As of early April '24 QQQY has returned about $6.10 in yield and the nav has eroded about $4. So the way I see it someone who bought in on day 1 at about $20 has a 10% return in 7 months. It should be interesting to see if the nav erosion continues in a straight line.
Anyone looking at NAV on anything like TSLY, QQQY, JEPY etc. doesn’t understand the new paradigm of synthetic covered calls nor 0dte. Everyone should 😃
There are now many ETFs on the market that are based on covered calls. The question is, is there an opportunity to sell more calls - are there buyers for all those calls? Therefore, it can be smart to run another strategy, as here in the form of in the money puts.
Well I'll say one thing, Sylvia and Jay are obviously making themselves an absolute boatload of cash with all these risky high yield ETFs at .99% expense ratios. Money must be pouring in like water from a faucet. I prefer a more moderate approach like JEPI. These 60% yields are clearly not sustainable (4 months in and the dividend has gone from $1.10 to $.62, with yield down to 40%, even during a bull Nasdaq run). This seems like one of those "works until it doesn't" type investments that will make some people very good money while eventually going to zero when something breaks and the Nasdaq crashes.
I was wondering if it's a good idea to sell my DGS and buy JEPY and/or QQQY. I'm starting to loose patience with DGS as it's only paid out 3 times this year so far. That puts its yield closer to 5%, not 27...I know DGS is a good buying opportunity, but if it does this so much (not paying out), I'm not sure if it's worth it....
Not quite. He said if they manage the puts and the payouts well, it works well but more like 33%. But if left on auto, doesn't work well over black swan events etc
As each month passes will the yield be less and less until the yield is zero. Every month the distribution is consistently less and less. Are you a little nervous considering you are all in on JEPY & QQQY?
Hi Adrian. Not a hater just a skeptic. I may not fully understand the strategy, but if they sell a put every day they only make money if nasdaq goes up or stays flat. And the upside is ONLY the put premium. The downside is unlimited and a day like yesterday they would have lost 2% vs make .25%. Then it’s another 10 successful days just to get back to even. I LOVE the idea of 50 or even 30% returns but they would need to be right on their put almost all the time. Am I missing something here?
(they thrive in a bear market), while it might protect a small % of the downside, that is by no means thriving.. Very dangerous misinformation in the hands of some gullible diy investors.
I bought QQQY and JEPY the day they launched. With these types of funds, I ask myself: Will they pay at least 25 percent annually? Yes. Then I’m in. Both of these will be at least 3 percent of my portfolio and I’ll use the divs to buy my core ETFs. Thanks for another video 💥
my thoughts exactly. i was surprised by the frist distribution. i think they overshot to generate BUZZ but hell, even at 25-30% yield im sold. much less risk than the YMAX ETFs i think.
@@PassiveIncomeInvestingexactly. What else has these yields besides YM and Defiance? Nothing. There will be some days that QQQY and JEPY tank in this market. To be expected and I don’t care. I’m looking at the average over many months, the big picture.
I’ve been waiting for something like this to add into my RRSP maybe alongside QQQM & JEPI thinking to add these in as soon as I have the funds for it :) Love that they follow the index instead of just one stock.. thanks Adriano
Great interview and very informative. I've just purchased a small amount (100 shares each) of QQQY and JEPY to see how this works out for my income generating goals as I watch these over the next few months.
2023 is a brutal year for split fund investing and passive income investing in general. Many funds slashed or even stopped dividend payout. Capital also decreased a lot. I suspect that even smart guys like Andrea loses a lot of money on paper. Painful!
Well he brings on people that sell that stuff and gets revenue from pushing this trash, just zoom out and you will realize non of his suggestions yielded any gain over the last 3 years. FTN -10% today after -8% yesterday.... wiped out all my dividends of 2 years. When everything goes up guys like this look like geniuses. But now when you need actual smart people I realize that this is all sneak oil.
