I just discovered your channel. About 9 months ago I bought $1k worth of QYLD as an experiment. I’m a >60 year old with income investment goal. I’ve dripped the distributions. I’m getting out. It will never recover it’s share price and the distribution has steadily gone down. In these market conditions this is the WRONG investment for me. I’ll harvest my loss and get into something like SCHD or just add to my MO or T positions.I like your delivery style. I’ll keep watching.
Hi Dave. I prefer some other income ETFs over QYLD for sure. I also agree that SCHD is a solid fund and better option. Good luck and thanks for watching!
Just want to say I appreciate your videos. I'm in my 20s and just learning how to maneuver the market, especially since this past few weeks was the first market correction I've experienced. Thanks for showing the benefits and risks for adding such ETFs into our portfolio without all the fluff
Hello and thanks! Best thing that can happen to a young investor is a market correction. Painful at the moment but in the long run just buying stocks and ETFs cheaper. Good luck!
Look for reliable growth from a Total USA fund and about 20% growth from a growth fund or a growth stock (Google or Apple). ETF examples: VTI 80% , VUG 20%. SCHB 80%, SCHG 20%.
Dave, thank you so much for providing the details which helped clear up the different scenarios that might occur. Excellent Job! I match one of the investors that you mentioned, that is 60 years old (with a small pot of money) with the plan of retiring in the next 2-3 years. With the current inflationary environment, I moved some of my rainy-day stash sitting in a very low yield bank account to NUSI in late January and will continue adding. I am viewing this money as sitting in a quasi-bond fund generating income to stay up with inflation. Given the large discount due to the down market I should have some considerable upside for the NAV going forward at least in the short term. I am intrigued by the Ryld utilizing as an element in a tax sheltered 401 K as well and I wondering if you could provide your perspective on this one with respect to Qyld (Vanguard VTWO vs QQQ) given the assumption that the odds are in favor for the market to be bottoming out soon, probably consolidating, and assuming that smaller cap would likely be more volatile. As you commented the sweet spot is for either index to stay below the strike price and so curious to know your thoughts on how the beta or volatility of each would come into play. You did comment to ask away with respect to our interest and so I am taking you up on it. Hope my question makes sense to you!
Hi Jim! Thanks for the comment. I'm not a big fan of these types of investments in retirement accounts. Maybe okay in small doses but their intent is to create income. If you can't use it now because it is in a retirement account, why have it? I would instead focus on total market return. I think people get excited that they don't have to pay taxes but overall they typically do not return as much as holding solid stocks and ETFs. Therefore, I would say QQQ > QYLD (for example) in a retirement account. As far as QYLD vs RYLD, I would probably just make some soup and buy both! Same exact objectives, the goal is income, and it provides diversity. Volatility will be reflected in the option premium collected but that can be good or bad as far as return. We will know when we look back in a month! Lol. I know, not much help on that one.
Thanks Dave, Very helpful indeed. I should have qualified that I was looking at having the RYLD in tax sheltered 401 k when I retire in a few years. I agree absolutely with your thoughts about utilizing as an income fund only when you would require the income. @@wealthadventures
@@wealthadventures Yes I should have qualified if the economy doesn't enter a recession. If it is just a correction, then I would suspect the end of the decline will coincide with the Fed meeting vote to raise rates. I think the raise is already built in but the market needs confirmation. If for some reason the raises get delayed, then the market will be more confused. Unfortunately the Fed can only directly impact the demand side as the supply side is much more complicated given the geo political issues. Thanks again
Dave, Thanks a ton for your insights, as on 05/05 qyld is at $19.35 is it wise to diverse investment (~10k) now that it is almost 52-wk low. Appreciate your inputs!
Hello! I'm holding my QYLD at the moment. I think the market could continue to go lower but I don't see much near term upside. That is a decent environment for QYLD.
I like the buy and hold of QYLD, I see it has a beta of +1, do you have a similar fund with similar returns that has a beta of -1, it would be nice to him, sell the highs in buy the lows of the next one
Hi. I feel like I can always go the route of selling ATM calls myself if I want to hedge a position. I just don't want to automatically do it so QYLD is not for me.
