QQQY Sept 14th share price close 20.14 Investing 5000 on that day buys 248 shares. 10/5 Dividend $1.10 per share, reinvests, $272.8 $272.8 buys @18.49, 14.75 shares for a total of 262.75 shares 11/6 Dividend $1.00 per share, reinvests $262.75 $262.75 buys @17.81, 14.75 shares for a total of 277.5 shares Nov 20 close price $18.30x277.5 shares=$5078/5000=1.5% total return QQQ Sept 14th share price close 377.27 Investing 5000 on that day buys 13.25 shares Nov 20th close price $390.74x13.25 shares=$5178/5000=3.5% total return Certainly tracking well behind the market. Looking at the chart, there is a price drop of 5% around the dividend period on both QQQY and JEPY which is roughly the dividend payout. Small sample size. But, certainly not achieving outsized gains over its first two months.
The problem this ETF will face is in a prolonged bear market like in 2022. The NAV erosion will be significant on down days. Also while the losses are cash settled and premium cover a bit. It will not cover all of NAV erosion in big day drops. Also remember there is not QQQ bought so when the indexes recover this ETF will not participate in the upside recovery. They will only be selling more puts to generate premium which may not be enough to cover the NAV erosion. This ETF will however do quite well in a sideways or bullish market. There is no free lunch as they say.
All ETFs carry risk. I will happily continue buying QQQY JEPY IWMY. Also, the markets had some very bad days for QQQY and JEPY trades and they still managed to deliver a great distribution. I’m in! Thanks for another video 🙂
@@theflightsimulationexperie6894 I'm sure she watched the video and understands the risk level, hence why she needs to give YOU an explanation, your coming off a bit rude, but I get it you need to feel empowered to school people since yourrrrrrr probably a a traderrrrrrrrrrrr who does CC and PUTS and you need to flex some muscle, and put people down, well I watched the video here is my take away if you must, its a CC strategy that's done daily, and not monthly, it comes with inherit risk where Principal loss is very much likely to occur, lets see what else, oh ya it as per video from Defiance which the youtuber was referencing the investment strategy that includes the sale of in-the-money put option contracts, which limits the degree to which the Fund will participate, I'm guessing since its daily, also per the publisher of the the video, it can increases in value experienced by the Index over the Call Period typically one day, but your more likely to see it decrease as per the numbers he mentioned compared to the sector it follows. And of course the usual stuff where dividends will decrease its NAV value, seriously bro most people who watch him know what they are getting themselves into, get ahold of your self and your ego. Actually go hug your wife your not getting to much attention at home.
Thank Adrian for more great information helping us understand how our investments actually work! I am putting 10% of my portfolio into these types of funds the other 90% into traditional PII funds. For an avg yield of 16.74%. Im comfortable with the risk and very happy with the income generated. All dividends will be reinvested untill retirement. Hopefully in the near future!
Adriano, always enjoy how you explain things in your videos. Interesting how you showed the different ETFs performance on days when the markets are up or down. What you didn't show is the daily dividend payout for QQQY in relation to the other ETF dividend payouts..
Very informative video Adrian! I love the clip by clip analysis of that interview video. 👍 Instead of Covered Call, QQQY/JEPY are doing ITM Put. Like you summarized, no more risky than the index itself. I added them to my RRSP account and going to get that juicy dividends in November.
Backtesting is only robust if many different market conditions occurred during the backtest. She only tested it during a Bull market. Fact is it started at 20 it is now 18. 2 point drop. However, you have only gotten 3 points in distributions. In 10 days you'll get another distribution at which point it should drop to 17. 4 points of distributions, 3 point loss, making a 5% gain in 3 months. So total return looks to be around the 15-20% annual range in a goldilocks market.
I haven't quite figured out how QQQY/JEPY won't tailspin through price depletion. Every month with a $1 (or so) dividend will be tough to get back each month in price. Right? Anyone explain this?
@@likeicare300 Average Joe has a video that does an excellent job going through a day in the life of qqqy and even does lots of back testing. I’m surprised that Adriano mentions this video and even admits that he does a good job breaking it down. It helped me to really understand what qqqy is all about but it also made me realize that it is indeed risky and could be disastrous in down markets.