@@georgeorwell7291 Bro, you have to manage your own risk. Look for ways to hedge or mitigate the downside risks. Don't overexpose, scale out, sell high then rebuy at discount to NAV, etc. And 2023 has been bad for some income portfolios in certain sectors, there now could be nice upside in 2024 where you could potentially earn some or most of it back (depending on the dividend investment and sector).
QQQY is -14%, JEPI -11%, JEPQ +4%, QYLD -28% all since inception without the dividend reinvested. What am I missing please. Is the divided good enough to get it back to even or do you take the dividend and let the EFT erode??
@satstacker6306 no it's not cash secured, you can't buy the index, they are simply selling a naked put and accepting whatever loss they get for day, they can lose the daily fluctuation to the bottom, but when they win they win the premium collected on the put, not the movement up, and their cash is invested in treasuries that pay 5%, cause when you sell a put you dont need actual cash, you just need buying power
I'm new to all this dividend stock stuff... if this is 60+% yield, then why shouldn't I do 80% of my portfolio on QQQY? Why does Adrian only have 10-11% of his portfolio in QQQY? I'm a high risk taker... is it advisable for me to buy only QQQY (100% of portfolio)?
Thanks Adrianno for the video. I’m going to wait until the new year before I decide to take up a position in either of these funds when I got RRSP room available.
Sold out of OARK today and went all in at QQQY and JEPY. I like being invested in a large index instead of a smaller ETF. Kathy Wood drives me crazy, she thinks the world works perfectly!
Thanks for the update. When to invest is important otherwise you lose investment amount even if you get yield on it . Lose one and gain on yield not worth at high price
It would be great if there was more ground covered on how they are preventing NAV erosion. Stable NAV is key for these high income ETFs. KLIP is a good example of how nit to do it as KLIP appears to be headed to zero. Jepi, jepq and SVOL are what i am looking for - high monthly distributions with stable NAV.
If the initial investment is returned within two years then it pays off, two years later I stay with the fund and a fixed income for life, where am I going wrong?
It would seem to me that a covered call fund would profit as the underlying security went down in the value, thus the calls which were sold expire worthless. Just the opposite for a put fund.
These are cash secured and cash settled. There will be no assignment and there will never be shares put to you. They cannot sell more puts that the cash can cover, there is no leverage or borrowing from a broker to cover puts.
Looks like it's a 1.10 per share for qqqy. I was going to kind of watch and see 👀 but yeah so far impressive. & 90 cents for jepy. It was a bit confusing because it was bringing up jepi when I search for jepy.
Thanks for the informative Videos Adrain! I know what the expected outcome for the funds in the video are during normal times. I would like to be prepared for the highest risk scenario. Can you ask your guests what the outcome would be for these 0DTE ETFs that use naked PUTS in a market flash crash, such as in 1987? Dave
From the prospectus of QQQY is the following. " Further, if the Index level drops below 100 at expiration minus an amount equal to the puts’ time value, the Fund would lose money. So, if the Fund sold the option for 0.50 of time value, the Fund would lose money if the Index fell below 99.5. The Fund would be obligated to pay the holder of the put option the difference between the strike price and the actual level of the Index, multiplied by the contract multiplier (usually 100 for equity index options). " So if the market tanked 22% in one day like it did in 1987 the following scenario would occur. Taking QQQ as a proxy for the NASDAQ the ATM PUT (370) for OCT 16 is valued at about $2.60. If the 1987 scenario happened today this PUT it would be worth more than $60 at expiry ( not considering the huge increase in implied volatility). Assuming the fund sells $1,000,000 PUTs they would have to sell treasuries to buy them back at more than $12,000,000. I believe the fund would not be able to recover from such a loss. Hopefully they have Stop Loss provisions for this or they buy way OTM PUTs similar to SVOL buying OTM calls for such black swan events.
