I am so big on stocks and it has worked well for me, but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. I would love to maintain a similar effective approach on ETFs.
I live off dividends on ETFs, for sure it can improve your wealth if you reinvest them to buy more at dips, creating a snowball effect that allows you compound over time.
Have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them? Bcos I need a lot as rent, inflation alone eat up almost all of what I make.
tbh I keep compounding, adhering to well established structure from a professional, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased in the past year while participating behind a top performer. I put in 65k few years back, now effectively remits over hundred k and increasing.
Another great video. All the funds on my radar are new. RSPA, MDST, & BTCI. All are very young and very different from each other, which is great for diversification sake. I tread lightly with new funds, but am definitely interested in these three.
STK is a fantastic fund. I made a video about it. If I was younger, I'd hold it. However, as a retiree I'm looking for more yield than growth and normally it yields less than 6%. Although the last distribution was massive!
I started using Snowball to track my portfolio (and share it) in May 2024. Since then I have made about 4 trades a week and reinvested a portion of my dividends every month. Not counting the reinvestment of dividends, the portfolio is up 6.7% since May, and the yield is currently 11.54%. Total return would require annualizing the 6.7% and adding the income. I don't have software that can do that for my portfolio. So no NAV erosion, but the market has been kind to us. I would like to track everything but I haven't found a way to account for my trades (realized vs unrealized profit) and I want to show the returns without reinvestment so that its a constant as I reinvest a different amount each month and that complicates the return.
Thank you for the insightful video on the five funds. I appreciate your style of getting straight to the core issues rather than just glossing over key items. I hold AIPI and FEPI in my portfolio. I considered XDTE, but it seemed a bit too risky for me.
I loved MCI when i bought it late 2023. It ran up so quickly in 2024 that i had to sell it and take my chips off the table. I'd like to own it again, so I'm on the sideline. Nicely done video AI (Armchair Income) Keep up the good work. It's appreciated.
Thanks for sharing your experience. I made a similar mistake with MAIN. Sold it because it was "so expensive" and took my "profits". After that it continued to zoom upwards! Thanks for watching :)
Thanks, Armchair. Good video. Owner of XDTE as my favorite S&P 500 covered call fund. The uncovered overnight aspect has some strong historical performance arguments. I like FEPI and YMAG (and YMAX) in same category as AIPI.
ADX has a fantastic total return history over its long history. I prefer more consistent distributions so I haven't looked at it for a while. I think its time to take another look...thanks for the idea :)
@@armchairincomechannel they changed their distribution policy to quarterly a 2% NAV/quarter = 8%/yr plus extra as earned. (10.8% this year) rather than the one large year end distribution.
what's your opinion on some of the Pacer ETFs, like QDPL (mini SP500) and QSIX (mini NASDAQ)? expense ratios are kind of high at 0.60% though, but the approach seems interesting, where they put like 85ish% towards those indices and then the remainder are used for dividend futures.
I like QDPL and made a video all about it. The yield is a bit low for me currently but the performance and total return is excellent. Here's the video: th-cam.com/video/T-GX8DZuRkQ/w-d-xo.html
Yes, similar and less premium to NAV. Worthy of consideration. MCI has delivered a slightly higher return than MPV over the past 5 and 10 year periods but both are worth a look. More importantly, both have a very long history of paying dividends.
Yes, their total return is quite good but you have to reinvest all the distributions to avoid NAV erosion. I prefer lower yields than those, but with NAV that's flat or increasing.
I like NEOS but the channel is aimed at funds that pay 8-12% and that one is less than 6% so that's why I haven't covered it. I appreciate that you might want to park some cash in a fund like that for risk management so perhaps its useful for a lot of people so I'll look into it. Thanks for the suggestion.
Thanks for the heads up. As for XDTE- is there an actual benefit to weekly distributions? Accelerated compounding? It seems a bit over the top (I personally can budget monthly without problem), but maybe Im missing something. Just want to confirm this weekly feature is frankly not just a gimmick and offers a real advantage.
Thanks for watching them! YMAX is interesting. I don't own it. The income is great but it relies on Nvidia, COIN, MSTY performance to maintain its NAV. Many of the ETF's within it suffer a lot of NAV erosion. Performance so far is good but it's a bull market.
Thanks. As always...good info. AIPI is 3.8% of my portfolio. Betting US' new DOGE will heavily use IA (via PLTR and others) to make GOV more efficient. XDTE 2.7%. Will track the others.
GIAX is an interesting way to broaden exposure overseas but it's so new. Will keep an eye on it. For the Russell 2000 I lean toward IWMI because I'm comfortable with NEOS.
I own GIAX , that is young but it has a global exposure and I think it uses ROC, which is a huge benefit for ppl who are in a high tax bracket. It would be great if you could do video with 10 ETFs that use ROC or qualified dividends (even if some portion of dividends is considered qualified). Thank you for sharing your knowledge with us!
@@armchairincomechannel Thank you for considering it. We can wait until we get 1099 to see which etfs have ROC or qualified dividends or 60/40 distribution long/short capital gains.
Thanks again. I’m actually doing MSTY and NVDY for a while. That’s because I invest in both underlying and so follow those stocks/businesses closely. Otherwise, I so far, stick with NEO and have one KURV. I’m still 95% still an aggressive growth investor. I may follow a couple of the ones you mentioned in this video. Thanks.
all into QDTE and XDTE. I earned over 3,500 last month in my monthly payers. I think I’ll let those keep reinvesting while I start putting more of my new investing dollars into the DTEs. If they can sustain this performance I’ll only need a couple years to replace my paycheck
Great to hear they're doing well for you. I like a lot of diversification so I'm not reliant on any one fund manager, however I'll keep an eye on these as they're off to a great start.
