Money will flow into them BOTH. The out of large and into small narrative is bs. Past 2 years it's been the large caps ONLY because they're safer. Once rates are cut, low caps will pump yes, but large caps will also. Obviously small caps will pump quicker but let's not lie to ourselves. There's a reason the S&P and the Qs use large caps as the highest weighted.
I am a little surprised your reasoning for not investing in IWMY... as you well know the CC etfs earn their best premiums on higher volatility underlying holdings and underlying holdings that are relatively flat. The Russell 2000 qualifies for both factors. So for the reasons you say you wouldn't invest in iwmy... it the exact reason why i am excited investing in this etf. I am not looking for underlying holding growth.... I am looking for best yields from premiums generated from the underlying.
that's fine, but to me: my reasoning is sound. id just rather hold JEPY and QQQY exclusively. If your reasoning is correct, RYLD should be beating QYLD and XYLD no? (well its not... its under-performing both)
@@PassiveIncomeInvesting you lost me. Are you talking about RYLD or IWMY? Why you bring RYLD up? IWMY is very young but it already blew away qqqy and jepy on last distribution. It has already recoup more than half its ex div date nav drop which was larger drop than the other two because of its higher payout. Don't get me wrong, I hold all 3 etfs and I love all three of them in my portfolio. But I see great promise for IWMY because of the reasons you said you didn't like it. But time will tell. Let's see where total ROI is for IWMY in 6 months. :)
Good reasoning. I always chuckle when a YT person thinks he/she knows more than the fund mgrs who have had years of experience doing these things.@@normansimonsen1203
I've heard Adrian say that he is personally not comfortable with borrowing to invest, and now he's giving his reason for not investing in IWMY, which seems also to be solid wisdom (imo). He bashes no one and reiterates that "no one style is right or wrong, but it's a matter of personal preference." I like his philosophy and I like his investment style. Very glad I found this channel as we get set to transition from brick and mortar income to passive income from investing. Thanks Adrain. Gonna book that consultation with you soon.
None of these three funds HOLD any stocks. They hold cash in bonds and close out their calls everyday. These are not stock holding ETF'S at all. Volatility is the whole point of all three of these etfs. They do not provide stocks to cover if they lose the trade. They pay or receive CASH.
it doesn't matter, its actually more efficient doing it this way. it replicates the prices of the index 100% so its the same thing... even better actually because the cash makes more income invested in short term t bills than those indexes make with their dividend yield. I suggest (if you don't believe me) you watch Q&As with the actual fund manager . I have had him a few times on the channel and we discuss this in detail (they work like the YeILDMAX ETFs)
I bought 5K of IWMY. If it does not turn out well, I will just sell it for more JEPY, QQQY, or CONY.😁 It will be interesting to see what the next dividends will be for IWMY, JEPY, QQQY, and CONY.
Well, when I was invested in the YLD's of global x, I seem to remember RYLD outperforming QYLD and XYLD. I attributed the performance due to the fact that the small caps, as an index, are relatively flat. Covered call strategies do well in flat markets. There's a lower chance of the underlying blowing through the call contracts. Going by that logic, there should be more covered call strategies on international indexes and small caps. The only other point I could see is that because they stay relatively flat and less volatile, the options must be less valuable than with the S&P and NASDAQ.
It is dropping and eventually will "REVERSE STOCK SPLIT". You may want to jump off now before the split. "Look at your charts" IWMY has always trended downward and is at 13$ currently (6 months later)
Thank you Adriano! I understood the logic of your argument. Something I didn't hear is the volatility argument which is the element that makes options sexier. Wouldn't be expected for the R2000 to be more volatile and with her option premiums? Thank you again
@PassiveIncomeInvesting good point. Although at the moment RYLD seems to beat the other two, in fact was not or was very close to the other 2 when I was invested in all of them earlier this year
Yes, more companies in the other 2 indices however that means more companies to take you down or dilution of div money because over diversification. I own this one because the volatility is higher which the fund counts on for the biggest div income.
Adrian - thank you so much for the tip - "Reits are cheap guys !". Wow - the reits are on fire - money is shifting out of the magnificent 7. I like AGNC & TWO for high monthly dividends in the US.
