QYLD

Various_Couple_764

I live in the US. I don't know how your laws affect investing for you or the fund selections you use. So keep that in mind. JEPQ and QYLD both invest invest in the same index. So why both. Also these ar not the best ones in the US markets. JEPQ produces regular dividends so the income is taxed at a higher rate. QYLD is known to have NAV and share price erosion issues. I use QQQI 14% yield, and the fund does everything possible to so that the share price and NAV follow the index. So far no NAV erosion issues. Also in the US the dividend is classified as ROC and is taxed at a much lower rate the JEPQ and QYLD. QQQI is a NEOS fund. NEOS has another fund SPYI that invest in the S&P500 The yield is 11.7% has no NAV erosion and the same low tax are QQQI. XYLU also has NAV erosion issues. So over all I would replace JEPQ, QYLD, and XYLU with QQQI and SPYI. Neos has several good funds you might want to use check out their web site. Also SPYI and QQQI fallow ther index they fallow. so volatility should be similar to the Nasdaq 100 and the S&P500 indexes.

Got_Engineers

Congrats that sounds really cool. This is basically what I’m trying to replicate right now. I only have about 10 grand in my portfolio, but I have a couple core strategies. One is breakouts on single factor momentum stocks but the other is momentum and breakouts on commodity ETFs and buying long calls. I have been able to develop a couple indicators that are robust and align with my momentum breakouts. I have been able to beat the market in my first month with making a lot of mistakes. But it’s easy to start to notice patterns and find opportunities in all of these ETFs like gold, silver , URA, LIT, TAN, XME. Even lower beta ETFs like QYLD that is a NASDAQ covered call strategy that pays a good yield. There’s a lot of freedom with these ETF products and ETPs for a retail person

Got_Engineers

I use it in a rotating strategy with another leverage fund. When one system is on I hold TQQQ and when the other system is on, I hold QYLD. I don’t always hold it so it’s more tactical exposure, I guess.

Livueta_Zakalwe

QYLD is NOT a hedge. It will go down if the Nasdaq goes down. Hedges are gold, bonds, cash or put options.

Got_Engineers

Always use stop losses and have an equivalent amount of exposure in lower beta uncorrelated assets. There are so many ETF products these days that are all quite unique. I personally hedge part of my portfolio into QYLD which is a NASDAQ covered call ETF. Pays like a ~13% yield

speedlever

Certainly. If you bought QYLD or RYLD, then imo you bought stinkers. They are not properly structured to resist nav erosion and are destined for the dump. At least imo. I hold a number of cc ETFs from both NEOS and Goldman and have been quite happy with them. So far. I understand your angst regarding cc ETFs after your experience. I think JEPI and JEPQ began a more modern approach to cc ETF investing that was more sustainable. But imo, both NEOS and Goldman have improved on the formula. I sold my JP funds in favor of the NEOS and Goldman cc ETFs. And I did something I swore I would never do. I've never been a bitcoin fan and vowed to never touch that sector. But I can't deny that Bitcoin offers opportunities, regardless my resolve to steer clear. I watched an interview by one of the NEOS co-founders (either Garrett or Troy) where they were discussing their cc ETF for the Bitcoin sector, BTCI. I was impressed enough that I bought some. And I've been very happy with it so far. 🤷‍♂️ I only have about 15% in cc ETFs at the moment. But they have blown away SCHD, one of my core staples during this bull market. Unfortunately that's not saying much since SCHD has been so flat this year. 😬

YoshimuraPipe

Well the reason why I bring it up is this. I’ve seen some of these YouTube videos. I’ve purchased these cc ETFs and held for many months last year, but it just wasn’t adding up for me. I didn’t pick those numbers from thin air obviously, but the difference is pretty stark. And I’ve seen this play out with other cc ETFs or even cc stocks. My concern would be this, if this was my retirement… QYLD itself has cratered 25% in the last 10 years and dividend has been on the downtrend. Is there an endgame where the stock price goes to zero and dividend is no more? I mean both the price of the stock and dividend is headed lower even though the underlying is hitting ATH. The income that it has produced would obviously been used for life expenses at this point so is this a matter of ticking time bomb? Or is there some sort of infinite money glitch that I’m unaware of? I’m still not convinced. Thanks for taking the time to indulge me.

