I can say one thing. I met Adriano through a common friend. I had individual stocks since 2017. I had a rep manage them for me for a 1.5% fee. He usually did reactive trades and not proactive ones. My rep tells me, after a few years of sideways growth, I can't predict where the market is going; I can only rebalance to match your profile. I switched to the ETF strategy, which calmed the up-and-down anxiety, and now I experience steady growth and consistent income. Thank you, Adriano!
I’ve been following you for a few years now & I don’t think I’ve ever seen you this mad. I appreciate the passion you have for us strangers to make sure we have good, proper & educated financial advice. You rock Adrian
I retired 12 years early thanks to covered call investing after only 1 year and realized I can live off dividends. I watched lots of videos and still researched and tested first myself. Was always told ‘believe none of what ya hear and half what ya see’ Thanks Adriano
12 years of covered call products? what have you invested in that hasnt slowly bled out your principal? Im interested in knowing as I am retired now and afraid my covered calls wont last 30 years.. im only 56.
@@twfinc6855 You need 500k invested @ 12% yield to get 5k/month. If you started at age 21 and saved on average 18k for 32-33 years, you'd have 500k post-tax savings.
@@twfinc6855planning for retirement in 5 years. My current thinking is that covered call ETF will not constitute more than 20% of my portfolio. I believe your FEARS are legitimate (valid)
60 year old here, RETIRED!. PII since 2021. I'm about income, not total returns, It's about life choice. I'm not living to 95 FFS. I'm going to 79.2 (I'm going with stats) and I'm single, no kids. I'm loving my $3,500 a month RRIF, $1,340 TFSA, and $412 a month in my Non-reg. All PII. Adriano knocked off five years of my retirement. I'm not about max returns, but MAX LIFE!. Well done Adriano, it' gets tiresome to try to explain this but I sleep well at night
The problem with “Total Return” absolutists like Dividend Guy is the never acknowledge that you can only realize the total return by selling the stocks. I am interested in stable income, not timing the market to sell at the right time- which then leads to the next quandary - what do I now buy ?
Yes, and selling for income is not for everyone, but in that video he compares ten years of the same income from each fund and (at least in his example) the non-covered call ETF is worth far more after 10 years of identical income.
“Scamming” my way to a great life with a 3-pronged approach - 1) Leveraged Covered Calls in our TFSA accounts 2) Dividend growth stocks in our non-registered account and 3) a mix of growth ETFs, covered call ETFs and GICs in our RRIF accounts. Who knew getting “scammed” could be so enjoyable.
@@faridsaeedi585 1) Planning to leave the TFSA principal to my heirs but want max income for us now. I believe over time that equities will rise and so the leverage will work to the heirs’ advantage over the next 10 to 15 years, or however much time we have left. And if stocks don’t rise over time well then that will be their problem not mine. 2) Non-registered account is relatively small now but rising dividends from dividend growth stocks help the battle against inflation. Since retiring 10 years ago I have funded my TFSA investments (previous year’s income withdrawals from the TFSA plus each year’s new limit). I did pay Capital Gains tax as I went along but now the vast majority of my investment income is tax free from the TFSA which has helped offset the additional taxable income I got when I had to start making mandatory RRIF withdrawals.
Thank You for your portfolio break down. American investor here and your asset allocation makes sense. 5 years to retirement and I was thinking of 20% in covered call ETFs, 20% in dividend growth ETF 30% to 40% in Total stock market index Growth, REITs and Bonds will make up the rest of the portfolio. This is an intellectual exercise right now. But I’m thinking through it
Totally agree with you , even though I follow Mike as well and personally I'm a DGI but I bought hdiv and hyld for my sister who's in retirement now and the income is great and that's all she needs just a steady high income. Personal finance is personal and there's no one fit for all.
The idea of dividend growth stocks is that once you retire on them you don't sell. Once the dividends grow enough that you can live off them, they generally won't go back down. You'll also get yearly raises even if you don't reinvest anything. Downside is it takes longer to retire than income investing. For regular growth investing, though, yeah. Not fun selling in down markets.