Hey Dave. Hey I’m wondering if you could do a video on how or when to use the TQQ or the SQQ? do you use one in a bear market versus a bull market. Hold short or long term? I don’t trade options so it would be strictly for the knowledge of when or how for trading Stocks and the purpose of those two. Maybe that’s a silly question maybe you just trade them based on the charts like any other stock. Thanks didn’t know how else to get a comment to you except to use the last video.
@@wealthadventures I trade TQQQ and have done well with it. That was a couple of years ago, for the last year it has not done so well. But in a bull market it is my favorite thing to trade.
Thoughts on BST? The yield is lower but with the dividen growth and share growth should out perform. Wouldn’t this be a better approach, if not all that income is needed?
Hello! Agree on the income point. If you don't need it don't take it and avoid the taxes. Not sure about BST but looking more attractive if we head toward that 4000 S&P number. I've been buying JEPI which might also be an option. Good luck! Crazy market!
I like TQQQ, it's down now because growth stocks or the NASDAQ is down. But these are the top 100 stocks of the NASDAQ not penny or junk stocks. When the NASDAQ goes back up again TQQQ will explode in a good way. Thank you for the video.
Hello! I think this product is for those that don't want to manage option trades themselves. I'm not a big fan and I agree with you. I prefer selling puts and calls myself.👍
You could do better by buying QQQ and selling OTM calls against it for 1% a month. Right now QQQ is 309.10 and a 322 call 30 days out is $3.09 bid. Worst case you get called away and make 322+ 3.09 or 325.09 or you could roll up. By the way this call has a 74% chance of expiring worthless.
I have qyld qylg vig as well as others in small ira I can't contribute to because it has to be earned income on SSDI use profits to buy other stocks also have non ira account
Hi David. I know some people get excited about a stock split but I'm not one of them. Only makes it easier to trade options. It does not change the value of the company. With that said, if you like Amazon at the current price, now is the time and splits generally get people excited. It is one of my larger holdings and I think it has a bright future regardless of the split. Looks like it is up about 6.5% afterhours already.
Ha! Did I go to far? I assume people know I'm a fool but I will make sure to refer to myself in the 3rd person for all future videos just to hammer it home.
Hello! I like VGT for buying and holding along with VOO. If you want to trade options, QQQ has significant volume and open interest so a better option... for options!
Hey Dave, LOVED the video (really the best analysis ever on QYLD!) and feel you are looking over my shoulder (mid 60's retiree) with great advice. Have been in QYLD since last April. Unfortunately with political and economic realities in the near future it looks like a perfect time to own QYLD. Are there any other fixed income ETF's you like more or as much (JEPI is only yielding 6.8%, but do have SCHD and RYLD positions)? Best regards, Steve.
Hi Steve! Thanks for the feedback. I do appreciate it. My biggest concern with these products is a deterioration of basis over time (maybe silly to say since that is always the concern!). With that said, the best option may be to spread out into a few. I would personally deploy some into QYLD, RYLD, NUSI, and JEPI in hopes that it makes the ride as smooth as possible. Make a good soup and maybe buy a little of the biggest dog each month. Currently that would still yield over 10% at equal weight. I do like that you are holding SCHD. That might be the one you look back on in a year and are most excited about. Good luck!
@@wealthadventures Hi Dave I've been reinvesting the QYLD dividends every month and only take a minimal amount of income. Also have A RYLD position along with SCHD. Sold out of NUSI last year when it certainly did not have any sort of downside protection. I'm considering XYLD andJEPI now but was hoping there might be additional funds With higher yield
@@saustinredsox All of these income funds would pay out more if they could because they know the draw is the yield. However, the strategy will not allow it - It limits the potential return. You might have years with a "special distribution" at the end of the year but that is about it. Managing the option trades yourself might work but you also take on the responsibility and work load.
Hi Dave. Why does the basis of QYLD or the value of QYLD goes lower even when there is a bull market? Also, is the monthly income based on the number of shares I have NOT the price of a share is that right ? Thank you for your help.