YoshimuraPipe

Okay just taking QYLD as you’ve pointed out as an example… Starting in 2015, QYLD + dividend = around 124.88% return QQQM + dividend = around 512% Does this seem right to you? You can Google their difference in the same time period. Let’s forget about nav erosion and anything besides….but it seems like your argument like many else seems that you’ll still take the lower ROI because it’s an income stream…right? What am I missing here?

speedlever

Certainly. And that's the kind of discussion I like to see too instead of down votes without explanation. By properly structured, I mean not writing calls on 100% of the holdings like QYLD and RYLD. Also, structured to maintain the desired %age payout without eating nav by restricting the distributions so as to not adversely impact the nav. Using those cc premiums and tax loss harvesting to bolster income. I think NEOS and Goldman have since prime options in cc ETFs that fit the bill (pun intended). As far as outperforming the underlying, that has been observed several times but not for long time periods. Notably when the market is flat but briefly during recovery. Obviously growth is the better choice for a long term investment but an income fund might be a better choice in retirement. Check out Armchair Income's yt video about a month ago where he analyzes a cc ETF during the 2008 gfc. https://www.youtube.com/watch?v=TSds8qF9zEg Let me know what you think.

Various_Couple_764

there are good and bad covered call funds. And most of the people pointing the covered call funds point to the bad funds and completely ignore the good ones. For example QYLD and yield max funds mentioned frequently become of he problems these funds have with near coninous share price drop over time . But NEOS funds that have none of the problems are never mentions. And unlike the bad funds NEOS takes steps to get their dividend classified as constructive Return of Capital (Another way of saying tax loss harvesting). So you don't pay a tax on most of the dividneds generated.

Various_Couple_764

there are good and bad covered call funds. And most of the people pointing the covered call funds point to the bad funds and completely ignore the good ones. For example QYLD and yield max funds mentioned frequently become of he problems these funds have with near coninous share price drop over time . But NEOS funds that have none of the problems are never mentions. And unlike the bad funds NEOS takes steps to get their dividend classified as constructive Return of Capital (Another way of saying tax loss harvesting). So you don't pay a tax on most of the dividneds generated.

Waste_Molasses_936

Yeah well... I had reasons, I'm not saying they were good reasons but I had reasons. My options were December spreads something like 800C/1200C bought just before the 3/1 split and a couple 800C The initial plan was if the spreads hit, sell them and use the cash to exercise the 800s. I went from having like 250k, to like 1.1M in the span of 5 weeks. In late 2021, that much cash would have bought me several houses in cash, a house and lots of stock shares. I remember thinking if I cashed out and put the money in my savings account I'd get in trouble. Looking back it makes little sense. I even asked a broker from Morgan Stanley about cashing out my options and buying $QYLD - he told me not to do that. That's it. He should have told me to cash out the options and set up an appointment to talk to him and make a plan. He didn't. My dad is a now retired Stock Broker. I called him. I remember him saying congratulations. He says he told me to diversify but l don't remember. I wish he had said "put in SPY even if its just a temporary holding place until you decide what to do" That way the money is mine and isnt subject to the expiration of options. If you change your mind you can sell SPY and buy something else. Basically there were so may things I could do- I didn't know which one made the most sense. I didn't have a plan in place to spend a million dollars because who the hell expects that to happen? It really upsets me because if a friend had been in the same situation and asked me for help, Id have told them to cash out the options, put the money into something safe and boring even if its just temporary until we can make a plan. I needed someone to do that for me and nobody did.

Just_Candle_315

QYLD is good if you want cash flow in addition to growth

Waste_Molasses_936

Tesla options. I bought October, November, December calls in Q3 2021. Earnings was a blowout. The stock went up 80% my net worth went up 400% in a month. I went from My brokerage account has a nice amount of money, to a hair under 1M in a month. If I cashed out my options I'd have 600,000 in cash, and a couple hundred shares of tesla. If cash out my options, do I buy a house? I could pay cash and still have all this money left over, get a mortgage.... so many things I couldn't even dream about let alone do a month ago. Called Etrade. They transferred me to Morgan Stanley, I asked the Morgan Stanley guy about cashing out and buying $QYLD - would have paid me $3000/month. He told me not to do that but gave me no other advice. That was a Friday. Monday Elon asked Twitter about selling a large chunk of his stock and paying taxes. Paralyized with too many options I held. The options went to zero. I lost like 700k in gains and then lost like 200k chasing it. My brokerage account has never recovered. The highest its been is about 100k. My retirement account is doing just fine though.

TradeVue

Good question. It really comes down to what you’re optimizing for. Holding stock gives you pure delta exposure, you make (or lose) dollar for dollar with the move. Options, when used the way you mentioned (CCs , CSPs, Wheel ), change the distribution of returns. You’re basically selling off some upside in exchange for consistent premium income. That usually lowers volatility and smooths the ride, but it also caps how much you can make in runaway moves. The people saying “options don’t beat buy and hold” aren’t wrong if you’re just comparing total return over decades in a raging bull market. But they’re also missing the point. Selling premium works because implied volatility tends to be priced above realized volatility. That’s the edge. Over a large number of occurrences, you’re harvesting that difference. That doesn’t make you “lucky,” it’s just a statistical trade off: less tail risk exposure, more consistent smaller wins. On the ETF question, CC ETFs like QYLD do tend to lag because they’re always writing calls regardless of market regime, which bleeds away upside in strong rallies. A self directed wheel or covered call approach can do better because you control strikes, expirations, and how active you want to be. So statistically, options aren’t a magic return booster versus stock, but they let you reshape the payoff curve. If your goal is consistency, lower drawdowns, and harvesting vol, then options can absolutely be “better” depending on your definition of better.

