Thank you, I was just starting to consider playing around with JEPQ. I'd seen this video before, but rewatching it again helped. These do not meet my long term goals. Thanks for the sanity check!
Got out of QYLD as the lack of diversification, coupled with the type of holdings, causes the price to fall disproportionately when compared to option ETFs with broader holdings. I'm holding equal parts of JEPI, XYLD and RYLD
Using the $500/month investment scenario, since inception Jepi has returned about 8% with dividend reinvestment, SP over same period 4.6% There was a pretty serious run up in SP over that period from 300 to 450, then the move back down
That was such an interesting and great video, Professor G. I'm going to look into these ETFs to see if it's right for me. Thank you so much for sharing. 😃👍
Thanks for another great video Professor G!! Im considering JEPQ at the moment and was wondering your thoughts on JEPI VS JEPQ? Are they essentially the same type of funds or do you prefer one over the other. Would love to hear your thoughts on this . Thank you so much! ☺️
Im 34 years old. I'm finally at the point of digging myself out of the giant hole of debt I got myself into. I'm starting to invest. And my plan is to invest 5k a month into my portfolio for the next ten years. Some months I should be able to do more. But my goal is to build a portfolio that I can retire off of on dividends alone in about ten years. I been doing a lot of research and have come up with this portfolio. 50% SCHD/ 25% SCHG / 25% JEPI. Would love your honest opinion on the portfolio spread. I'm a little torn between current ratios or possibly lowering Jepi a bit in favor of SCHG or SCHD. Hope to hear from you
Congrats on getting out of debt! That’s huge. And $5k per month invested is massive. If it was me, I’d switch JEPI out for VOO or VTI in a long term portfolio
I’ve been pondering going into JEPI. Since it is a new fund, do you think it has what it takes to have a long term successful track record? Also, did your compound interest calculator include reinvesting dividends?
I write covered calls on VOO and SCHD. It is far superior to any of these funds. If you write your expiration a month out, then you collect the monthly premium.
@@masoncnc Yes. For a month duration, I typically consider a Covered Call strike price at 105% of the ETFs current price. I like that figure because it strikes a good balance between a worthwhile premium and low likelihood of assignment (of the last 24 months, there have been 5 in which the SP500 has gained more than 5%). Working Covered Calls into investing strategy is a supplement to the long term plan of buy and hold. I want to avoid assignment and generate some nice premium. I take that premium and buy more shares to supercharge the compounding of my investment. As it stands, a VOO Call Contract one month out at approximately 105% will yield $270 in premium. There is 35cents of bid-ask spread. Volume of 108 A SPY Call Contract one month out at approximately 105% will yield $287 in premium. There is a scant 2cents of bid-ask spread. Volume of 2,758 For the December 16, 2022 EXP date, VOO's $270 of monthly premium is an extra 0.74% of the principal per month (270/36,400). SPY's $287 of monthly premium is an extra 0.72% of the principal per month (287/39,620). Considering VOO has an expense rate 3x cheaper than SPY, and option premium right in line with SPY...I see no reason to prefer SPY. But to answer your original question; yes the bid-ask is better with SPY. Remember that SPY and QQQ have a huge following of day traders who do nothing but jump in and out of shares and options contracts. Their daily volume reflects this. The fact that there are 10 options December expiration dates in SPY rather than VOO's 1 also reflects that it is well suited for a day trader. I have found VOO to work best for my long term plans. Cheers, I hope this has been helpful and I wish you good fortune.
@@FrancisMacomber1936 wow. Best youtube repy ever. I was assuming taking the hit on Spy's expense ratio would be made up by liquidity and better bid/ask. But I'd be doing your strategy of monthly, not day trading. Great perspective, thanks 🙏
@@NolanGouveia Professor, please consider the inception date, turnover rate and expense ratio of these funds. The turnover ratio of JEPI (your recommended ETF in this video) is a whopping 195%. I write this comment a week after your video posted...the top holdings listed in the video are already completely changed! only 1 of the top 3 shown still remain in the top 3! The fund managers do a ton of buying and selling (turnover), this creates taxable events and those taxes are passed along to the shareholders. The turnover rate of VOO is merely 2%. This has important tax consequences. JEPI has an expense rate 11 times as high as VOO. JEPI has a miniscule track record, only being around less than 2 years.
