🎉 Great vid! 🎉 My portfolio is split in 3 parts: Growth, Defense (counterbalancing risks of 'Growth'), and Income (since 2 yrs). Foundation for Defense as well as Income is SCHD, for Income complemented with several CEF (like ASGI/infrastructure, IGR/int'l real estate services, or FSCO/credit opportunities...), as well as several ETF with options overlay (like SVOL, SPYI, QQQI...). Should give me *some* downside protection (acc. to my risk profile / loss tolerance).
Hi FOF! I've subscribed and watched several of your videos. Very good and helpful information. Thank you. It seems like you're drawing a distinction between lower yielding dividend income funds and some of the more recent higher yielding funds like SPYI, JEPQ, GPIX etc. which you've reviewed and generally don't like for the long term. But I don't know or haven't seen which dividend income funds you do like and recommend. Have you made those videos? Or could you do a video on those recommends? Thank you.
Thank you! Have you watched the most recent video on svol? That's the best one I've seen so far. We did a video a few months ago comparing schd to cgdv and I think those are also good (but not yielding anything like 10+%). I will keep doing more of these videos covering more and more funds as well. Thanks for watching!
@@FundamentalsofFinance Hey yes. I got to your videos with the one on SVOL which I owned and sold but going to get back into it partially due to your take on it. Makes sense for diversification. But your take on the covered call ETFs have me concerned. I thought JEPI had kinda proved the concept by getting huge and performing reasonably well. I also thought that some of the ones you cover like JEPI, SPYI and GPIX would be safer than the S&P / VOO because they have lower betas and pay a dividend while you wait foir recovery. Is that not the case? The Nasdaq centered funds of course have higher betas but still similar to S&P. After the above comment I did see the video on DIVO with you liking that one better. Thanks for the great help. Much appreciated.
Wow. Excellent video. I just subscribed. Thanks. Any thoughts on annuities? I am desperate to come up with an income plan as I must retire earlier than I wanted to -end of year at age 59 and with less money than I was hoping for by now.
Oh dang that's a tough one. Well, they certainly can make sense for someone worried about running out of money but they also are not the only way and not always the best way. Often they are not the best way. I would recommend interviewing 3 financial advisors and going with the one you trust the most. I used to be one back in the day... and this sounds like a much more complicated situation than can be handled in a TH-cam comment! Best of luck!
About TDVI (source: stockanalysis): "...the fund also utilizes a *naked call writing* option strategy on the Nasdaq 100 Index (NDX) and/or the S&P 500 Index (SPX) or related ETFs." Perplexity on covered vs naked call writing: "A *covered call* strategy involves selling call options on a stock that the investor already owns. This strategy limits potential losses because the investor can deliver the shares if the option is exercised, offering a safer approach with limited upside. In contrast, a *naked call* strategy involves selling call options without owning the underlying stock. This exposes the investor to theoretically unlimited losses if the stock price rises significantly, as they must purchase shares at the market price to fulfill their obligation." Maybe that helps - food for thought.
We discussed it and decided it would have too little shelf life (no one would view it after the first day) but I'll answer here. There are lots of recession indicators flashing red, but you can poke holes in a lot of them as being distorted by covid irregularities (like the rising unemployment rate being partially driven by lots of people re-entering the labor force instead of layoffs). Coming into the year in our 2024 outlook I thought we could have a recession (or at least slowing growth) this year and the weakening consumer would be the driver. We are seeing signs that the low-end consumer is weakening as stimulus money is running out, as I expected. However, the key question is whether that gets worse and extends to middle class consumers next, impacting profitability. TBD. This is way more important than how fast they cut rates imo. With respect to rates, I do think investors are set up for disappointment right now. Lots of rate cuts are priced in and I think you're very unlikely to see that many that fast without a recession, which to me does not seem imminent. Absent a recession (which would disappoint investors in its own right) I think inflation will remain sticky and cause the fed to cut at a slower rate than the market currently expects. That could lead to rising rates in the middle of the yield curve, slowing earnings growth, and falling equity valuations. Plenty of other factors can overwhelm this to the upside or downside so I don't want to overplay it, but that's how I am thinking about the path of rates and their impact on the economy/stock market.
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Ethan can you please make a video on yieldmax funds, exp YMAX, YMAG, MSTY, etc
Love your videos. Very high quality
Thank you!
Great Info! Thanks again for a great video
Thank you!
Excellent information and very helpful at this moment. Thank you for sharing your knowledge and expertise.
No problem! That's what we're here for! Glad it was helpful!
This answer my inquiries from my comment in the last video! Thank you for the info and honesty.
No problem! Thanks for watching and commenting!
Very informative.
Thank you!
