It is one thing to say covered call etf’s are close to or possibly beating the S&P, with leverage, because the markets have been on a major bull run, and leverage amplifies the results, but have to wonder what the comparisons would be in a major correction, where the losses are amplified as well. I do have some covered calls in my portfolio, but none are leveraged.
i think they will so just fine. the losses are amplified but the downside protection is also amplified. and dont forget this is long term investing. the CC leveraged ones will compound even more strongly
Again,for C.C. to work u must reinvest most of the yield,so u may as well buy normal ETFs.When u compare C.C. to regular ETFs it includes the yield,go back 5,10,15 years or more,u may as well buy regular ETFs or single stocks.
@@JohnHobbs-o3zlots of advantages of monthly yield: 1. Have it in my LIRA and can use it to buy more or new stocks. 2. Have it in my TFSA and I can take out some yield to pay bills if I’m laid off or want to buy something. 3. There’s something reassuring and exciting about seeing those monthly dividends drop DRIP DRIP DRIP
@@JohnHobbs-o3zyou don’t understand how CC etfs work. You should ask questions instead of making nonsense comments. Knowledge is king. Not wrong opinions.
Thanks Adrian! Yes, totally agree that these are the ideal ETFs for both growth and income. I have USCL, QQCL, and HYLD. Currently thinking about getting into QDTE and XDTE.
Hello Adriano, my wife and I will be taking a trip to Ecuador. I told her about your channel and how I have been following you for about a year now. Maybe we can stop in Panama and say hello.
For me the holy grail of income investing would be a fund with good yield (at least 8%, hopefully 10+%) whose distributions grow faster than inflation over 10-15+ years. Over that time frame I could see how it performed in all market conditions. That is something that I could live on worry free without having to worry about reinvesting a portion as an inflation hedge. Of course we can't find any of those because none of the most compelling funds are anywhere near old enough to give that sort of history, but holy grails are really wishful thinking.
Nice! I was looking for a good core holding to put in my margin account and USCL might just be it. Great growth and a good distribution. I think you really did find the holy grail
@@PassiveIncomeInvestingIn comparison to JEPQ(I), GPIX(Q), SPYI, QQQI, how well would QDTE and XDTE perform in down markets as far as downside protection? Would the drop be further, or equivalent relative to their peers? It seems the only need to diversify would be for different management styles, seeing they’re all providing the same thing?!? I just think it would be redundant to invest in multiple funds when I can pick out the top fund for each index (S&P 500 and Nasdaq), and keep it simple. Thoughts?
Hey great content as always Adrian, I think more specifically SMAX would be Hamilton's S&P 500 ETF and it's also outperformed the S&P 500 on a total return basis. Same goes for QMAX vs QQQ. Overall I'm very happy with Hamilton ETFs and would highly recommend them to others. Side note: how are folks looking at 2025? The market has just been ripping higher for a long time. Overdue for a pullback?? Great work as always - love the channel!
@@PassiveIncomeInvesting Just waiting for you to dump your "favorite position". Will you at least alert & allow your subscribers the benefit of selling before you sell ?
Hi Adrian, thanks for the content. Would you have any thoughts on the comparison between USCL and CNCL? I’m assuming there is some overlap. Do you prefer one over the other?
Great review Adrian. BTW: XMAG just came out and looks interesting since it is the S&P500, but without the Magnificent 7 Tech Stocks. I hope you get a chance to review it and post a video on this ETF.
If a stock goes up 30% in a year and a covered call ETF gives total return (considering price and dividend) gives 30%, then buying the ETF on drip will be better in long run?does compounding helps the etf in long run?or its the same in bull run?
When the etf is going up, drip helps the total return due to the compounding, but if its going down, taking the dividend as cash rather than drip, it will perform better in total return, although it would still be a loss, but slightly better than drip, because losses are also compounded.
yes of course but the same can be said about all etfs that give a dividend or any stocks that gives a dividend. many of the same timeless investing principles also applies to covered call etfs.
Pardon me, but if all those etfs deliver the same or slightly less returns than their benchmark, why wouldn't you just buy the index? From my understanding of your video, the yield is unusable because it's reinvested to match the growth... ? What am I missing? Thanks.
I don't think HBIL is available in all brokerages. I'm a fan of TBIL as an alternative, it's both super flat and gives solid monthly dividends (4.81% currently after the Fed Cuts, it was above 5% before that). I use TBIL to pad my portfolio against a Margin Call
its different in the U.S. they have a different system. the dividends on the canadian ones are very tax efficient but like you pointed out, does not matter in any registered account
I was thinking of selling HDIV and HYLD take some profit and wait for a correction but there I go maybe trying to time the market. I do think the market is inflated but I am trying to learn everyday, love Adriano's' videos. Any thoughts.