Hey Professor once again awesome Video! Jepi unfortunately isn’t available in Austria … but QYLD is My question is if the shareprice is down as we saw the last 5 years Will it not decrease the amount you get over the longrun? Do you think now is a better time to invest a small amount? because we could get into some rough times And maybe a small amout as a monthly savings plan ? Just to boost the dividend income and motivation a bit I mainly invest in FUSD in my savings plan
Hi professor G. Love your stuff. I’m confused. If the covered call etfs are paying you 10% plus per year in dividends and you are reinvesting it back in. With the 3.5% return as well as the dividend, wouldn’t you end up with more money then with VOO? Thanks
Great question and it’s a complicated answer but basically, with dividends reinvested, the average appreciation of XYLD yearly is about 7% since the value of the etf usually drops some but the dividend amount pulls it back up. JEPI is too new to have a real average appreciation but after 2 or 3 more years we will have better data for that!
It really depends on the rest of your portfolio and your overall goal. JEPI would really be the only one I’d agree with keeping long term as it has started out pretty strong and could be worth it if it keeps up its trajectory
Great video Prof G - Question for you on the Dividend payout. Is the payout based on the dollar amount held in the stock or the number of shares of the stock? As you mentioned, if towards my retirement time, if I flip from VOO to QYLD, do I care if the stock price might fall to still enjoy my nice monthly pmt? Is the payout based on value of the stock or am I paid on the number of shares I hold?
Hi John, it’s a bit complex but basically when you buy a share of whatever you buy, they have a set amount that they are going to give you in a dividend so it’s kind of both. $2 on a $100 asset is 2% so if I say you’ll get $2 per share or 2% of the total amount you have invested in the asset, it’s basically saying the same thing
@@NolanGouveia - thanks so much for your responses… they are much appreciated - so just so I’m clear, if the stock price goes down, then the dividend price will also decrease. With that, if the same $50k was invested, is it better to have more ownership of a cheaper stock, or less shares of a more expensive stock (both equal the $50k invested) on a dividend yield of .94 per share or 9.4% yield? Just trying to understand how the payment of dividends are calculated.
@@johnlasure6064 technically just because the stock price drops, that doesn’t mean the dividend yield will drop. Again, kind of complicated answer for this text box, but to answer your other question, you shouldn’t be buying any stocks based solely on if they are higher or lower price overall for a single stock. Some really good companies have shares for $300 and other good companies have shares for $15, but that doesn’t mean you should buy one over the other based on their share prices relative to each other. Buy shares in companies that you believe in and that will be around for 20+ years. Even simpler, just buy shares of ETFs!
@@NolanGouveia - Awesome! I’m getting near retirement age, so just trying to understand the best option for ongoing income and small growth on the actual stock to assure my capital stays above inflation. I guess the best and easiest play is to just grab SCHD and enjoy the payment of a 3.8% yield of my stock portfolio. Thanks so much for getting back me - how do I join your patreon group? I do have a few other questions. My brokerage accounts sit in a trust and a mega Roth, so no taxable income on them.
@@johnlasure6064 you’re doing great! And ya schd is the way. I’ve done a lot of research and am dropping a new vid on it in a week or two but schd is unmatched. The link to the patreon group is in the video description. Would be awesome to have you join!
It’s a compound interest calculator that you can find by searching on Google! You just need to know all the numbers of what you are computing in order to find the return
It is a bit complex but basically a 16% yield doesn’t necessarily mean that it will be a consistent yield and further, this high of a yield may be the case due to share prices dropping. A $1 dividend on a $10 stock is 10% but if the stock dives to $5 then that dividend is now a 20% yield.
What do you think about selling calls on etfs you already own? Maybe just one time a year to earn anywhere from .5-1% on top of your return? Been thinking about doing this as I’m a long term investor invested in dividend etf, S&P 500, and the total stock market. Adding that return I think would make a great return over the years to compound
That is definitely a strategy that I’ve seen done. I’m not going to do that personally as my strategy with equities/ETFs is much more passive and I’m good with a buy and hold long term. But I definitely see merit in your suggestion when done properly!