Hi. Since QYLD sells at the money calls against the entire portfolio, they don't participate in any growth of the index (NDX). They just get the premium from selling those calls. This premium can exceed small increases in the index. So if the index is negative, flat, or slightly goes up, QYLD should do fine. In a big bull move it will miss out on the gains. Their dividend is paid on a per share basis. Last month it was about $0.17 so if you had 100 shares you would receive $17. Good luck!
Are bases of all covered calls options ETFs deteriorating over time? How so? For example, if I buy QYLD at $17 instead of $20 and it goes up to $20. How is the basis deteriorating?
Hi Louis. Since they sell ATM calls, if the market takes off, they will have to pay to close those positions at a loss so that they retain the stock. The value of the fund would go down with high positive market volatility. Make sense?
@@wealthadventures Is it better to write my own covered calls options by buying SPY or QQQ and earn 2% monthly in premium? I wonder if it can be a successful strategy.
@@louis20122 Just my opinion, but I believe you can yield better results if you are willing to put in the time and effort to manage your own option trades. Take some time to learn and it is a good option for those looking to create income from options trading.
if you think about it, 1% monthly or 12% annually in just dividend doesn't sound that bad. Knowing that saving bank is only around 0.5% annually in most cases.
Hello! Dividend payout is not always consistent month to month but average is about $0.20/share. You can buy about 100 shares at the moment with $2000 so you would get about $20/month before taxes.
Hello. The good news is that 1.1 in QYLD will pay you about 11,000/month right now so after taxes you might be just fine for now. The bad news is that in 1 year it could be paying you half that amount. With retirement, I would be more diverse and take a more conservative approach. Probably follow something like the 4% rule (3% rule!) as a guideline. Congrats on the 1.1! Pretty... pretty... good.
Hello! Just my opinion, but I think these income funds are better for an account where you can spend the money despite the taxes. In a ROTH or other retirement vehicle I would be looking for total market return. There are many other options that should outperform QYLD in the long run. I suppose as you get closer to retirement, you could use it in a ROTH with the idea that you will begin to make withdrawals. We are about the same age so I get the thought process plus this market makes it look all the more tempting. Good luck!
You were very elegant and refined in the delivery of your QYLD video. Thank for your time and sharing the details.
Ha! Thanks. I think it is a decent option after looking at it a bit closer.
I just discovered your channel. About 9 months ago I bought $1k worth of QYLD as an experiment. I’m a >60 year old with income investment goal. I’ve dripped the distributions. I’m getting out. It will never recover it’s share price and the distribution has steadily gone down. In these market conditions this is the WRONG investment for me. I’ll harvest my loss and get into something like SCHD or just add to my MO or T positions.I like your delivery style. I’ll keep watching.
Hi Dave. I prefer some other income ETFs over QYLD for sure. I also agree that SCHD is a solid fund and better option. Good luck and thanks for watching!
Just want to say I appreciate your videos. I'm in my 20s and just learning how to maneuver the market, especially since this past few weeks was the first market correction I've experienced. Thanks for showing the benefits and risks for adding such ETFs into our portfolio without all the fluff
Hello and thanks! Best thing that can happen to a young investor is a market correction. Painful at the moment but in the long run just buying stocks and ETFs cheaper. Good luck!
Look for reliable growth from a Total USA fund and about 20% growth from a growth fund or a growth stock (Google or Apple).
ETF examples: VTI 80% , VUG 20%.
SCHB 80%, SCHG 20%.
Dave, thank you so much for providing the details which helped clear up the different scenarios that might occur. Excellent Job!