Hi, good video. But I think we don't have enough data for compairing those etf. Mid september for Defiance is not fair! For compairing etf one can use the probabilistic sharpe ratio (the one that use skewness and kurtosis of the returns) and make a few thousands of simulation to calculate the results. Let the dice rolls one year and then we could compare! For now, I invest some money in qqqy, to see how it will go. 😁
Hi Adriano, could you explain, in the simple and clear way you’re so good at, what “structural” differences there are between JEPI and JEPY, as well as JEPQ and QQQY that seem to have the JP Morgan funds performing better than the Defiances ones? (Yes I understand how the JP Morgans under perform the indices on bull days because of their CC strategies). Also, GRRREAT background! Is that a real photo of you in a Panamanian sunset?
i think i tired my best to show it in this video. the options strategy is different , the indexes are the same. i think there is 0 point breaking your head over it right now. best to wait at LEAST 1 year to compare
Thank you so much for this video Adrian! People were saying it’s too good to be true lmao, but of course I find it’s a normal reaction since it’s a new product/innovation. Hopefully we’ll be seeing more and more new ETFs with this kind of innovation
Doesnt mean its not risky. The risk is consecutive down days. Since it's settled daily, they take realized losses which brings down the NAV. Which in turn causes dividend cuts ( less capital to write options on) not to mention the realized losses on the funds level which even if you yourself don't sell. Something like 2020 crash or 2008 can wipe this fund out if they're not dynamic or change something from current strategy
@@likeicare300 You could say the same for the other covered calls available already, but yes I agree, I didn’t say that it’s risk-free or low risk. In the end, everyone has their own level of risk tolerance 👍🏻
@@D5Boy1I don’t think you truly know how these defiance ETFs work especially with a comment like, “you can say that about other covered call ETFs.” Do you truly know what this ETF is doing? Please be specific in telling me the KEY differences with JEPI and JEPY? I’ll be waiting for your answer.
people get blinded by the Yield. the real goal of these ETFs is to give you flexibility for YOU to decide what to do with the income. i assume most will reinvest it via DRIP or reinvest it elsewhere
I'm still going to hold off and see what the performance looks like over a longer term. I almost posted about how the 30 day price performance was far worse than SPY and QQQ, but a closer look at the charts shows that they dropped a bunch when they went ex-div - which is normal. So I'm still in wait and see mode. I might buy some in my play money account the when they go ex-div again.
Luv the channel, quick question on market prices for these instruments ... does the market value have anything to do with the money generation of the funds trading? or is it market price action on the fund?
I enjoy all your videos , but this is probably one of your best video .this video made me more confident in these ETFs ,I will be adding to it.. great job !thanks 😊
As one of those “influencers” you roll your eyes at and mock at the beginning. I just want to let you know some of us are just sharing our journey and trying to learn with others. I wish you all the best and thanks for the videos!
There won't be any NAV erosion as the only assets held by these ETFs are cash and T-Bills. The only money paid out each month is what's earned by selling puts plus interest on the T-Bills. No return of capital.
@@robsonthermalmfg.ltd.3290 it's different type of nav erosion. If market crashes their dividends will drop because there's less capital to write options on.
@@robsonthermalmfg.ltd.3290then why has the NAV gone down every month by the dividend distribution amount and why is highlighted as a risk in the prospectus stating the exact reason
@@robsonthermalmfg.ltd.3290 Actually, cash IS the NAV and it’s very easy with this strategy to have a down month and lose money. Unless the fund pays out 0% in down months it’s going to be coming out of the cash balance, which is the nav of this fund.
Does the chart pattern be the same on the post dividend day, or does it drop substantially after giving out the hefty dividend ? Thank you for your CE videos
My question is, are the thy going to run out of cash at some point if they settle the down days with cash. And what is going to happen if/when they do? I haven't heard this asked anywhere yet.
Hi Adrian, I’m glad you once again covered these ETF’s! I am a little confused when she says they are doing in the money daily puts but when I look at the options I also see calls. So to your knowledge are the sound calls and puts?
Do you think they can sustain that high a dividend long-term? If not I guess they can still keep it above 20-30% annualized yield which is still really good !
Hi Adrian, with the high yield / low risk profile these funds offer is it worth it to use them in a TFSA and pay the witholding tax. After doing some quick calculations, it seems to me they outperform all the canadian fundsI currently have by a long shot, (factor of x2+). Is this a subject to explore for a new video?
its a good question but hard ot answer now. it would be easier after at least 1 year of performance. the question is, can QQQY -15 % beat QQCL and can JEPY-15% beat USCL. time will tell. I have a feeling the -15% might be too much over time
Most people who trade options end up blowing up their accounts, it's a very tough business to complete with. Why not invest in this QQQY ETF to do the work for you? That's what I'm thinking. If NAV were to deplete and it were to go to "0", you would at least get paid. Versus spending years learning how to play options and owing ridiculous amounts of money because some random influencer told you that you could make $500 a week and you fell for it.