@@NolanGouveia I’m very much ima passive investor as well, I think one trade a year to sell a covered call wouldn’t consider me an active investor lol. Thanks for your input. I’ll do this and see what my results are after 10 years
I salute you professor, regardless of the price of the day in the VOO, is it positive to invest 500 dollars a month? How is the process to invest monthly money to VOO or other ETFs. Thank you very much for reading me.
Great video. I am in my 40s and I have traditional IRA and I invest in my Vanguard profile mainly VOO, VTI, etc. What else can I invest in except stock market and real estate (planning to buy a house as soon as real estate market cools off)?
Great video!! I have a regular taxable account and I am interested in investing in JEPI, do you think is it still convenient considering taxes? It would be great if you could make a video on ETFs and how they are taxed in Brokerage accounts, Thank you !!!
Thank you so much for watching! I personally am ok with those taxes because it just means I’m making money in dividends! But if you want to avoid taxes then dividend style investing may not be best in your brokerage account
I try to generalize as much as possible in order to show the big idea, whereas something like tax may be a little too niche for this audience at this stage. My goal with this channel is to start people on the research journey and to give some of my thoughts. You sound like a knowledgeable investor, What do you invest in and what do you recommend?
@@NolanGouveia Hi, don't let me fool you. I'm a nobody just trying to figure things out just like the rest of us. I like SCHD. The total return matches the S&P 500 with a yield over 3.3% (over 3.7% at the lows a month ago). They grow the dividend way over 7.2% a year, so the the 3.3% yield becomes 6.6% in 10 years or sooner (7.2 x 10 = 72) without covered calls. In Canada there is a covered call ETF called HDIV. It uses 25% leverage to offset the performance lag when the markets are in an uptrend. I'm sure the US has something similar. Covered calls are great for people that want to retire sooner with less, and I support their decision. I am however interested in your opinion. SCHD recovered 10% of it's 17% 52 week low with only 7% to go to reach 52 week high. S&P 500 is 17% off it's 52 week high. Would you stick with SCHD or get into VOO until it reaches 52 week high and then switch to SCHD?
@@yannik9341 I love the amount of research and thinking that went in to this comment/question. Great work! If you’re asking what I’d do, I personally would(and do) invest equally in SCHD and S&P 500 and just buy and hold forever. For me, I do hundreds of hours of research before selecting an investment and the goal is to pick and not sell for a very long time so my investing strategy is very passive. I’m ok losing a bit here and there as overall it’ll appreciate at a strong average and I’m good with that. If you’d rather milk every ounce of profit, your suggestion is the way, but timing the market correctly is something few can actually do!
Why not have em all? Jepi jepq and schd make a helluva combo. Qyld and ryld added to them are great on top. Then back up with some solid dividend stocks and you're rolling in dough. I mean I make like 5$ a month dividends so I know what I'm talking about.
@@SantiShorts13 I'm kidding on the 5$ but jepi pays .60 a share and schd .65. The last jepq was like .68 if I remember correctly. So if you had 100 of each you'd make 180$+ per month. Not quite there on schd. I use those dollars to then buy quality dividend stocks to make for a really good quarterly payment. I use that payment to go towards avgo, asml, orly, or tesla usually. Sometimes I play with it in non dividend stocks for bigger gains if I like what I see or want to take the chance. That works sometimes lol, but other times it seems like I end up stuck holding longer than I wanted to.
@@NolanGouveia most of them are new. Except EOS and ETY. Good video. Im a low income earner so i am more motivated if i see cashflow going up. I never want to sell lol. But youre right. Better overall return
QYLD writes their calls at the money on all their holdings. JEPQ writes them out of the money on a portion of their holdings. JEPI & JEPQ are the better choices.
@@bastianstieg819 Their ELN's write the covered calls... From their prospectus: The ELNs owned by the Fund are structured to use a covered call strategy and have short call positions embedded within them. When the Fund purchases the ELN from the issuing counterparty, the Fund is entitled to the premium generated by the short call position within the ELN. Therefore, the ELNs provide recurring cash flow to the Fund based on the premiums received from selling the call options and are an important source of the Fund’s return.