There’s a protection (strategy) plan against down market. Keep 3 years of living expenses in fixed income (treasuries, bonds and cash). The buffer portion of the portfolio basically buys you 36 months for your regular equity portfolio to recover. Another approach is to buy a SPIA that will cover 50% of your annual expenses. Sequence of return risk is a legitimate concern for all investors in the first decade of (a 30 year) retirement. Investors planning for 40 or 50 years in retirement must plan to protect their nestegg in the first third of retirement
Always appreciate your kind words, solid advice and balanced insights. We have to think for ourselves, be open to listening to others, but be very mindful of those providing "advice" (like the Dividend Guy) who are just imparting drama and BS - likely on purpose - that can really set people back. We will stick together as an objective and balanced community! Keep up the amazing work!
I used to follow Mike from Dividend Stocks Rocks. Once I found out about covered call ETFs I did an about face on my whole portfolio starting in Dec. My income has never been better and I am only a few years from retirement. Thanks Adriano for everything you do!
@@cashoption2319 Pretty much most of what Adriano has. In my LIRA it is very heavy on QQQY. I am on a Cdn FB Retirement group and one of the members posted most of his ETFs. I researched each and pretty much went from there. I have made a few changes which line up with what Adriano has done. For example I had owned EIT.UN for quite a long time and got rid of it for BANK. Mostly all are leveraged covered call ETFs and nothing else. No split funds for me.
Some of them suck, sure. Depends on which ones you invest in. I’ll gladly take my income rather than needing to sell. They all fail to tell people that relying on selling your stocks in a down market is a bad idea.
As I have moved through the life cycle my needs have changed as has my knowledge and investing comfort level. My investing strategy has changed from a 60/40 growth/dividend stock strategy to now 30/30/40 growth/dividend/income strategy with growth primarily in my TFSA and shifting towards ETFs from individual stocks. As a retiree I am fortunate that I don’t need more assets but can always use more tax efficient income especially since I am now drawing on my RIF and the tax man has his hand out. Covered call income in my RIF fund my required withdrawals without having to sell principal in down markets (lesson relearned these past 2 years). I’m slowly replacing dividend stocks with tax efficient covered call income in my non-registered account. This is increasing my income in a tax efficient way using ROC and capital gains. This channel has been very helpful as I continue down my journey of life.
This style of investing allows for a larger distri ution from a smaller portfolio. You don't need a million dollars to generate $40k annual distribution.
I did follow that Dividend Guy for over a year but I got tired of his approach. I have been following this channel for over 3 years and find it very helpful. Thanks Adriano, your doing a great job!!!
I follow both, but my portfolio certainly reflects the PII strategy more closely. I was introduced to Adrian’s channel by a friend a few years ago, and I cannot argue with the results- recently retired and enjoying the $7-800 monthly- mostly reinvesting now, but it’s there when I need/want it!
As someone who is nearing retirement, I have a lot of covered call ETFs that are providing me enough income without having to sell. Your coverage of this is bang on Adrian
personally, we (my wife and i) do 'mixed' style investment strategies. i appreciate all the stuff everyone says about 'their style' and actually have dividend, growth, and income investments. i think the main difference that nobody talks about is the bottom line with high yield income investment products.... if i want money 'now' (as in monthly income) then the income strategy is obviously the best, alternatively, if i adopted the growth (or even the dividend growth) strategy and needed money 'now', i'd need to sell my assets. they wouldnt be 'working' for me to generate yield, becuz once they're sold, they're gone.
another 'cool' thing about our mixed strategy (which we also learned from you Adriano!) is when things are a bit tight money wise and we can't contribute to our TSFSA/RRSPs, we can use the monthly income generated from CC/leveraged products to add to our growth investments and then we don't hafta feel too bad about not being able to contribute when the markets are down/cheap.
thank you Adriano and Erica for sharing your experiences with PII. This style of investing has given me hope that I can retire earlier than the average 65 year old. I'm 51 as of writing this and looking to retire at 55 fortunately with PII being a part of my strategy along with TFSA PII income and private pension and RRSP's, I'll be able to push off CPP and OAS till age 70 for the maximum payout. I've followed quite a few different youtubers in the past and have found this still most appealing to me.