Very interesting analysis and examples 😊 I know it could not be the best comparison but, as the market as way more day trending up, in the long term these etf will underperform.. right? 😮 And in case of a significant drawdown, even if minor compared to the stock market (thanks to the premiums collected), it may take a mich longer time to recover. Right? 😮
From a tax efficiency point of view, how is the cash from the yield taxed? Is it income or capital gains. Does it make sense as a Canadian to hold it in a non registered account?
If you see SPY the last 30 days, it has 2% appreciation. Then you see JEPY and has -3.73%. Why is that?? When you explained it in a daily basis makes sense but in longer period? Hopefully you can answer me cause I really want to understand.
Ok so I think I need this gamed out for 2/5/10 years. Looks like regardless of the underlying , these are heading down. What will the yield look like when the fund is under $1 ticker price . Of course you should reinvest the bulk of it, but what should be expected when you don’t ?
I never reinvest these. Always take the cash and use it for something (pay bills, save, etc.) The best thing that could happen with these ETFs is that the distribution pays off the amount you originally invested.
I think the hope is these will perform better than the indexes in a down market due to earning some premium but outperforming in an up market. We shall see over time
As an Income Dividends investor Capital Gains or losses .....I don*t mind or expect at all too...including...Jepi Jepq Premiums.The Facts is when they pay you monthly Dividend income instead of Capital gains...period😂😅😅😅😊😅😅😅😊
11:49 If you were to keep looking at a bunch of "...down hard days..." (in a correction or 🐻 market), you gonna see that QQQY is gonna drop 'slower' than the index. But it will never fully recover from the losses after that. And this will 'evaporate' a big chunk of the dividends received. 😢
well you can;t say that "it will never fully recover" it can and either way its designed for a specific purpose. this is like all covered call etfs. you give up upside to cushion downside
@@PassiveIncomeInvesting Maybe "cushion downside" but get stuck in to it for a long time 🤔. In a bear market or sharp correction it's gonna be a disaster (lose so much NAV that will wipe out your gains), it's not gonna go to zero but they may have to do a reverse split to keep it alive. Good luck with this one.
Returns over time with this strategy will be path dependent (like most option strategies). Slippage and trading costs are still a concern here. I like the selling put strategy but prefer the bmo fund to these. But being the house in a gambling den is usually quite profitable. I hope these do well.
the also generate passive income from treasury bonds and cash accounts. the trades aren't the whole picture. I haven't looked. was it way off vs the div? the div was around 5%. if it was only off by like a half percent, that would make sense.
what i love about the high yield etfs is that all of them ive looked up are heavy in cash, tbills and tbonds,,,over half their weight in cash or cash convertible assets,,,,shouldnt disappear next week like some can do
This was a succinct presentation. Well done! Just cracked a million in my dividend portfolio this last week. Almost 2 years now I started, investing with the help of an excellent FA. It's best to work with a pro.
What i dont understand 2 things 1 when the ex dividend hits the nav drops the same amount so we are getting paid our own money and 2 if they are making money why is it dropping at ex dividend.
When they make premiums it gets added to the NAV. It might only contribute 0.25% or 0.5% or 0.3% to the ETF price on any given day. It can be a green day or a red day, but any premiums made will contribute that much to the ETF price. Then on the ex-dividend date it all gets paid out and the NAV drops from the accumulated premiums.
@@Nobody-qo9tp Yup, it adds to the share price by a tiny amount daily if they made a profit. If they make premium tomorrow, it will add to the ETF price. If QQQ were completely flat and did not move, and QQQY made premium, QQQY would actually perform better on the share price than QQQ.
Way to go, keep up the great work! Just cracked a million in my dividend portfolio this last week. Almost 2 years now I started, investing with the help of an excellent FA. It's best to work with a pro.
Be very careful with these etfs … if your going to invest in them dollar cost average your way in I would recommend taking an entire year to get your full position… have a great one guys
At inception I bought 1000 @ $20.14 = $20140. I received two dividends $1.1 + $1 = $2.1×1000 = $2100. The current market price is $17.73. So $17730 + $2100=$19830. Down $310. The negatives outweigh the positives. Of the various charts the video showed, none indicated where gains restored enough losses from previous days. Can't live on a negative. 😢 Same thing happened with $HYLD. Bought 1,000 at $16.50 at inception and now $11.70. Total dividends today is $2.538x1000=$2538. $14238-$16500=-$2262 Passively loosing. Can't live on a negative gain. What am I doing wrong?