@@meisilingg8276 exactly it is a financial structured product and no option and they write on the S&P not on any of their holdings. Therefore it is neither a call nor is it covered in any sense.
At the current annual dividend of 16% you’d make $96,000. The current dividend can change as well as the appreciation or depreciation of the asset price as well
I have $300K now but absolutely TERRIFIED of putting it into the QYLD. Would absolutely love to get almost $5k dividend per month but would KILL MYSELF if I put into QYLD and then lose it! 😖🔫 How likely am I to lose my principal in QYLD??
I’m in my mid 40’s now and don’t know anything about investing. Where do you recommend I put my $ to get good dividends immediately? I don’t want to work anymore and can live off $3K a month.
@@JasonSmith-ir8zz these are good questions for sure and I’d recommend talking to a financial advisor just to make sure you have the best guidance with something that can change your life so drastically. You are doing the right first steps by watching my UA-cam channel and I hope this helps you start further research on some of the topics I go over!
I have subscribed to your channel and been watching your videos for a few weeks. I recently opened and maxed my Roth IRA, next I will open a traditional IRA and max that out too for this year. But I REALLY hate my job and just want to retire now. I’m looking for a stock or some kind of investment where I can just put my $ and forget about it, just want to receive monthly dividends that I can live off of immediately. Don’t want to be active investor or anything like that. Where can I go to find a good reliable financial advisor to help me??
@@JasonSmith-ir8zz great job man! As far as maxing out the IRA(s), it’s a total of $6,000 you can contribute so if you put $6k in the ROTH, you can’t put any in the traditional IRA. What investing platform do you use? I know Charles schwab and fidelity have links on their site to get in touch with a CFP. I’d suggest just doing a consultation rather than paying them to manage everything long term
I'm pretty sure its taxed at ordinary income rate so if you are making 400,000 a year it would be 40 percent rate. But for normal people probably 15 - 20 percent.
@@NolanGouveiaFavorite is VOO, but I'm building a position in SCHD. Recent returns indicate that SCHD is out performing VOO. Wish SCHD had a longer history.
Thank you, I was just starting to consider playing around with JEPQ. I'd seen this video before, but rewatching it again helped. These do not meet my long term goals. Thanks for the sanity check!
Could you go deeper into Covered Call ETFs in other video? I’m confused why covered calls work just for a short time? Fascinating stuff!
Will do!
Got out of QYLD as the lack of diversification, coupled with the type of holdings, causes the price to fall disproportionately when compared to option ETFs with broader holdings. I'm holding equal parts of JEPI, XYLD and RYLD
Ya that does make sense
Using the $500/month investment scenario, since inception Jepi has returned about 8% with dividend reinvestment, SP over same period 4.6% There was a pretty serious run up in SP over that period from 300 to 450, then the move back down
That was such an interesting and great video, Professor G. I'm going to look into these ETFs to see if it's right for me. Thank you so much for sharing. 😃👍
Awesome!
Jepq also
Another great lesson Professor G
Thank you professor!
Great video. What are the taxes on qyld if you remove monies monthly?
Excellent video Brother
Thanks for another great video Professor G!! Im considering JEPQ at the moment and was wondering your thoughts on JEPI VS JEPQ? Are they essentially the same type of funds or do you prefer one over the other. Would love to hear your thoughts on this . Thank you so much! ☺️
Im 34 years old. I'm finally at the point of digging myself out of the giant hole of debt I got myself into. I'm starting to invest. And my plan is to invest 5k a month into my portfolio for the next ten years. Some months I should be able to do more. But my goal is to build a portfolio that I can retire off of on dividends alone in about ten years. I been doing a lot of research and have come up with this portfolio. 50% SCHD/ 25% SCHG / 25% JEPI. Would love your honest opinion on the portfolio spread. I'm a little torn between current ratios or possibly lowering Jepi a bit in favor of SCHG or SCHD. Hope to hear from you
Congrats on getting out of debt! That’s huge. And $5k per month invested is massive. If it was me, I’d switch JEPI out for VOO or VTI in a long term portfolio
Thx for the advice. I appreciate it!