As always, I appreciate the well-researched, well-presented videos you produce. I'm holding AIPI now, recently increased my position, and will likely increase again in the future -- plus compounding. It's been a solid performer, outpacing it's older brother FEPI, at least in my portfolio. XDTE is the oldest and tamest of the Roundhill 0DTE funds. It, too, has been a solid performer for me thus far. Weekly distributions are a plus, especially from the perspective of more regular compounding and less "idle" capital. I'm going to keep my eye on MSD and see how it compares to GIAX for diversification, international exposure, and performance. PSAX is interesting, too. I already have two PIMCO funds with differing yield and risk exposure, but I'm going to evaluate if it is a candidate to replace one of them.
Good video. My suggestion is to add this fact about covered call ETFs. If the market goes down, these funds will go down with them, almost with the near same rate. But, when the market bounces, these funds will not bounce with the same rate. They might fall way behind.
I agree. For that reason I diversify beyond just cc funds. They work well in flat or bullish markets, which is the natural state more than 50% of the time.
MSD caught my attention. Definitely looks like a nice income play and is a good diversifier. However, the valuation looks a bit stretched, so definitely not a buy at this time for me either.
The downside of XDTE, QDTE, and RDTE is they own/buy Long Term Options (LEAPS) as the principal. I prefer SPYT, QQQT, FEPI and IWMW because they actually own shares as the principle. A drop in the markets (15+%) will be true litmus test for all of the new Covered Calls funds. With that said, I do own QDTE (2% of the portfolio) and enjoy seeing weekly dividends. Will start a position (one percent) in AIPI after watching this video. Thanks for all of your work and information.
One other question I have for you: Is snowball software sophisticated enough that it could tell you where you are at on say a daily basis by extrapolating out future dividends versus current price, to give you up to date performance. This is something I really struggle with with income investing. With a standard stock you can see on a daily basis if you're making a profit or losing. With income investing sometimes dividends are only paid quarterly. With that said if you just look at the funds price on a given day, it could go down and look like it's performing poorly over a quarter until the dividends kick in. Having good software seems to be really key to know how things are working and performing. Who else besides snowball is a player in the game? I get the impressions they are a sponsor.
I don't really understand your question. The yield shows you the relationship between the current price and the trailing 12 months of income. Whether dividends are paid monthly or quarterly doesn't affect the trailing 12 months of income. The key variable is the current price. There are challenges with predicting future income but that's nothing to do with dividend tracker software...we can't predict the future! Other than Snowball, the only other dividend tracker I like and have used extensively is Simply Safe Dividends. It's far more expensive but it has a comprehensive approach to researching dividend safety scores for popular stocks and ETFs. Snowball has not sponsored any videos, but the link in the description that provides a discount is an affiliate link. In the future, they may sponsor a video if we can figure out a way to make it a good video for the audience. I don't want to make a video just to advertise a product. Here's a link to the video I made comparing Snowball to Simply Safe Dividends: th-cam.com/video/H5_bxIHBm7E/w-d-xo.html
Thanks for the well presented content. I stumbled upon your channel today and I have binge watched all of your videos and downloaded your latest portfolio spreadsheet. With respect, I have a few important questions. First, the individual stock percentage allocations in your spreadsheet are not actually correct. This is because you hold some ETFs that also hold several of the individual stocks you already have in your portfolio. For example, you hold PBDC. It has large holdings of ARCC, BXSL, OBDC and MAIN. You also hold these stocks individually in your portfolio. This increases your net exposure to each these stocks, but that is not properly reflected by the percentage allocations listed in your spreadsheet. Secondly, I have to question why you have even invested in PBDC. You could easily replicate that funds portfolio yourself and not have to pay their management fee. Especially given that you already directly hold many of the stocks that make up their portfolio. Furthermore, holding PBDC adversely effects your monthly liquidity. The above mentioned stocks pay monthly distributions whereas PBDC is quarterly. Finally, there is no mention of a cash holding in your portfolio. Does that mean that you are currently fully invested during the most expensive market of all time? Do you not think it prudent to have some cash sitting in MMKT or TBIL funds to double down on your income stocks when the market corrects. I note that current median yield of your portfolio is 11.32%. You could add some circa 5.5% MMKT or TBIL type investments into your mix, keep some of your powder dry, and still get a total return above your stated 8% target.
Thank you for watching so many videos, giving it so much thought, and detailed feedback. I agree that holding some of the PBDC holdings is doubling up. Those are the individual BDC's that I particularly favor so I've weighted more heavily to them. I could follow every trade made by PBDC and replicate their portfolio myself to avoid paying a fee but 1/ I have my own favorites as mentioned before and 2/ I don't want to spend my time trying to avoid fees by monitoring and copying fund manager's trades. It's doable for one fund but I have many. My portfolio is a blend of monthly and quarterly distributions and over the course of a year it's a bit lumpy but I'm fine with some variation by month. I don't need all income to be monthly. I don't keep much cash as I invest a portion of distributions every month regardless of market condition (DCA). I don't believe in trying to time the market. If I was saving up for a major purchase like a car I would put some cash into SGOV or something similar. The closest I have to that is JBBB, which is low volatility.
@@armchairincomechannel Thanks for the reply and for not deleting my comments as many do. With respect, I am not sure your logic for holding PBDC is valid. The fund only holds ten large positions in BDCs. You already hold four of these stocks individually. And as stated they are your favourites. Why are you paying management fees (and modestly disrupting your monthly liquidity) to hold a few extra BDCs via PBDC when you could allocate those funds directly to your favourites. To reiterate, If you wanted to replicate PBDC yourself, very little time and effort required. They only have 10 major holdings (the four biggest you already own individually) and they have very little turnover of their individual positions. It is trite to say that trying to time the market is a fool's game. There could well be a melt up moving forward into Trumps presidency rather than a correction. But given we have the most expensive markets in history, and what can only be described as a tech bubble, currently holding cash yielding >5% is not a significant risk nor opportunity cost when your targeted average portfolio return in 8%. Nothing wrong with having your cake, and also being able to eat more should the opportunity arise. Message me if you are in southern Thailand. I will take you out in my boat.
looking for international high income for diversification. As of now I only hold IDVO, which has been great for the past couple years. I've yet to find another, but just today found SDIV --- anyone have a strong opinion either way on this?? MSD is in today's video and just might work. Thoughts ?