Never mind i read TWO "REVERSE STOCK SPLIT" History. Two Harbors Investment (TWO) has 3 splits in our TWO split history database. The first split for TWO took place on March 28, 2013. This was a 1074 for 1000 split, meaning for each 1000 shares of TWO owned pre-split, the shareholder now owned 1074 shares. For example, a 1000 share position pre-split, became a 1074 share position following the split. TWO's second split took place on November 02, 2017. This was a 1221 for 2000 reverse split, meaning for each 2000 shares of TWO owned pre-split, the shareholder now owned 1221 shares. For example, a 1074 share position pre-split, became a 655.677 share position following the split. TWO's third split took place on November 02, 2022. This was a 1 for 4 reverse split, meaning for each 4 shares of TWO owned pre-split, the shareholder now owned 1 share. For example, a 655.677 share position pre-split, became a 163.91925 share position following the split.
Two Harbors Investment (TWO) has 3 splits in our TWO split history database. The first split for TWO took place on March 28, 2013. This was a 1074 for 1000 split, meaning for each 1000 shares of TWO owned pre-split, the shareholder now owned 1074 shares. For example, a 1000 share position pre-split, became a 1074 share position following the split. TWO's second split took place on November 02, 2017. This was a 1221 for 2000 reverse split, meaning for each 2000 shares of TWO owned pre-split, the shareholder now owned 1221 shares. For example, a 1074 share position pre-split, became a 655.677 share position following the split. TWO's third split took place on November 02, 2022. This was a 1 for 4 reverse split, meaning for each 4 shares of TWO owned pre-split, the shareholder now owned 1 share. For example, a 655.677 share position pre-split, became a 163.91925 share position following the split.
Adrian, totally agree with your reasoning behind. The simple explanation often is the best. Why hold the rest when you can just hold the best. Not going to buy something just in the name of diversification. If you got a winner, then invest more. Keep it simple. 😄
1/4/24, Declaration day is this week, 12/27. I use this day to make moves if I see opportunities because it's before the ex dividend day which would be too late to get the divs for this pay period
In Schwab jail, did something wrong. Funds from the sale of AMZY will be held up three days. Sold on Friday so maybe i can purchase before before the ex on the 28th. Otherwise i will buy CONY, collect the div and wait for price to recover. Then buy IWMY and QQQY for Feb div after I sale CONY.
@robertsmith6408 I assume the money is unsettled. Fidelity let's you use them as long as you don't sell what you bought them with before all monies are settled
I did the back test on IWM, QQQ and VOO for the last 10yrs. Your right, the Russell 2000 got beat by both NASDAQ and S&P. I think the higher yield on IWMY has got everyone fired up right now, time will tell.
I even had a 30 minute discussion with Hamilton manager back in the spring and he stated the exact thing you understand... he said the best case scenario for an etf with option that are near or at the money is a volatile yet relatively flat sideways market. In this scenario the calls mostly expire with near 100 % premium payout and not incurring a capital loss from the underlying holding drop ... stock or index or synthetic. That is why IWMY is so attractive to me and likely why the last distribution it blew away qqqy and jepy.
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When rates get cut, money will flow to the small caps and away from the large caps
Money will flow into them BOTH. The out of large and into small narrative is bs. Past 2 years it's been the large caps ONLY because they're safer. Once rates are cut, low caps will pump yes, but large caps will also. Obviously small caps will pump quicker but let's not lie to ourselves. There's a reason the S&P and the Qs use large caps as the highest weighted.
I just bought 300 shares of IWMY. Planning to buy 600 more in the next couple months.
I am a little surprised your reasoning for not investing in IWMY... as you well know the CC etfs earn their best premiums on higher volatility underlying holdings and underlying holdings that are relatively flat. The Russell 2000 qualifies for both factors. So for the reasons you say you wouldn't invest in iwmy... it the exact reason why i am excited investing in this etf. I am not looking for underlying holding growth.... I am looking for best yields from premiums generated from the underlying.
that's fine, but to me: my reasoning is sound. id just rather hold JEPY and QQQY exclusively. If your reasoning is correct, RYLD should be beating QYLD and XYLD no? (well its not... its under-performing both)
@@PassiveIncomeInvesting you lost me. Are you talking about RYLD or IWMY? Why you bring RYLD up?
IWMY is very young but it already blew away qqqy and jepy on last distribution. It has already recoup more than half its ex div date nav drop which was larger drop than the other two because of its higher payout.
Don't get me wrong, I hold all 3 etfs and I love all three of them in my portfolio. But I see great promise for IWMY because of the reasons you said you didn't like it.
But time will tell. Let's see where total ROI is for IWMY in 6 months. :)
I always thought he also said that mostly large cap and up that he bases his portfolio on
@PassiveIncomeInvesting the people working at Defiance have greater skill at what they are doing than anyone at Global X. I'm buying IWMY.