I’ve been pondering going into JEPI. Since it is a new fund, do you think it has what it takes to have a long term successful track record? Also, did your compound interest calculator include reinvesting dividends?
Yes it did that was overall return. In my opinion I think you’ll get a better return in a broad based ETF like VTI or VOO
I write covered calls on VOO and SCHD. It is far superior to any of these funds. If you write your expiration a month out, then you collect the monthly premium.
Sweet! How is that working out?
Agreed.
Is there a disadvantage with the bid/ask with voo compared to SPY?
@@masoncnc Yes. For a month duration, I typically consider a Covered Call strike price at 105% of the ETFs current price. I like that figure because it strikes a good balance between a worthwhile premium and low likelihood of assignment (of the last 24 months, there have been 5 in which the SP500 has gained more than 5%). Working Covered Calls into investing strategy is a supplement to the long term plan of buy and hold. I want to avoid assignment and generate some nice premium. I take that premium and buy more shares to supercharge the compounding of my investment.
As it stands, a VOO Call Contract one month out at approximately 105% will yield $270 in premium. There is 35cents of bid-ask spread. Volume of 108
A SPY Call Contract one month out at approximately 105% will yield $287 in premium. There is a scant 2cents of bid-ask spread. Volume of 2,758
For the December 16, 2022 EXP date, VOO's $270 of monthly premium is an extra 0.74% of the principal per month (270/36,400). SPY's $287 of monthly premium is an extra 0.72% of the principal per month (287/39,620). Considering VOO has an expense rate 3x cheaper than SPY, and option premium right in line with SPY...I see no reason to prefer SPY.
But to answer your original question; yes the bid-ask is better with SPY. Remember that SPY and QQQ have a huge following of day traders who do nothing but jump in and out of shares and options contracts. Their daily volume reflects this. The fact that there are 10 options December expiration dates in SPY rather than VOO's 1 also reflects that it is well suited for a day trader. I have found VOO to work best for my long term plans. Cheers, I hope this has been helpful and I wish you good fortune.
@@FrancisMacomber1936 wow. Best youtube repy ever. I was assuming taking the hit on Spy's expense ratio would be made up by liquidity and better bid/ask. But I'd be doing your strategy of monthly, not day trading. Great perspective, thanks 🙏
@@NolanGouveia Professor, please consider the inception date, turnover rate and expense ratio of these funds. The turnover ratio of JEPI (your recommended ETF in this video) is a whopping 195%. I write this comment a week after your video posted...the top holdings listed in the video are already completely changed! only 1 of the top 3 shown still remain in the top 3! The fund managers do a ton of buying and selling (turnover), this creates taxable events and those taxes are passed along to the shareholders.
The turnover rate of VOO is merely 2%. This has important tax consequences.
JEPI has an expense rate 11 times as high as VOO.
JEPI has a miniscule track record, only being around less than 2 years.
Noa , Do you have a video about TSLY and QQQY ? Could you please analize these 2? Thanks Brother!
Sure the total return is lower but you can use the income instead of having to just hold tight for 20 years
Ya definitely true!
these numbers are yearly cash flows?
Hey Professor once again awesome Video!
Jepi unfortunately isn’t available in Austria … but QYLD is
My question is if the shareprice is down as we saw the last 5 years
Will it not decrease the amount you get over the longrun?
Do you think now is a better time to invest a small amount?
because we could get into some rough times
And maybe a small amout as a monthly savings plan ?
Just to boost the dividend income and motivation a bit
I mainly invest in FUSD in my savings plan
I’d just only suggest investing in ones you 100% understand and align with. Don’t only invest in something because it’s low priced
Hi professor G. Love your stuff. I’m confused. If the covered call etfs are paying you 10% plus per year in dividends and you are reinvesting it back in. With the 3.5% return as well as the dividend, wouldn’t you end up with more money then with VOO? Thanks
Great question and it’s a complicated answer but basically, with dividends reinvested, the average appreciation of XYLD yearly is about 7% since the value of the etf usually drops some but the dividend amount pulls it back up. JEPI is too new to have a real average appreciation but after 2 or 3 more years we will have better data for that!