I prefer funds with a NAV that's rising, flat, or at least rising a significant portion of the time (eg when interest rates are going in a specific direction). So YMAX isn't for me. If you hold it you have to reinvest a significant portion of the dividends to maintain the amount invested.
Did you see Brad’s conversation with Si on Income Architect yesterday? I’m buying TSPY but nervous if Si ever met the proverbial bus. I’m hoping AI will get Si on here sometime - I think they’d have a great discussion.
Hello, I am new to Income Investing. exploring ideas. Can you please share a Video on how returns/results can vary based on when one buys the CC ETF ? I left emails to NEOS and no one ever responded. There is no schedule on when a fund INITIATES the sale of the Call ..which means if one buys the fund/ETF 20 days later, most of the premium has already eroded. Even worse, if one buys it just a day after the EXDIV date, then your investment is doing for the next month... Very critical if one wants to initiate a large position..May have to DCA and build over time to avoid all this misses. Appreciate your input. Thanks
I don't understand your question. NEOS ladders their calls so there is no single date that would apply. There are always numerous calls expiring on numerous dates. As for the dividend, the price falls by an amount equal to the distribution which means there's no advantage or disadvantage to buying/selling on that date...the market adjusts for it.
I reached out to NEOS with questions and they responded the next business day so either your question didn't make sense or you didn't send to the proper spot.
I enjoy the weekly commentary, but also extremely cautious right now due to dozens of macroeconomist telling us there's going to be a 50% drawdown as early as the first quarter of 2025. I recently asked folks over at New Harbor Financial about a lot of the fixed income offering, and the general consensus is they are going to be hit just like stocks. That is to say in a major crash you're still going to see a major drop in price of any given fund. I've been asking myself a lot lately what's particular funds will do the best in a downturn and this is something I would love for you to cover. For example, I would think something like VICI would perform well during a major crash as most of those people down in Vegas still have to pay the rent regardless of economic conditions. I can certainly see other REIT's In different areas of the market not perform quite so well. This is just one example of many, but main point here is I would love to see you talk about companies you think that will perform particularly well during a downturn. I still have a lot of my income and short term treasuries and gold and playing it very safe.
Thanks for your feedback. I don't try to time the market because nobody knows the future. "Experts" predict a crash every year, and other "experts" say its different now and the market will reach new highs. The market goes up more often than it goes down. I'm a believer in dollar cost averaging monthly and riding out corrections (while reinvesting at higher yields during a correction to increase income). If you feel better by trying to avoid corrections using cash, gold, or low volatility funds, then that makes sense. It's important that you sleep well at night. Each person has a different tolerance for volatility. I'm ok with seeing the value of my portfolio drip significantly, if my income remains steady, or at least above a certain level. Some funds, like JEPI, and JAAA, have done better in a downturn than others. Thanks for the suggestion for a video.
I am 63, so recovering from a major drawdown could be an issue. I guess the way I see it is if you lose 50% of your portfolio you're going to be losing 50% of your dividends as well. I'm not sure you're positioned well enough that you could do that, but that would destroy me. Do you put any stop losses on your positions? Are there hedges against any positions? I realized within some of the funds they are better protected than others. The REIT mentioned for example has limited downside. Would still be nice to see a video talking about which funds would fare better in a crash and which would do better during a major bull run like we are having. Valuations are just so high, this is not going to go on forever. I do appreciate what you're saying about the experts and I missed out on the 26% gains last year playing it safe. Timing is tough. Fundamentally though I still believe the everything bubble is way overdue for a major correction. What I lost in the S&P I did make up for in gold and I owner financed some real estate at 8 1/2 percent plus have rentals, so In general I'm just going a safer route. That is not a criticism at all of your system and I am very intrigued and have some holdings based on your recommendations. I think you yourself mentioned getting started with this is get familiar with the system and build slowly and that's kind of what I'm doing. I think it would be very foolish just to blindly follow you as we are at very different ages with very different requirements. At the moment I'm not taking anything at all from the portfolio but within the next five years I will. We do share some other things in comments in that I'll be retiring in Thailand. I have a house and wife in Thailand and actually heading over in January for three months. I'm gradually learning the language, but I never really feel completely independent in Thailand as it's tough as an ex-pat not speaking the language, not to mention it's tough to find a job and things to do. I get bored fast.
I am long MCI not disappointed. I looked at MSD but the 2.6% TR over 10yrs made me look elsewhere. I also recently opened a small position in a 0DTE fund on SP500 just to see if those insane yields are too good to be true. They most likely are 😅
NBXG techy fund. 9% yield 13% discount to NAV. With better growth than BST. I'm holding in conjunction my QQQI like I do BALI with my SPYI. Also I sold my SVOL. It hasn't recovered like I wanted to see as the VIX moved lower. Its price action seems off to me. The stock price used to be in the mid/ high 22's now it's the mid/ high 21's. I would re enter if there is a huge spike in the VIX and give it another try.
Armchair, I’m a long-time viewer, and probably one of your younger ones. I’m finishing up high school now and have a full eight months before starting college. My goal is to make $4,000 to $5,000 a month, and I’m currently saving some of that for short-term needs and college (I also have scholarships and grants). I’m also contributing to my Roth IRA $200/month-plan to increase that. I want to build up $7,000 to $10,000 in a taxable brokerage account with high-income-producing funds like BTCI, FEPI, SPYI, and QQQI to generate some income while I’m in college. Theoretically, I could sell shares in these funds if I needed to cover an emergency. What do you think about this strategy, or am I taking on too much risk?