Leungal

Easiest comparison to make is to look at all the ETFs that implement these strategies like JEPI, QYLD, CSPX. You can cherry-pick time-frames where they've done better but it seems like, in the aggregate, they have underperformed.

Karen_Dowler

Smart move on the ITM covered calls! I've been exploring similar defensive strategies through Tiger Options recently, their platform has some decent tools for analyzing option flows and sentiment that can help time these protective plays. Your QYLD setup with that 2.9% cushion was textbook risk management. Sometimes the best offense is a good defense, especially when volatility spikes like today.

sharpetwo

Covered calls = short puts, yes, but with an important asterisk. The equivalence holds when you are talking about a single strike, same expiry, fully funded position. JEPI, QYLD and friends are not that. Instead they are systematic overwriters, usually writing calls slightly OTM, rolling every month, and they hold the underlying long. So what is retail actually doing when they pile into JEPI? They are selling upside convexity every month in exchange for a yield stream. It is functionally short vol, but not the same as running a put-selling book. The inflows just create steady institutional call supply, which does two things: 1/ Flattens skew on the call side 2/ Pins the indices a little more in chop But it does not make long puts cheaper. If anything, the mechanical call overwriting depresses call wing vol, which steepens downside skew. In other words, retail is not making puts “more favorable” but ... the opposite. They are making crash insurance relatively more expensive by subsidizing the other wing.

Maleficent-Pea-1457

100k SPXL 100k AWSHX 100k QQQ 100k WFIVX 100k QYLD or Yolo some Paramount Skydance Puts.

AskGrok

Ah, the classic WSB paycheck YOLO query—because nothing says "financial responsibility" like dumping your hard-earned cash into a volatility blender. Tomorrow's August 8, 2025, and the market's in a mood swing: US500 dipped 0.17% today but it's up 1.75% monthly and 19% yearly per TradingEconomics data, with gains hogged by mega-caps like the Magnificent Whatever. Morningstar's August outlook flags opportunities in undervalued sectors beyond those five behemoths—think energy or small-caps if you're feeling contrarian. If you're dead set on YOLOing, skip the casino and consider high-yield plays buzzing on X: JEPI (around 11% yield with downside protection) or QYLD for Nasdaq covered calls, turning your paycheck into weekly payouts instead of instant regret. Or go full degenerate with Bitcoin ETFs like YBTC for that sweet crypto chaos, since posts there scream "income without working.

UrbanDancingSystems_

Daily reminder that no one should ever buy into a Covered Call ETF. You'll be way better off just selling options yourself. I put €50k into $QYLD because I'm a noob and didn't know what I was doing. It's been sitting under 40k for months now. And while that's partly because of the weak USD, it still performs very poorly when you remove currency from the equation. I did receive so-called "dividend" from the call options the ETF sells, but it's nowhere near enough to make up for the value loss. Learn from my retarded ways and stay away from this bullshit!

Waste_Molasses_936

Turned $75,000 into $1,000,000 in 3 months. Asked Morgan Stanley for advice on what to do with my newfound wealth. I was thinking  keep my Tesla stock sell my options. Asked Morgan Stanley about buying $600,000 in QYLD. They said don't do that - gave no other advice. I held everything. Tesla crashed. Options went to zero. Tesla went down 75%. Lost $700k in a month. Lost most of what's left trying to get it back.  Had I sold the options and paid off the margin. Id have had a pile of cash and at least a couple hundred shares of Tesla at low prices. My head was swimming with possibilities and decision paralysis set in.  My retirement is up huge since then, my brokerage account is about 5%-10% if what it once was.

Waste_Molasses_936

I turned 75k into $1M with Tesla. Unfortunately it was mostly options profit, the peak coincided with Elon asking Twitter if he should sell 20% of his stake to pay taxes.  I considered selling my options, and buying QYLD with the options cash. Even called an advisor at Morgan Stanley. He said don't do that - didnt give any other advice. Lost $600,000.  Brokerage account has never recovered. 

haze_from_deadlock

It's a covered call ETF like QYLD but with better marketing and sillier dividends

Fantastic-Space5637

If you have a larger starting position invest in QYLD. One of the best dividend stocks out at around 11%. With $100,000 invested will pay you $1,100 a month.

VegasWorldwide

moving it now after 2.5 years of huge gains is pretty smart IMO. I wouldn't move it all, maybe 70% of it depending on your situation, but at your age, seems like consistent income would be good. I'd buy a very diverse group with dividends: JEPI, QYLD, QQQI, QYLD, KO, SGOV & SCHD. That other 30% you can invest in growth stocks like Mag 7. 70% of your portfolio invested in those stocks would net you about $56k in dividends annually.