Thank you Adriano for your video on this guy. I have seen a few of his videos and yes he is from Quebec and his concept and approach is very different from yours. I’m glad that you politely called him out on this untruth. Happy holder of ENCL, HYLD and some Yieldmax and Defiance stocks. We know that some are not for steady income but to build our portfolio. One shoe doesn’t fit everyone. Thank you for what you do. 👍👍👍🇨🇦🇨🇦
Thank you so much for your channel. I keep learning a lot from you and you've given me the courage to change my own investment outlook. I don't do exactly everything that you present, but your approach is so reasonable and rational. It's already yielding actual dividends for me :)
I am no longer a passive income investor, but I have learned a lot from your channel. I actually started selling my own covered calls recently, which probably would never have happened if I didn't get the exposure from you "covering" the topic, the ETFs, and the interviews in many videos.
Sad thing is, there is so many garbage influencers in the TH-cam world, and what’s even more sad is, so many people get sucked on by these “scammers “. Without having watched that video, I would venture to say he’s probably selling something too. Thank you Adriano for keeping your transparency and standards for quality content very high. Cheers
Hi, I am 74 and close to 75! I use the covered call strategy and happy to make a 13,99% yield right now, even if Mr.Market is going up and down like a crasy dude! It gives me the opportunity to have cash on hands when I need it, when I decide to use it....Of course it takes some time to manage my portfolios, adding and trimming some etf, trying to keep the yield within a reasonable bracket and keeping the risk at a level I can afford. But in conclusion, it is the best way for me. I am always looking for new products, figuring out if it is good for me or not. That is the mean reason why I am following you on youtube....keep doing the research for us. 😁
Covered Call funds are all about cash flow, cold hard cash in your hand. I'm from North Carolina. I was a business owner for over 35 years & have commercial real estate so I understand cash flow. I have been investing in the markets since 1982 & it was always income focused. One of the first mutual funds I invested in was a Option Income fund from Kemper, that's right Option Income funds are not something created a few years ago. The fund was closed a few years after I was in it because of the manager was very shady. If I was going to invest in a pure dividend ETF I like PEY.
He's not alone doing this; many Canadian influencers are criticizing covered call ETFs while simultaneously recommending purchases like NVDA at its all-time high. For example, Financial Nirvana Mama compared the same stocks as the video you shared and made some rather questionable stock purchase suggestions recently.. The issue with not using covered calls is that most people lack the knowledge to buy stocks at reasonable valuations or understand technicals and also don't know when or how to sell them. While buying and holding "for life" can certainly be a strategy, covered calls provide a form of insurance under the form of monthly income that is crucial for people in certain life stages, such as those who are retired or semi-retired. I'm not retired but I do see the benefits of doing both strategies, and selling my own calls on stocks I own.
I listen to your wisdom then translate it into funds availing Australia. Challenging, but on point. It’s all about cashflow and real pennies in our pockets ❤️
what worries me the most is that new investors just invest the way they are told rather than research investments for themselves there are many roads to where you want to go it is up each investor to choose the path that is right for them and not the influencers to say one way is the only way and another way is not the way to invest I watch these channels for fun and entertainment so I have seen many of these you showed in the video
Total return maximalists NEVER mention how you can retire 10-15 years earlier on CC ETF dividends. Its disingenuous. Sure you lag total return with CC ETFs. BUT YOU CAN RETIRE EARLIER!!!!!! Aren't ready to retire yet? DRIP your yield, so that it keeps up with the rest of the market. Its pretty simple. For fellow Canadians, I would only recommend CC ETFs in RRSPs and TFSAs since its tax free gains. If you have CC ETFs in taxable accounts, thats a completely different story because the taxes REALLY stunt your growth. Like Adriano said: Pay attention to YOUR financial goals, not other peoples.
Good day Adrian - just to clarify - but isn't dividend investing the same as income investing etc. - You invest in dividends to earn income and prioritize earning income rather than growth or growth stocks etc.
I encourage covered calls for those that want to retire earlier. Just my 2 cents....VDY doesn't have tech. The TSX 60 does. So its an unfair comparison, and I would like to see a covered call vs non covered call totally return comparison over a longer time frame.
A lot of times I saw these investing success stories about how they invest something small then become big, I hope I could be one of them. But the truth is, all these strategies are BACKTESTED. Sure, if I could buy all the tech stocks in 2008 at their bottom now I would be a millionaire. How would I know the stock market grew for the next 10+ years? I'm just a regular 30 year old guy not a robot, I'm damn sure I don't know how to act if I'm in a financial crisis right now. The goal for me is not maximizing return, is to get financial freedom earlier. Covered calls are exactly the right type of investments for ME. So yea I don't think it's a scam
This guy sells subscriptions for 199 to 399 per year (I was a subscriber once). Adriano is very transparent and does not rely on subscriptions. A lot of traders do covered calls directly (myself included) so a covered call ETF is an actually a big convenience for those who know how it works.