Learn math
Then and than are not the same word.
I already own some shares of Jepi but I’m no where near retirement age. Should I sell out of my position or should I just hold the shares
It really depends on the rest of your portfolio and your overall goal. JEPI would really be the only one I’d agree with keeping long term as it has started out pretty strong and could be worth it if it keeps up its trajectory
Great video Prof G - Question for you on the Dividend payout. Is the payout based on the dollar amount held in the stock or the number of shares of the stock? As you mentioned, if towards my retirement time, if I flip from VOO to QYLD, do I care if the stock price might fall to still enjoy my nice monthly pmt? Is the payout based on value of the stock or am I paid on the number of shares I hold?
Hi John, it’s a bit complex but basically when you buy a share of whatever you buy, they have a set amount that they are going to give you in a dividend so it’s kind of both. $2 on a $100 asset is 2% so if I say you’ll get $2 per share or 2% of the total amount you have invested in the asset, it’s basically saying the same thing
@@NolanGouveia - thanks so much for your responses… they are much appreciated - so just so I’m clear, if the stock price goes down, then the dividend price will also decrease. With that, if the same $50k was invested, is it better to have more ownership of a cheaper stock, or less shares of a more expensive stock (both equal the $50k invested) on a dividend yield of .94 per share or 9.4% yield? Just trying to understand how the payment of dividends are calculated.
@@johnlasure6064 technically just because the stock price drops, that doesn’t mean the dividend yield will drop. Again, kind of complicated answer for this text box, but to answer your other question, you shouldn’t be buying any stocks based solely on if they are higher or lower price overall for a single stock. Some really good companies have shares for $300 and other good companies have shares for $15, but that doesn’t mean you should buy one over the other based on their share prices relative to each other. Buy shares in companies that you believe in and that will be around for 20+ years. Even simpler, just buy shares of ETFs!
@@NolanGouveia - Awesome! I’m getting near retirement age, so just trying to understand the best option for ongoing income and small growth on the actual stock to assure my capital stays above inflation. I guess the best and easiest play is to just grab SCHD and enjoy the payment of a 3.8% yield of my stock portfolio. Thanks so much for getting back me - how do I join your patreon group? I do have a few other questions. My brokerage accounts sit in a trust and a mega Roth, so no taxable income on them.
@@johnlasure6064 you’re doing great! And ya schd is the way. I’ve done a lot of research and am dropping a new vid on it in a week or two but schd is unmatched. The link to the patreon group is in the video description. Would be awesome to have you join!
Does anyone know which investment calculator he is using right around the 9:15 timestamp?
It’s a compound interest calculator that you can find by searching on Google! You just need to know all the numbers of what you are computing in order to find the return
@@NolanGouveia Thanks Professor G!
@@blkretrosamurai any time!
Help an old man out. If it returns 16% and you reinvest the dividends AND invest regularly (dollar cost average) how does say QYLD not beat the S&P
It is a bit complex but basically a 16% yield doesn’t necessarily mean that it will be a consistent yield and further, this high of a yield may be the case due to share prices dropping. A $1 dividend on a $10 stock is 10% but if the stock dives to $5 then that dividend is now a 20% yield.
Greetings from France !
Hi!
What do you think about selling calls on etfs you already own? Maybe just one time a year to earn anywhere from .5-1% on top of your return? Been thinking about doing this as I’m a long term investor invested in dividend etf, S&P 500, and the total stock market. Adding that return I think would make a great return over the years to compound
That is definitely a strategy that I’ve seen done. I’m not going to do that personally as my strategy with equities/ETFs is much more passive and I’m good with a buy and hold long term. But I definitely see merit in your suggestion when done properly!
@@NolanGouveia I’m very much ima passive investor as well, I think one trade a year to sell a covered call wouldn’t consider me an active investor lol. Thanks for your input. I’ll do this and see what my results are after 10 years
@@Christian_Villanueva I’d love to know how it goes and I’ll be doing a bit more research on it myself because I do think it’s a good idea!