Great to hear such passion for investing from a young person. Time is the best investment asset you can have. You can invest a small amount regularly (no market timing), choose mediocre investments, and still amass a fortune when you're older....simply by starting young. The general rule for investing as a young person is to focus on growth and the easiest way to do that is with the S&P 500, NASDAQ, or both. You'll achieve higher returns and pay less tax than if you invest in income funds. So my suggestion is to continue investing, but focus on growth. If you have a passion for income investing, you can do a bit on the side for fun...it's a great skill to learn. But you'll end up with more money when you retire if you start with growth. You don't need a lot of income when you're young, just get lots of experience, develop skills, and try out businesses or jobs you think you might be good at. Eventually you can convert the income you make from being good at something, into much bigger contributions to growth funds (and other investments if you like, such as real estate). Then when you're ready to retire, you can shift to income investing.
...with my little eye...something beginning with D....Dividends! ISPY is off to a great start and worthy of comparing to XDTE. Both are new and I'll keep an eye on them.
09:00am Armchair Income video is released. 09:01am I sing out loud "armchair income, It's my hustle :)" 09:11am Video ends. ... ... ... 11:32pm Lying in bed I sing out loud "armchair income, it's my hustle :)"
Hi. If you don't mind me asking, because I believe you have ASGI in your portfolio, do you know why the fund's price has been down for so many days? I don't mind price drops but I also don't know if this is because they are cutting distributions or something else that would indicate a reason to rethink staying in the fund.
ASGI's distribution is simply 12% of the NAV, divided into months, ie 1% per month. It will move up and down with the NAV. The last distribution was 1 cent lower than the previous distribution so my assumption is that some investors didn't like that and sold.
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I look forward to your videos every Sunday morning - thanks Armchair Income!
I appreciate that!
This is the best channel on income investments period.
You're very kind! Thanks for taking the time to write a comment.
Once again, the best part of my weekend!!
That's great to hear!
Thank you Mr Armchair. I always look forward to your videos every week!
Glad you like them!
Thanks,, I have AIPI as part of my income portfolio as well.. currently 6th largest income holding.
It's a risky one but so far it has been a success.
I reinvest my ETFs dividends 100% and will do so for years growth.
Thanks for sharing you strategy. Compounding is a powerful force!
I am so big on stocks and it has worked well for me, but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. I would love to maintain a similar effective approach on ETFs.
I live off dividends on ETFs, for sure it can improve your wealth if you reinvest them to buy more at dips, creating a snowball effect that allows you compound over time.
Have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them? Bcos I need a lot as rent, inflation alone eat up almost all of what I make.
tbh I keep compounding, adhering to well established structure from a professional, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased in the past year while participating behind a top performer. I put in 65k few years back, now effectively remits over hundred k and increasing.
My favorite channel! I own MSD, PAXS and MCI. MCI is a core holding. Thanks for reminding me of AIPI and XDTE. I’ll be researching them.
Any thoughts on QDTE?
I expected QDTE to outperform XDTE and with higher volatility. However, in their short history, their performance is similar.
Glad it was helpful. I'll be watching them too!
Sunday’s and armchair income .. life is good ❤
I'm glad to know it enhances the enjoyment of your Sunday! Thanks for letting me know.
Watching now. Always look forward to the new Sunday content.
That's great to know! Thanks for being a regular viewer.
Another great video. All the funds on my radar are new. RSPA, MDST, & BTCI. All are very young and very different from each other, which is great for diversification sake. I tread lightly with new funds, but am definitely interested in these three.
I'm keeping an eye on BTCI too. Will take a look at the others; thanks for sharing.
Another Great video. I am curious what your thoughts are on STK these days.
STK is a fantastic fund. I made a video about it. If I was younger, I'd hold it. However, as a retiree I'm looking for more yield than growth and normally it yields less than 6%. Although the last distribution was massive!
How about a video showing your overall percentage of increase in the portfolio or NAV erosion since you started?
I started using Snowball to track my portfolio (and share it) in May 2024. Since then I have made about 4 trades a week and reinvested a portion of my dividends every month. Not counting the reinvestment of dividends, the portfolio is up 6.7% since May, and the yield is currently 11.54%. Total return would require annualizing the 6.7% and adding the income. I don't have software that can do that for my portfolio. So no NAV erosion, but the market has been kind to us. I would like to track everything but I haven't found a way to account for my trades (realized vs unrealized profit) and I want to show the returns without reinvestment so that its a constant as I reinvest a different amount each month and that complicates the return.
Thanks, for an interesting presentation on these 5 income funds, none of which I had heard of until your presentation. Interesting stuff!
I hope I gave you something to think about :) Thanks for watching.
Thanks for the ideas!
You're most welcome!
Thank you for the insightful video on the five funds. I appreciate your style of getting straight to the core issues rather than just glossing over key items. I hold AIPI and FEPI in my portfolio. I considered XDTE, but it seemed a bit too risky for me.
Thanks for your feedback. I don't like videos full of fluff and I'm glad you don't either!
Thanks! I also recently opened a small position in AIPI and am building.
You're welcome. It's high risk, high reward. I may open a position but it won't be large.
Thanks again......I will keep them on my radar.....😊
You're most welcome!
Im almost certain my next fund will be AIPI. Great video!
Thanks for watching! It's been doing well but it has also been a bull market so there's that....
Great video, thanks for sharing your knowledge and experience. Learn something new every video
That's great to know! Glad to hear that you find the info useful.
Thanks for the analysis. Looking forward to hearing more details.
You're most welcome!
When you hey a moment, take a look at the stk special distribution coming in January, omg.
Yes, I know...it's huge!!!
@@armchairincomechannel it's the largest special distribution I've ever received with my 630 shares.
I hold XTDE and QTDE, both preforming better than I excepted.