The best thing for Covered Call ETFs is to generate cash flow without selling shares also it is hard for the average investors to do options / cover calls on their own, why not let professionals handle it if people need really "safe" investments they can do GICs, which is not too bad at the moment
I am growing my QYLP (this is the UK ETF for QYLD) to £100,000 and reinvest the dividends. Then will grown XYLP (UK version of XYLD) to £100,000 and leave to reinvest Dividends. Then I will grow REITs etc. Once I get to £300,000 I will live off the dividends. My pension is a nice side part. I intend to be poor in my 80s and live off the state.
Looking forward to that dividend strategy vs income strategy. I have 15-20 years left of solid revenu coming in and I was thinking of going the dividend startegy for my RRSP and starting to build a income strategy for my TFSA so when the time comes to retire, I can live off of the monthly divs from my TFSA and my RIFF will feed my TFSA.
Total return investors calculate returns based on buying low and selling high every time they trade. They have to do it constantly to capture the extra return. But that's impossible to do on a regular basis. CC dividends are cash in the bank without selling anything.
The main point is I have the money in my pocket every month, you can't foresee the future how is his performance when he need to sell during COVID to pay bills. If you still have a job you can have a lower dividend but who wants to work forever, I am not
First of all.. 😂 asti d'caliss de tabarnak de st-ciboire😂 j'ai failli re cracher mon café calvaire !😂 Didn't expect this that way ! Hahaha Secondly, I follow Mike since a while, that's sad cause he is a smart guy, he know his stuff about stock picking. His strategy isn't bad either, BUT when he talks about CC ETF, I can't agree with him, of course, he is right on many points, but Adrian, you are right too ! And you bring others points on the table that is not base on numbers such as time and peace of mind. However, I'm a hybrid investor because both strategies works and I can adjust base on my needs and time horizon.. Great Vidéo Adrian, always better to stay open mind... that's how a discovered CC etf 😎
Being in my early 60's I like the income part of Covered Call ETFs. They should definitely be part of an investing portfolio but not the total portfolio (maybe that's what our Canadian friend should have said). Thanks for your analysis Adriano, and I do own some of the CC ETFs in your portfolio but also looking forward to your Income ETFs comparison.
For the other geniuses out there this is your lesson for the day no charge it’s completely free …there are two types of investing return on capital and return of capital…return on capital you would invest in a diversified portfolio dividends growth ect … return of capital is 60/40 portfolio 60% stocks 40% bonds…this means you want to preserve your capital and minimize your risk…which do you think the ultra rich do …have a good day …
YES!!! 100% Agree! 5:03 you exactly nailed it! I still get "promo offers" from "Dividend stocks rock" because a blogger affiliated himself with them. "Dividend Income for Life" -- maybe they should call it "Dividend Income for the *After-life* " Lol. I'm glad to hear that stuff rankles you too -- My portfolio was yeilding
Dude sounds dam arrogant! Bought a new Corolla hybrid this month with my covered call etf dividend savings. Feeling really scammed 😂 by all that lovely cash. Il'l stick with covered call PII thanks!
Thanks for the video...simple and objective analysis on your channel shows that the "Dividend Guy" is wrong/misleading/adds to the B.S. around CC funds. Sad, but the community can do something different/better! Appreciate all you do!
Can't wait to retire early thanks to the covered call income strategy. Also, when the market is dropping like a rock (today) I don't have the same stress as a pure growth investor. Thank you Adrian for everything you do 😎
I prefer the Covered Call etf’s because I know I’m getting paid every month. I used to hold XIU and it lingered with poor performance. To each their own.
Adrian - please explain this - my "book value to current value" shows a gain of 1.73%. But my "total returns" on the performance page says I've made 7.8% total returns. What's the real truth?
Your "book value to current value" is what you call your "return" (not "total return".) In this case, the "current value" does not include the distributions that were paid out to you each month. Your "total return" adds the distributions to the "current value" which explains why your total return is higher than your return
Hey Adriano, I'm new to investing and been loving learning from your content. Question: Just like companies can cut their dividend at any time, is there greater "risk" with CC since your capital has now eroded and now lost the divided you were initially relying on?