I salute you professor, regardless of the price of the day in the VOO, is it positive to invest 500 dollars a month? How is the process to invest monthly money to VOO or other ETFs. Thank you very much for reading me.
Great video. I am in my 40s and I have traditional IRA and I invest in my Vanguard profile mainly VOO, VTI, etc. What else can I invest in except stock market and real estate (planning to buy a house as soon as real estate market cools off)?
Nice! Other investments might be side hustles/businesses or other asset classes like crypto/art/cards
What do you think about closed end covered call ETFs like QQQX and BST? They seem to do well and have been around for years.
I’ll have to look in to those a bit further!
Is it too late for energy etfs
I think it might be
Great video!! I have a regular taxable account and I am interested in investing in JEPI, do you think is it still convenient considering taxes? It would be great if you could make a video on ETFs and how they are taxed in Brokerage accounts, Thank you !!!
Thank you so much for watching! I personally am ok with those taxes because it just means I’m making money in dividends! But if you want to avoid taxes then dividend style investing may not be best in your brokerage account
@@NolanGouveia Thank you, it makes sense!!
You are a smart guy, so it means you knowingly left out comparing total returns, and tax treatment.
I try to generalize as much as possible in order to show the big idea, whereas something like tax may be a little too niche for this audience at this stage. My goal with this channel is to start people on the research journey and to give some of my thoughts. You sound like a knowledgeable investor, What do you invest in and what do you recommend?
@@NolanGouveia Hi, don't let me fool you. I'm a nobody just trying to figure things out just like the rest of us. I like SCHD. The total return matches the S&P 500 with a yield over 3.3% (over 3.7% at the lows a month ago). They grow the dividend way over 7.2% a year, so the the 3.3% yield becomes 6.6% in 10 years or sooner (7.2 x 10 = 72) without covered calls.
In Canada there is a covered call ETF called HDIV. It uses 25% leverage to offset the performance lag when the markets are in an uptrend. I'm sure the US has something similar.
Covered calls are great for people that want to retire sooner with less, and I support their decision.
I am however interested in your opinion. SCHD recovered 10% of it's 17% 52 week low with only 7% to go to reach 52 week high. S&P 500 is 17% off it's 52 week high. Would you stick with SCHD or get into VOO until it reaches 52 week high and then switch to SCHD?
@@yannik9341 I love the amount of research and thinking that went in to this comment/question. Great work! If you’re asking what I’d do, I personally would(and do) invest equally in SCHD and S&P 500 and just buy and hold forever. For me, I do hundreds of hours of research before selecting an investment and the goal is to pick and not sell for a very long time so my investing strategy is very passive. I’m ok losing a bit here and there as overall it’ll appreciate at a strong average and I’m good with that. If you’d rather milk every ounce of profit, your suggestion is the way, but timing the market correctly is something few can actually do!
So when would you be selling these etfs?
Either hold long term and collect the dividend or sell before at the beginning of a perceived bull market
Good time to be an income investor in the bear market.
Yesssss
Why not have em all? Jepi jepq and schd make a helluva combo. Qyld and ryld added to them are great on top. Then back up with some solid dividend stocks and you're rolling in dough. I mean I make like 5$ a month dividends so I know what I'm talking about.
🙌🙌💰
That total? Or from each stock
@@SantiShorts13 I'm kidding on the 5$ but jepi pays .60 a share and schd .65. The last jepq was like .68 if I remember correctly. So if you had 100 of each you'd make 180$+ per month. Not quite there on schd. I use those dollars to then buy quality dividend stocks to make for a really good quarterly payment. I use that payment to go towards avgo, asml, orly, or tesla usually. Sometimes I play with it in non dividend stocks for bigger gains if I like what I see or want to take the chance. That works sometimes lol, but other times it seems like I end up stuck holding longer than I wanted to.
I'd love to see the same video on put ETFs
👊💰
My boy Chad is in trouble
😅😅😂😂
JEPI JEPQ SVOL TLTW HYGB HIGH BUCK EOS SPYI those are better than global x
Nice! I’ll have to look up most of these!