T@TJ-Stackin The same since November, so far so good.
Thanks for sharing. So far, so good.
Exemplary qualification of New prospects, now also on my radar. Thx!
Thanks Jim!
I loved MCI when i bought it late 2023. It ran up so quickly in 2024 that i had to sell it and take my chips off the table. I'd like to own it
again, so I'm on the sideline. Nicely done video AI (Armchair Income) Keep up the good work. It's appreciated.
Thanks for sharing your experience. I made a similar mistake with MAIN. Sold it because it was "so expensive" and took my "profits". After that it continued to zoom upwards! Thanks for watching :)
Great video as always!
I appreciate that! Thanks for watching.
Nice review
Thank you! Cheers!
Thanks, Armchair. Good video. Owner of XDTE as my favorite S&P 500 covered call fund. The uncovered overnight aspect has some strong historical performance arguments. I like FEPI and YMAG (and YMAX) in same category as AIPI.
Thanks for sharing your approach. XDTE is still a bit new but I'm keeping an eye on it.
Thanks, great presentation! Will be following.... Have you ever looked at the history of ADX? goes back to 1929!
ADX has a fantastic total return history over its long history. I prefer more consistent distributions so I haven't looked at it for a while. I think its time to take another look...thanks for the idea :)
@@armchairincomechannel they changed their distribution policy to quarterly a 2% NAV/quarter = 8%/yr plus extra as earned. (10.8% this year) rather than the one large year end distribution.
Do you have a video only about NAV erosion?
What about a video about rebalancing (if I'm not in a qualified account with tax protections)?
I don't have a video about NAV erosion, it's a complicated topic. Thanks for the suggestions!
I own and love XDTE & MCI. On my radar is XDTE sister fund QDTE. Adding to: ARDC, GPIQ, CEFS (the ETF basket of Closed End Funds), & PBDC.
Thanks for sharing. We have a few in common :)
Thank u, great video.
You're welcome! Thanks for watching.
what's your opinion on some of the Pacer ETFs, like QDPL (mini SP500) and QSIX (mini NASDAQ)? expense ratios are kind of high at 0.60% though, but the approach seems interesting, where they put like 85ish% towards those indices and then the remainder are used for dividend futures.
I like QDPL and made a video all about it. The yield is a bit low for me currently but the performance and total return is excellent. Here's the video: th-cam.com/video/T-GX8DZuRkQ/w-d-xo.html
What about MSTY? Unlimited Income
Yes, it's a money printing machine :) Per my BTC video, it's great except that it relies on MSTR...which has delivered double the performance of MSTY!
Cory trolling Armchair on MSTY as I'm trolling Coty in his latest video over MSTY. FOR LIFE🚀😂
While waiting for MCI to come down to a better entry point, what about buying MPV now? Sister fund. Thoughts?
Yes, similar and less premium to NAV. Worthy of consideration. MCI has delivered a slightly higher return than MPV over the past 5 and 10 year periods but both are worth a look. More importantly, both have a very long history of paying dividends.
Have you looked into the Cornerstone closed end funds (CRF, CLM)? They yield roughly 15% or so.
Yes, their total return is quite good but you have to reinvest all the distributions to avoid NAV erosion. I prefer lower yields than those, but with NAV that's flat or increasing.
Please cover the Neos ETF CSHI. Some Seeking Alpha analysts like it, while others refer to it as "picking up nickels in front of a steamroller".
I like NEOS but the channel is aimed at funds that pay 8-12% and that one is less than 6% so that's why I haven't covered it. I appreciate that you might want to park some cash in a fund like that for risk management so perhaps its useful for a lot of people so I'll look into it. Thanks for the suggestion.
Thanks for the heads up. As for XDTE- is there an actual benefit to weekly distributions? Accelerated compounding? It seems a bit over the top (I personally can budget monthly without problem), but maybe Im missing something. Just want to confirm this weekly feature is frankly not just a gimmick and offers a real advantage.
There's no benefit for me. I'm fine with monthly or quarterly. Some people like it but I'm more interested in long term performance.
I watch all your videos and forgive me if I missed one but what are your thoughts on YMAX?
Thanks for watching them! YMAX is interesting. I don't own it. The income is great but it relies on Nvidia, COIN, MSTY performance to maintain its NAV. Many of the ETF's within it suffer a lot of NAV erosion. Performance so far is good but it's a bull market.
Thanks. As always...good info. AIPI is 3.8% of my portfolio. Betting US' new DOGE will heavily use IA (via PLTR and others) to make GOV more efficient. XDTE 2.7%. Will track the others.
You've already bought some of what I'm looking at so you're a step ahead of me :)
You do realize DOGE doesn’t have a budget and its only authorized task is to produce a report by mid 2026?
Another awesome video! What do you think about THQ and RLTY at these levels for 2025?
Thanks! I can only speak to how they fit into my portfolio, and I continue to hold both.
@@armchairincomechannel Im buying after today’s blood bath! 😂
Looking into GIAX & ITWO.
GIAX is an interesting way to broaden exposure overseas but it's so new. Will keep an eye on it. For the Russell 2000 I lean toward IWMI because I'm comfortable with NEOS.
XDTE doesn't hold its calls overnight. This allows it to capture any overnight moves. A benefit.
Yes AI stated that
Yes, that's a good point and that's a key differentiator for that fund.
Interested in THTA. 11% yield and stable price except it dropped with the VIX spike Aug 5 and has not recovered. Would do you think?
It's so young and that Aug 5 dip is a concern. It's not currently on my list.
I'm in that currently, I like the setup and the management. GL
Where do you get the premium/discount info chart?
CEFConnect.com
What metric do we use again to track nav erosion when using scanners?
There's no single metric but for ETF's the price is a good guide as price = NAV. For CEF's, price and NAV are separate.
I like IFN, DMO, PDX, BANX, and RITM.
Thanks for sharing!