Technically it's not an appropriate direct comparison, as hdiv has about 40% us exposure so a more appropriate comparison would be 60 xiu/40 vsp. But I do agree the total returns for hdiv has been super solid
@@jjpandie Yes - exactly. HDIV has impressed me. I'm generally not a fan of the CC ETFs / split funds, but I allow 15% of my capital to be deployed there as an income booster. After following HDIV for a while, and after the fund re-org, I did buy in for about a 3% weighting. It's done well, I have to admit. Your suggestion for a comparison is spot on, I would say.
I hope your not pressured pushing the Leveraged HIGH FEE ETFS, one example QQQY From evolve MER of .72% total return of 42.07 % with Dividends reinvested from Jan 1 2024 , HYLD High Fee MER of 2.64% Total return of 32.97% with Dividends reinvested from Jan 1 2024. I hope this helps your viewers
its not a good comparison . HYLD is basically the SP 500. QQQY only holds tech stocks. its like comparing VOO and IVW. its a false analogy. but here's one that makes more sense: QQQY vs HTAE. HTAE is leveraged so it has a higher mer . but even the base management fee is higher. .85 vs QQQY's .50. But guess what? HTAE is slightly outperforming QQQY . i hope this helps you (and my viewers) :) and no i do not have pressure to do anything. im financially free. do i look like a stressed guy?
Just wondering Why you keep pushing the ETFS with extreamly high fees (ie USCL, QQCL,HYLD, HDIV), all over 2%, why not tell your viewers about ETFS with way lower fees (ie Evolve's QQQY fee of .50%, QMAX , SMAX fee of .65%) New ETFS in Canada JEPQ, JEPI which will have a MER of .35%.
this was covered a million times and does not take a rocket scientist to figure out 1) the MERs are high because they include leverage costs. and 2, total returns are NET of MERs . you talk about jepi and jepq but the etfs i mentioned are all beating them (with higher MERs).... ever thought about WHY? use that brain! you will get there
When have the stock markets dropped 80% in the last 75 years? (Is it that extreme case we all need to plan for?) And even if they dropped by that magnitude, since they are now at near peak levels means that the markets have recovered.
I disagree and think these aren't some type of holy grail of investing, these are new funds and have never experienced a longer term bear market of a year. About a 1% beat on a 7 month time-frame and in a bull market.
You didn't find the holy grail, you just introduced more risk. I thought the whole point of covered calls was to reduce risk by giving up some upside. This just feels like stacking bad ideas for no reason. I know you get paid by these fund companies, but these products seem unwise at best.
It is one thing to say covered call etf’s are close to or possibly beating the S&P, with leverage, because the markets have been on a major bull run, and leverage amplifies the results, but have to wonder what the comparisons would be in a major correction, where the losses are amplified as well. I do have some covered calls in my portfolio, but none are leveraged.
i think they will so just fine. the losses are amplified but the downside protection is also amplified. and dont forget this is long term investing. the CC leveraged ones will compound even more strongly
Again,for C.C. to work u must reinvest most of the yield,so u may as well buy normal ETFs.When u compare C.C. to regular ETFs it includes the yield,go back 5,10,15 years or more,u may as well buy regular ETFs or single stocks.
@@JohnHobbs-o3zlots of advantages of monthly yield: 1. Have it in my LIRA and can use it to buy more or new stocks. 2. Have it in my TFSA and I can take out some yield to pay bills if I’m laid off or want to buy something. 3. There’s something reassuring and exciting about seeing those monthly dividends drop DRIP DRIP DRIP
@@JohnHobbs-o3zyou don’t understand how CC etfs work. You should ask questions instead of making nonsense comments. Knowledge is king. Not wrong opinions.
Thanks Adrian! Yes, totally agree that these are the ideal ETFs for both growth and income.
I have USCL, QQCL, and HYLD. Currently thinking about getting into QDTE and XDTE.
Hello Adriano, my wife and I will be taking a trip to Ecuador. I told her about your channel and how I have been following you for about a year now. Maybe we can stop in Panama and say hello.
For me the holy grail of income investing would be a fund with good yield (at least 8%, hopefully 10+%) whose distributions grow faster than inflation over 10-15+ years. Over that time frame I could see how it performed in all market conditions. That is something that I could live on worry free without having to worry about reinvesting a portion as an inflation hedge. Of course we can't find any of those because none of the most compelling funds are anywhere near old enough to give that sort of history, but holy grails are really wishful thinking.
It doesn't exist
That’s going to be tough. My parent draw on 7-8% and reinvest 2-3% to keep up with inflation.
GLCC if you have a hunch about ongoing fiat debasement. Or physical gold in relative terms. BTC could also be a consideration.
Wait, where does the remaining 89% go then?