Your capital has not *eroded* !! Not usually anyways -- watch his videos, particularly the one on "NAV erosion?". Remember, the NAV of any fund is simply the share price(s) of the fund's holdings in aggregate -- it will fluctuate along with the share price of the shares it holds. That is *not* erosion -- that's prices fluctuating, as they will always do.
Is there a hidden agenda...a campaign even to keep retail investors poor by discrediting Covered Call ETFs? I agree they don't rise as much, but the income they produce, and even more so, the shares they repurchase by reinvesting dividends can't be denied.
Yeah, because many people think that the distributions that are paid out should be free money that magically comes from somewhere else other than the fund. But if paid out "correctly," the fund pays what it earns leaving its NAV intact. In any case, when the fund declines with the market, they blame it on the distributions.
The last 10 years? Perhaps.. However if you could go back and invest between 1967 and 1977 would you be all in on growth or value? Does today feel like 2005 or 1975? But it doesnt matter, ust go all in on Bitcoin cause to the moon etc etc
Great video…this is not the only guy with confirmation byes that drinks is own kool aid these people are delusional it’s my way or the highway…little do they know we don’t give a sshhtt …high yield investors want income and reinvest dividends for more income also any other genius that reads these comments we also invest in dividend growth…what percentage is all up to you it’s your portfolio you decide how it’s designed…
« So happy I left » you said. Talking bad about Quebec because you disagree on things is small man. I travelled a lot around the world and even lived a couples of months in Panama and Quebec is a great place to live. I hope you will feel sorry the day you’ll come back.
@@valveman12 I disagree because some people need the covered call strategy to retire early. I do see his point that non covered calls give better total returns in general. I do a mix of both types of investing.
"Covered Call ETFs are a SCAM" guy posted a new video to answer this video. He admits to using incorrect language and such to describe CC ETFs. I think we all know he does not like CC ETFs. Anyway, kudos to you Adriano for your channel having the impact that it does!!!
Metaphorically, you have read the first chapter of an entire book, and painted Mike Heroux with a very broad brush. The irony is that based on this one video of his, you have attempted to discredit his entire platform at DSR, which is investing in dividend growers, at all points in your investment journey. On his site he recommends portfolios for growth or income, or a mix of the two, in both the US and Canadian markets. But you wouldn’t know this, because your confirmation bias of this man is based on one video you find disingenuous and misleading. I remain a fan of DSR and many others do too. I ask your other followers to check out some of Mike’s other videos and see if they pass muster.
you have the guts to tell me i have "confirmation bias"?! when this guy says covered call ETFs are a scam??!! That is even worse than confirmation bias its stupidity . I say Growth investing, Dividend Investing and Income Investing are all great options and work well long term. please don't compare me to this clown
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Gloria Robinson
After you realize that you can retire early and you do not need $1Million portfolio, and you can accomplish this by using the covered call strategy, that moment is priceless. These "Influencers" always use scare tactics: Sell Now, or Dump this Now, or It's a Scam. 😂 Adrian, your portfolio unveil video every month is all the proof I need to know that PII strategy works. Thanks Adrian for showing us a funny video!
I can say one thing. I met Adriano through a common friend. I had individual stocks since 2017. I had a rep manage them for me for a 1.5% fee. He usually did reactive trades and not proactive ones. My rep tells me, after a few years of sideways growth, I can't predict where the market is going; I can only rebalance to match your profile.
I switched to the ETF strategy, which calmed the up-and-down anxiety, and now I experience steady growth and consistent income.
Thank you, Adriano!
Cent'anni my friend!
I’ve been following you for a few years now & I don’t think I’ve ever seen you this mad. I appreciate the passion you have for us strangers to make sure we have good, proper & educated financial advice. You rock Adrian
I retired 12 years early thanks to covered call investing after only 1 year and realized I can live off dividends. I watched lots of videos and still researched and tested first myself. Was always told ‘believe none of what ya hear and half what ya see’
Thanks Adriano
12 years of covered call products? what have you invested in that hasnt slowly bled out your principal? Im interested in knowing as I am retired now and afraid my covered calls wont last 30 years.. im only 56.