I really like AIPI, I also hold FEPI. Each only makes up 2.2% of my portfolio.
I like the look of them too but it remains to be seen how they react to a prolonged correction. My FEPI is a small percentage too.
@ do you think a prolonged correction will hurt the distribution? Even if it’s cut in half it would still 17%!
GIAX?
Interesting concept for exposure to global markets, but so new! One to keep an eye on.
I own GIAX , that is young but it has a global exposure and I think it uses ROC, which is a huge benefit for ppl who are in a high tax bracket. It would be great if you could do video with 10 ETFs that use ROC or qualified dividends (even if some portion of dividends is considered qualified). Thank you for sharing your knowledge with us!
Thanks for sharing, and for the suggestion. I'll give it some thought as I think others would be interested too.
@@armchairincomechannel Thank you for considering it. We can wait until we get 1099 to see which etfs have ROC or qualified dividends or 60/40 distribution long/short capital gains.
Thanks again. I’m actually doing MSTY and NVDY for a while. That’s because I invest in both underlying and so follow those stocks/businesses closely. Otherwise, I so far, stick with NEO and have one KURV. I’m still 95% still an aggressive growth investor. I may follow a couple of the ones you mentioned in this video. Thanks.
Thanks for sharing. MSTY has been amazing because MSTR has been mind boggling.
all into QDTE and XDTE. I earned over 3,500 last month in my monthly payers. I think I’ll let those keep reinvesting while I start putting more of my new investing dollars into the DTEs. If they can sustain this performance I’ll only need a couple years to replace my paycheck
Great to hear they're doing well for you. I like a lot of diversification so I'm not reliant on any one fund manager, however I'll keep an eye on these as they're off to a great start.
As always, I appreciate the well-researched, well-presented videos you produce.
I'm holding AIPI now, recently increased my position, and will likely increase again in the future -- plus compounding. It's been a solid performer, outpacing it's older brother FEPI, at least in my portfolio.
XDTE is the oldest and tamest of the Roundhill 0DTE funds. It, too, has been a solid performer for me thus far. Weekly distributions are a plus, especially from the perspective of more regular compounding and less "idle" capital.
I'm going to keep my eye on MSD and see how it compares to GIAX for diversification, international exposure, and performance.
PSAX is interesting, too. I already have two PIMCO funds with differing yield and risk exposure, but I'm going to evaluate if it is a candidate to replace one of them.
Thanks for sharing all those ideas. I'll check out GIAX.
Good video. My suggestion is to add this fact about covered call ETFs. If the market goes down, these funds will go down with them, almost with the near same rate. But, when the market bounces, these funds will not bounce with the same rate. They might fall way behind.
I agree. For that reason I diversify beyond just cc funds. They work well in flat or bullish markets, which is the natural state more than 50% of the time.
The income from aipi is reliable but it is a new fund so we will see how this performs in the future
It's done well in a bull market but in a bear market it will be a different story. I'm curious to see how it does long term too.
I have very small positions in AIPI. They both make me nervous. MCI is doing very well IMHO and they just added a 20% year end bonus woot!
If I open a position on AIPI it will be small too. High risk, high reward. MCI has an impressive long term record.
MSD caught my attention. Definitely looks like a nice income play and is a good diversifier. However, the valuation looks a bit stretched, so definitely not a buy at this time for me either.
I agree. One to keep an eye on.
I really like MSD and EDD buying both of them.
Thanks for sharing.
The downside of XDTE, QDTE, and RDTE is they own/buy Long Term Options (LEAPS) as the principal. I prefer SPYT, QQQT, FEPI and IWMW because they actually own shares as the principle. A drop in the markets (15+%) will be true litmus test for all of the new Covered Calls funds. With that said, I do own QDTE (2% of the portfolio) and enjoy seeing weekly dividends. Will start a position (one percent) in AIPI after watching this video. Thanks for all of your work and information.
Thanks for sharing your thoughts. I agree that the performance of these funds during a prolonged correction is still a question mark.
When does the premium drop on mci?
If I knew that I'd be a billionaire! Nobody can predict what the market will do. All you can do is watch it or put a limit order in at a lower price.
One other question I have for you: Is snowball software sophisticated enough that it could tell you where you are at on say a daily basis by extrapolating out future dividends versus current price, to give you up to date performance. This is something I really struggle with with income investing. With a standard stock you can see on a daily basis if you're making a profit or losing. With income investing sometimes dividends are only paid quarterly. With that said if you just look at the funds price on a given day, it could go down and look like it's performing poorly over a quarter until the dividends kick in. Having good software seems to be really key to know how things are working and performing. Who else besides snowball is a player in the game? I get the impressions they are a sponsor.
I don't really understand your question. The yield shows you the relationship between the current price and the trailing 12 months of income. Whether dividends are paid monthly or quarterly doesn't affect the trailing 12 months of income. The key variable is the current price. There are challenges with predicting future income but that's nothing to do with dividend tracker software...we can't predict the future! Other than Snowball, the only other dividend tracker I like and have used extensively is Simply Safe Dividends. It's far more expensive but it has a comprehensive approach to researching dividend safety scores for popular stocks and ETFs. Snowball has not sponsored any videos, but the link in the description that provides a discount is an affiliate link. In the future, they may sponsor a video if we can figure out a way to make it a good video for the audience. I don't want to make a video just to advertise a product. Here's a link to the video I made comparing Snowball to Simply Safe Dividends: th-cam.com/video/H5_bxIHBm7E/w-d-xo.html
Thanks for the well presented content. I stumbled upon your channel today and I have binge watched all of your videos and downloaded your latest portfolio spreadsheet. With respect, I have a few important questions. First, the individual stock percentage allocations in your spreadsheet are not actually correct. This is because you hold some ETFs that also hold several of the individual stocks you already have in your portfolio. For example, you hold PBDC. It has large holdings of ARCC, BXSL, OBDC and MAIN. You also hold these stocks individually in your portfolio. This increases your net exposure to each these stocks, but that is not properly reflected by the percentage allocations listed in your spreadsheet. Secondly, I have to question why you have even invested in PBDC. You could easily replicate that funds portfolio yourself and not have to pay their management fee. Especially given that you already directly hold many of the stocks that make up their portfolio. Furthermore, holding PBDC adversely effects your monthly liquidity. The above mentioned stocks pay monthly distributions whereas PBDC is quarterly. Finally, there is no mention of a cash holding in your portfolio. Does that mean that you are currently fully invested during the most expensive market of all time? Do you not think it prudent to have some cash sitting in MMKT or TBIL funds to double down on your income stocks when the market corrects. I note that current median yield of your portfolio is 11.32%. You could add some circa 5.5% MMKT or TBIL type investments into your mix, keep some of your powder dry, and still get a total return above your stated 8% target.