I match one of the investors that you mentioned, that is 60 years old (with a small pot of money) with the plan of retiring in the next 2-3 years. With the current inflationary environment, I moved some of my rainy-day stash sitting in a very low yield bank account to NUSI in late January and will continue adding. I am viewing this money as sitting in a quasi-bond fund generating income to stay up with inflation. Given the large discount due to the down market I should have some considerable upside for the NAV going forward at least in the short term. I am intrigued by the Ryld utilizing as an element in a tax sheltered 401 K as well and I wondering if you could provide your perspective on this one with respect to Qyld (Vanguard VTWO vs QQQ) given the assumption that the odds are in favor for the market to be bottoming out soon, probably consolidating, and assuming that smaller cap would likely be more volatile. As you commented the sweet spot is for either index to stay below the strike price and so curious to know your thoughts on how the beta or volatility of each would come into play. You did comment to ask away with respect to our interest and so I am taking you up on it. Hope my question makes sense to you!
Hi Jim! Thanks for the comment. I'm not a big fan of these types of investments in retirement accounts. Maybe okay in small doses but their intent is to create income. If you can't use it now because it is in a retirement account, why have it? I would instead focus on total market return. I think people get excited that they don't have to pay taxes but overall they typically do not return as much as holding solid stocks and ETFs. Therefore, I would say QQQ > QYLD (for example) in a retirement account. As far as QYLD vs RYLD, I would probably just make some soup and buy both! Same exact objectives, the goal is income, and it provides diversity. Volatility will be reflected in the option premium collected but that can be good or bad as far as return. We will know when we look back in a month! Lol. I know, not much help on that one.
Thanks Dave, Very helpful indeed. I should have qualified that I was looking at having the RYLD in tax sheltered 401 k when I retire in a few years. I agree absolutely with your thoughts about utilizing as an income fund only when you would require the income.
@@wealthadventures
@@jimdou4617 Ahhh... I see. I did not read that right but that makes sense. Also, hoping you are right about hitting a bottom!
@@wealthadventures Yes I should have qualified if the economy doesn't enter a recession. If it is just a correction, then I would suspect the end of the decline will coincide with the Fed meeting vote to raise rates. I think the raise is already built in but the market needs confirmation. If for some reason the raises get delayed, then the market will be more confused. Unfortunately the Fed can only directly impact the demand side as the supply side is much more complicated given the geo political issues. Thanks again
You always have such great common-sense ideas. I really enjoy your channel. I know you're going to enjoy continued success.
Thanks Diana! I appreciate the comment and thanks for watching.
Really enjoyed the video, especially the alternatives you suggested 😁🤝💯💯💯
Thanks Justin! Appreciate the feedback. Is there one that you like in particular? I'm partial to JEPI when it comes to these CC income ETFs.
awesome video Dave, very informative and non bias; definitely merits with qyld depending on your situation
Thanks! I appreciate the feedback and thanks for watching. It should be outperforming QQQ this month!
Dave,
Thanks a ton for your insights, as on 05/05 qyld is at $19.35 is it wise to diverse investment (~10k) now that it is almost 52-wk low. Appreciate your inputs!
Hello! I'm holding my QYLD at the moment. I think the market could continue to go lower but I don't see much near term upside. That is a decent environment for QYLD.
that rocky line was funny aF.. lol
Ha! Thanks!
Thanks for your insights and honest opinions. Great presentation!
Thanks Shan! I appreciate the feedback and thanks for watching.
I like the buy and hold of QYLD, I see it has a beta of +1, do you have a similar fund with similar returns that has a beta of -1, it would be nice to him, sell the highs in buy the lows of the next one
Hi. I feel like I can always go the route of selling ATM calls myself if I want to hedge a position. I just don't want to automatically do it so QYLD is not for me.
Hey Dave. Hey I’m wondering if you could do a video on how or when to use the TQQ or the SQQ? do you use one in a bear market versus a bull market. Hold short or long term? I don’t trade options so it would be strictly for the knowledge of when or how for trading Stocks and the purpose of those two. Maybe that’s a silly question maybe you just trade them based on the charts like any other stock. Thanks didn’t know how else to get a comment to you except to use the last video.
Hello! I will take a look. I'm familiar with them but have never purchased either.
@@wealthadventures I trade TQQQ and have done well with it. That was a couple of years ago, for the last year it has not done so well. But in a bull market it is my favorite thing to trade.