@@PassiveIncomeInvesting jepq chart looks a lot better and makes sense seeing my capital growth plus my dividends. It makes 0 percent sense putting $1000 on a fund and receiving dividends while being negative forever. It’s like paying yourself your own money every month while being taxed.
@@PassiveIncomeInvesting Why then did you use the charts to explain the dynamics of the fund's strategy if they are useless for income investing? Assuming I'm supposed to live off the dividends, for HYLD for instance, changed from .14 to .12. /mo. That's equivalent to a loss of over one month's income. So if the charts are useless, what metric is that which shows the investment is paying a net gain? Perhaps I'm missing something in your videos.
Risky? Yeah. But once I started to switched my investment to these I have made a lot of money in the last 3 months so yeah as long as you monitor the risk you can get out after the crypto market goes bear
Hey everyone, here is the Q&A with Sylvia in case you missed it: th-cam.com/video/8V43zrpHLfM/w-d-xo.html
QQQY Sept 14th share price close 20.14
Investing 5000 on that day buys 248 shares.
10/5 Dividend $1.10 per share, reinvests, $272.8
$272.8 buys @18.49, 14.75 shares for a total of 262.75 shares
11/6 Dividend $1.00 per share, reinvests $262.75
$262.75 buys @17.81, 14.75 shares for a total of 277.5 shares
Nov 20 close price $18.30x277.5 shares=$5078/5000=1.5% total return
QQQ Sept 14th share price close 377.27
Investing 5000 on that day buys 13.25 shares
Nov 20th close price $390.74x13.25 shares=$5178/5000=3.5% total return
Certainly tracking well behind the market. Looking at the chart, there is a price drop of 5% around the dividend period on both QQQY and JEPY which is roughly the dividend payout. Small sample size. But, certainly not achieving outsized gains over its first two months.
The problem this ETF will face is in a prolonged bear market like in 2022. The NAV erosion will be significant on down days. Also while the losses are cash settled and premium cover a bit. It will not cover all of NAV erosion in big day drops. Also remember there is not QQQ bought so when the indexes recover this ETF will not participate in the upside recovery. They will only be selling more puts to generate premium which may not be enough to cover the NAV erosion. This ETF will however do quite well in a sideways or bullish market. There is no free lunch as they say.
Exactly, and less cash meaning less puts they can write. They will eventually reduce distribution.
All ETFs carry risk. I will happily continue buying QQQY, JEPY and IWMY. Thanks for the video.
Agreed 💯💯💯
All ETFs carry risk. I will happily continue buying QQQY JEPY IWMY.
Also, the markets had some very bad days for QQQY and JEPY trades and they still managed to deliver a great distribution. I’m in!
Thanks for another video 🙂
Please explain to me Exactly how they work. I really wonder if you know.
@@theflightsimulationexperie6894lol she is the biggest flag bearer for this fake finfluencer
@@theflightsimulationexperie6894 I'm sure she watched the video and understands the risk level, hence why she needs to give YOU an explanation, your coming off a bit rude, but I get it you need to feel empowered to school people since yourrrrrrr probably a a traderrrrrrrrrrrr who does CC and PUTS and you need to flex some muscle, and put people down, well I watched the video here is my take away if you must, its a CC strategy that's done daily, and not monthly, it comes with inherit risk where Principal loss is very much likely to occur, lets see what else, oh ya it as per video from Defiance which the youtuber was referencing the investment strategy that includes the sale of in-the-money put option contracts, which limits the degree to which the Fund will participate, I'm guessing since its daily, also per the publisher of the the video, it can increases in value experienced by the Index over the Call Period typically one day, but your more likely to see it decrease as per the numbers he mentioned compared to the sector it follows. And of course the usual stuff where dividends will decrease its NAV value, seriously bro most people who watch him know what they are getting themselves into, get ahold of your self and your ego. Actually go hug your wife your not getting to much attention at home.
Great to see you posting again! I respect your input.
@@angelabarnett4972thank you! I hope you are doing well 😊
Thanks for the clarity, bought $36000 in my RRSP and wife's RRSP.
Adrain, great job on this video explaining these ETFs. Continued success with your channel and investing journey 👍
More to come!