@@twfinc6855 You need 500k invested @ 12% yield to get 5k/month. If you started at age 21 and saved on average 18k for 32-33 years, you'd have 500k post-tax savings.
Portfolio details
@@twfinc6855planning for retirement in 5 years. My current thinking is that covered call ETF will not constitute more than 20% of my portfolio. I believe your FEARS are legitimate (valid)
60 year old here, RETIRED!. PII since 2021. I'm about income, not total returns, It's about life choice. I'm not living to 95 FFS. I'm going to 79.2 (I'm going with stats) and I'm single, no kids. I'm loving my $3,500 a month RRIF, $1,340 TFSA, and $412 a month in my Non-reg. All PII. Adriano knocked off five years of my retirement. I'm not about max returns, but MAX LIFE!. Well done Adriano, it' gets tiresome to try to explain this but I sleep well at night
sleep well my friend thanks for sharing
Absolutely AWESOME!!!! This gives me even more fire to stay this course!!!
The problem with “Total Return” absolutists like Dividend Guy is the never acknowledge that you can only realize the total return by selling the stocks. I am interested in stable income, not timing the market to sell at the right time- which then leads to the next quandary - what do I now buy ?
Yes, and selling for income is not for everyone, but in that video he compares ten years of the same income from each fund and (at least in his example) the non-covered call ETF is worth far more after 10 years of identical income.
WELL SAID
“Scamming” my way to a great life with a 3-pronged approach - 1) Leveraged Covered Calls in our TFSA accounts 2) Dividend growth stocks in our non-registered account and 3) a mix of growth ETFs, covered call ETFs and GICs in our RRIF accounts. Who knew getting “scammed” could be so enjoyable.
Could you briefly explain the reason behind approach 1 and 2? I'm a beginner, would like to learn. Thank you
@@faridsaeedi585 1) Planning to leave the TFSA principal to my heirs but want max income for us now. I believe over time that equities will rise and so the leverage will work to the heirs’ advantage over the next 10 to 15 years, or however much time we have left. And if stocks don’t rise over time well then that will be their problem not mine. 2) Non-registered account is relatively small now but rising dividends from dividend growth stocks help the battle against inflation. Since retiring 10 years ago I have funded my TFSA investments (previous year’s income withdrawals from the TFSA plus each year’s new limit). I did pay Capital Gains tax as I went along but now the vast majority of my investment income is tax free from the TFSA which has helped offset the additional taxable income I got when I had to start making mandatory RRIF withdrawals.
Different types of income are taxed differently. Dividends are better held outside of a registered account.
Thank You for your portfolio break down. American investor here and your asset allocation makes sense. 5 years to retirement and I was thinking of
20% in covered call ETFs,
20% in dividend growth ETF
30% to 40% in Total stock market index
Growth, REITs and Bonds will make up the rest of the portfolio. This is an intellectual exercise right now. But I’m thinking through it
Totally agree with you , even though I follow Mike as well and personally I'm a DGI but I bought hdiv and hyld for my sister who's in retirement now and the income is great and that's all she needs just a steady high income. Personal finance is personal and there's no one fit for all.
I'm not bothered by what others say about CC ETF, I just receive my income every month and buy more CC ETF.
100 percent.
If i retired solely on dividend growth stocks and had to sell in down markets I would be so stressed.
Yes indeed - almost had to do for some private healthcare when my account is down. Thankfully havent.
The idea of dividend growth stocks is that once you retire on them you don't sell. Once the dividends grow enough that you can live off them, they generally won't go back down. You'll also get yearly raises even if you don't reinvest anything. Downside is it takes longer to retire than income investing.
For regular growth investing, though, yeah. Not fun selling in down markets.
There’s a protection (strategy) plan against down market. Keep 3 years of living expenses in fixed income (treasuries, bonds and cash). The buffer portion of the portfolio basically buys you 36 months for your regular equity portfolio to recover. Another approach is to buy a SPIA that will cover 50% of your annual expenses. Sequence of return risk is a legitimate concern for all investors in the first decade of (a 30 year) retirement. Investors planning for 40 or 50 years in retirement must plan to protect their nestegg in the first third of retirement
Thanks Adrian ! Clear and transparent as always.
Always appreciate your kind words, solid advice and balanced insights. We have to think for ourselves, be open to listening to others, but be very mindful of those providing "advice" (like the Dividend Guy) who are just imparting drama and BS - likely on purpose - that can really set people back.