EIT-UN has been around for 20+ yrs and on the TSX. Great to diversify this with something like HYLD approx 3 yrs old
100% agree with you Adrian Thanks for the video !
Thanks for covering US ETFS.
USCL has been doing awesome for me. Gives me a nice pimproll every month.
Nice! I was looking for a good core holding to put in my margin account and USCL might just be it. Great growth and a good distribution. I think you really did find the holy grail
RMAX covered call Reit ETF
I been switching to these funds just make Best investing. Thanks always Adriano
First! Thanks Adriano!
Dude. You beat me.
Nice job!
@@PassiveIncomeInvestingIn comparison to JEPQ(I), GPIX(Q), SPYI, QQQI, how well would QDTE and XDTE perform in down markets as far as downside protection? Would the drop be further, or equivalent relative to their peers? It seems the only need to diversify would be for different management styles, seeing they’re all providing the same thing?!? I just think it would be redundant to invest in multiple funds when I can pick out the top fund for each index (S&P 500 and Nasdaq), and keep it simple. Thoughts?
Hey great content as always Adrian, I think more specifically SMAX would be Hamilton's S&P 500 ETF and it's also outperformed the S&P 500 on a total return basis. Same goes for QMAX vs QQQ. Overall I'm very happy with Hamilton ETFs and would highly recommend them to others.
Side note: how are folks looking at 2025? The market has just been ripping higher for a long time. Overdue for a pullback??
Great work as always - love the channel!
HTAE as well is beating most if not all the Nasdaq and S&P funds.
For tech exposure, Nothing beats HTAE. 1 year total return close to 50%...
Just like SVOL used to be a 'favorite", give it a couple months and/or a NSADQ correction and QDTE will be dumped for another sponsor.
lol so silly . None of those you mentioned are sponsors
@@PassiveIncomeInvesting Just waiting for you to dump your "favorite position". Will you at least alert & allow your subscribers the benefit of selling before you sell ?
Hi Adrian, thanks for the content. Would you have any thoughts on the comparison between USCL and CNCL? I’m assuming there is some overlap. Do you prefer one over the other?
@Robert-rr3jt for what it's worth dude, I think they compliment each other greatly. My entire portfolio is 80% USCL and 20% CNCL.
there is no overlap whatsoever , one is TSX60 and the other SP 500
@PassiveIncomeInvesting thanks for clearing that up.
Thanks for the tip on Tsly looking good thus far
Which covered call inedex funds utilize leverage? V
th-cam.com/video/RI0RT1TqLus/w-d-xo.html
Great review Adrian. BTW: XMAG just came out and looks interesting since it is the S&P500, but without the Magnificent 7 Tech Stocks. I hope you get a chance to review it and post a video on this ETF.
If a stock goes up 30% in a year and a covered call ETF gives total return (considering price and dividend) gives 30%, then buying the ETF on drip will be better in long run?does compounding helps the etf in long run?or its the same in bull run?
No. Comparing total return assumes a comparison where distributions are reinvested for both.
When the etf is going up, drip helps the total return due to the compounding, but if its going down, taking the dividend as cash rather than drip, it will perform better in total return, although it would still be a loss, but slightly better than drip, because losses are also compounded.
@@James_48 Taking the dividend as cash without reinvesting it is also part of the total return.
@@Martmi29 true, but re-investing will increase the total return. But, I indeed misspoke. Taking the cash will limit the total return.
yes of course but the same can be said about all etfs that give a dividend or any stocks that gives a dividend. many of the same timeless investing principles also applies to covered call etfs.
Will a 30% lev CC index ETF beat the holy grail in your opinion? If USCL HYLD QQCL are holy grails of income investing then what are YTSL NVHE?
single stocks dont meet the criteria i discussed in the intro :)
Pardon me, but if all those etfs deliver the same or slightly less returns than their benchmark, why wouldn't you just buy the index? From my understanding of your video, the yield is unusable because it's reinvested to match the growth... ? What am I missing? Thanks.
Good episode AdriaN! I’m also a bit concern about leverage effect on a downturn, but drip will dampens negative effect too
why are you concerned about it? you're not excited for a downturn?
I don't think HBIL is available in all brokerages. I'm a fan of TBIL as an alternative, it's both super flat and gives solid monthly dividends (4.81% currently after the Fed Cuts, it was above 5% before that). I use TBIL to pad my portfolio against a Margin Call
Thanks for the comparison video!
Wouldn't Smax beat the s&p?
its not right now
@@PassiveIncomeInvesting
Is it because they don't use leverage?
Love USCL & HYLD
What are your thoughts on AIPI?