Thank Adrian for more great information helping us understand how our investments actually work! I am putting 10% of my portfolio into these types of funds the other 90% into traditional PII funds. For an avg yield of 16.74%. Im comfortable with the risk and very happy with the income generated. All dividends will be reinvested untill retirement. Hopefully in the near future!
great! i like that you are actually thinking it through
Thanks so much for clearing the air. I myself had no doubt and you just made my belief stronger! Thanks again Adrian, you rock!!!
This video comes on point! Thanks Andrian to bring this video
Thank you so much for this video, please make more videos like this for other high yield ETFs
Excellent video, very factual based. Always appreciate your analysis!
i try to make it simple because it usually is ... thanks!
Adriano, always enjoy how you explain things in your videos. Interesting how you showed the different ETFs performance on days when the markets are up or down. What you didn't show is the daily dividend payout for QQQY in relation to the other ETF dividend payouts..
Very informative video Adrian! I love the clip by clip analysis of that interview video. 👍
Instead of Covered Call, QQQY/JEPY are doing ITM Put. Like you summarized, no more risky than the index itself.
I added them to my RRSP account and going to get that juicy dividends in November.
How do they track the index? Do they use parts of the premium?
Backtesting is only robust if many different market conditions occurred during the backtest. She only tested it during a Bull market. Fact is it started at 20 it is now 18. 2 point drop. However, you have only gotten 3 points in distributions. In 10 days you'll get another distribution at which point it should drop to 17. 4 points of distributions, 3 point loss, making a 5% gain in 3 months. So total return looks to be around the 15-20% annual range in a goldilocks market.
Exactly what I was thinking
cheers mate, as an economist I like the simplicity in your explanations and the one-on-one interviews with asset managers. good stuff!
Much appreciated!
Love that these track the Markets. Qqq and SPY.
I haven't quite figured out how QQQY/JEPY won't tailspin through price depletion. Every month with a $1 (or so) dividend will be tough to get back each month in price. Right? Anyone explain this?
Yeah that's my main concern.
@@likeicare300 Average Joe has a video that does an excellent job going through a day in the life of qqqy and even does lots of back testing. I’m surprised that Adriano mentions this video and even admits that he does a good job breaking it down. It helped me to really understand what qqqy is all about but it also made me realize that it is indeed risky and could be disastrous in down markets.
Thank You, you do an excellent job
Thx for the illustration - comparing the behaviour of ETF having monthly and daily option strategies 🎉
Thank you Adrian for this video.
Hi, good video. But I think we don't have enough data for compairing those etf. Mid september for Defiance is not fair! For compairing etf one can use the probabilistic sharpe ratio (the one that use skewness and kurtosis of the returns) and make a few thousands of simulation to calculate the results. Let the dice rolls one year and then we could compare! For now, I invest some money in qqqy, to see how it will go. 😁
yeah we need at least 1 year. then we will be able to compare all these new ETFs
Thank you, I understand
I really needed to see this today.
Hi Adriano, could you explain, in the simple and clear way you’re so good at, what “structural” differences there are between JEPI and JEPY, as well as JEPQ and QQQY that seem to have the JP Morgan funds performing better than the Defiances ones? (Yes I understand how the JP Morgans under perform the indices on bull days because of their CC strategies).
Also, GRRREAT background! Is that a real photo of you in a Panamanian sunset?
i think i tired my best to show it in this video. the options strategy is different , the indexes are the same. i think there is 0 point breaking your head over it right now. best to wait at LEAST 1 year to compare
@@PassiveIncomeInvesting thanks for this Adriano. I’ll wait for the one-year and review the video in the meantime.
Thank you so much for this video Adrian! People were saying it’s too good to be true lmao, but of course I find it’s a normal reaction since it’s a new product/innovation. Hopefully we’ll be seeing more and more new ETFs with this kind of innovation
Doesnt mean its not risky. The risk is consecutive down days. Since it's settled daily, they take realized losses which brings down the NAV. Which in turn causes dividend cuts ( less capital to write options on) not to mention the realized losses on the funds level
which even if you yourself don't sell. Something like 2020 crash or 2008 can wipe this fund out if they're not dynamic or change something from current strategy
@@likeicare300 You could say the same for the other covered calls available already, but yes I agree, I didn’t say that it’s risk-free or low risk. In the end, everyone has their own level of risk tolerance 👍🏻
@@D5Boy1I don’t think you truly know how these defiance ETFs work especially with a comment like, “you can say that about other covered call ETFs.” Do you truly know what this ETF is doing? Please be specific in telling me the KEY differences with JEPI and JEPY? I’ll be waiting for your answer.