In fact I have placed some bids on both this morning in Asia and they both reflecting the Div stripped out so I would say definately no you missed the boat as did I 😃
Just found your channel a few weeks ago. I'm enjoying the dividends on YieldMax and Defiance. The question that keeps going through my mind as I calculate what might be possible in terms of income over the next few years is, can these yields be maintained? If you put these ETFS through a dividend calculator and you drip them, the returns are amazing. I've been telling people that you have to throw out everything you know about normal dividends with these covered call strategies. Yet, I have to admit the question keeps coming to my mind too. What are your thoughts on the sustainability of this strategy?
100% sustainable because option income is infinite. but the distributions will vary from month to month and you need to understand how the fund works and expect a drop every month on ex date. if your dripping, it will cause a huge compound interest effect, but you gotta expect a decline in stock price over time. its very hard to predict because this a new options strategy
@@PassiveIncomeInvesting Thank you. Agree with everything you’re saying. It’s that last part that concerns me. The yield can overcome significant drops and several of these will have runs because of the underlying. The models I run indicate a falling share price actually accelerates growthJust wondering if the share price risk becoming a problem at some point. I guess we enjoy the returns today and cross that bridge if t comes.
When nav falls when dividend is distributed they use the nav to pay dividends then nav comes back up in a couple weeks or so stock will be a little higher for next dividend usually in a bull market but it's hard to play dividends in bear market you probably just be spinning your wheels that's just my theory someone correct me if I'm wrong
@nicholaskenrick429 take out $1.10 for the 1st 2 weeks. Then, what will the distribution be on a month? $2? Share price has to fight to come back. Look at KLIP. Watch.
Hi Adriano - Thanks for the video. To me there are two key questions for this ETF. 1. What exact percentage of the fund is short 0 DTE puts versus cash+treasuries. It looks like 0.75% of the fund is short the actual ETFs. 2. If the Nasdaq has an extreme crash how hard can that affect the funds cash reserves. In this scenario the 0 DTE puts cash settlement is now bigger than the premium collected and a loss will be incurred. This will mean less 0 DTE options can be sold next time. In most extreme circumstances the cash / treasuries could be eaten up. How likely is this?
I asked the exact same question, and crickets. She claims that the fund is not selling naked puts, that they are backed by treasuries and cash - of course the etf needs some margin. She is a salesman.
Black Swan events happen more frequently than stats say they should. You could make a ton for several years in a row, then BANG, the fund is insolvent. and you lose everything.
Shorting in the money puts? What if market falls after hours and they got assigned for the whole bunch of puts they have sold. Do they have enough cash to sustain this assignment or they intend to borrow on margin? And if they got assigned will they going to sell calls to get the premium? Andrian, please clarify those questions with her? Thanks
Perhaps a chart then, showing divys re invested with comparison to QQQ? Just trying to figure net gain (or loss) for an IRA. great video btw, sure causes one to think deeper.@@PassiveIncomeInvesting
Thanks for in-depth review. It would be really interesting to see how these will fare in a prolonged bear market like we had in 2022. My guess is that the drawdowns will be really big as the puts will be out of money and incurring losses as they settle in cash each day. The drawdowns will be bigger than income and they don’t have any protection or protective puts. It can few very well in bull markets though.
(they thrive in a bear market), while it might protect a small % of the downside, that is by no means thriving.. Very dangerous misinformation in the hands of some gullible diy investors.
QQQY has just paid the dividend of 1.1$ per share, and the price of underlying dropped by that exact amount from 19 to 17.9. That means after 18 months QQQY will cost 0$ after paying all the dividends to investors. It is a high-risk investment, think twice before getting in
Yeah and 15.28 today before the distribution. The purpose of these funds is to pay all income to the investor and it’s up to you to decide how much to keep/ reinvest . It’s their job to work the 0DTE options properly to try and recover the amount paid out in distributions. But that is proving to be difficult.
Nice introduction video of these high yield ETFs and love the QA. Whenever I see something gives out this massive amount of dividend, my first thought is to buy buy buy, but then a little voice in my head tells me to stop and do more research on it. 😁 After watching your video about these ETFs and how 0DTE works, I am a lot of more comfortable of owning them. I guess I will miss first distribution, but I will get the ones after that.
when you consider the NAV erosion, the return is about 24%
As of early April '24 QQQY has returned about $6.10 in yield and the nav has eroded about $4. So the way I see it someone who bought in on day 1 at about $20 has a 10% return in 7 months.