@@NolanGouveia most of them are new. Except EOS and ETY. Good video. Im a low income earner so i am more motivated if i see cashflow going up. I never want to sell lol. But youre right. Better overall return
@@JOHNHSMITH2 thanks man. Little by little adds up!
'YLDs method of in the money calls on 100% of the portfolio sucks. A person doing the wheel options strategy wouldn't do it. QQQX is better.
QYLD writes their calls at the money on all their holdings. JEPQ writes them out of the money on a portion of their holdings. JEPI & JEPQ are the better choices.
I would agreep
Jepi doesnt write any covered calls nor on any of their holdings. You guys should really get informed…
@@bastianstieg819 Their ELN's write the covered calls... From their prospectus: The ELNs owned by the Fund are structured to
use a covered call strategy and have short call positions embedded within them. When the Fund purchases the ELN from the issuing counterparty, the Fund is entitled to the premium generated by the short call position within the ELN. Therefore, the ELNs provide recurring cash flow to the Fund based on the premiums received from selling the call options and are an important source of the Fund’s return.
@@meisilingg8276 exactly it is a financial structured product and no option and they write on the S&P not on any of their holdings. Therefore it is neither a call nor is it covered in any sense.
Wait, so if I put in 600k right now. I can quit my job?
At the current annual dividend of 16% you’d make $96,000. The current dividend can change as well as the appreciation or depreciation of the asset price as well
Yes, but why a Portuguese chicken?
Galo de Barcelos, because I’m Portuguese! 🇵🇹
@@NolanGouveia I was wondering if the story of the roster was connected to the ETFs, a prop
MONEY
💰💵🤑
Shows Biden while confused. 😂 that’s gold right there.
😂😂
But Trump Is Still Stupid As A Ding Bat.
I have $300K now but absolutely TERRIFIED of putting it into the QYLD. Would absolutely love to get almost $5k dividend per month but would KILL MYSELF if I put into QYLD and then lose it! 😖🔫 How likely am I to lose my principal in QYLD??
I’m not touching that one haha! I’ll tell you honestly that for me, I’d keep that in the old faithful S&P 500 and just keep growing.
I’m in my mid 40’s now and don’t know anything about investing. Where do you recommend I put my $ to get good dividends immediately? I don’t want to work anymore and can live off $3K a month.
@@JasonSmith-ir8zz these are good questions for sure and I’d recommend talking to a financial advisor just to make sure you have the best guidance with something that can change your life so drastically. You are doing the right first steps by watching my UA-cam channel and I hope this helps you start further research on some of the topics I go over!
I have subscribed to your channel and been watching your videos for a few weeks. I recently opened and maxed my Roth IRA, next I will open a traditional IRA and max that out too for this year. But I REALLY hate my job and just want to retire now. I’m looking for a stock or some kind of investment where I can just put my $ and forget about it, just want to receive monthly dividends that I can live off of immediately. Don’t want to be active investor or anything like that. Where can I go to find a good reliable financial advisor to help me??
@@JasonSmith-ir8zz great job man! As far as maxing out the IRA(s), it’s a total of $6,000 you can contribute so if you put $6k in the ROTH, you can’t put any in the traditional IRA. What investing platform do you use? I know Charles schwab and fidelity have links on their site to get in touch with a CFP. I’d suggest just doing a consultation rather than paying them to manage everything long term
Total return QYLD sucks, wake up
Agreed
First of all. Covered call dividends are taxed at 40% so a yield of 10% is really 6%.
I'm pretty sure its taxed at ordinary income rate so if you are making 400,000 a year it would be 40 percent rate. But for normal people probably 15 - 20 percent.
I regret my QLYD.
High dividends can be a dividend trap.
True!
0 capital appreciation. SCHD 13% don't invest based on yield.
👍agree!
These etfs are trash unless you need cashflow NOW.
I agree. What’s your favorite etf?
@@NolanGouveiaFavorite is VOO, but I'm building a position in SCHD. Recent returns indicate that SCHD is out performing VOO. Wish SCHD had a longer history.
@@Just_Stevo ya same
Qyld is a dog. Stick with jepi