XDTE's total returns is slightly beating SPY and the 19A has been showing 100% distribution as ROC. SPYT is near matching the total return of SPY and about 65% to 70% of the distributions is ROC.
@@wealthadventures Yes, that's true. With more competition in the derivative ETFs, these providers are distributing ROC that this is becoming the new normal. A massive miss of ROC may cause outflows from the fund.
VGT outperformed SCHD and VOO over 5 and 10 years. Despite having most of my $500k retirement in VGT, I try to beat my Roth with my taxable account but still underperform the S&P 500.
I'm taking a hybrid approach with VGT, SCHD, and VOO as my foundation over a 20-year horizon. I still enjoy life, travel, and buy what I love. It's the best combo, plus I enjoy the small victories of dividends, dividend growth, and share price appreciation.
ETFs are great, but don't rely solely on it for retirement. I retired at 62 with a $1.5M portfolio, starting with $35K, thanks to an adv1sor and dividends. Invest wisely, build your nest egg, and don't sell the chicken that lays the egg!
My CFA, Carol Vivian Constable is a renowned figure in her field. I recommend researching her name online; you’ll find all her credentials and everything you need to work with a reliable professional. With many years of experience, she is a valuable resource for anyone looking to navigate the financial market.
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
Thanks Dave. I had XYLG for many years along with SPLG... Switched over to XRMI because I could buy more shares to increase my monthly distribution. Global X has systematic covered calls.. and I never lost my NAV... I will check out these new ones!! 😊
Thanks for the video, Dave. I'm not an income investor at this time but I have been researching income funds over the past year. The funds you rank higher are the ones I also found to like the most as well lol
Thanks for this compilation Dave - much appreciated. I was an early adopter of JEPI and recently sold my entire position, for a nice profit, and entered into a few yieldmax funds. Most recently I have taken a rather large position with XDTE and through using core compounding and profit ripping strategies and not re investing the dividends I am generating 3 x the income I used to have with way more shares of JEPI.
I am retired so look at income more than growth. My biggest position is SPYI due to yield and tax advantage. I am willing to pay a higher fee if I think the strategy warrants it and the yield is good. Good video. My second largest position is JEPQ so a similar video on QQQ covered call ETFs would be interesting.
Aloha Dave! It took you a good bit of work to pull all this together so thank you for your efforts. I only hold a very small position in JEPI, and then I found I could do this myself, so no other holdings. I liked hearing about the fund strategies to give me trade ideas. One thing I need to work on is making my trading more tax sensitive. For your feedback, I don’t care about weekly, or monthly or quarterly payouts; I’ve got 140 stocks and ETFs in my income portfolio so dividends are coming in day and night!
This is exactly what I’ve been looking for! A comparison between all of them I don’t know how to do options so I don’t understand the difference between the strategies the funds are using. I ended up buying a small amount of ISPY so I’m happy that you didn’t rate them the worst lol Thank you for the video
Thanks for the nice review. I have adjusted my holdings some this year. Sold some JEPI and bought JEPQ instead. Hold DIVO, SMH, QDTE, SCHD, PSI, IBIT and individual stocks for growth and some for income.
Thanks for the video. I think XDTE should be a least 4 apples ). This fund started early March and there is already enough info and it beats the index and all other cc funds mentioned here. Sure it has the highest expense but if outperforms the others by 2-3% or more I’m perfectly fine with 0.95% expense. Really like TSPY and it may have similar performance as XDTE, we just need more data. All in all I like funds that sell daily calls like TSPY and XDTE ad opposed to funds like SPYI, simply because they are more active and capture all market moves overnight - you get the point. Again thanks for the info and will be interested to see tax info shared on these funds.
Thanks Dave! Have jepi right now and a sliver of divo. Will wait for yr tax results next year, yr 4 apples looks promising but if it’s too tax inefficient l will stick to present portfolio. Your 50/50% buying voo/jepi is an eye opener for me, nice!
Great video Dave! I would have liked a top 10 (possibly add SPYT, WDTE, etc.) top 8 is a little weird. I completely agree with the top 3. But now there’s a new problem… you opened up a can of worms - you’ll now have to do a top 10 Nasdaq and a top 10 Russell 2000 comparison! Again, enjoyed this one, great job!
Personally, I prefer the Nasdaq versions of these covered call etfs. QQQI and JEPQ are my favorite. Weekly paying ones like XDTE, QDTE, YMAX are very important to me because they give us the freedom to choose weekly, monthly, or quarterly distributions. Giving retail investors the power to decide when we get paid gives us power to control our future. Thanks, Dave, for this detailed into these S&P CC etfs.
Thanks. I think the distributions are motivating for people. So if that gets them investing, it might be what they need. Just keep an eye on that total return!
Nice summary, and I like your Apple ratings. You might also want to include the Nuveen SPXX in your S&P CC review. It’s been around since 2005, has $325M AUM, mgmt fees of 82bps, ca 90% ROC distribution (tax efficient type, not destructive) of ca 7.5%, and a 12mo total return of 25.39%. It’s a CEF and pays quarterly, so not a lot of attention is paid to it, but it’s very competitive in this category.
@@HowHingPau Wow, SPIN is looking good with that 0,25% expense ratio. Will watch this one and see how it does after half a year or so compared to others.
I am so big on stocks and it has worked well for me, but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. How can I maintain an effective ETFs approach returns on the long run?
I live off dividends on ETFs, for sure it can improve your wealth if you reinvest them to buy more, creating a snowball effect that allows you compound over time.