Good reasoning. I always chuckle when a YT person thinks he/she knows more than the fund mgrs who have had years of experience doing these things.@@normansimonsen1203
I've heard Adrian say that he is personally not comfortable with borrowing to invest, and now he's giving his reason for not investing in IWMY, which seems also to be solid wisdom (imo). He bashes no one and reiterates that "no one style is right or wrong, but it's a matter of personal preference."
I like his philosophy and I like his investment style. Very glad I found this channel as we get set to transition from brick and mortar income to passive income from investing. Thanks Adrain. Gonna book that consultation with you soon.
I'm buying some of it - so there! ( See - I don't just parrot what you do !!! ) But I respect your reasoning my friend! 😊
lol i know you do bud!
Analyst saying next year is the Russel 2000 year. 50% increase predicted to just bring it in line with its historical relationship to SP500.
None of these three funds HOLD any stocks. They hold cash in bonds and close out their calls everyday. These are not stock holding ETF'S at all. Volatility is the whole point of all three of these etfs. They do not provide stocks to cover if they lose the trade. They pay or receive CASH.
it doesn't matter, its actually more efficient doing it this way. it replicates the prices of the index 100% so its the same thing... even better actually because the cash makes more income invested in short term t bills than those indexes make with their dividend yield. I suggest (if you don't believe me) you watch Q&As with the actual fund manager . I have had him a few times on the channel and we discuss this in detail (they work like the YeILDMAX ETFs)
I will go with this for more diversification even at 40% dividend yield 😊.
I in fact already bought 1000
I bought 5K of IWMY. If it does not turn out well, I will just sell it for more JEPY, QQQY, or CONY.😁
It will be interesting to see what the next dividends will be for IWMY, JEPY, QQQY, and CONY.
Next dividends are even better! 100% yield now
IWMY "Reverse Stock Split" soon. I am jumping Ship to TWO.
@@AntonioGarcia-xw1ei wow
I am selling all my shares of IWMY except for one share (Showing Good Sportsmanship) leaving a single share for the shecklers, LOL
Well, when I was invested in the YLD's of global x, I seem to remember RYLD outperforming QYLD and XYLD. I attributed the performance due to the fact that the small caps, as an index, are relatively flat. Covered call strategies do well in flat markets. There's a lower chance of the underlying blowing through the call contracts. Going by that logic, there should be more covered call strategies on international indexes and small caps. The only other point I could see is that because they stay relatively flat and less volatile, the options must be less valuable than with the S&P and NASDAQ.
Fair enough, valid points . I invested in this for diversification. Let’s see what happens.
exactly. just because i won't get it does not mean i think its a "bad" investment
It is dropping and eventually will "REVERSE STOCK SPLIT". You may want to jump off now before the split. "Look at your charts" IWMY has always trended downward and is at 13$ currently (6 months later)
But it doesn’t matter long term. Just take the best returns short term and roll to the longer term when the time is right.
Thank you Adriano!
I understood the logic of your argument. Something I didn't hear is the volatility argument which is the element that makes options sexier. Wouldn't be expected for the R2000 to be more volatile and with her option premiums?
Thank you again
Agree with you. Want a more volatile underlying. R2000 would likely be that meaning better premiums.
If your reasoning is correct, RYLD should be beating QYLD and XYLD no? (well its not... its under-performing both)
@PassiveIncomeInvesting good point. Although at the moment RYLD seems to beat the other two, in fact was not or was very close to the other 2 when I was invested in all of them earlier this year
Those are crappy div payers compared to this.@@PassiveIncomeInvesting
Yes, more companies in the other 2 indices however that means more companies to take you down or dilution of div money because over diversification. I own this one because the volatility is higher which the fund counts on for the biggest div income.
I have all 3 Defiance. I figure why not? Qqqy is a much larger position, same with JEPY.
Thanks for another video 🙂
same here .. hi Joanna
Small world. Do you follow R.O.D. (my id here is used solely for YT)
Adrian - thank you so much for the tip - "Reits are cheap guys !". Wow - the reits are on fire - money is shifting out of the magnificent 7. I like AGNC & TWO for high monthly dividends in the US.
NP ... but its not really rocket science :)
I will be investing in TWO but AGNC is going to "Reverse Stock Split" eventually. AGNC is doing nothing but trending downward.