It should be interesting to see if the nav erosion continues in a straight line.
Anyone looking at NAV on anything like TSLY, QQQY, JEPY etc. doesn’t understand the new paradigm of synthetic covered calls nor 0dte. Everyone should 😃
Dude, you've been doing this long enough to have learned how to say decimals properly. Sorry, pet peeve.
There are now many ETFs on the market that are based on covered calls. The question is, is there an opportunity to sell more calls - are there buyers for all those calls?
Therefore, it can be smart to run another strategy, as here in the form of in the money puts.
Soon, there will be more sellers than buyers.
Great interview and very informative Q&A. Nice job. I've invested in QQQY, JEPY, KLIP, OARK, TSLY, NVDY and CONY all in my IRA.
Well I'll say one thing, Sylvia and Jay are obviously making themselves an absolute boatload of cash with all these risky high yield ETFs at .99% expense ratios. Money must be pouring in like water from a faucet.
I prefer a more moderate approach like JEPI. These 60% yields are clearly not sustainable (4 months in and the dividend has gone from $1.10 to $.62, with yield down to 40%, even during a bull Nasdaq run).
This seems like one of those "works until it doesn't" type investments that will make some people very good money while eventually going to zero when something breaks and the Nasdaq crashes.
I was wondering if it's a good idea to sell my DGS and buy JEPY and/or QQQY. I'm starting to loose patience with DGS as it's only paid out 3 times this year so far. That puts its yield closer to 5%, not 27...I know DGS is a good buying opportunity, but if it does this so much (not paying out), I'm not sure if it's worth it....
fortune favours the patient
Average Joe investor did a back test on this. 60% of the time, it works every time. 😎
Stay classy ;)
Not quite. He said if they manage the puts and the payouts well, it works well but more like 33%. But if left on auto, doesn't work well over black swan events etc
As each month passes will the yield be less and less until the yield is zero. Every month the distribution is consistently less and less. Are you a little nervous considering you are all in on JEPY & QQQY?
nope. i suggest you see my latest QQQY /JEPY videos.
Hi Adrian. Not a hater just a skeptic. I may not fully understand the strategy, but if they sell a put every day they only make money if nasdaq goes up or stays flat. And the upside is ONLY the put premium. The downside is unlimited and a day like yesterday they would have lost 2% vs make .25%. Then it’s another 10 successful days just to get back to even.
I LOVE the idea of 50 or even 30% returns but they would need to be right on their put almost all the time. Am I missing something here?
its not a 50% return its a 50% yield . you are overthinking it. this is very similar to SPYI, JEPI and JEPQ
(they thrive in a bear market), while it might protect a small % of the downside, that is by no means thriving.. Very dangerous misinformation in the hands of some gullible diy investors.
I bought QQQY and JEPY the day they launched. With these types of funds, I ask myself: Will they pay at least 25 percent annually? Yes.
Then I’m in. Both of these will be at least 3 percent of my portfolio and I’ll use the divs to buy my core ETFs.
Thanks for another video 💥
my thoughts exactly. i was surprised by the frist distribution. i think they overshot to generate BUZZ but hell, even at 25-30% yield im sold. much less risk than the YMAX ETFs i think.
@@PassiveIncomeInvestingexactly. What else has these yields besides YM and Defiance? Nothing. There will be some days that QQQY and JEPY tank in this market. To be expected and I don’t care. I’m looking at the average over many months, the big picture.
what are some of your core ETFs ? newbie here, looking for guidance
The underlying index is the risk.@MrLeooreo
@@PassiveIncomeInvestingdo you still prefer Defiance over YMAX?
Thanks for the video Adrian. Started a position with $1000 each in QQQY and JEPY. Will give it a few months to review.
Results?
It is a naked put! Backed by treasuries and cash, of course, you need margin.