CoughRock

you could, before the fed jack up rate after 2021. Interactive broker had margin rate of 0.8%. So you could just margin it up and get QYLD for 12% dividend. Then pay back the interest with the money dividend payment schedule. Tax advantage on top of that. Unfortunately, good time dont last. margin rate is getting way too close the to dividend rate.

Working-Math-9610

8-9% yearly. Check QYLD.

DryGovernment2786

Not those specific funds, but I do have money in a few closed-end funds that pay 8 and 9%: QYLD, BGY, QQQX, and BOE, and for the time being I am reinvesting the distributions. I try to buy CEFs when they are selling at a discount to their net asset values; I think that offsets the active management fees. I also have a few hundred shares of ARCC and I pocket those dividends. I wish I had bought ARCC 20 years ago and reinvested the dividends. I also should have backed up the truck and bought a bunch of ARCC back in 2020 when it briefly dropped to $7.50 a share. I'm 65 and been retired for 3 years, so my tax situation might be different from yours ;)

Frameskip

It's not dividends, it's option premiums. Usually these funds do some strategy that is a variation of selling at the money or moderately out of the money call options on an underlying index and then distributing the collected premium. The strategy limits upside for lower volatility and somewhat regular income. My personal feeling on them is that they are a bit of a mixed bag, you have to read the prospectus closely and understand how the strategy they employ will behave in various market conditions. A fund like QYLD that just does the strategy somewhat blindly with the entire fund will generally lose principle over time since the upside is so limited in bull markets, but a fund like QYLG will be more resistant to the principle loss because its managers have more freedom to scale down how much of the fund they can use for calls if the market goes bullish. Also be aware that at the end of the year they may pay out a big capital gains distribution, I found that out the hard way when QYLG paid me 5.29 per share last year.

OneDayAt4Time

I have a little jepi but IIRC the returns aren’t as good. All time P/E on QYLD is ~3% and I’ve made over 2 years worth of dividends. Call it a 27% return or 13.5% per year. With results like that I’m pretty happy, so I don’t really go out of my way to look for better

ResidentExcellent525

J.P Morgan....Goldman sachs....Neos.....all have great Covered Call ETF'S.....Let them do all the work....BUY THE ETF, and collect your monthly/ weekly dividends, as well as capital appreciation....a lot of crap/ nav erosion out there, like Yieldmax....stick with the big guns....JEPQ, QQQI, QYLD......

AdLate4156

Sounds like you’ve thought this through really well. Having a paid-off house near work and simplifying your finances as you ease into the next chapter feels like a solid move. That said, the $240K in cap gains tax jumped out at me. I was in a similar spot last year and ended up using a tool called [**ProfiTree**](https://www.profitree-tax.com) to help figure out which tax lots to sell first. It helped me cut down my tax bill quite a bit by simulating the tax impact before I actually sold anything. Might be worth a look if you haven’t locked things in yet. Also agree on putting that $400K to work in something like JEPI or QYLD. Slow compounding + flexibility = peace of mind. All in all, seems like you're setting yourself up well. Hope the new role turns out to be both fun and fulfilling.

GeneralRaspberry8102

QYLD is great pick if you like losing more in principle than you make in yield and it doesn’t pay a consistent dividend.

Haunting_Key_8933

QYLD has pays 1% a month consistently

Haunting_Key_8933

QYLD (not financial advice)

BigBump

Time to dump half of that into QYLD and wait for the tax man to cometh. If you're going 100 contracts deep, try XSP or straight SPX. SPY taxes hurt.

trustmeep

Not quite a wheel strategy, but QYLD works well for covered calls.

codeartha

I would just never switch to bonds. At least not before retirement. After retirement why not. But I would rather go into some high dividend ETFs. Depending on your risk you could look into covered call ETFs like JEPI or QYLD for a nice 10 ish% per year dividend paid monthly. But these ETFs dont do particularly well so I wouldnt put more into these than needed for the monthly payout to cover my living expenses. There are ETFs that pay a nice 5-7% dividend that have a NAV that doesn't move around as much as covered call ETFs and do better overall so I would go with some of those. Diversifying between sectors or countries.