Thank you for watching so many videos, giving it so much thought, and detailed feedback. I agree that holding some of the PBDC holdings is doubling up. Those are the individual BDC's that I particularly favor so I've weighted more heavily to them. I could follow every trade made by PBDC and replicate their portfolio myself to avoid paying a fee but 1/ I have my own favorites as mentioned before and 2/ I don't want to spend my time trying to avoid fees by monitoring and copying fund manager's trades. It's doable for one fund but I have many. My portfolio is a blend of monthly and quarterly distributions and over the course of a year it's a bit lumpy but I'm fine with some variation by month. I don't need all income to be monthly. I don't keep much cash as I invest a portion of distributions every month regardless of market condition (DCA). I don't believe in trying to time the market. If I was saving up for a major purchase like a car I would put some cash into SGOV or something similar. The closest I have to that is JBBB, which is low volatility.
@@armchairincomechannel Thanks for the reply and for not deleting my comments as many do. With respect, I am not sure your logic for holding PBDC is valid. The fund only holds ten large positions in BDCs. You already hold four of these stocks individually. And as stated they are your favourites. Why are you paying management fees (and modestly disrupting your monthly liquidity) to hold a few extra BDCs via PBDC when you could allocate those funds directly to your favourites. To reiterate, If you wanted to replicate PBDC yourself, very little time and effort required. They only have 10 major holdings (the four biggest you already own individually) and they have very little turnover of their individual positions. It is trite to say that trying to time the market is a fool's game. There could well be a melt up moving forward into Trumps presidency rather than a correction. But given we have the most expensive markets in history, and what can only be described as a tech bubble, currently holding cash yielding >5% is not a significant risk nor opportunity cost when your targeted average portfolio return in 8%. Nothing wrong with having your cake, and also being able to eat more should the opportunity arise. Message me if you are in southern Thailand. I will take you out in my boat.
looking for international high income for diversification. As of now I only hold IDVO, which has been great for the past couple years. I've yet to find another, but just today found SDIV --- anyone have a strong opinion either way on this?? MSD is in today's video and just might work. Thoughts ?
Me personally, SDIV isn’t my cup of tea to much NAV erosion
I can't get past SDIV's NAV erosion.
Ymax?
I prefer funds with a NAV that's rising, flat, or at least rising a significant portion of the time (eg when interest rates are going in a specific direction). So YMAX isn't for me. If you hold it you have to reinvest a significant portion of the dividends to maintain the amount invested.
What do you think of TSPY?
Did you see Brad’s conversation with Si on Income Architect yesterday? I’m buying TSPY but nervous if Si ever met the proverbial bus. I’m hoping AI will get Si on here sometime - I think they’d have a great discussion.
@@lindsaynewell6319 yes I did
It's new and small. I'm not familiar with it. There are so many now it's difficult to keep up with all the new ones.
Hello, I am new to Income Investing. exploring ideas. Can you please share a Video on how returns/results can vary based on when one buys the CC ETF ? I left emails to NEOS and no one ever responded. There is no schedule on when a fund INITIATES the sale of the Call ..which means if one buys the fund/ETF 20 days later, most of the premium has already eroded. Even worse, if one buys it just a day after the EXDIV date, then your investment is doing for the next month... Very critical if one wants to initiate a large position..May have to DCA and build over time to avoid all this misses. Appreciate your input. Thanks
I don't understand your question. NEOS ladders their calls so there is no single date that would apply. There are always numerous calls expiring on numerous dates. As for the dividend, the price falls by an amount equal to the distribution which means there's no advantage or disadvantage to buying/selling on that date...the market adjusts for it.
I reached out to NEOS with questions and they responded the next business day so either your question didn't make sense or you didn't send to the proper spot.
@@tonyholland5590 How did you connect with them? I went through the contact page on their site ?
I enjoy the weekly commentary, but also extremely cautious right now due to dozens of macroeconomist telling us there's going to be a 50% drawdown as early as the first quarter of 2025. I recently asked folks over at New Harbor Financial about a lot of the fixed income offering, and the general consensus is they are going to be hit just like stocks. That is to say in a major crash you're still going to see a major drop in price of any given fund. I've been asking myself a lot lately what's particular funds will do the best in a downturn and this is something I would love for you to cover. For example, I would think something like VICI would perform well during a major crash as most of those people down in Vegas still have to pay the rent regardless of economic conditions. I can certainly see other REIT's In different areas of the market not perform quite so well. This is just one example of many, but main point here is I would love to see you talk about companies you think that will perform particularly well during a downturn. I still have a lot of my income and short term treasuries and gold and playing it very safe.