I live in California, have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them? Bcos I need a lot as rent, inflation alone eat up almost all of what I make.
tbh I keep compounding, adhering to well established structure from a professional, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased in the past year while participating behind a top performer. I put in 65k few years back, now effectively remits over hundred k and increasing.
Nice comparison video! Thanks for doing the research. I own a few of these as well as other income stocks. I like Armchair Income's portfolio. I mix them about 50% with growth etfs SPY and QQQ, Hoping that over time the income investments will act as a hedge during market downturns. I am in my late 50's so looking for a bit more downside protection. Bonds have been so bad over the last 10 years trying to find an altenative to the typical 60:40 portfolio.
Remember, past performance is not an indication of future performance. Call me crazy, but I would say there's a 50/50 chance bonds outperform stocks over the next 10 years.
SPYI is one of my top holdings too. Especially in my taxable account, because of the tax advantage. I hold a small amount of JEPI, mainly as a defensive position in a couple of accounts. It basically holds the money In between cash and my higher paying dividend funds, like SPYI. The thought is I'm earning a lot more than cash and it will hold up much better during a down turn than any of the other high yielding funds I have. So, during a market downturn, I would be able to sell some JEPI and invest it into the higher paying funds that have taken a much larger hit and/or move it to cash for income, while I wait for the other funds to rebound.
Very informative COMPARATIVE video. Well Done!! I only have SPYi in my porfolio, will review the others presented. I also have GPIQ which primarily is NASDAQ 100 concentration, but is NOT a covered call stategy.
Great Job breaking down the different aspects of these nuts to soup funds, but when you put them, all together is sort of like a very well mixed apple sauce compared to VOO. For me I am looking at owning the core of the apple (VOO) and selling to take a distro once a month. That may be something you want to add into the analysis at the bottom of the sheet under VOO. Again, great job!
@@wealthadventures No Sir I do not have the skills that you have. I am merely asking a question because I don't understand the why people do this when they have other options that seem to be more profitable to me when looking at your chart. For me I would just take a level set distribution at the end of each month and stay invested with the long term tried and true S&P500. What am I missing as to why someone would invest in these products when most of clearly do not meet the markets average total return.
Thank you for the award show and deep dive. The summary chart is excellent. I foresee a "rotten to the core" rating of one apple for future products with high expense ratios.
NASDAQ is very similar to S&P500, with a lot of the NASDAQ 100, also being in the S&P 500. If you look at JEPQ and SPYI for example, the top ten holdings are almost identical. One of the reasons I own IWMI right now, instead of JEPQ or QQQI. I'd be more interested in hearing your thoughts on the different bond covered call funds like HYGW, LQDW, TLTW, AGGH and hopefully some others I haven't looked at yet.
IMO IVVW is interesting and has good potential. Its better than XYLD not only with low expense ratio but also a better strategy. The 1% OTM looks interesting with potential to generate good income while captur8ng decent upside. Currently if they are making 15%yield they can do well in slow or flat markets. Returns could beat index in flat or bear markets. Not investment advice but looks more interesting since they are making the good balance between growth and income. May not be sexy but we'll positioned to perform.
I never understood why people put income funds in a Roth. What buy income funds and then not touch them until your 59.5? Just buy the s&p and qqqs in your Roth and you’ll do way better than an income fund. You buy the income funds so you can use the income in the near future and hopefully in perpetuity. Yes youre taxed, but it’s just like having a second job. You’re taxed on that too.
Yeah I don’t understand the use case for an income funds for anything other than current income or nearing retirement. Over 20 or 30 years it’s very unlikely that an option strategy will beat the underlying.
I can see it as a part of the Roth. If you notice in his chart an index like Jepi has almost caught up with voo at the 3 year mark. Combined with the tax-free income and compounding it might actually surpass voo over time. To late for me, but just a thought.
@ from my understand, JEPI is falling further behind VOO, not moving toward it. JEPI is a defensive fund so it did better in 2022, hence their close performance in a 3 year chart. But YTD VOO has crushed it. And if next year looks like this year, the gap will widen. Obviously if we crash JEPI should look good again, but over the long term we hope to have more good years than bad years
So, is it nuts to own a lot of these covered call, mystery notes, derivatives, dividend rides in one portfolio? I mean do I need JEPI, which I own, JEPQ, which I want to own, DIVO, AND, your fave SPYI? Isn't it better to own just one of these ETFs with a healthy dose of VOO? Oh, I also own GPIX in my Robinhood account, which I keep just to preview stuff and which also holds a lot of my worst stock pick ever--TDOC--which I'm buying. I'm steadily buying down with hopes to sell sometime in mid-2025. I like GPIX a lot, also. It's steady, and the dividend goes up every few months. Nice video, Dave. I'd like to own lots of these shiny toys I just don't know if I need more than three or four.
I like JEPI and SPYI strategies (but the NASDAQ 100 versions). I've dabbled in iShares, but interested in Goldman next. I am very surprised you had TSPY so high given how new and inexperienced the fund manager appers to be... ranked higher than JEPI which has a longer history, and experienced fund managers. If TSPY is a one man shop... what happens if he gets sick, or hit by a bus. Who's going to do those daily trades?
I graded based more on the strategy but he is a small outfit. I like his ideas. There are backups in place and he uses a sub advisor to execute the options based off his instructions.
It hit me when looking at your spreadsheet that VOO (shown as a benchmark) actually has the lowest exp ratio, highest total return in all time frames, highest AUM by far, and has been around the longest. YES it has the lowest dist rate, so many of us overlook it. But it does have a very nice track record!