He won't reply.
people get blinded by the Yield. the real goal of these ETFs is to give you flexibility for YOU to decide what to do with the income. i assume most will reinvest it via DRIP or reinvest it elsewhere
Good analysis especially the comparison with index base etfs. THANKS😂
You really know your stuff. Great video
I'm still going to hold off and see what the performance looks like over a longer term. I almost posted about how the 30 day price performance was far worse than SPY and QQQ, but a closer look at the charts shows that they dropped a bunch when they went ex-div - which is normal. So I'm still in wait and see mode. I might buy some in my play money account the when they go ex-div again.
It's down 12% for the last 3 months
Well done with the analysis. I am convinced.
I wish you could do this exact comparison for Yield Max and Global X ETFs.
I was wondering what your thoughts are on SPYI? It’s one of my new favorite etf’s.
i like it and made 2 videos on it already :) including talking to the guy who runs it
THANK YOU
Great stuff as always brother!
so far not paying any witholding tax in my non reg or TFSA ?? strange . why ??
Luv the channel, quick question on market prices for these instruments ... does the market value have anything to do with the money generation of the funds trading? or is it market price action on the fund?
I enjoy all your videos , but this is probably one of your best video .this video made me more confident in these ETFs ,I will be adding to it.. great job !thanks 😊
thanks!
As one of those “influencers” you roll your eyes at and mock at the beginning. I just want to let you know some of us are just sharing our journey and trying to learn with others. I wish you all the best and thanks for the videos!
I think the main concern is NAV erosion.
th-cam.com/video/JPW3OshHVxY/w-d-xo.html
There won't be any NAV erosion as the only assets held by these ETFs are cash and T-Bills. The only money paid out each month is what's earned by selling puts plus interest on the T-Bills. No return of capital.
@@robsonthermalmfg.ltd.3290 it's different type of nav erosion. If market crashes their dividends will drop because there's less capital to write options on.
@@robsonthermalmfg.ltd.3290then why has the NAV gone down every month by the dividend distribution amount and why is highlighted as a risk in the prospectus stating the exact reason
@@robsonthermalmfg.ltd.3290 Actually, cash IS the NAV and it’s very easy with this strategy to have a down month and lose money. Unless the fund pays out 0% in down months it’s going to be coming out of the cash balance, which is the nav of this fund.
Does the chart pattern be the same on the post dividend day, or does it drop substantially after giving out the hefty dividend ? Thank you for your CE videos
it will drop on the ex date by the amount of the monthly distribution
@@PassiveIncomeInvesting if the yield is very high just like in JEPY or QQQY, will it not drop substantially and erode the total gain ?
Thanks Adrian!
Great video!
How do you feel about buying these on margin?
My question is, are the thy going to run out of cash at some point if they settle the down days with cash. And what is going to happen if/when they do? I haven't heard this asked anywhere yet.
Hi Adrian, I’m glad you once again covered these ETF’s! I am a little confused when she says they are doing in the money daily puts but when I look at the options I also see calls. So to your knowledge are the sound calls and puts?
dont break your head....you don't need to put together an engine to drive a car
@@PassiveIncomeInvesting I’m a fan and have already bought QQQY. Will be going with a much stronger position with both these etf’s
Fantastic video! It acts the same as any other CC ETF. Are you going to be picking up some IWMY Adrian?
not sure yet!
Will such a covered call strategy be adopted by any Canadian ETF companies anytime soon or is this US only?
us only
so far, no daily options strats from Canadian providers yet , but follow this channel because ill be the first to cover them if they do :)
@@PassiveIncomeInvesting can you push hamilton or harvest to make some? i think they listen to you lol.
@@PassiveIncomeInvesting can you push hamilton or harvest to make some? i think they listen to you lol.
Great question. Don’t worry, if one ever comes, Adrian will have it covered!
Do you think they can sustain that high a dividend long-term? If not I guess they can still keep it above 20-30% annualized yield which is still really good !
yes
Exactly! 20-30% is still fantastic! 👍👍👍
Hi Adrian, with the high yield / low risk profile these funds offer is it worth it to use them in a TFSA and pay the witholding tax. After doing some quick calculations, it seems to me they outperform all the canadian fundsI currently have by a long shot, (factor of x2+). Is this a subject to explore for a new video?
its a good question but hard ot answer now. it would be easier after at least 1 year of performance. the question is, can QQQY -15 % beat QQCL and can JEPY-15% beat USCL. time will tell. I have a feeling the -15% might be too much over time
Main puzzle is that how much is eaten up from nav in order to generate dividend ?
its not a puzzle.... the NAV drops by the dividend amount on EX-DATE. like all other income ETFs
the thing bugging me about qqqy is that its gone straight down since the fund began,,,that doesnt seem like a good track record to me ??