Don’t forget these dividends are NON QUALIFIED…. Big factor when deciding
You mean Non-eligible. Agreed, but not important in a TFSA or RRSP
its different in the U.S. they have a different system. the dividends on the canadian ones are very tax efficient but like you pointed out, does not matter in any registered account
Proshare ISPY also beating SPY
not according to the dividend channel total return. close tho
You should check out the Goldman Sachs Covered Call ETF’s GPIQ and GPIX.
Lower yield yes but very nice growing NAV
Well aware of them and they are great . But not beating the index
Is there something with a lower dividend yield that is weekly? I don’t like all these gimmicky funds
gimmicky ? it just sounds like you dont understand them . they are pretty straightforward
@@PassiveIncomeInvesting so ive recently just bought maxi and Xdte. fk it im in XD, im not waiting 20 years for retirement
I was thinking of selling HDIV and HYLD take some profit and wait for a correction but there I go maybe trying to time the market. I do think the market is inflated but I am trying to learn everyday, love Adriano's' videos. Any thoughts.
dont lol
And HDIV is beating XIU and other similar TSX type of funds.
I own HDIV but comparing it to XIU is not appropriate.
that's true !
Technically it's not an appropriate direct comparison, as hdiv has about 40% us exposure so a more appropriate comparison would be 60 xiu/40 vsp. But I do agree the total returns for hdiv has been super solid
@@jjpandie Yes - exactly. HDIV has impressed me. I'm generally not a fan of the CC ETFs / split funds, but I allow 15% of my capital to be deployed there as an income booster. After following HDIV for a while, and after the fund re-org, I did buy in for about a 3% weighting. It's done well, I have to admit. Your suggestion for a comparison is spot on, I would say.
What about defiance spyt ?
I've loving SPYT.
Is JAAA safe? It’s CLO AAA but given what happened in 2008 im antsy 😅
Whar about RDTE ??
too new and it not beating the index
I hope your not pressured pushing the Leveraged HIGH FEE ETFS, one example QQQY From evolve MER of .72% total return of 42.07 % with Dividends reinvested from Jan 1 2024 , HYLD High Fee MER of 2.64% Total return of 32.97% with Dividends reinvested from Jan 1 2024. I hope this helps your viewers
its not a good comparison . HYLD is basically the SP 500. QQQY only holds tech stocks. its like comparing VOO and IVW. its a false analogy. but here's one that makes more sense: QQQY vs HTAE. HTAE is leveraged so it has a higher mer . but even the base management fee is higher. .85 vs QQQY's .50. But guess what? HTAE is slightly outperforming QQQY . i hope this helps you (and my viewers) :) and no i do not have pressure to do anything. im financially free. do i look like a stressed guy?
Just wondering Why you keep pushing the ETFS with extreamly high fees (ie USCL, QQCL,HYLD, HDIV), all over 2%, why not tell your viewers about ETFS with way lower fees (ie Evolve's QQQY fee of .50%, QMAX , SMAX fee of .65%) New ETFS in Canada JEPQ, JEPI which will have a MER of .35%.
Thank you for pointing that out. How come management fee is 0.65% but the MER 2.59%?!?!? Is it like borrowing fees for the leverage?
this was covered a million times and does not take a rocket scientist to figure out 1) the MERs are high because they include leverage costs. and 2, total returns are NET of MERs . you talk about jepi and jepq but the etfs i mentioned are all beating them (with higher MERs).... ever thought about WHY? use that brain! you will get there
25% leverage is very nice, until the market drops 80% 😂😂😂
eating ice cream is nice also, until a meteor crashes into earth and destroys it
When have the stock markets dropped 80% in the last 75 years? (Is it that extreme case we all need to plan for?) And even if they dropped by that magnitude, since they are now at near peak levels means that the markets have recovered.
@@PassiveIncomeInvesting😂
Markets are overbought..need a 20% pullback
dont we all!
Do you DRIP your dividends?
th-cam.com/video/txyA5usp1Eo/w-d-xo.html
I disagree and think these aren't some type of holy grail of investing, these are new funds and have never experienced a longer term bear market of a year. About a 1% beat on a 7 month time-frame and in a bull market.
You didn't find the holy grail, you just introduced more risk. I thought the whole point of covered calls was to reduce risk by giving up some upside. This just feels like stacking bad ideas for no reason. I know you get paid by these fund companies, but these products seem unwise at best.
You are incorrect! Many of the ETFs Adrian talks about, I have in my portfolio. They are performing quite well. Diversification is key.
more risk? explain (if you can)
@@PassiveIncomeInvesting Leverage is risk.
Right now is a great time to get out of covered call ETF's.
your in the wrong channel lol
explain (if you can)
Covered Calls makes up at least half of the income the funds generate. Maximizing Income is what this channel is about not maximizing growth
Leverage can go bad and good, depends on the trend. You won't have the bottom, when things will go south for the few years of correction.