I'm not stuck on monthly vs weekly dividends either, but using just an online compound interest calculator, the difference between mthly vs wkly, over 10 years, for a 100k investment in XDTE, at the 16.45% yield shown in the video, is ~4413. If you get into something like YMAX, where the yield is 60%, the 10yr difference is over 4 million dollars.
You mentioned how you like unique or creative strategies which is why I'm surprised with why you didn't rate XDTE higher. It's the only one on this list that actually uncaps upside completely (overnight when the market historically has performed best). Curious on your thoughts on that. Was it just the expense ratio why you rated it lower? I feel long term this should perform the best on this list, especially if the income remains 100% return of capital.
Weekly payouts is part of the fund advertisement mechanism. Thats all it is. It does work because it gets peopole thinking about getting paid weekly on this symbol then next week that symbol, taking money distributed this week to buy another fund that pays out next week so on so forth.
The space has become a bit over saturated & it can be a daunting task to determine which one is best. I feel most comfortable with the funds that have been around the longest. I am impressed with NEOS & have a position in SPYI. I am also curious to see how TSPY plays out. Going forward my strategy is to do a 50/50 split between a covered call ETF & VOO every time I make a purchase.
Question about 1256 contracts I noticed most of the distributions from Global X Russell 2000 and Dow Jones Industrial Average covered call ETFs most of the reported income so far for 2024 is return of capital. So far for Round Hills zero day expiration cover call ETFs on S&P 500 NASDAQ 100 and Russell 2000 are reporting 100% return of capital. I thought 1256 contracts were 60% long-term 40% short-term capital gains So why is all or most of these distributions being reported as return of capital?
Well, if they have ROC to distribute, that would be 0% tax. If they have gains from the options that they distribute, that would fall into the 60/40 tax treatment. Until the year closes and they report, what they show on the website is subject to some adjustments. Not tax advise!
@wealthadventures I've only held Global X covered call ETFs in my taxable brokerage account since 2022. Round Hill only this year 2024. With my taxable account 1099 statement for 2022 and 2023 I've seen nothing reported in the 1256 contract box. I have seen a breakdown of the monthly distributions on the 1099 from the Global X cover call ETFs be either return of capital or unqualified dividend.
You could include the additional data point of whether the ETF has managed distributions. For example, GPIX and SPYI's distribution $-amounts are very consistent month to month, while others are variable. This might be an important consideration for those living off these distributions.
Im still pretty new but the reason Im liking all the high dividend vs growth is because I dont have a huge account and cant add big money every month. Its in a Roth so taxes dont matter and I can use the dividends to buy other dividend etf so I can diversify as much as I can with a small account. If I buy shares in one thing to watch it grow then I feel like Im not diversifying much. Have a ten yr window in mind and Im concentrating on adding share count and diversifying more than growth right now. Not sure if it's the right strategy but is why Im looking at starting with things like fepi and aipi and using the dividends to fund things like spyi. Any thoughts?
This is great thanks! I'm looking for a covered call ETF that is somewhat stable in price (upmarket, downmarket) with a decent yield -- sort of a synthetic bond replacement.Does something like this exist and if so any recommendations?
Frankly when the VIX is low and put-call skew highly negative the right thing to do is to buy a far month OTM call and put the money in treasuries/tips instead of doing the opposite.
I had SPYI and QQQI but I sold them because on total return they were my worst performers. I have biggest position in BALI, then GPIX, and on Q's JEPQ, GPIQ, and on the defensive side of portfolio JEPI and PAPI. For pure Growth SCHG. Overall I'm surprised how little attention BALI is getting. 26% total return YTD. Distributions are very choppy but on the growth side they are super good.
I'm with you. I think BALI is often overlooked when these are discussed. We will just have to wait for official APPLE ratings but I expect it to do well.
@@wealthadventures I thought it's holdings more closely aligned with the SP500 than the Nasdaq. It actually has a lower tech allocation than GPIX per SeekingAlpha.
I've known and worked with more engineers you can shake a stick at (mostly electrical, electronic, software, silicon manufacturing, and silicon design). Almost all of them have a few traits in common... 1) they tend to be detail oriented; 2) they are highly confident of their assumptions, regardless if it's right or wrong; 3) they tend to fall into two camps... first, if you show them the data that they are wrong, they'll agree and change their position... the second is that they can't be wrong because a non-engineer pointed out their error or problem, and they will die on that hill (that a non-engineer can be right).
Neos. I would agree. TSPY looks / sounds interesting. I think 🤔, the nature of these funds requires a manager with significant intuitive market knowledge and maximum flexibility. The robots are not as successful.
some funds have managed distributions every month and often rely on ROC to keep the payouts the same on a monthly basis. other funds don't have managed distributions and just "pay out" what they bring in monthly -- this causes their payouts to vary monthly. i'm pretty sure jepi does not have a managed distribution. it is very hard to tell with funds are running the managed distribution strategy in a smart/prudent fashion. if the fund is not smart/prudent- after 5 or 10 years you can see a massive depletion of NAV. since i want to buy and forget---- funds that don't have managed distribution are less likely to MIS-Manage their distribution strategy. i have seen too many funds/etfs with managed distributions fall back on trickery and payout too much roc to make them look good. when i look at funds/etfs--- most of what i focus on is ROC. funds that don't payout any ROC (or very little) are more likely to be great performers for the long run (5, 10, 20 years). this is a very complex topic as once cannot say "all ROC is bad"--- but i have noticed over the past 15 years that ROC can be an indicator of mis-management. funds that don't have managed distributions are more likely to not try to hide their underperformance using the crutch of "increasing the ROC portion" on a monthly basis.