Jumped into these yesterday... starting small to see how it works out or until the volume picks up on them as well as the Net Assts grow.
thank you for bringing her on. I invested into 500 shares today . a follow up interview in a year would also be great.
Any protection against overnight crisis?
What happens to these funds when the interest rates go down? Any predictions?
they are just broad based indexes. normally stock go up when rates go down . key word normally. this is why i never try to predict anything
@@PassiveIncomeInvesting Hi Adriano....how do these paying such a high monthly div recover from the ex-date value drop each month
I’ve been waiting for something like this to add into my RRSP
maybe alongside QQQM & JEPI thinking to add these in as soon as I have the funds for it :)
Love that they follow the index instead of just one stock.. thanks Adriano
me 2, nothing safer than a diversified index, especially the SPX
Great interview and very informative. I've just purchased a small amount (100 shares each) of QQQY and JEPY to see how this works out for my income generating goals as I watch these over the next few months.
Glad it was helpful!
Do you think this would be a good option to occupy small position in TFSA? If not what would be your reasoning? Thanks a lot 🙏
th-cam.com/video/XCAVzeFaFX0/w-d-xo.html
When does Defiance pay their dividends?
Won't the ETFs get destroyed in a black swan event? Any protection against that?
dude its the nasdaq100 and s&p 500 indexes. put them next to qqq, spy, jepi and jepq . they do the same thing
Still performing some due diligence but as of now, as long as my mortgage is covered I am willing to sacrifice the NAV
remember that these monthly distributions can vary greatly. we will have to wait and see
Nice vid - so both these can b bought within the rrsp ( to avoid withholding tax) right?
2023 is a brutal year for split fund investing and passive income investing in general. Many funds slashed or even stopped dividend payout. Capital also decreased a lot. I suspect that even smart guys like Andrea loses a lot of money on paper. Painful!
Well he brings on people that sell that stuff and gets revenue from pushing this trash, just zoom out and you will realize non of his suggestions yielded any gain over the last 3 years. FTN -10% today after -8% yesterday.... wiped out all my dividends of 2 years. When everything goes up guys like this look like geniuses. But now when you need actual smart people I realize that this is all sneak oil.
@@georgeorwell7291 Did you sell FTN?
@@georgeorwell7291 Bro, you have to manage your own risk. Look for ways to hedge or mitigate the downside risks. Don't overexpose, scale out, sell high then rebuy at discount to NAV, etc. And 2023 has been bad for some income portfolios in certain sectors, there now could be nice upside in 2024 where you could potentially earn some or most of it back (depending on the dividend investment and sector).
Have JEPY, QQQY & YMAX.
This is an outstanding overview and education session; thank you!
Down over 20% since inception, though
nope! looking at the stock chart for something that gives you high income is 100% useless.
I have 125 each of JEPY QQQY & IWMY. Will see how they behave B4 adding more. Also waiting for YMAX to launch.
I sold all my qyld shares due to the poor performance and low dividend.
what did you buy instead?
@@PassiveIncomeInvesting TSLY
Thanks for the video, I have 500 shares QQQY I’m gonna invest the dividends in JEPY for diversification
How performs if market declines?
like any other covered call ETF. understand covered call ETFs and you will be able to answer your own question
so how much would you make per month if you put 50k into qqqy or jepy ?
well it will vary from month to month
@@PassiveIncomeInvesting lets use 67 % as the rate what would an investor made that month that it paid that rate with 50k?
New ETF from JP Morgan HELO
QQQY is -14%, JEPI -11%, JEPQ +4%, QYLD -28% all since inception without the dividend reinvested. What am I missing please. Is the divided good enough to get it back to even or do you take the dividend and let the EFT erode??
QQQY is not -14% .......... looking at stock charts is 100% useless. you'll figure it out eventually
Do you have by month the performance?
performance data on their website.
WhAT? This is super risky, and it is a naked put.
Cash secured put write, no leverage.