Thoughts on BST? The yield is lower but with the dividen growth and share growth should out perform. Wouldn’t this be a better approach, if not all that income is needed?
Hello! Agree on the income point. If you don't need it don't take it and avoid the taxes. Not sure about BST but looking more attractive if we head toward that 4000 S&P number. I've been buying JEPI which might also be an option. Good luck! Crazy market!
I like TQQQ, it's down now because growth stocks or the NASDAQ is down. But these are the top 100 stocks of the NASDAQ not penny or junk stocks. When the NASDAQ goes back up again TQQQ will explode in a good way. Thank you for the video.
Hello! It will be interesting to see how TQQQ performs if we bottom and start to recover. Good luck!
Thumbs up, Very interesting, but why don't you just sell covered calls yourself?
Hello! I think this product is for those that don't want to manage option trades themselves. I'm not a big fan and I agree with you. I prefer selling puts and calls myself.👍
You could do better by buying QQQ and selling OTM calls against it for 1% a month. Right now QQQ is 309.10 and a 322 call 30 days out is $3.09 bid. Worst case you get called away and make 322+ 3.09 or 325.09 or you could roll up. By the way this call has a 74% chance of expiring worthless.
I agree! With a little effort to learn, this is a better option.
It may be a great time to buy this now at this price range.
Hello! Looks tempting as do many other stocks. I will continue to nibble on down days.
I have qyld qylg vig as well as others in small ira I can't contribute to because it has to be earned income on SSDI use profits to buy other stocks also have non ira account
Hi Lindsay! Sounds good. Not a bad plan. Good luck!
I think JEPI and DIVO are interesting.
Hello. I think actively managed ETFs like those 2 have an advantage assuming the management is on point.
great video. thanks
Thanks for watching!
In the long run, the market will go up so QYLD is not for growth but income for people that retire and rely on income to pay expenses
That about sums it up. 👍It has utility for some people but not for everyone.
Could use you advice.With the AMZN 20-1 stock split in June should you wait to buy common shares or buy right away?
Hi David. I know some people get excited about a stock split but I'm not one of them. Only makes it easier to trade options. It does not change the value of the company. With that said, if you like Amazon at the current price, now is the time and splits generally get people excited. It is one of my larger holdings and I think it has a bright future regardless of the split. Looks like it is up about 6.5% afterhours already.
That whole James Bond comparison is going to lead to viewer expectations. But go with it. You only live twice.
Ha! Did I go to far? I assume people know I'm a fool but I will make sure to refer to myself in the 3rd person for all future videos just to hammer it home.
I use QYLD to pay my bills
Schd and voo are my long-term
@@TJ-Stackin Hello. I like it.👍
How much money you make out of it..?
Good video Dave.
Thanks!
Great video
Why do people keep plugging QQQ when VGT is so much better. Same thing with half the expense ratio.
Hello! I like VGT for buying and holding along with VOO. If you want to trade options, QQQ has significant volume and open interest so a better option... for options!
Hey Dave, LOVED the video (really the best analysis ever on QYLD!) and feel you are looking over my shoulder (mid 60's retiree) with great advice. Have been in QYLD since last April. Unfortunately with political and economic realities in the near future it looks like a perfect time to own QYLD. Are there any other fixed income ETF's you like more or as much (JEPI is only yielding 6.8%, but do have SCHD and RYLD positions)? Best regards, Steve.
Hi Steve! Thanks for the feedback. I do appreciate it. My biggest concern with these products is a deterioration of basis over time (maybe silly to say since that is always the concern!). With that said, the best option may be to spread out into a few. I would personally deploy some into QYLD, RYLD, NUSI, and JEPI in hopes that it makes the ride as smooth as possible. Make a good soup and maybe buy a little of the biggest dog each month. Currently that would still yield over 10% at equal weight. I do like that you are holding SCHD. That might be the one you look back on in a year and are most excited about. Good luck!