Sorry, not sure I understand the hang up with expense ratios? If one ETF has a total return of 10% and a second has a total return of 15% but has three times higher expense ratio, who cares? You are getting a better total return so why would it matter what the expense ratio is behind the scenes?
You are right. If you find a fund that always outperforms it may be worth paying the high fee but I don't see that often. Also, total return does not account for the expense ratio. Total return - Expense Ratio = Net return. Net return is what we get to keep.
@@wealthadventures Okay thanks, I guess I am defining total return simply as: Total return = Price return + Distributions As long as an ETF has a higher total return then it is a winner in my books regardless of what its expense ratio behind the scenes happens to be. I am saying "behind the scenes" as I am thinking that we never really see the expenses as we get the distributions only after the fund has taken out the expenses? I can see that for straight-up index ETFs the expense ratio may matter. If both funds track the index equally well, then the one with the lower expense ratio will generally provide the greater total return. However, for covered call ETFs hopefully we are paying a higher expense ratio for the fund managers to provide us with a better overall total return, that is more income from the covered calls they are writing, while protecting or even growing the NAV? Appreciate if you could maybe explore this topic further in a future video as I am new to all this and may be missing something or simply not understanding the concept of what you mention as "net returns" correctly?
This is the kind of video I like best where you compare different funds. Good video Dave.
Glad you liked it!
Only one I own is SPYI and I love it. 200 shares $100/mo right now
Love this! Please do the same with NASDAQ 100 Covered Call ETFs.
Will do!
Another solid contribution to the community. Thanks. I’m a Neos owner of all three index funds. I’m looking to buy into GPIX and Q this coming year.
Yeah I hold SPYI + IWMI and consider it my “total market” income strategy. Little bit of growth, little bit of income, what’s not to love??
I'm retired and using SPYT (12%), SPYI (3%), XDTE (3%), & IVVW (3%) in my income portfolio. All very consistent, so far.
Would you consider adding YMAX?
XDTE's total returns is slightly beating SPY and the 19A has been showing 100% distribution as ROC. SPYT is near matching the total return of SPY and about 65% to 70% of the distributions is ROC.
My only caution is that the 19A is subject to change come final reporting. Looking forward to summarizing them next year.
@@wealthadventures Yes, that's true. With more competition in the derivative ETFs, these providers are distributing ROC that this is becoming the new normal. A massive miss of ROC may cause outflows from the fund.
SPYT should have been on the list.
I still need to review it. These are just the ones I have reviewed previously but SPYT is on my list.
VGT outperformed SCHD and VOO over 5 and 10 years. Despite having most of my $500k retirement in VGT, I try to beat my Roth with my taxable account but still underperform the S&P 500.
I'm taking a hybrid approach with VGT, SCHD, and VOO as my foundation over a 20-year horizon. I still enjoy life, travel, and buy what I love. It's the best combo, plus I enjoy the small victories of dividends, dividend growth, and share price appreciation.
ETFs are great, but don't rely solely on it for retirement. I retired at 62 with a $1.5M portfolio, starting with $35K, thanks to an adv1sor and dividends. Invest wisely, build your nest egg, and don't sell the chicken that lays the egg!
Hello, I'm interested in trying this out. Who is your advisor, and how can I contact them?
My CFA, Carol Vivian Constable is a renowned figure in her field. I recommend researching her name online; you’ll find all her credentials and everything you need to work with a reliable professional. With many years of experience, she is a valuable resource for anyone looking to navigate the financial market.
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
Thank you for this great comparisons. I will save this to a playlist and re-watch and re-listen a few times.
Free to watch as many times as needed! Lol.
Great info thank you for putting this together and sharing it with the world.
I love your videos..and I like the Apple award idea too. Thanks!
Yay! Thank you!
Thanks Dave. I had XYLG for many years along with SPLG... Switched over to XRMI because I could buy more shares to increase my monthly distribution. Global X has systematic covered calls.. and I never lost my NAV... I will check out these new ones!! 😊
Thanks for sharing!
Thanks for the video, Dave. I'm not an income investor at this time but I have been researching income funds over the past year. The funds you rank higher are the ones I also found to like the most as well lol
Nice! We must be onto something.
Great info! Thanks!
Appreciate your research and presentation style. Enjoy watching your videos.
I appreciate that!
Glad you added DIVO at the end of your comments. I’ve owned it for over three years now and this ‘steady Eddie’ is snowballing nicely.
Yes. I'm a DIVO fan.
Great analysis! Thank you. Looking forward to watching a similar analysis for NASDAQ covered call funds :).
Great content , Thank you
Great video, love it. Thank you.
Thanks for this compilation Dave - much appreciated. I was an early adopter of JEPI and recently sold my entire position, for a nice profit, and entered into a few yieldmax funds. Most recently I have taken a rather large position with XDTE and through using core compounding and profit ripping strategies and not re investing the dividends I am generating 3 x the income I used to have with way more shares of JEPI.
Thanks for sharing!
I am retired so look at income more than growth. My biggest position is SPYI due to yield and tax advantage. I am willing to pay a higher fee if I think the strategy warrants it and the yield is good. Good video. My second largest position is JEPQ so a similar video on QQQ covered call ETFs would be interesting.
Nasdaq funds will be compared soon..
Aloha Dave! It took you a good bit of work to pull all this together so thank you for your efforts. I only hold a very small position in JEPI, and then I found I could do this myself, so no other holdings. I liked hearing about the fund strategies to give me trade ideas. One thing I need to work on is making my trading more tax sensitive. For your feedback, I don’t care about weekly, or monthly or quarterly payouts; I’ve got 140 stocks and ETFs in my income portfolio so dividends are coming in day and night!