@satstacker6306 no it's not cash secured, you can't buy the index, they are simply selling a naked put and accepting whatever loss they get for day, they can lose the daily fluctuation to the bottom, but when they win they win the premium collected on the put, not the movement up, and their cash is invested in treasuries that pay 5%, cause when you sell a put you dont need actual cash, you just need buying power
I'm new to all this dividend stock stuff... if this is 60+% yield, then why shouldn't I do 80% of my portfolio on QQQY? Why does Adrian only have 10-11% of his portfolio in QQQY? I'm a high risk taker... is it advisable for me to buy only QQQY (100% of portfolio)?
its not about risk, its about understand these funds and how they work. Yield does NOT equal return
Interested to see how these fund’s perform in the near future. Keep up the great content!
Thanks Adrianno for the video. I’m going to wait until the new year before I decide to take up a position in either of these funds when I got RRSP room available.
Good choice!
Brother could you review Harvest's newest ETF HPYT? What is this treasury bonds all about and how can they maintain such a high yield?
What about time decay?
Sold out of OARK today and went all in at QQQY and JEPY. I like being invested in a large index instead of a smaller ETF. Kathy Wood drives me crazy, she thinks the world works perfectly!
im keeping mine and might add more. holding OARK with QQQY is great. traditional innovation and future innovation ON DRIP lol
You Canadians and US people really are spoiled with all these options of income ETFs! Launch more UCITS in Europe pretty please
What will be the impact of buying equal value of QYLD & JEPY at same time?
You forgot about ( IWMY )
look at the publishing date of this video.... it was not out then
Thanks for the update. When to invest is important otherwise you lose investment amount even if you get yield on it . Lose one and gain on yield not worth at high price
It would be great if there was more ground covered on how they are preventing NAV erosion. Stable NAV is key for these high income ETFs. KLIP is a good example of how nit to do it as KLIP appears to be headed to zero.
Jepi, jepq and SVOL are what i am looking for - high monthly distributions with stable NAV.
Yes anyone have ideas how to assess nav erosion
The ticker is already down 8% since launch
@@Trader-M which one?
How to protect against black swan event?
Amen! NAV / Price decline is the biggest issue.
Great video Adrian😊
Thank you 🎉
Nice arms 😊
Divs cut down to 20% now so what does that say? Still high lol. But sustainable?
divs do not get "cut" they vary based on Volatility
If the initial investment is returned within two years then it pays off, two years later I stay with the fund and a fixed income for life, where am I going wrong?
yes you could kind of look at it that way but the distributions are not fixed so it could take longer than 2 years, but yes its a possibility.
Is it possible to get backtesting done for this in different scenarios?
Price is 14% down since inception 😢
It would seem to me that a covered call fund would profit as the underlying security went down in the value, thus the calls which were sold expire worthless. Just the opposite for a put fund.
i think its the same because they are ITM PUTS
Unfortunately, I don’t have an RRSP so I would love to know when a Canadian version exists!
Even with the withholding tax, this is worth it.On top of RRSP, I also have it in TFSA and non-registered account.
Looking forward to what a full month of divvy will look like at the end of this month!
I would have liked to seen some of back tests they did, especially against the big Covid drop and then rally, 2008, etc
Daily options came out in 2022 …
@@PassiveIncomeInvesting Great point, but then their claim of back testing it is not worth much unless they had simulations of daily option trades.
These are cash secured and cash settled. There will be no assignment and there will never be shares put to you. They cannot sell more puts that the cash can cover, there is no leverage or borrowing from a broker to cover puts.
What's the risk ? A series of declining days and having to sell EOD which caused fund nav to decline us that it ?
But you can still lose all your equity in one day on a black swan event, which happens more frequently than stats say they should.
It is not like holding the qqq...ah man now I have to make a video
If it sounds good to be true, you know the rest. Diversify across strategies, assets classes, markets and geography
It's all pretty awesome to me.
Looks like it's a 1.10 per share for qqqy. I was going to kind of watch and see 👀 but yeah so far impressive. & 90 cents for jepy. It was a bit confusing because it was bringing up jepi when I search for jepy.