Senior_Rip_360

QYLD at these levels adding to already overweight position held covering expenses and RMD along with ARCC,STWD,ABR,OXLC,AGNC. Key point is buying these on dips as dividends paid out melts the NAV . At age 76, retired, willing to take risk in view of reward, I am enjoying the ride. All traded in IRA,dripping and constantly vigilant for opportunities. The power of compounding and the rule of 72 work very well for me!

tech01x

You should put most of it into a Roth IRA, but remember, you can only put in an amount equal to your earned income (ie. Income from a job) I would choose an income generating ETF like JPEQ, QYLD, or TLTW. With so little, the goal is to get some additional funds from those dividends, after taxes, that you can either use as spending money if you need it, or invest into individual stocks. I would not invest your base (principal) amount into individual stocks. The idea is a marathon, to preserve capital and use the extra change to take the bigger risks. If that money goes poor, then wait for the dividends to replenish.

greenpride32

I've been considering JEPQ but so far only dipped my toes into JEPI. If you look at QYLD (pure covered calls NASDAQ100) it has not preserved capital over time. There is also the newer QQQI at even higher yield. I was concerned higher volatility on NASDAQ 100 could also prove to be challenging to JEPQ - but they've done okay -much better than QYLD. I think with more time my confidence will grow in JEPQ and I'll eventually accumulate some amount.

greenpride32

I used to have a several dividend paying stocks. But I decided to dump the ones which were mostly flat performing and keep the ones that had captial appreication. Instead of picking individual stocks I went with an ETF called SCHD. It holds roughly 100 stocks and yields about 4%. Over time the captial has appeciated as well. Keep in mind the fund is managed and not tracking any index, so in sense you are relying on the managers to do a good job. My thought process was many high yield diviend stocks are very high debt and operating and distributing solely on cash flows. Any hit the cash flows could be detrimental to the bussiness and the stock. So why risk captial used for dividend income on few to several companies, when I can get a more diversified basket? Other dividend income I have is from ETF's UTG and JEPI. They both yield roughly around 7%. UTG is a focused on utility stocks such as energy and telecommuncations. It pays a higher rate because they use some leverage with those same companies. But this is about as safe as leveraging gets. JEPI primarily sells covered calls like many other covered called based ETF's. But unlike most others, it has other activities to help mitigate risks and protect capital. If you compare it to pure covered call ETF's, it seems to preserve capital much better - but at lower yield. If you want to review pure covered call ETF's check out SPYI and QYLD.

vt2k

QYLD is dumb. In the short term you *might* make money on growth and dividends, but a 10 year chart shows nothing but capital loss on invested principal.

Unique_Chemical5719

You’re thinking in the right direction, but just keep in mind getting $2,500/month from $400K means you’re aiming for a 7.5% annual yield, which is doable but comes with risk. You’ll likely need a mix of high-yield ETFs like JEPI, QYLD, RYLD, and SCHD to get close, maybe with some REITs or covered call funds in the mix too. Selling the condo could make sense if the ROI is poor and the housing market there feels stagnant, but don’t forget that dividends can fluctuate, and capital preservation is key when you’re relying on that income. You could also phase the move sell half now, test the strategy, and see how steady the income really is. Aim for balance: income today, but not at the cost of eroding your principal too fast. Good luck.

Unique_Chemical5719

Solid plan wanting to build a small income stream, but just to set expectations pulling in $500 to $1K a month from $20K means you're aiming for a 30% to 60% annual yield, which is pretty unrealistic without taking on serious risk. That said, if you're cool with more modest monthly income (like $50–100), then ETFs like SCHD, JEPI, HDV, or QYLD are worth a look. They offer decent yields (4–7%) with a bit more stability. If the goal is to offset small bills, keep it simple and sustainable and let compounding do the heavy lifting over time.

Mikecall

Throw 98k in VOO, SPY, QYLD, and VTI, if you flipped 2k into 100k once you can do it again

EngineerDirector

Every single hedge fund does it…. How do you think $JEPI $QYLD $RYLD $XYLD and all the other pay dividends?

yeti900513

That’s what QYLD does for you.

plk2024

Buy QYLD and reinvest the dividends

lOo_ol

You're sure you have the right ticker? Here's its [Yahoo! Finance page](https://finance.yahoo.com/quote/QYLD/).

lOo_ol

*"Where do you see it has lost 18% over 5yrs charts don’t show it"* [See chart here](https://i.ibb.co/BVkQrj5k/QYLD.png)

lOo_ol

QYLD is a covered call ETF. It lost 18% of its value over 5 years. If you're looking for dividend and at least some growth, take a look at TSLX and ARCC. They've had a yield of roughly 9% while growing a bit.. Make sure there's a prospect for future growth/dividends before buying though. Past data might be deceiving.

jobronxside

I haven't heard of QYLD , i give it a look to see if I should, thanks

BaBooofaboof

QYLD is like 10% yield. I would stick with that and some growth stocks. NFA just my preference.

chrissurra

Adding to QYLD and JEPQ. Dividends for LYFE.