Thanks Fin!
This is exactly what I’ve been looking for! A comparison between all of them
I don’t know how to do options so I don’t understand the difference between the strategies the funds are using. I ended up buying a small amount of ISPY so I’m happy that you didn’t rate them the worst lol
Thank you for the video
Nice! Keep it going.
Thanks for the nice review. I have adjusted my holdings some this year. Sold some JEPI and bought JEPQ instead. Hold DIVO, SMH, QDTE, SCHD, PSI, IBIT and individual stocks for growth and some for income.
Nice!
Great video and one of my favorites. Thank you.
Thanks!
Thanks for the video.
I think XDTE should be a least 4 apples ). This fund started early March and there is already enough info and it beats the index and all other cc funds mentioned here. Sure it has the highest expense but if outperforms the others by 2-3% or more I’m perfectly fine with 0.95% expense.
Really like TSPY and it may have similar performance as XDTE, we just need more data.
All in all I like funds that sell daily calls like TSPY and XDTE ad opposed to funds like SPYI, simply because they are more active and capture all market moves overnight - you get the point.
Again thanks for the info and will be interested to see tax info shared on these funds.
Agree. That overnight capture sets it apart from all the others. 4 apples for sure.
Certainly! Thanks for the comment. I'm curious to see how they all report come tax time.
Great stuff Dave
Excellent video!! Love to see something similar regarding the Nasdaq
Coming soon!
Thanks Dave! Have jepi right now and a sliver of divo. Will wait for yr tax results next year, yr 4 apples looks promising but if it’s too tax inefficient l will stick to present portfolio. Your 50/50% buying voo/jepi is an eye opener for me, nice!
Thanks!
Thanks your videos have been really helpful to me as a retiree trying to get some decent income.
Great to hear!
Great video Dave! I would have liked a top 10 (possibly add SPYT, WDTE, etc.) top 8 is a little weird. I completely agree with the top 3. But now there’s a new problem… you opened up a can of worms - you’ll now have to do a top 10 Nasdaq and a top 10 Russell 2000 comparison! Again, enjoyed this one, great job!
Just getting started. So 2 more reviews and a top 10!
Looking forward to it!
I agree! Top 10 is the way to go. Can't leave out Defiance. 😥
Great stuff! Look forward to seeing an update next year
Dave - thank you for sharing this information and your analysis! - Great Video! 😊
Great vid! SPYI and XDTE are both in my current portfolio. I try to balance the covered call income funds with growth SPY, VOO, MGK, and MGC.
Nice! I think that is important regardless of age.
thanks Dave.... nice to hear your perspectivie on rankings....
Thanks!
Thanks for your rankings Dave. We like your apples!
Personally, I prefer the Nasdaq versions of these covered call etfs. QQQI and JEPQ are my favorite. Weekly paying ones like XDTE, QDTE, YMAX are very important to me because they give us the freedom to choose weekly, monthly, or quarterly distributions. Giving retail investors the power to decide when we get paid gives us power to control our future. Thanks, Dave, for this detailed into these S&P CC etfs.
Thanks Dave! I would love to see a NASDAQ version of this comparison as well!
Thanks. I think the distributions are motivating for people. So if that gets them investing, it might be what they need. Just keep an eye on that total return!
Nice summary, and I like your Apple ratings.
You might also want to include the Nuveen SPXX in your S&P CC review. It’s been around since 2005, has $325M AUM, mgmt fees of 82bps, ca 90% ROC distribution (tax efficient type, not destructive) of ca 7.5%, and a 12mo total return of 25.39%. It’s a CEF and pays quarterly, so not a lot of attention is paid to it, but it’s very competitive in this category.
There's also Defiance's WDTE and SPYT.
And State Street's SPIN.
@@HowHingPau Wow, SPIN is looking good with that 0,25% expense ratio. Will watch this one and see how it does after half a year or so compared to others.
Will do!
I reinvest my ETFs dividends 100% and will do so for years growth.
Nice! Good luck and keep it going.
I am so big on stocks and it has worked well for me, but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. How can I maintain an effective ETFs approach returns on the long run?
I live off dividends on ETFs, for sure it can improve your wealth if you reinvest them to buy more, creating a snowball effect that allows you compound over time.
I live in California, have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them? Bcos I need a lot as rent, inflation alone eat up almost all of what I make.
tbh I keep compounding, adhering to well established structure from a professional, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased in the past year while participating behind a top performer. I put in 65k few years back, now effectively remits over hundred k and increasing.
Great video, very informative! Thank you for sharing!
Glad it was helpful!
Great information Dave! Thank you so much! Added new positions SPYI and QQQI near ATHs last week. Also, started a position in JEPQ 😊
Kurv baby. $10k a month. Now got a huge position in Jepi, jepq and qqq
Nice comparison video! Thanks for doing the research. I own a few of these as well as other income stocks. I like Armchair Income's portfolio. I mix them about 50% with growth etfs SPY and QQQ, Hoping that over time the income investments will act as a hedge during market downturns. I am in my late 50's so looking for a bit more downside protection. Bonds have been so bad over the last 10 years trying to find an altenative to the typical 60:40 portfolio.
I still hold my nose and buy bonds but I understand. They are still a nice way to diversify.
Remember, past performance is not an indication of future performance. Call me crazy, but I would say there's a 50/50 chance bonds outperform stocks over the next 10 years.
