Adrian, looking good😊 Great video, I now understand more how the ETFs work. They are totally different than what we are used to, like you buy a stock, and hopefully it goes up in value with some dividend. Thanks 😊
Thanks Adrian. Down to Earth speak on how these funds work and the control is in our hands, what we want to do with the dividends is up to us!! Thanks, keep them coming!!!
So, if I kept all the dividends in this fund, would my shares' value go down to zero? I would assume not as long as the stock the fund is based on is performing well.
( yes ) well explained Adrian ( thank you) - but it’s up to the investor - to increase the share count , which in turn - will continually increase your income - I’ve been doing that, ever since buying into HMAX … / but in 2024 - I will be giving myself a bit of an income raise and re channelling into other investments I hold … / this whole concept , I refer to it as compounding…. / it works well as long as the underlying holdings within the fund - or value of an individual stock is rock solid…
I though this audiance is income investors....we are using the dividends to pay for our expenses. If we drip as you suggested....then how do we pay for mortgages, food,....
Good video and good explanations, to be clear I own all 3 (QQQY, JEPY, TSLY) and have them on DRIP. I can understand the concerns with the drop in NAV, but at the end of the day the biggest concern is the monthly payout. Right now these are high but at what point do they stop giving these returns and that's the moment to be concerned about especially when/if the NAV drops continously.
that's the misconception. yield does NOT equal return. the yield is actually irrelevant . example: if they gave out no dividend whatsoever and kept it all in the fund, the share price would simply grow over time
@PassiveIncomeInvesting That's why these funds aren't for most people, what they call NAV erosion, is simply the fund giving them all the profits, and letting the shareholder decide what to do (reinvest, spend the money, etc.).
Another bdrop in payouts this month. The QQQY drop was bigger than JEPY though. Still monitoring but makes me ner outs to add additional positions in these.
How does the "return of capital" work. I get roughly a $12,000 a year dividend on TSLY. TD Webbroker has updated all the monthly payments of dividends to dividends and return of capital. Roughly $3,300 has be changed to return of capital. I understand the $3,300 is not taxable as it is a return of your own money and this reduces your cost base for the stock. What happens if you hold the stock for years and your return of capital becomes the entire amount you have paid initially for the stock. Can you go into a negative cost basis because of the return of capital and if so is the dividend then reduced as you have no return of capital left? I am not sure how this works.
Stop interrupting the interview. Most of us dont care about you defending what you said in other videos, we want to hear the interview. Save your defense comments for after the interview.
Speak for yourself friend. I appreciate Adrian injecting his explanations and insights. For Pete's sake, watch the interview raw if you're bothered by his reaction. Its a Reaction Video. Stopping the video to give reactions is how you do them. Come on man.
I may be wrong here but giving the investor more flexibility through reinvesting some of the yield back to the fund comes with a tax. I rather use the full income of a stable 10 - 15% yield (-30% tax), than receiving a 60% yield (-30% tax) and have to reinvest most of it. In the second scenario I just end up paying more tax.
Adrian do you ever think there will be Canadian versions of YieldMax and Defiance ETF'S? Maybe the volitivity isn't there for Canadian stocks? Thanks in advance.
I plan on retiring soon, and I will be needing some of the income from JEPY/QQQY. Would reinvesting a third or maybe half of their dividends back into the funds, or maybe even another fund with a lower yield (e.g. EQCL) be a reasonable strategy? Or did I hear you correctly that the share price is irrelevant? Do you mean that if your focus is income, then income is more important than total return at the end of the day?
You might want to look into a high yield fund like ytsl that's doing well or funds from Kurv like tslp, aapy and amzp. Less downside risk. I'm also keeping an eye on fepi.
Under his philosophy, you will never get to spend the dividends because as soon as you do, your value will fall so low that it will become a bad investment. Am I missing something? He says take the drip all the time but eventually you want to spend it.
Sorry. Synthetic longs are not the same thing. It is a way to leverage a position and based on what he explained at some point the fund will drop in value
If the index goes down by 4% on a string of consecutive days, the cash payouts on those puts may place the fund in a position where it would be hard to recover. Even a longer string of 0.05% down days will be the "gotcha" that erodes what you see as 60% annual return. Hope springs eternal but beware of the other side.
it was nice to see tsly go to 12.10 yesterday . ofc forbes was spreading some panick news and that worked wonders! so back to 11.70 .(and i bought) still got 6.5k at the ready!