Thanks for your feedback. I don't try to time the market because nobody knows the future. "Experts" predict a crash every year, and other "experts" say its different now and the market will reach new highs. The market goes up more often than it goes down. I'm a believer in dollar cost averaging monthly and riding out corrections (while reinvesting at higher yields during a correction to increase income). If you feel better by trying to avoid corrections using cash, gold, or low volatility funds, then that makes sense. It's important that you sleep well at night. Each person has a different tolerance for volatility. I'm ok with seeing the value of my portfolio drip significantly, if my income remains steady, or at least above a certain level. Some funds, like JEPI, and JAAA, have done better in a downturn than others. Thanks for the suggestion for a video.
I am 63, so recovering from a major drawdown could be an issue. I guess the way I see it is if you lose 50% of your portfolio you're going to be losing 50% of your dividends as well. I'm not sure you're positioned well enough that you could do that, but that would destroy me. Do you put any stop losses on your positions? Are there hedges against any positions? I realized within some of the funds they are better protected than others. The REIT mentioned for example has limited downside. Would still be nice to see a video talking about which funds would fare better in a crash and which would do better during a major bull run like we are having. Valuations are just so high, this is not going to go on forever. I do appreciate what you're saying about the experts and I missed out on the 26% gains last year playing it safe. Timing is tough. Fundamentally though I still believe the everything bubble is way overdue for a major correction. What I lost in the S&P I did make up for in gold and I owner financed some real estate at 8 1/2 percent plus have rentals, so In general I'm just going a safer route. That is not a criticism at all of your system and I am very intrigued and have some holdings based on your recommendations. I think you yourself mentioned getting started with this is get familiar with the system and build slowly and that's kind of what I'm doing. I think it would be very foolish just to blindly follow you as we are at very different ages with very different requirements. At the moment I'm not taking anything at all from the portfolio but within the next five years I will. We do share some other things in comments in that I'll be retiring in Thailand. I have a house and wife in Thailand and actually heading over in January for three months. I'm gradually learning the language, but I never really feel completely independent in Thailand as it's tough as an ex-pat not speaking the language, not to mention it's tough to find a job and things to do. I get bored fast.
GIAX
Interesting way to broaden exposure overseas but it's so new. Will keep an eye on it.
FEPI AIPI ARTY Could it be the next video. Thanks. 😊
ARTY pay's dividends every 6 months.. Who's waiting that long
I've already done a video on FEPI and in this video I covered AIPI. ARTY looks interesting but the yield is too low for me.
I am long MCI not disappointed. I looked at MSD but the 2.6% TR over 10yrs made me look elsewhere. I also recently opened a small position in a 0DTE fund on SP500 just to see if those insane yields are too good to be true. They most likely are 😅
Thanks for sharing. I wish I bought MCI when I was born!
NBXG techy fund. 9% yield 13% discount to NAV. With better growth than BST. I'm holding in conjunction my QQQI like I do BALI with my SPYI. Also I sold my SVOL. It hasn't recovered like I wanted to see as the VIX moved lower. Its price action seems off to me. The stock price used to be in the mid/ high 22's now it's the mid/ high 21's. I would re enter if there is a huge spike in the VIX and give it another try.
Thanks for sharing your recent strategy; a lot of logical ideas there. NBXG is on my (long) list.
ARLP
I'm not familiar with that one, I'll take a look. Thanks.
Armchair,
I’m a long-time viewer, and probably one of your younger ones. I’m finishing up high school now and have a full eight months before starting college. My goal is to make $4,000 to $5,000 a month, and I’m currently saving some of that for short-term needs and college (I also have scholarships and grants). I’m also contributing to my Roth IRA $200/month-plan to increase that.
I want to build up $7,000 to $10,000 in a taxable brokerage account with high-income-producing funds like BTCI, FEPI, SPYI, and QQQI to generate some income while I’m in college. Theoretically, I could sell shares in these funds if I needed to cover an emergency. What do you think about this strategy, or am I taking on too much risk?
Great to hear such passion for investing from a young person. Time is the best investment asset you can have. You can invest a small amount regularly (no market timing), choose mediocre investments, and still amass a fortune when you're older....simply by starting young. The general rule for investing as a young person is to focus on growth and the easiest way to do that is with the S&P 500, NASDAQ, or both. You'll achieve higher returns and pay less tax than if you invest in income funds. So my suggestion is to continue investing, but focus on growth. If you have a passion for income investing, you can do a bit on the side for fun...it's a great skill to learn. But you'll end up with more money when you retire if you start with growth. You don't need a lot of income when you're young, just get lots of experience, develop skills, and try out businesses or jobs you think you might be good at. Eventually you can convert the income you make from being good at something, into much bigger contributions to growth funds (and other investments if you like, such as real estate). Then when you're ready to retire, you can shift to income investing.
@ Thanks for the feedback. I’m definitely excited for what the future holds. It’s crazy to see the power of compounding!
ISPY
...with my little eye...something beginning with D....Dividends! ISPY is off to a great start and worthy of comparing to XDTE. Both are new and I'll keep an eye on them.
I like the idea of AIPI but Rex shares (the issuer) has a really shady track record and not sure I want to get back into one of their funds.
I'm not aware of any issues with REX but your point is noted. I'll keep an eye on them!
09:00am Armchair Income video is released.
09:01am I sing out loud "armchair income, It's my hustle :)"
09:11am Video ends.
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11:32pm Lying in bed I sing out loud "armchair income, it's my hustle :)"
Glad you like the song. The last interview with Wealth Adventures includes a much longer clip...
First
Thanks for commenting. I hope you enjoyed the video!
Hi. If you don't mind me asking, because I believe you have ASGI in your portfolio, do you know why the fund's price has been down for so many days? I don't mind price drops but I also don't know if this is because they are cutting distributions or something else that would indicate a reason to rethink staying in the fund.
ASGI's distribution is simply 12% of the NAV, divided into months, ie 1% per month. It will move up and down with the NAV. The last distribution was 1 cent lower than the previous distribution so my assumption is that some investors didn't like that and sold.
@@armchairincomechannel Thank you for your time and sharing your insight and experience
Thanks for the video
My pleasure!