Appreciate the overview of these funds, solid video
5 apples for this amazing review!
Thanks!
Yes, NASDAQ please. Thanks Dave!
You got it!
Also thank you for you rec on vteb and hyd , added last month and happy with performance
Great!
Thank you, David, for sharing. I have SPYI in my portfolio. In the future, will you look at XPAY? Also, why JEPI vs. JEPQ? Thank you!
This is a video ranking S&P500 covered call funds of which JEPI is one. JEPQ is based on the Nasdaq 100 so it wouldn’t be considered.
@@marcalvarado1915 thank you for the clarification!
JEPQ will be in the QQQ bucket along with BALI and others.
What a great video! Could you please do Apple video on best 6+ dividend ETFs or stocks
SPYI is one of my top holdings too. Especially in my taxable account, because of the tax advantage. I hold a small amount of JEPI, mainly as a defensive position in a couple of accounts. It basically holds the money In between cash and my higher paying dividend funds, like SPYI. The thought is I'm earning a lot more than cash and it will hold up much better during a down turn than any of the other high yielding funds I have. So, during a market downturn, I would be able to sell some JEPI and invest it into the higher paying funds that have taken a much larger hit and/or move it to cash for income, while I wait for the other funds to rebound.
Very informative COMPARATIVE video. Well Done!! I only have SPYi in my porfolio, will review the others presented. I also have GPIQ which primarily is NASDAQ 100 concentration, but is NOT a covered call stategy.
GPIQ is a covered call fund. It is loke GPIX but using the Nasdaq.
@@wealthadventures Thanks for clarifying.
Great Job breaking down the different aspects of these nuts to soup funds, but when you put them, all together is sort of like a very well mixed apple sauce compared to VOO. For me I am looking at owning the core of the apple (VOO) and selling to take a distro once a month. That may be something you want to add into the analysis at the bottom of the sheet under VOO. Again, great job!
Yes. So you are selling calls yourself?
@@wealthadventures No Sir I do not have the skills that you have. I am merely asking a question because I don't understand the why people do this when they have other options that seem to be more profitable to me when looking at your chart.
For me I would just take a level set distribution at the end of each month and stay invested with the long term tried and true S&P500.
What am I missing as to why someone would invest in these products when most of clearly do not meet the markets average total return.
Thank you for the award show and deep dive. The summary chart is excellent. I foresee a "rotten to the core" rating of one apple for future products with high expense ratios.
Certainly!
SPYI looks impressive . Nice balance between income and price appreciation. Prefer OTM calls with room for growth. Thanks
Agreed!
NASDAQ is very similar to S&P500, with a lot of the NASDAQ 100, also being in the S&P 500. If you look at JEPQ and SPYI for example, the top ten holdings are almost identical. One of the reasons I own IWMI right now, instead of JEPQ or QQQI. I'd be more interested in hearing your thoughts on the different bond covered call funds like HYGW, LQDW, TLTW, AGGH and hopefully some others I haven't looked at yet.
I agree. Bonds are going to surprise a lot of people over the next 5-10 years.
Yes but I still wanted to put them in their own category.
From my perspective they are all about the same minus fees. Outperformance year to year is simply based on how the market moved.
IMO IVVW is interesting and has good potential. Its better than XYLD not only with low expense ratio but also a better strategy. The 1% OTM looks interesting with potential to generate good income while captur8ng decent upside. Currently if they are making 15%yield they can do well in slow or flat markets. Returns could beat index in flat or bear markets. Not investment advice but looks more interesting since they are making the good balance between growth and income. May not be sexy but we'll positioned to perform.
Sounds like a plan and I agree it is better vs XYLD.
thanks. nice video and useful content
This is great info on SPY covered call etfs - If there are any cover call etfs on MSCI large cap value index have yo looked at those?
No. Are you looking at a ticker in particular?
I never understood why people put income funds in a Roth. What buy income funds and then not touch them until your 59.5? Just buy the s&p and qqqs in your Roth and you’ll do way better than an income fund. You buy the income funds so you can use the income in the near future and hopefully in perpetuity. Yes youre taxed, but it’s just like having a second job. You’re taxed on that too.
Yeah I don’t understand the use case for an income funds for anything other than current income or nearing retirement. Over 20 or 30 years it’s very unlikely that an option strategy will beat the underlying.
I can see it as a part of the Roth. If you notice in his chart an index like Jepi has almost caught up with voo at the 3 year mark. Combined with the tax-free income and compounding it might actually surpass voo over time. To late for me, but just a thought.
@ from my understand, JEPI is falling further behind VOO, not moving toward it. JEPI is a defensive fund so it did better in 2022, hence their close performance in a 3 year chart. But YTD VOO has crushed it. And if next year looks like this year, the gap will widen. Obviously if we crash JEPI should look good again, but over the long term we hope to have more good years than bad years
Build income to help me buy stocks like visa , Costco etc
@@null.ru.1337 But if you think Costco and Visa are good stocks to buy, why not just buy them in the first place instead of JEPI?
Based on past total performance and strategy DIVO seems to be the best, second place would be a combination of JEPI & JEPQ
Can you please do 1 on Yeildmax ETFs? Especially TSLY and NVDY
You can search my channel for TSLY.
So, is it nuts to own a lot of these covered call, mystery notes, derivatives, dividend rides in one portfolio? I mean do I need JEPI, which I own, JEPQ, which I want to own, DIVO, AND, your fave SPYI? Isn't it better to own just one of these ETFs with a healthy dose of VOO? Oh, I also own GPIX in my Robinhood account, which I keep just to preview stuff and which also holds a lot of my worst stock pick ever--TDOC--which I'm buying. I'm steadily buying down with hopes to sell sometime in mid-2025. I like GPIX a lot, also. It's steady, and the dividend goes up every few months. Nice video, Dave. I'd like to own lots of these shiny toys I just don't know if I need more than three or four.