I have a question. Why do some people call these etf made for yield chaser and garbage saying the dividend wil get lower after time ? There is a fellow Canadian who respond to me by saying there are garbage but the same person invest in purpose investement ytsl and the bitcoin one
This is my concern. If an etf like TSLY keeps dropping in price they will likely do a reverse split. So you’re 1000 shares are now only 500 and your yield is instantly cut in half.
Its kinda fun to watch people who have no options experience rationalize a put selling 'picks and shovels' fund that is intentionally marketed to the gullible. Otherwise there would be no need to do a review of what Jay said. Rather, you'd be doing your own 0DTE options and not investing in a fund designed to give a few percent in total returns.
Guys, there is no free lunch. With the maximum yield, you need to manage the reinvestment yourself. If you want the hands-free style, maybe just do HYLD or HDIF? Great yield comes great responsibility.
@@MitchellSmall, well IMO for these high yield funds, it would be the best to reinvest everything back into the fund for the first few years at least. This will give you a margin of safety, basically lower the cost basis before the NAV goes down. Then, you can starting to cash out. But you got to do what you got to do. Your strategy is not wrong.
Adrian, looking good😊
Great video, I now understand more how the ETFs work. They are totally different than what we are used to, like you buy a stock, and hopefully it goes up in value with some dividend.
Thanks 😊
Good Q&A hopefully this clears up obvious purpose of Yield Max.
Thanks Adrian. Down to Earth speak on how these funds work and the control is in our hands, what we want to do with the dividends is up to us!! Thanks, keep them coming!!!
So, if I kept all the dividends in this fund, would my shares' value go down to zero? I would assume not as long as the stock the fund is based on is performing well.
Another great video Adrian 👍 Jay’s interviews are great, he explains everything so clearly to understand hence why I invest in his funds!
Good explanation, glad I have watched it 👍👍👍
what an awesome video explanation .. well done Brother!!
Best dividend investing channel❤
Wow, the Coach is big time now!
Indeed 💯
Excellent vid! I just want some of these available on Canadian exchanges…
( yes ) well explained Adrian ( thank you) - but it’s up to the investor - to increase the share count , which in turn - will continually increase your income - I’ve been doing that, ever since buying into HMAX … / but in 2024 - I will be giving myself a bit of an income raise and re channelling into other investments I hold … / this whole concept , I refer to it as compounding…. / it works well as long as the underlying holdings within the fund - or value of an individual stock is rock solid…
Yes, exactly
I though this audiance is income investors....we are using the dividends to pay for our expenses. If we drip as you suggested....then how do we pay for mortgages, food,....
lol it is for income investors my friend … but each investor should have the ability to decide what to do with the income , should they not ??
Good video and good explanations, to be clear I own all 3 (QQQY, JEPY, TSLY) and have them on DRIP. I can understand the concerns with the drop in NAV, but at the end of the day the biggest concern is the monthly payout. Right now these are high but at what point do they stop giving these returns and that's the moment to be concerned about especially when/if the NAV drops continously.
They can always give out a 50% yield, but what will they be giving a 50% yield on ($18 per share, $19 per share, etc.) is the question.
that's the misconception. yield does NOT equal return. the yield is actually irrelevant . example: if they gave out no dividend whatsoever and kept it all in the fund, the share price would simply grow over time
@PassiveIncomeInvesting
That's why these funds aren't for most people, what they call NAV erosion, is simply the fund giving them all the profits, and letting the shareholder decide what to do (reinvest, spend the money, etc.).
Another bdrop in payouts this month. The QQQY drop was bigger than JEPY though. Still monitoring but makes me ner outs to add additional positions in these.
@@michaelclewley7453
The payout dropped because they decided to put some money back into the NAV.
How does the "return of capital" work. I get roughly a $12,000 a year dividend on TSLY. TD Webbroker has updated all the monthly payments of dividends to dividends and return of capital. Roughly $3,300 has be changed to return of capital. I understand the $3,300 is not taxable as it is a return of your own money and this reduces your cost base for the stock. What happens if you hold the stock for years and your return of capital becomes the entire amount you have paid initially for the stock. Can you go into a negative cost basis because of the return of capital and if so is the dividend then reduced as you have no return of capital left? I am not sure how this works.
Stop interrupting the interview. Most of us dont care about you defending what you said in other videos, we want to hear the interview. Save your defense comments for after the interview.
Speak for yourself friend. I appreciate Adrian injecting his explanations and insights. For Pete's sake, watch the interview raw if you're bothered by his reaction. Its a Reaction Video. Stopping the video to give reactions is how you do them. Come on man.