Superb Facts, thanks very much.
Most people who trade options end up blowing up their accounts, it's a very tough business to complete with. Why not invest in this QQQY ETF to do the work for you? That's what I'm thinking. If NAV were to deplete and it were to go to "0", you would at least get paid. Versus spending years learning how to play options and owing ridiculous amounts of money because some random influencer told you that you could make $500 a week and you fell for it.
😊 thanks
Very interesting analysis and examples 😊
I know it could not be the best comparison but, as the market as way more day trending up, in the long term these etf will underperform.. right? 😮
And in case of a significant drawdown, even if minor compared to the stock market (thanks to the premiums collected), it may take a mich longer time to recover. Right? 😮
your questions relate to stock prices. what matters is return and portfolio value
Hi Adrian. Will you be commenting on the latest addition to the Defiance family IWMY. It looks like another winner to diversify with.
same thing but on the R2000
From a tax efficiency point of view, how is the cash from the yield taxed? Is it income or capital gains. Does it make sense as a Canadian to hold it in a non registered account?
nope it doesn't
Thoughts on the JEPY big reduction in div payout for december?
there is no "reduction" or "increases" , just varying distributions . this is not a dividend stock
@@PassiveIncomeInvesting fair point but it's a big variance ;)
Any ideas or thoughts on TSLY
i got about 3 videos on it
So if the ETFs are daytrading, why don't they just do cash secured PUTs on up days? Wouldn't that increase the performance?
If you see SPY the last 30 days, it has 2% appreciation. Then you see JEPY and has -3.73%. Why is that?? When you explained it in a daily basis makes sense but in longer period?
Hopefully you can answer me cause I really want to understand.
On the ex date , the dividend is substrated from the etf . It’s easier to understand if you own it ….
Ok so I think I need this gamed out for 2/5/10 years. Looks like regardless of the underlying , these are heading down. What will the yield look like when the fund is under $1 ticker price . Of course you should reinvest the bulk of it, but what should be expected when you don’t ?
I never reinvest these. Always take the cash and use it for something (pay bills, save, etc.)
The best thing that could happen with these ETFs is that the distribution pays off the amount you originally invested.
I play it this way 75% USCL 25% JEPY. Reinvest divs and keep those allocations
cool plan!
Thanks
I think the hope is these will perform better than the indexes in a down market due to earning some premium but outperforming in an up market. We shall see over time
they will mostly under-perform in an up market. like all covered call strategies. only during slightly UP days it will outperform.
As an Income Dividends investor Capital Gains or losses .....I don*t mind or expect at all too...including...Jepi Jepq Premiums.The Facts is when they pay you monthly Dividend income instead of Capital gains...period😂😅😅😅😊😅😅😅😊
You deserve a million subscribers.
11:49 If you were to keep looking at a bunch of "...down hard days..." (in a correction or 🐻 market), you gonna see that QQQY is gonna drop 'slower' than the index. But it will never fully recover from the losses after that. And this will 'evaporate' a big chunk of the dividends received. 😢
well you can;t say that "it will never fully recover" it can and either way its designed for a specific purpose. this is like all covered call etfs. you give up upside to cushion downside
@@PassiveIncomeInvesting
Maybe "cushion downside" but get stuck in to it for a long time 🤔.
In a bear market or sharp correction it's gonna be a disaster (lose so much NAV that will wipe out your gains), it's not gonna go to zero but they may have to do a reverse split to keep it alive.
Good luck with this one.
no scared at all I have both of these funds and are happy with them
hi adrian! can i hold this in my RRSP account?
sure that's where i hold em
Nice presentation 💯💯💯
The question is, is it going to be another USOI situation ?
Returns over time with this strategy will be path dependent (like most option strategies). Slippage and trading costs are still a concern here. I like the selling put strategy but prefer the bmo fund to these. But being the house in a gambling den is usually quite profitable. I hope these do well.
yes volatility is a factor but i think the main factor will always be the underlying stocks/index
I would feel better about these if they didn't pay too much dividend. They clearly did not generate that much profit in a down market month.
Is there a place to see how much income they made?
@@Disneymagic24do your research
They post the trades on their site
the also generate passive income from treasury bonds and cash accounts. the trades aren't the whole picture.
I haven't looked. was it way off vs the div? the div was around 5%. if it was only off by like a half percent, that would make sense.