Thanks dude
0DTE = Zero Days To Expiration
@@gmax0🤡
Correct
Thanks for the informative Videos Adrain! I know what the expected outcome for the funds in the video are during normal times. I would like to be prepared for the highest risk scenario. Can you ask your guests what the outcome would be for these 0DTE ETFs that use naked PUTS in a market flash crash, such as in 1987? Dave
they dont use naked PUTS. they are cash covered. to me the risk is the same as holding the underlying .
From the prospectus of QQQY is the following.
" Further, if the Index level drops below 100 at expiration minus an amount equal to the puts’ time value, the Fund would lose money.
So, if the Fund sold the option for 0.50 of time value, the Fund would lose money if the Index fell below 99.5. The Fund would be
obligated to pay the holder of the put option the difference between the strike price and the actual level of the Index, multiplied by
the contract multiplier (usually 100 for equity index options). "
So if the market tanked 22% in one day like it did in 1987 the following scenario would occur. Taking QQQ as a proxy for the NASDAQ the ATM PUT (370) for OCT 16 is valued at about $2.60. If the 1987 scenario happened today this PUT it would be worth more than $60 at expiry ( not considering the huge increase in implied volatility). Assuming the fund sells $1,000,000 PUTs they would have to sell treasuries to buy them back at more than $12,000,000. I believe the fund would not be able to recover from such a loss. Hopefully they have Stop Loss provisions for this or they buy way OTM PUTs similar to SVOL buying OTM calls for such black swan events.
@@daveaxe6755 Are they hedged in anyway according to what you read in the prospectus? Stop losses are useless in a crash!
on a 22% down day, they would lose 22% minus the premium they received for the put, these are not naked puts@@daveaxe6755
Talks to fast, beware
Question: If I buy QQQY and JEPY on Monday (Ex Div date) in the pre market, let's say 1 hour before market opens, will I still get the dividend?
I very much doubt it as trade date already Oct 2, that’s how futures would work not 100% on this ETF tho
I might be wrong tho !
In fact I have placed some bids on both this morning in Asia and they both reflecting the Div stripped out so I would say definately no you missed the boat as did I 😃
Just found your channel a few weeks ago. I'm enjoying the dividends on YieldMax and Defiance. The question that keeps going through my mind as I calculate what might be possible in terms of income over the next few years is, can these yields be maintained? If you put these ETFS through a dividend calculator and you drip them, the returns are amazing. I've been telling people that you have to throw out everything you know about normal dividends with these covered call strategies. Yet, I have to admit the question keeps coming to my mind too. What are your thoughts on the sustainability of this strategy?
100% sustainable because option income is infinite. but the distributions will vary from month to month and you need to understand how the fund works and expect a drop every month on ex date. if your dripping, it will cause a huge compound interest effect, but you gotta expect a decline in stock price over time. its very hard to predict because this a new options strategy
@@PassiveIncomeInvesting Thank you. Agree with everything you’re saying. It’s that last part that concerns me. The yield can overcome significant drops and several of these will have runs because of the underlying. The models I run indicate a falling share price actually accelerates growthJust wondering if the share price risk becoming a problem at some point. I guess we enjoy the returns today and cross that bridge if t comes.
So it's very risky in other words you think
I don’t understand when dividend distributed nav falls same amount but what is gain here at the end?
When nav falls when dividend is distributed they use the nav to pay dividends then nav comes back up in a couple weeks or so stock will be a little higher for next dividend usually in a bull market but it's hard to play dividends in bear market you probably just be spinning your wheels that's just my theory someone correct me if I'm wrong
Do a video on BALI, HELO and REX shares too.
Capital erodes with time?
who cares about the capital
@@blanksy_-sane investors care about theie capital.
???
@nicholaskenrick429 take out $1.10 for the 1st 2 weeks. Then, what will the distribution be on a month? $2? Share price has to fight to come back. Look at KLIP. Watch.