3 or 4 are plenty. I think that if you like this idea, mixing a few of the best together can give you more consistent results.
Great analysis, comprehensive, how about JEPQ? I currently have this ETF which follows the NASDAQ.
Nasdaq products will be grouped together and coming soon.
XDTE and SPYI! And I do like the weekly distributions!
Thank you for all your hard work! Could you do a Bitcoin CC deep dive too.
Sure thing! I plan to talk to NEOS about BTCI soon.
I like JEPI and SPYI strategies (but the NASDAQ 100 versions). I've dabbled in iShares, but interested in Goldman next. I am very surprised you had TSPY so high given how new and inexperienced the fund manager appers to be... ranked higher than JEPI which has a longer history, and experienced fund managers. If TSPY is a one man shop... what happens if he gets sick, or hit by a bus. Who's going to do those daily trades?
I graded based more on the strategy but he is a small outfit. I like his ideas. There are backups in place and he uses a sub advisor to execute the options based off his instructions.
SPYI is my #1 CC ETF too, I like to pair it with SPY for growth
It hit me when looking at your spreadsheet that VOO (shown as a benchmark) actually has the lowest exp ratio, highest total return in all time frames, highest AUM by far, and has been around the longest. YES it has the lowest dist rate, so many of us overlook it. But it does have a very nice track record!
VOO is a great way to go if you don't need the income and want to invest for a long time.
I'm not stuck on monthly vs weekly dividends either, but using just an online compound interest calculator, the difference between mthly vs wkly, over 10 years, for a 100k investment in XDTE, at the 16.45% yield shown in the video, is ~4413.
If you get into something like YMAX, where the yield is 60%, the 10yr difference is over 4 million dollars.
Good luck! I'm not a fan of YMAX but it has lots of fans.
QDPL is my fav. What would it's Apple rating be? I also own DIVO/GPIX and SPYI.
QDPL is a nice fund. I will have to think about it...
Great video as usual! I have been accumulating SPYI as well. A revisit video would be greatly appreciated!
Thanks!
You mentioned how you like unique or creative strategies which is why I'm surprised with why you didn't rate XDTE higher. It's the only one on this list that actually uncaps upside completely (overnight when the market historically has performed best). Curious on your thoughts on that. Was it just the expense ratio why you rated it lower?
I feel long term this should perform the best on this list, especially if the income remains 100% return of capital.
TSPY does that as well. At least MOST of the time. I think XDTE is a fine fund but time will tell and several of these need more time.
Very helpful thank you
thanks dave. great video
Weekly payouts is part of the fund advertisement mechanism. Thats all it is. It does work because it gets peopole thinking about getting paid weekly on this symbol then next week that symbol, taking money distributed this week to buy another fund that pays out next week so on so forth.
I suppose... Will daily be next?
Are you going to do a video on the Russell and QQQ
Nasdaq - Yes. Russell - Maybe! Might group that with "others".
The space has become a bit over saturated & it can be a daunting task to determine which one is best. I feel most comfortable with the funds that have been around the longest. I am impressed with NEOS & have a position in SPYI. I am also curious to see how TSPY plays out. Going forward my strategy is to do a 50/50 split between a covered call ETF & VOO every time I make a purchase.
We will see who survives but competition should be good for us.
Question about 1256 contracts I noticed most of the distributions from Global X Russell 2000 and Dow Jones Industrial Average covered call ETFs most of the reported income so far for 2024 is return of capital. So far for Round Hills zero day expiration cover call ETFs on S&P 500 NASDAQ 100 and Russell 2000 are reporting 100% return of capital. I thought 1256 contracts were 60% long-term 40% short-term capital gains So why is all or most of these distributions being reported as return of capital?
Well, if they have ROC to distribute, that would be 0% tax. If they have gains from the options that they distribute, that would fall into the 60/40 tax treatment. Until the year closes and they report, what they show on the website is subject to some adjustments. Not tax advise!
@wealthadventures I've only held Global X covered call ETFs in my taxable brokerage account since 2022. Round Hill only this year 2024. With my taxable account 1099 statement for 2022 and 2023 I've seen nothing reported in the 1256 contract box. I have seen a breakdown of the monthly distributions on the 1099 from the Global X cover call ETFs be either return of capital or unqualified dividend.
You could include the additional data point of whether the ETF has managed distributions. For example, GPIX and SPYI's distribution $-amounts are very consistent month to month, while others are variable. This might be an important consideration for those living off these distributions.
I can do that!
Im still pretty new but the reason Im liking all the high dividend vs growth is because I dont have a huge account and cant add big money every month. Its in a Roth so taxes dont matter and I can use the dividends to buy other dividend etf so I can diversify as much as I can with a small account. If I buy shares in one thing to watch it grow then I feel like Im not diversifying much. Have a ten yr window in mind and Im concentrating on adding share count and diversifying more than growth right now. Not sure if it's the right strategy but is why Im looking at starting with things like fepi and aipi and using the dividends to fund things like spyi. Any thoughts?
I think that can work. I would just watch the overall fees and total return for those products. They can take a big bite with time.
At one point in time i was in all of these, and i do like them all. But since retiring i decided to go with XDTE since i am livingg off the dividends
So you like the weekly idea?