I may be wrong here but giving the investor more flexibility through reinvesting some of the yield back to the fund comes with a tax. I rather use the full income of a stable 10 - 15% yield (-30% tax), than receiving a 60% yield (-30% tax) and have to reinvest most of it. In the second scenario I just end up paying more tax.
yes , the dividends are taxed in a taxable account
Great video !! Thank you!
Appreciate what you do. Thank you!
Adrian do you ever think there will be Canadian versions of YieldMax and Defiance ETF'S? Maybe the volitivity isn't there for Canadian stocks? Thanks in advance.
Purpose has some similar to Yieldmax. so far, no daily strategies yet
I plan on retiring soon, and I will be needing some of the income from JEPY/QQQY. Would reinvesting a third or maybe half of their dividends back into the funds, or maybe even another fund with a lower yield (e.g. EQCL) be a reasonable strategy? Or did I hear you correctly that the share price is irrelevant? Do you mean that if your focus is income, then income is more important than total return at the end of the day?
consider svol etf high return without your value going down
You might want to look into a high yield fund like ytsl that's doing well or funds from Kurv like tslp, aapy and amzp. Less downside risk. I'm also keeping an eye on fepi.
whats important is portfolio value and management. more to come on this but feel free to book a 1 on1 for personal help
I'm waiting for these all in one Yieldmax etfs.
I’d be interested to know how long does he foresee these ETFs lasting? A few years or decades?
Under his philosophy, you will never get to spend the dividends because as soon as you do, your value will fall so low that it will become a bad investment. Am I missing something? He says take the drip all the time but eventually you want to spend it.
Sorry. Synthetic longs are not the same thing. It is a way to leverage a position and based on what he explained at some point the fund will drop in value
Love it
Help understand
If the index goes down by 4% on a string of consecutive days, the cash payouts on those puts may place the fund in a position where it would be hard to recover. Even a longer string of 0.05% down days will be the "gotcha" that erodes what you see as 60% annual return. Hope springs eternal but beware of the other side.
The fund would make money on a string of 0.05% down days.
Also, you don't have to watch the fund free fall in a doomsday scenario, you can be proactive and set your own stop loss.
The waterfall chart at 2:30 today shows the downside. If you believe that you can get an annual return of 60% without a big hit to NAV, good luck.
it was nice to see tsly go to 12.10 yesterday . ofc forbes was spreading some panick news and that worked wonders! so back to 11.70 .(and i bought) still got 6.5k at the ready!
I have a question.
Why do some people call these etf made for yield chaser and garbage saying the dividend wil get lower after time ? There is a fellow Canadian who respond to me by saying there are garbage but the same person invest in purpose investement ytsl and the bitcoin one
because either
a) they don't understand how these funds work
b) they are dumb
c) both A and B
@@PassiveIncomeInvesting ahahah awesome thanks
Great interview
we are interested with the monthly income not the growth of the etf, very simple strategy. More shares means more passive income
To an extent lol obviously we don’t wanna have a stock go from 25 down to 4 and just say “ bruh but the income!”
Jepy reduced their monthly price per share by half and its only 3 months old. I was just about to buy it and now hesitant
Very interresting ! Merci Adriano 😊
Thanks dude!
total return maybe low or negative will the etf run down to nothing and all your investment disappears
Total Returns matter in funds like these.
This is my concern. If an etf like TSLY keeps dropping in price they will likely do a reverse split. So you’re 1000 shares are now only 500 and your yield is instantly cut in half.
Or it could be positive look at cony
This was informative 👍…
Its kinda fun to watch people who have no options experience rationalize a put selling 'picks and shovels' fund that is intentionally marketed to the gullible. Otherwise there would be no need to do a review of what Jay said. Rather, you'd be doing your own 0DTE options and not investing in a fund designed to give a few percent in total returns.
Who did this interview? I don’t believe you mentioned who’s video this is that you reacted to.
Guys, there is no free lunch. With the maximum yield, you need to manage the reinvestment yourself. If you want the hands-free style, maybe just do HYLD or HDIF? Great yield comes great responsibility.
Yes most people do want that . Another video to discuss that coming
Unfortunately I have taxable account but allocating diviends with 30% to taxes ,30% reinvest and 40% cash out.
@@MitchellSmall, well IMO for these high yield funds, it would be the best to reinvest everything back into the fund for the first few years at least. This will give you a margin of safety, basically lower the cost basis before the NAV goes down. Then, you can starting to cash out. But you got to do what you got to do. Your strategy is not wrong.