Could you create a video comparing JAAA, JBBB, ECC, and CLOZ ETFs, highlighting their differences and associated risks?
Great info!
Thankyou. Honesty is hard to find
Thank you!
Excellent Video. Which Income ETFs can do well in Bearish trends ?
🎉 Great vid! 🎉 My portfolio is split in 3 parts: Growth, Defense (counterbalancing risks of 'Growth'), and Income (since 2 yrs). Foundation for Defense as well as Income is SCHD, for Income complemented with several CEF (like ASGI/infrastructure, IGR/int'l real estate services, or FSCO/credit opportunities...), as well as several ETF with options overlay (like SVOL, SPYI, QQQI...). Should give me *some* downside protection (acc. to my risk profile / loss tolerance).
Hi FOF! I've subscribed and watched several of your videos. Very good and helpful information. Thank you. It seems like you're drawing a distinction between lower yielding dividend income funds and some of the more recent higher yielding funds like SPYI, JEPQ, GPIX etc. which you've reviewed and generally don't like for the long term. But I don't know or haven't seen which dividend income funds you do like and recommend. Have you made those videos? Or could you do a video on those recommends? Thank you.
Thank you! Have you watched the most recent video on svol? That's the best one I've seen so far. We did a video a few months ago comparing schd to cgdv and I think those are also good (but not yielding anything like 10+%). I will keep doing more of these videos covering more and more funds as well. Thanks for watching!
@@FundamentalsofFinance Hey yes. I got to your videos with the one on SVOL which I owned and sold but going to get back into it partially due to your take on it. Makes sense for diversification. But your take on the covered call ETFs have me concerned. I thought JEPI had kinda proved the concept by getting huge and performing reasonably well. I also thought that some of the ones you cover like JEPI, SPYI and GPIX would be safer than the S&P / VOO because they have lower betas and pay a dividend while you wait foir recovery. Is that not the case? The Nasdaq centered funds of course have higher betas but still similar to S&P. After the above comment I did see the video on DIVO with you liking that one better. Thanks for the great help. Much appreciated.
Wow. Excellent video. I just subscribed. Thanks. Any thoughts on annuities? I am desperate to come up with an income plan as I must retire earlier than I wanted to -end of year at age 59 and with less money than I was hoping for by now.
Oh dang that's a tough one. Well, they certainly can make sense for someone worried about running out of money but they also are not the only way and not always the best way. Often they are not the best way. I would recommend interviewing 3 financial advisors and going with the one you trust the most. I used to be one back in the day... and this sounds like a much more complicated situation than can be handled in a TH-cam comment! Best of luck!
Thanks!
TDVI tracking TDIV seems to be pretty good. Could you analyze it?
About TDVI (source: stockanalysis): "...the fund also utilizes a *naked call writing* option strategy on the Nasdaq 100 Index (NDX) and/or the S&P 500 Index (SPX) or related ETFs."
Perplexity on covered vs naked call writing: "A *covered call* strategy involves selling call options on a stock that the investor already owns. This strategy limits potential losses because the investor can deliver the shares if the option is exercised, offering a safer approach with limited upside.
In contrast, a *naked call* strategy involves selling call options without owning the underlying stock. This exposes the investor to theoretically unlimited losses if the stock price rises significantly, as they must purchase shares at the market price to fulfill their obligation."
Maybe that helps - food for thought.
Would be good to make a video about the new rate cuts, and recession predictions.
Would be great to hear your thoughts.
We discussed it and decided it would have too little shelf life (no one would view it after the first day) but I'll answer here.
There are lots of recession indicators flashing red, but you can poke holes in a lot of them as being distorted by covid irregularities (like the rising unemployment rate being partially driven by lots of people re-entering the labor force instead of layoffs). Coming into the year in our 2024 outlook I thought we could have a recession (or at least slowing growth) this year and the weakening consumer would be the driver. We are seeing signs that the low-end consumer is weakening as stimulus money is running out, as I expected. However, the key question is whether that gets worse and extends to middle class consumers next, impacting profitability. TBD. This is way more important than how fast they cut rates imo.
With respect to rates, I do think investors are set up for disappointment right now. Lots of rate cuts are priced in and I think you're very unlikely to see that many that fast without a recession, which to me does not seem imminent. Absent a recession (which would disappoint investors in its own right) I think inflation will remain sticky and cause the fed to cut at a slower rate than the market currently expects. That could lead to rising rates in the middle of the yield curve, slowing earnings growth, and falling equity valuations. Plenty of other factors can overwhelm this to the upside or downside so I don't want to overplay it, but that's how I am thinking about the path of rates and their impact on the economy/stock market.
What about BOXX?
Can you cover SPYI?
I did a recent video on SPYI, about 2-3 weeks ago