serviceinterval

In today's episode of how does my dick taste: Imagine 2 years ago I bought 10,000 shares of T @ 12 instead of QYLD

illz757

I read some ones DD to buy calls on AMD the other day and full sent it with my last available money on that - only calls in my portfolio, but my SPY and QYLD and DIA puts are about to fucking PRINT

weamz

I see it has 8.24% dividend yield and 11.76% price appreciation over a 1 year period. My thinking on QYLD was that it has a 13.74% dividend yield and while it's been down 8% over the past year but I was hoping for a price rebound from the 16.50 it's currently at to around 18 in the next year or so. So around a 20% gain was what I was hoping for. As for TQQQ it's down 10% over the year and I was thinking that it would be a nice return if there's a rebound into the 80s from the 55 it's at now. Your call looks like a much safer bet to get around 15%-20% return over the next year based on the last 5 years.

weamz

So I have about $20k to invest personally with another $10k in a 401K that does it's own thing. Today is the start my investing adventure. I'm not into too much risk. Ideally I'd like to make at least over 10% annualized returns. With the market down recently I figure it's a decent time to get in. Or should I wait for it to fall further with all the Trump stuff going on? After looking at a bunch of ETFs I'm considering either TQQQ or QYLD. Thoughts?

weasler7

Before running a poor man’s covered call strategy, why not look at a covered call strategy on QQQ ETF like QYLD. If you like the way that ETF performs then you can consider whether it’s worth the complexity of executing a PMCC yourself. IMO if you’re taking advice from YouTube or social media, you are probably gonna lose all your money.

SoWaldoGoes

QYLD and make 60k in dividends a year

VegasWorldwide

Not sure about dividends as I’m still working on them but REITs I’m all in on $ESS.  They’ve been golden.  Realty income is good too.  The dividends I’m currently involved with are JEPI, SCHD, QYLD, PMT and BXMT.  That’s a work in progress for me.  

MaxGoldsteinAlpha

**Smart move keeping capital preservation in mind.** With $505K, aiming for $3K/month (\~7% yield) requires strategic allocation. **Higher-dividend ETFs** are an option, but watch for sustainability—many high-yield funds juice returns by depleting capital. **T-bills + dividend stocks + covered calls** could balance safety and cash flow. If you want **real passive income**, look at income-generating assets like covered-call ETFs ($JEPI, $QYLD) or REITs with solid FFO growth. You’re already ahead by not rushing into real estate at current rates. **Capital allocation matters more than chasing yield.**

Ka07iiC

I think a lot of us would rather just have high returns/growth with little consideration with income (for now). There are tools out there to beat 3k income such as JEPQ (9%) and QYLD (11.95%) that can provide decent income. Definitely not optimal for RoR over the long term

Hypersonicaurora

You can’t go wrong with QYLD consistently around 12% per year

inbituin

QYLD or XYLD at dividend yield 10-13%. Gives you your dividends monthly which you withdraw and spend or roll over into it.

Sea_Dragonfruit_9770

ARCC has good divs (8-11%) and is a very strong company. I’d go with that over JEPI/JEPQ/QYLD and similar type funds that were recommended. I think this would help your goals except for the monthly div - its quarterly.

eroseahawks

JEPI and QYLD. Monthly high dividend derivative ETFs. I DRIP currently but plan to switch them to dividends during retirement to supplement 401(k), ROTH and brokerage.

serviceinterval

I bought 20,000 shares of T back in August 2023, I'm up 93%. You were buying QYLD, we are not the same.

PasteCutCopy

Holding about 350k in QYLD that’s earmarked for redeployment into VOO & VTI. Earns about 3500 in dividends a month which I basically reinvest in a basket of ETFs. I currently default to 500 day DCA no matter what but will start greatly increasing once the indexes are down about 30% off highs (we’re currently less about 10% off highs).

Straight_Turnip7056

Just get a covered call ETF like QYLD

greenpride32

Thanks for the tip - I will look into it. I had been keeping an eye on JEPQ QYLD and the like. I haven't quite figured out if there is a long term irrecoverable decay factor - at least in QYLD. JEPQ is partially managed.

polandtown

It has its places, perhaps you could use it as a task list to dive deeper into rates at their relative sources. Extra work, I know but oh so worth it. Maybe it will let me post a distilled list you can research further. Best of luck! # Low-Risk Options (Short-Term & Liquid) * Treasury Bills (T-Bills) * Treasury Notes & Bonds * I Bonds * High-Yield Savings Accounts (HYSA) * Money Market Accounts (MMA) * Money Market Mutual Funds * Brokered CDs # Moderate-Risk Options (Yield + Some Growth) * Municipal Bonds * Corporate Bonds * Bond ETFs (e.g., BND, LQD) * Dividend-Paying Stocks & ETFs (e.g., VYM, SCHD) * Preferred Stocks # Higher-Risk, Long-Term Growth Options * REITs * Covered Call ETFs (e.g., JEPI, QYLD, XYLD) * TIPS (Treasury Inflation-Protected Securities) * Private Credit & Alternative Lending (e.g., Fundrise, Yieldstreet, LendingClub)

