TSPY
TappAlpha SPY Growth & Daily Income ETF
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If you are creating income portfolio then diversification is best, so have some in VOO / XEQT and QQQI, SPYI, JEPI, TSPY etc. If you are young and don’t need monthly income then just do index ETF.
There’s not a financial product or investing strategy out there that doesn’t have its place. Here’s my opinion: 1) Not ALL cc ETFs lag the underlying with dividend reinvestment. In fact, some can outperform in certain markets. Look into OVL, TSPY, and GPIQ. 2) Covered call ETFs that do not sell away all of their upside and are still able to offer some dividends can be a fantastic product in retirement. The asset grows (albeit slower than the underlying) and you get income. You could get better returns but you’re in retirement and income is the focus. 2) Covered call ETFs that require all distributions to match or come close to the underlying are terrible. You could make the argument that in retirement you could partially reinvest but at that point you were better off buying a cc etf like I described in point #2. 3) these only make sense in a brokerage account. In a tax sheltered account, even if you wanted to use these in retirement you should go for growth. Then swap to the covered call etf. Or even schd, DGRO, DIVO whatever. The idiots buying SCHD in their IRAs never cease to amaze me. Secondly, all distributions from tax deferred accounts are ordinary income. That’s not the case in a brokerage acct. In a brokerage account you can’t just sell one position and buy the other. You kind of have to pick a lane and stay in it. So if you want the income in retirement from the brokerage acct you have to plan it out and stick with it. 4) assuming you subscribe to all of those schools of thought, income ETFs in a brokerage account allow you to do something no 401k or IRA can do (unless you 72t but that’s another discussion) and that is generate income or sell assets prior to 59.5 yo without penalty. For someone looking to retire early, or use the income from time to time this can be a game changer. 5) In a brokerage account with income ETFs you have a number of tax levers. Capital gains (which by the way are taxed at 0% income cases and well below income ordinary rates in other cases), 1256 treatment, return of capital, qualified dividends, tax loss harvesting to name a few. 6) imagine you have an asset that didn’t erode in value but paid you in retirement that you never had to sell. And when you die your kids get that asset with a step up in cost basis. They could turn that on as an income stream immediately or let it grow and contribute to their own retirement. What other asset besides real estate (which most people can’t afford to invest in) can do that? TLDR - covered call ETFs have their place. Anyone who says otherwise is not considering all the details. Anyone who thinks they are the greatest thing to ever exist and the only way to invest is not considering all the details. The truth is somewhere in-between. It’s an investing tool. As with all things investing, use it right and it can help you reach your (completely unique to you) goals. Use it wrong and you can lose money.
I don't own any of these, but in some cases their 1Y price performance is better than XDTE and QDTE: TSPY, GPIQ, JEPI, JEPQ, YLDE, DIVO
At least dump half into VOO or TSPY …. Long term you can’t lose w DCA and timing consistently is near impossible
Buying TSPY or TDAQ would save you 4 hours doing daily.
Or tax efficient AI options TSPY
Regarding TSPY, I see volume on both ARCA and AMEX. While both of these options exchanges are owned by NYSE, they are distinct exchanges, and the fact that there’s volume on both means it qualifies as multi-listed.
"Do you think schwab would be choosing to pass on PFOF revenue on single-listed options if they could be receiving it? I doubt it." I don't understand what you are trying to say here. They are not receiving anything from the customer, they are still charging 0.65 and adding the CBOE fee on top of that. The parent comment is about fidelity not charging the fee. Who do you think pays that fee? Obviously the market maker. In this case zero-fee is still PFOF but because of the accounting they don't need to disclose it There are several ETF options that are singly-listed, they're usually extremely illiquid but TSPY is an example only listed on NYSE
Yeah it's easy to think that given all the emotional short sighted fear mongering on Reddit. If I had that kind of dough I'd anchor a portion to SGOV for a steady 4% and the rest in covered call funds like SPYI, TSPY, JEPI, GPIX that have a bit of upside potential and others possibly such as HIPS that pay 10% and is a combination of BDCs, REITs, CLOs, and other investment vehicles for diversification. The SGOV will lower volatility and everything will pay a steady income to hedge the downside. I'd consider SCHD as well, and my personal rule is to buy a few puts on the indexes about 10% OTM every month to "insure" my portfolio. It was up 400% percent today cutting my paper losses in half, and still has another week to go. So I'm ready for anything Monday. I'll roll it further out if it goes ITM and keep making money on the way down. I'm an income investor and this is how I personally do it. Working great so far.
Look into some covered call funds based on the indexes like SPYI, SPYT, TSPY, XDTE, RDTE, as well as something like HIPS from Graniteshares which has a mixed bag of income products like BDCs , MLPs, CEFs, and REITs all under one name and pays like 10%. You could achieve a portfolio yield of 15-20% with a mix of these products easily and not erode your capital.