Yes the weekly is a nice to have
IMO XDTE is the best of all. Please compare that to the other funds for the period that it has existed.
Time will tell! Some of these still need to marinate so this is partially my opinion based on the strategy.
This is great thanks! I'm looking for a covered call ETF that is somewhat stable in price (upmarket, downmarket) with a decent yield -- sort of a synthetic bond replacement.Does something like this exist and if so any recommendations?
I think several of these would work. I sometimes think of JEPI that way - A replacement for bonds.
Frankly when the VIX is low and put-call skew highly negative the right thing to do is to buy a far month OTM call and put the money in treasuries/tips instead of doing the opposite.
I had SPYI and QQQI but I sold them because on total return they were my worst performers. I have biggest position in BALI, then GPIX, and on Q's JEPQ, GPIQ, and on the defensive side of portfolio JEPI and PAPI. For pure Growth SCHG. Overall I'm surprised how little attention BALI is getting. 26% total return YTD. Distributions are very choppy but on the growth side they are super good.
I'm with you. I think BALI is often overlooked when these are discussed. We will just have to wait for official APPLE ratings but I expect it to do well.
SPYI and DIVO are in my portfolio
SPYT is the most solid of ETF’s
Nice video, but how do you leave JEPQ out of this 🤔
I will cover that under Nasdaq funds. These were S&P.
No BALI? I find it very similar to GPIX in terms of exp, yield, performance
BALI is a good fund. It will be in the pile of Nasdaq funds I'm comparing.
@@wealthadventures I thought it's holdings more closely aligned with the SP500 than the Nasdaq. It actually has a lower tech allocation than GPIX per SeekingAlpha.
I've known and worked with more engineers you can shake a stick at (mostly electrical, electronic, software, silicon manufacturing, and silicon design). Almost all of them have a few traits in common... 1) they tend to be detail oriented; 2) they are highly confident of their assumptions, regardless if it's right or wrong; 3) they tend to fall into two camps... first, if you show them the data that they are wrong, they'll agree and change their position... the second is that they can't be wrong because a non-engineer pointed out their error or problem, and they will die on that hill (that a non-engineer can be right).
As an engineer, you are 87% right.
@@wealthadventures Not 87.31415%?
@@fialee8 I rounded. lol.
@@wealthadventures Everything is better when you add 🥧to it.
How does BALI compare to these?
It compares well but will put it in with the QQQ versions.
Neos.
I would agree. TSPY looks / sounds interesting.
I think 🤔, the nature of these funds requires a manager with significant intuitive market knowledge and maximum flexibility. The robots are not as successful.
Yup
Could you review GLDI?
Sure. I will take a look.
Would like to have seen information on how they performed during s&p drawdowns, how much of the downside do they actually capture
Wish there was more info. JEPI and XYLD would be the best since they have been around the longest.
Great video. In the future can you let us know if each fund has a managed distribution or not
Do you mean consistent versus variable month to month?
some funds have managed distributions every month and often rely on ROC to keep the payouts the same on a monthly basis. other funds don't have managed distributions and just "pay out" what they bring in monthly -- this causes their payouts to vary monthly. i'm pretty sure jepi does not have a managed distribution. it is very hard to tell with funds are running the managed distribution strategy in a smart/prudent fashion. if the fund is not smart/prudent- after 5 or 10 years you can see a massive depletion of NAV. since i want to buy and forget---- funds that don't have managed distribution are less likely to MIS-Manage their distribution strategy. i have seen too many funds/etfs with managed distributions fall back on trickery and payout too much roc to make them look good. when i look at funds/etfs--- most of what i focus on is ROC. funds that don't payout any ROC (or very little) are more likely to be great performers for the long run (5, 10, 20 years). this is a very complex topic as once cannot say "all ROC is bad"--- but i have noticed over the past 15 years that ROC can be an indicator of mis-management. funds that don't have managed distributions are more likely to not try to hide their underperformance using the crutch of "increasing the ROC portion" on a monthly basis.
The only upside I’ve heard for weekly distributions is there is a small
Compounding that can happen if reinvested
Of those you listed, SPYI
SPYT ? not on the list ? also like QQQT and FEPI
Just have not reviewed it yet! On the list.
What’s gonna happen to your money if the company behind the find goes belly up?
What do you think of spyt?
Still need to review it.
Sly, I see your already setting us up for the Nasdaq play offs!
Busted!
Sorry, not sure I understand the hang up with expense ratios?
If one ETF has a total return of 10% and a second has a total return of 15% but has three times higher expense ratio, who cares? You are getting a better total return so why would it matter what the expense ratio is behind the scenes?
You are right. If you find a fund that always outperforms it may be worth paying the high fee but I don't see that often. Also, total return does not account for the expense ratio. Total return - Expense Ratio = Net return. Net return is what we get to keep.
@@wealthadventures
Okay thanks, I guess I am defining total return simply as: Total return = Price return + Distributions
As long as an ETF has a higher total return then it is a winner in my books regardless of what its expense ratio behind the scenes happens to be. I am saying "behind the scenes" as I am thinking that we never really see the expenses as we get the distributions only after the fund has taken out the expenses?
I can see that for straight-up index ETFs the expense ratio may matter. If both funds track the index equally well, then the one with the lower expense ratio will generally provide the greater total return.
However, for covered call ETFs hopefully we are paying a higher expense ratio for the fund managers to provide us with a better overall total return, that is more income from the covered calls they are writing, while protecting or even growing the NAV?
Appreciate if you could maybe explore this topic further in a future video as I am new to all this and may be missing something or simply not understanding the concept of what you mention as "net returns" correctly?