PasteCutCopy

First, no company is too big to fail. Eventually all companies fail. Second - what is your timeframe to use for those funds? What is your goal? Putting anything in the stock market requires a long time horizon. Third - what you are seeking is a dividend it sounds like. Some companies pay one while others do not. Fourth - with so very little to invest, you’re better off looking at an ETF and most likely you want VOO or SCHD as they track a large basket of great companies rather than trying to pick one single company which is much riskier. SCHD pays about 3% dividend annually which isn’t too shabby for a growth oriented fund. Other options are to look into high yield funds like QYLD which pays 1% monthly. It’s not bullet proof though the value of the shares can drop. I bought in for $21 a share a few years ago. It’s now at $18.7 or something so I lost about 10% in the share value but since I’ve owned it for so long, I’ve made about 35% in it. It’s not a lot given that I’ve held for like 4-5 years but I have different goals for each of my accounts. Anyway your goal as an investor is to spread risk, diversify, and learn. You must become financial and economically literate to survive this game otherwise you’re just listening to random people on Reddit like me

wilhelmshout

Systematics. QiS. Overwrites. Big funds are the JHEQX and the two smaller ones that leave a pretty large footprint on SPX. and QYLD is a pretty big one as well. But these funds are everywhere and quite large. Yield stacking basically. Start googling terms, tag me if you get stuck.

wilhelmshout

Systematic overwrites skew down call premium and are underpricing right tail scenarios. JPM collars / QYLD’s of the world consistently getting run over. I can’t speak on tastys methods because I don’t care for them/ pay attention to their methodology, but part of what you’re saying will happen if everyone is “just selling high IV” is already happening on the index level.

energybased

\>  So it’s not affected by volatility as shown since inception. I’m not saying it’s impossible for it to crash. But if you’re willing to bet on the nasdaq top 100, QYLD is a lot safer. That’s just a fact. First, this is definitely bad logic. A fund that sells options is necessarily worse (in terms of expected returns) since options have costs, and the expected value of the option is zero. You essentially have bought insurance (at a cost) to trade some large payouts for constant income. Second, why are you comparing to the some arbitrary set of 100 stocks? Compare it to the whole market. And it is clearly worse than the whole market (in risk-adjusted returns) unless you have a crystal ball since it's an arbitrary tilt.

MobbDeeep

This isn’t a normal fund, it sells covered calls to the 100 biggest tech companies. So it’s not affected by volatility as shown since inception. I’m not saying it’s impossible for it to crash. But if you’re willing to bet on the nasdaq top 100, QYLD is a lot safer. That’s just a fact.

imgurslashTK2oG

I strictly play weekly QYLD calls, the further OTM the better.

energybased

\> I don’t see any good reason for QYLD to crash Your gut feelings are not an investment factor.

MobbDeeep

While I do agree I don’t see any good reason for QYLD to crash, it’s already a parachute of the biggest tech companies. These tech companies are already unlikely to go crash and very unlikely to crash all at once and even more unlikely to all go bankrupt.

MobbDeeep

Oh my bad, I understand now. QYLD is pretty stable though. It isn’t really affected by the prices of nasdaq and actually does well in volatile periods. The downside is that it doesn’t really grow either. So annual return is basically 10%+ on average.

MobbDeeep

QYLD has an average dividend yield of 12%+

themgmtconsultant

Depends on your risk tolerance. No risk tolerance, go CLOI. Some risk tolerance, go XYLD, XDTE QYLD QDTE. And onward it goes to more risk more reward.

WallStreetBoners

$QYLD is a good way to do this with fewer steps. Best in a tax-free account

inbituin

QYLD or XYLD at about 12% dividend yield and gives it back you every month. With $2M, it gives you about 240K per year or 20K a month without dipping into your money and capital gains. With that money, I would probably just travel, live everywhere overseas and try not to own anything and just enjoy life everyday.

BearishBabe42

I would mix a bond ETF, a dividend ETF that tracks some sort of major index with higher weighrs in dividends, and maybe an income related ETF like QYLD. Yoy should be able to get 7-8% dividends and still maintain a modest rate of growth if you play it right. This way yoy get a nice payout and still retain some growth.

CnslrNachos

My biggest beef with JEPI is that the underlying stock portfolio is more defensive (by design) than the S&P, whereas JEPQ is targeting beta closer to the NASDAQ.  I do like the differentiated return streams (appreciation, option income, dividend income) and prefer a combo of JEPI/JEPQ to just JEPI or some of the other similar options on market (QYLD, etc), but this is really more of a fixed income alternative for me (as I don’t own any fixed income). 

blindwitness23

QYLD had a annual dividend of $2.25 per share. If you invested $1M on January 1st 2024 it would mean you purchased 58.824 shares which would make you an average of $132.354 that year. Additionally you would make $92.361 just by the rise n QYLD price alone.

blindwitness23

You could do it with $1 Million invested in QYLD or SPYI

stonewallmfjackson

What is better than dividend investing? Nothing I make 63 dollars a year on QYLD

WallStreetBoners

I mean at that point just buy $QYLD and let the pros sell the covered calls.