Do you own any qqqy ?
i unveil my portfolio every month: th-cam.com/video/2WjYKtgtOx4/w-d-xo.html
I followed QQQY with JEPQ all this week, and JEPQ did almost double the profit of QQQY. Same with SPYI and JEPI.
did you include the income or only looked at stock price (which is useless)
what i love about the high yield etfs is that all of them ive looked up are heavy in cash, tbills and tbonds,,,over half their weight in cash or cash convertible assets,,,,shouldnt disappear next week like some can do
Thanks for another good and informative video
This was a succinct presentation. Well done! Just cracked a million in my dividend portfolio this last week. Almost 2 years now I started, investing with the help of an excellent FA. It's best to work with a pro.
Yes I agree with you. A friend of mine in North Carolina who works with this smart FA, Amy Ennpress Ellas, referred her. I looked her up & reached out
And she's really awesome. In couple months working with her my 180k capital is over 700k. Cheers!!!!
That's amazing, Cheers!!!! 🥂🌹🌺
What i dont understand 2 things 1 when the ex dividend hits the nav drops the same amount so we are getting paid our own money and 2 if they are making money why is it dropping at ex dividend.
When they make premiums it gets added to the NAV. It might only contribute 0.25% or 0.5% or 0.3% to the ETF price on any given day. It can be a green day or a red day, but any premiums made will contribute that much to the ETF price. Then on the ex-dividend date it all gets paid out and the NAV drops from the accumulated premiums.
ALL FUNDS are dropped by the dividend amounts on ex date. its how it works. whats paid out are all the premiums they generated in the last month.
@PassiveIncomeInvesting if premiums are paid out why does the share price drop are you saying the premiums increase the share price.
@@Martmi29 ok makes sense then
@@Nobody-qo9tp Yup, it adds to the share price by a tiny amount daily if they made a profit. If they make premium tomorrow, it will add to the ETF price. If QQQ were completely flat and did not move, and QQQY made premium, QQQY would actually perform better on the share price than QQQ.
I don't get it. QQQY drops $1+ at the end of the month, then you get $0.8 dividend. Market upside is limited, downside is not.
thanks for the review, BUT you interrupted way too much and often - I couldn't even hear what she said. I did see the actual interview though
Way to go, keep up the great work! Just cracked a million in my dividend portfolio this last week. Almost 2 years now I started, investing with the help of an excellent FA. It's best to work with a pro.
Be very careful with these etfs … if your going to invest in them dollar cost average your way in I would recommend taking an entire year to get your full position… have a great one guys
I wish you would have let the video just play and not pause it every 5 seconds only to repeat what she said 5 seconds ago
Just look at the 3 month chart… looks like a falling knife. If you bought at inception, you will be down now 10% plus the dividends. What’s the point?
At inception I bought 1000 @ $20.14 = $20140. I received two dividends $1.1 + $1 = $2.1×1000 = $2100. The current market price is $17.73. So $17730 + $2100=$19830. Down $310. The negatives outweigh the positives. Of the various charts the video showed, none indicated where gains restored enough losses from previous days. Can't live on a negative. 😢
Same thing happened with $HYLD. Bought 1,000 at $16.50 at inception and now $11.70. Total dividends today is $2.538x1000=$2538. $14238-$16500=-$2262 Passively loosing. Can't live on a negative gain. What am I doing wrong?
looking at the stock chart for a fund that gives out income is 100% useless
@@PassiveIncomeInvesting jepq chart looks a lot better and makes sense seeing my capital growth plus my dividends.
It makes 0 percent sense putting $1000 on a fund and receiving dividends while being negative forever. It’s like paying yourself your own money every month while being taxed.
@@PassiveIncomeInvesting Why then did you use the charts to explain the dynamics of the fund's strategy if they are useless for income investing?
Assuming I'm supposed to live off the dividends, for HYLD for instance, changed from .14 to .12. /mo. That's equivalent to a loss of over one month's income. So if the charts are useless, what metric is that which shows the investment is paying a net gain? Perhaps I'm missing something in your videos.
You cant live off of unrealized gains but you can live off of income. Your comparing apples and oranges
Risky? Yeah. But once I started to switched my investment to these I have made a lot of money in the last 3 months so yeah as long as you monitor the risk you can get out after the crypto market goes bear
Ok, Ill say it, Gensler is a hater and a pessimist, always.....Shocking he didnt find a way to throw some hate on Bitcoin while talking about this.
This is unlistenable.
How does the NAV compare between both products?
not sure i understand this question