@@wealthadventures Hi Dave I've been reinvesting the QYLD dividends every month and only take a minimal amount of income. Also have A RYLD position along with SCHD. Sold out of NUSI last year when it certainly did not have any sort of downside protection. I'm considering XYLD andJEPI now but was hoping there might be additional funds With higher yield
@@saustinredsox All of these income funds would pay out more if they could because they know the draw is the yield. However, the strategy will not allow it - It limits the potential return. You might have years with a "special distribution" at the end of the year but that is about it. Managing the option trades yourself might work but you also take on the responsibility and work load.
What do you think about QQQX?
Just started looking at it. Looks okay on the surface but I would need to look into it more myself. What do you think about it so far?
@@wealthadventures It is a closed end fund and dividend distributions seem stable during 2008 crash except its share price was down a lot.
Hi Dave. Why does the basis of QYLD or the value of QYLD goes lower even when there is a bull market? Also, is the monthly income based on the number of shares I have NOT the price of a share is that right ? Thank you for your help.
Hi. Since QYLD sells at the money calls against the entire portfolio, they don't participate in any growth of the index (NDX). They just get the premium from selling those calls. This premium can exceed small increases in the index. So if the index is negative, flat, or slightly goes up, QYLD should do fine. In a big bull move it will miss out on the gains. Their dividend is paid on a per share basis. Last month it was about $0.17 so if you had 100 shares you would receive $17. Good luck!
Very nice clip
Thanks! I appreciate the feedback.
Good presentation!
Thanks Eddy! I appreciate you watching.
It seems to be working so far taking premiums to buy other stocks
That is how I tend to use monthly dividend stocks in my M1 account. Collect and invest back into my favorite long term holds.👍
👍
Are bases of all covered calls options ETFs deteriorating over time? How so? For example, if I buy QYLD at $17 instead of $20 and it goes up to $20. How is the basis deteriorating?
Hi Louis. Since they sell ATM calls, if the market takes off, they will have to pay to close those positions at a loss so that they retain the stock. The value of the fund would go down with high positive market volatility. Make sense?
@@wealthadventures Is it better to write my own covered calls options by buying SPY or QQQ and earn 2% monthly in premium? I wonder if it can be a successful strategy.
@@louis20122 Just my opinion, but I believe you can yield better results if you are willing to put in the time and effort to manage your own option trades. Take some time to learn and it is a good option for those looking to create income from options trading.
You are to smart for me
Thanks but I doubt it!
if you think about it, 1% monthly or 12% annually in just dividend doesn't sound that bad. Knowing that saving bank is only around 0.5% annually in most cases.
Hello! It sounds great to me but doesn't come without risk.
Thank u brother great content very informative can I ask 1 question if invest 2000$ in qyld how much wud I recieve in monthly payment
Hello! Dividend payout is not always consistent month to month but average is about $0.20/share. You can buy about 100 shares at the moment with $2000 so you would get about $20/month before taxes.
Thank u very brother 20$ definitely not bad
Dont touch it with a barge pole
Deal! Lol. I'm not a fan.
Can I retire @ 45 with $1.1 mil in qyld with about $6500 monthly expenses?
Hello. The good news is that 1.1 in QYLD will pay you about 11,000/month right now so after taxes you might be just fine for now. The bad news is that in 1 year it could be paying you half that amount. With retirement, I would be more diverse and take a more conservative approach. Probably follow something like the 4% rule (3% rule!) as a guideline. Congrats on the 1.1! Pretty... pretty... good.
Good or Bad to invest QYLD in a Roth IRA for a current 50 year old? Thank you!
Hello! Just my opinion, but I think these income funds are better for an account where you can spend the money despite the taxes. In a ROTH or other retirement vehicle I would be looking for total market return. There are many other options that should outperform QYLD in the long run. I suppose as you get closer to retirement, you could use it in a ROTH with the idea that you will begin to make withdrawals. We are about the same age so I get the thought process plus this market makes it look all the more tempting. Good luck!
Does QYLD pay monthly dividends??
Hello! Yes. It currently pays monthly at about a rate of 1%. So $1000 investment would pay about $10/month.
80/20. 80 qyld/20 qqq. age 57 retirement planning
Hi Scott! Sounds like a pretty good soup to me.👍