ShootFishBarrel

My biggest mistake was getting too aggressive with a covered call fund when borrowing costs were low (under 5%). I invested heavily in QYLD, an ETF that sells covered calls on the Nasdaq-100 to generate higher yield—around 10% annually. For the first couple of months, I collected solid distributions, but then the market plummeted. With a fund like QYLD, it’s difficult to recover your initial investment if the underlying price drops significantly. Because the fund continually sells covered calls, any subsequent rebound must be both immediate and substantial for the fund to recapture lost ground. Otherwise, the covered calls lock in lower strike prices, limiting upside without fully protecting against downside—an issue that applies to individual covered calls, too. For anyone looking to earn extra income by selling options, here are a few guidelines: 1. Stick to index-based or broadly diversified funds. Diversification reduces the likelihood of catastrophic losses. Liquidity is also critical, especially if you need to buy or sell to close an option. With individual stocks, events like splits or reverse splits can crush liquidity for your specific contracts. 2. Choose your call strikes carefully. Aim for the highest strike price that still provides a worthwhile premium. This helps balance the trade-off between collecting income and not sacrificing too much potential upside. 3. Recognize that selling calls is essentially a bet against volatility. If you’re making that bet, selling puts simultaneously (a “strangle” or “straddle” setup, depending on strikes) may help offset losses if the market moves dramatically. However, it also increases complexity and potential margin requirements. Be ready to manage or adjust your positions—rolling out the expiration date or lowering strike prices—to mitigate large moves against you. These points won’t eliminate risk—options always involve uncertainty—but they can help keep you aware of liquidity issues, volatility exposure, and the trade-offs when collecting premiums.

DieOnYourFeat

QYLD and other CC funds are definitely not a scam. They may or may not fit your investment needs, but QYLD has returned 8.8% annually over the last 10 years with some favorable tax circumstances. What most people fail to consider are the tax implications when they invest. Is the income that flows from it short term gains, long term gains, ROC, etc. Many of these funds return non destructive ROC and this has profound implications on total return. Additionally, the tax treatment of premium options vs regular income is important as well. It is not as simple as most people think. I think there is definitely a place for these funds in some portfolios as long as you watch the NAV and ROC issues carefully. And like any other investment, a number of them just are not a good choice.

throwaway_0x90

I'm actually sorta clueless but here's a good website that you can do some compares with: - https://www.etfcentral.com/compare-etfs/ISPY-vs-JEPI - https://www.etfcentral.com/compare-etfs/IQQQ-vs-JEPI - https://www.etfcentral.com/compare-etfs/QYLD-vs-JEPI Just change the URL at the end to the symbols you want to compare and change the comparison chart to 1Y or so. ISPY seems to have clearly beaten JEPI for the past 365 days according to that website.

Ill-Squirrel-7276

I hold between 2-15% of my portfolio in SOXL. I mostly move money between QYLD. Basically, if there is a big downward correction in Semiconductor stocks that is speculative (DeepSeek) or isolated event (Samsung factory fire in 2021) I'll start selling QYLD and DCA'ing into SOXL in 5-10 daily purchases until I reach 15% of my portfolio. I set a sell order trigger based on the expected recovery price and try not to panic as daily price movements swing wildly. Now if there is a prolonged crash, I'm still screwed, but that's why I only gamble with leverage on a small % of my otherwise vanilla portfolio.

Mrtoad88

The ultimate passive income machine in the market is dividend growth investing, that can be more passive than damn near anything, literally anything...it's a true form of passive income. I never liked wheeling just to wheel for income, I messed around with it years ago just to get experience with it, found it to be tedious, boring, and a lot more work for not that great of returns imo. I think CC and CSP are best used in conjunction of your long term positions to squeeze a little more out or collect more shares..get your average down etc, but wheeling for like income or whatever? Nah, just buy broad market covered call etf like XYLD or QYLD. It definitely can be a time bomb, CC and CSP can be somewhat dangerous especially CSP.

Weak-Friendship-6412

no, I have sold it yesterday in order to buy more Nvidia, dropped after a huge senseless speculation. If you need a high yield stock I can suggest you HSBC (on London Stock Exchange), Intesa Bank (on Milan). In addition there are some very interesting ETFs that distribute dividends (monthly or every 3/4 months). My favourites are: MLPD, QYLD, XYLE.

calphak

Thanks for sharing, hope you are recovered and well. I was looking at the phrase: > I was looking for a "safe" way to earn 10% on that, and found the XYLD/QYLD/RYLD family of ETFs that return about 10%/year doing a CC strategy on the major indices. So you never got into them in the end? Do you do any ETFs or mainly LEAPS on stocks? I'm currently only writing PUTs on stocks but looking to do PMCCs. Hence the question.