interest. There may be efficiency in selling puts as opposed to covered call strategies like QYLD. I would only buy it in retirement account. Otherwise you pay tax on dividend distribution.

Deadeye313

Step 1: read what I wrote. Step 2: Google those ETFs and note the huge number of websites that fully endorse them and backup what I said. Step 3: notice I did not mention or even hint at the gimmicky ETFs like JEPI and JEPQ and QYLD and their ilk. Serious suggestions to a new investor don't post gimmicks, they post staples and the new investor can learn the gimmicks exist later and know to avoid them if they really are serious about long term, quality investing. Step 4: profit.

WilmaDickfitNow87

I originally had like 90% of my portfolio in QYLD because it has the 30 day yield and it was pretty much reinvesting and buying me a whole new share every month which was nice. I cut back on it tho to spread out my portfolio as learn more about the market. So i haven’t really experienced it through a bear market really to answer your question. What does XYLD track?

WilmaDickfitNow87

Most of my positions are ETF, like VOO and SPY, the 2 big ones are SCHD and QYLD, and then the rest are all dividend “kings/aristocrats” but most are partial positions because of wanting to get the most spread and then put money in over time to build each one up

themgmtconsultant

QYLD sub 14.5 = heavy skoop

BitterAd6419

Let me explain how this actually works why this ETF was down lesser than QQQ. They sell ATM and ITM puts on NDX and xND ( both cash settled) so no assignment risk Since they collect premiums, it generates income and now if the short strike is breached. They post losses but the premiums collected offset the losses and that’s why they are only down by 0.88% when Qqq was down 1.45 % In order for this fund to generate profits and be in the green, nasdaq needs to be in the green or flat. In a bearish market this fund will keep going down. It has similar risk profile of QYLD or JEPQ Maybe just buy before ex date and sell after that to see how much dividend it has generated. There is no reason to hold this during bearish market, It will only lose value

RedBreadRotesBrot

Hindsight is 20/20, but QYLD is a walking contradiction. You want to be in the Qs to capture outsize upmoves and selling calls completely defeats that purpose.

RedBreadRotesBrot

Hindsight is 20/20, but QYLD is a walking contradiction. You want to be in the Qs to capture outsize upmoves and selling calls completely defeats that purpose.

Arcite1

No, by annuity I mean an annuity. A financial product that pays you regular distributions, but eventually it ends and you don't get your principal back. Even with all distributions (they're not dividends) reinvested, QYLD underperforms QQQ.