Never mind i read TWO "REVERSE STOCK SPLIT" History. Two Harbors Investment (TWO) has 3 splits in our TWO split history database. The first split for TWO took place on March 28, 2013. This was a 1074 for 1000 split, meaning for each 1000 shares of TWO owned pre-split, the shareholder now owned 1074 shares. For example, a 1000 share position pre-split, became a 1074 share position following the split. TWO's second split took place on November 02, 2017. This was a 1221 for 2000 reverse split, meaning for each 2000 shares of TWO owned pre-split, the shareholder now owned 1221 shares. For example, a 1074 share position pre-split, became a 655.677 share position following the split. TWO's third split took place on November 02, 2022. This was a 1 for 4 reverse split, meaning for each 4 shares of TWO owned pre-split, the shareholder now owned 1 share. For example, a 655.677 share position pre-split, became a 163.91925 share position following the split.
Nevermind i "WONT" be investing In TWO. It has a bad "REVERSE STOCK SPLIT" HISTORY
Two Harbors Investment (TWO) has 3 splits in our TWO split history database. The first split for TWO took place on March 28, 2013. This was a 1074 for 1000 split, meaning for each 1000 shares of TWO owned pre-split, the shareholder now owned 1074 shares. For example, a 1000 share position pre-split, became a 1074 share position following the split. TWO's second split took place on November 02, 2017. This was a 1221 for 2000 reverse split, meaning for each 2000 shares of TWO owned pre-split, the shareholder now owned 1221 shares. For example, a 1074 share position pre-split, became a 655.677 share position following the split. TWO's third split took place on November 02, 2022. This was a 1 for 4 reverse split, meaning for each 4 shares of TWO owned pre-split, the shareholder now owned 1 share. For example, a 655.677 share position pre-split, became a 163.91925 share position following the split.
Adrian, totally agree with your reasoning behind. The simple explanation often is the best. Why hold the rest when you can just hold the best.
Not going to buy something just in the name of diversification. If you got a winner, then invest more. Keep it simple. 😄
A1 buddy
I IWMY the one which announced a Reverse split this week ?
yes
I am selling all my shares of IWMY except for one share (Showing Good Sportsmanship) leaving a single share for the shecklers, LOL
What is the ex div rate for IWMY for Ded for payment in Jan?
1/4/24, Declaration day is this week, 12/27. I use this day to make moves if I see opportunities because it's before the ex dividend day which would be too late to get the divs for this pay period
In Schwab jail, did something wrong. Funds from the sale of AMZY will be held up three days. Sold on Friday so maybe i can purchase before before the ex on the 28th. Otherwise i will buy CONY, collect the div and wait for price to recover. Then buy IWMY and QQQY for Feb div after I sale CONY.
@robertsmith6408 I assume the money is unsettled. Fidelity let's you use them as long as you don't sell what you bought them with before all monies are settled
Thanks dude
Does anyone know of a solid income etf that pays monthly on the 3rd week of the month?
Found FATBP. Pays on the 3rd week of each month.
I did the back test on IWM, QQQ and VOO for the last 10yrs. Your right, the Russell 2000 got beat by both NASDAQ and S&P. I think the higher yield on IWMY has got everyone fired up right now, time will tell.
Thx Adriano. You have great catches and thx for sharing with the PII community.
Saludos desde New Jersey 🎉
I'm not an Options guy. But I recall something about Sideways being Good. If it has any volatility at all, Defiance will capture income from it.
sideways means a flat market
I even had a 30 minute discussion with Hamilton manager back in the spring and he stated the exact thing you understand... he said the best case scenario for an etf with option that are near or at the money is a volatile yet relatively flat sideways market. In this scenario the calls mostly expire with near 100 % premium payout and not incurring a capital loss from the underlying holding drop ... stock or index or synthetic.
That is why IWMY is so attractive to me and likely why the last distribution it blew away qqqy and jepy.
@@slabsetters Those Defiance people might be able to get income out a rock 🪨 if they work at it.
thanks for input
Hi Adrian just wondering when is your porfolio update im supper excited 😆
Saturday + Sunday! make sure you have popcorn
@@PassiveIncomeInvesting
🍿🍿
@@PassiveIncomeInvesting I'm off those days I'll be watching sir !! Super excited.
Very logical analysis! Thanks!
Is it smart to hold jepy and qqqy in my tfsa with as a Canadian converting my money to USA
Thanks Adriano! Wow 🤩 one more ..
Love how you keep us updates plus explain what we could be investing in .. by explaining what it’s based on :)
More to come!
You kepp calling it iwmi. Is it iwmy? 😊
yes i did :( tricky one to say