@@blanksy_-hahaha
Hi Adriano - Thanks for the video. To me there are two key questions for this ETF. 1. What exact percentage of the fund is short 0 DTE puts versus cash+treasuries. It looks like 0.75% of the fund is short the actual ETFs. 2. If the Nasdaq has an extreme crash how hard can that affect the funds cash reserves. In this scenario the 0 DTE puts cash settlement is now bigger than the premium collected and a loss will be incurred. This will mean less 0 DTE options can be sold next time. In most extreme circumstances the cash / treasuries could be eaten up. How likely is this?
I asked the exact same question, and crickets. She claims that the fund is not selling naked puts, that they are backed by treasuries and cash - of course the etf needs some margin. She is a salesman.
Black Swan events happen more frequently than stats say they should. You could make a ton for several years in a row, then BANG, the fund is insolvent. and you lose everything.
0.75 playback speed 🤌🏻🤷♂️
right now all my vids are sped up 12 % . i think its a good speed . maybe fast at times but good thing you can rewind
Great video Adrian. I've been looking at this ETF'S and WOW 50 to 60%😮. Thank you
Shorting in the money puts? What if market falls after hours and they got assigned for the whole bunch of puts they have sold. Do they have enough cash to sustain this assignment or they intend to borrow on margin? And if they got assigned will they going to sell calls to get the premium?
Andrian, please clarify those questions with her? Thanks
They use cash settled options
Bro waiting for it to show up on WS in fractional form 🙂🙂🙂
It doesn't even trade there...
Soon they are catching up@@mxdwatchin
It does now
Firstly ~
I don’t see either one on WealthSimple - yet, anyway.
NOT INTERESTED!!!
Fantastic, thanks Adriano!
Interesting video. Think I’ll take a position of 1% of my portfolio in QQQY in my RRIF and see how it feels after a few months…then maybe add more.
V nice well done finding these newbies
QQQY has lost over 11% stock price while QQQ has lost 0 since inception(2 months). Comparison does not include divys.. Tough call imo.
does not include divys? then its a 100% useless comparison my friend
Perhaps a chart then, showing divys re invested with comparison to QQQ? Just trying to figure net gain (or loss) for an IRA.
great video btw, sure causes one to think deeper.@@PassiveIncomeInvesting
Thanks for in-depth review. It would be really interesting to see how these will fare in a prolonged bear market like we had in 2022. My guess is that the drawdowns will be really big as the puts will be out of money and incurring losses as they settle in cash each day. The drawdowns will be bigger than income and they don’t have any protection or protective puts. It can few very well in bull markets though.
they act like a covered call etf. they thrive in a bear market.
qqq up 7% and qqqy down 14% since inception of qqqy
(they thrive in a bear market), while it might protect a small % of the downside, that is by no means thriving.. Very dangerous misinformation in the hands of some gullible diy investors.
QQQY has just paid the dividend of 1.1$ per share, and the price of underlying dropped by that exact amount from 19 to 17.9. That means after 18 months QQQY will cost 0$ after paying all the dividends to investors. It is a high-risk investment, think twice before getting in
of course, price rises before ex-div date, then when div is paid, price will drop by same amount - over and over again.
18.84 today
19.04 close today
If it sounds good to be true, you know the rest. Diversify across strategies, assets classes, markets and geography
Yeah and 15.28 today before the distribution. The purpose of these funds is to pay all income to the investor and it’s up to you to decide how much to keep/ reinvest . It’s their job to work the 0DTE options properly to try and recover the amount paid out in distributions. But that is proving to be difficult.
Nice introduction video of these high yield ETFs and love the QA. Whenever I see something gives out this massive amount of dividend, my first thought is to buy buy buy, but then a little voice in my head tells me to stop and do more research on it. 😁 After watching your video about these ETFs and how 0DTE works, I am a lot of more comfortable of owning them. I guess I will miss first distribution, but I will get the ones after that.
take your time... watch them closely like I am but so far, they do exactly what JEPI/JEPQ does