We will stick together as an objective and balanced community! Keep up the amazing work!
I used to follow Mike from Dividend Stocks Rocks. Once I found out about covered call ETFs I did an about face on my whole portfolio starting in Dec. My income has never been better and I am only a few years from retirement. Thanks Adriano for everything you do!
What did you change your portfolio to
@@cashoption2319 Pretty much most of what Adriano has. In my LIRA it is very heavy on QQQY. I am on a Cdn FB Retirement group and one of the members posted most of his ETFs. I researched each and pretty much went from there. I have made a few changes which line up with what Adriano has done. For example I had owned EIT.UN for quite a long time and got rid of it for BANK. Mostly all are leveraged covered call ETFs and nothing else. No split funds for me.
Some of them suck, sure. Depends on which ones you invest in. I’ll gladly take my income rather than needing to sell. They all fail to tell people that relying on selling your stocks in a down market is a bad idea.
Adriano's “If someone is telling you that their way is the best… you have to stay away from these people.” Excellent advice, than you!
As I have moved through the life cycle my needs have changed as has my knowledge and investing comfort level. My investing strategy has changed from a 60/40 growth/dividend stock strategy to now 30/30/40 growth/dividend/income strategy with growth primarily in my TFSA and shifting towards ETFs from individual stocks. As a retiree I am fortunate that I don’t need more assets but can always use more tax efficient income especially since I am now drawing on my RIF and the tax man has his hand out. Covered call income in my RIF fund my required withdrawals without having to sell principal in down markets (lesson relearned these past 2 years). I’m slowly replacing dividend stocks with tax efficient covered call income in my non-registered account. This is increasing my income in a tax efficient way using ROC and capital gains.
This channel has been very helpful as I continue down my journey of life.
This style of investing allows for a larger distri ution from a smaller portfolio. You don't need a million dollars to generate $40k annual distribution.
Ok but you have to drip 90% of it to offset nav erosion.
Your commet about putting a price on time is spot on!
Ce n’est jamais bon de dégrader les autres pour se remonter. Belle approche Adriano!
I did follow that Dividend Guy for over a year but I got tired of his approach. I have been following this channel for over 3 years and find it very helpful. Thanks Adriano, your doing a great job!!!
Even considering that sequence risk could be avoided (which of course it can’t), it simply is not safer to have to sell investments for income.
I follow both, but my portfolio certainly reflects the PII strategy more closely. I was introduced to Adrian’s channel by a friend a few years ago, and I cannot argue with the results- recently retired and enjoying the $7-800 monthly- mostly reinvesting now, but it’s there when I need/want it!
Good job adriano👍
Adriano you are very consistent in your message and for that I appreciate and respect you. Stay well everyone! 😊
As someone who is nearing retirement, I have a lot of covered call ETFs that are providing me enough income without having to sell.
Your coverage of this is bang on Adrian
personally, we (my wife and i) do 'mixed' style investment strategies. i appreciate all the stuff everyone says about 'their style' and actually have dividend, growth, and income investments. i think the main difference that nobody talks about is the bottom line with high yield income investment products.... if i want money 'now' (as in monthly income) then the income strategy is obviously the best, alternatively, if i adopted the growth (or even the dividend growth) strategy and needed money 'now', i'd need to sell my assets. they wouldnt be 'working' for me to generate yield, becuz once they're sold, they're gone.
another 'cool' thing about our mixed strategy (which we also learned from you Adriano!) is when things are a bit tight money wise and we can't contribute to our TSFSA/RRSPs, we can use the monthly income generated from CC/leveraged products to add to our growth investments and then we don't hafta feel too bad about not being able to contribute when the markets are down/cheap.
To be honest.
I like nake puts to cash on quality stocks like Royal Bank that won't go broke.
Gives both Income and Growth.
thank you Adriano and Erica for sharing your experiences with PII. This style of investing has given me hope that I can retire earlier than the average 65 year old. I'm 51 as of writing this and looking to retire at 55 fortunately with PII being a part of my strategy along with TFSA PII income and private pension and RRSP's, I'll be able to push off CPP and OAS till age 70 for the maximum payout. I've followed quite a few different youtubers in the past and have found this still most appealing to me.
Thank you a lot Adrian. I'm from Montreal too. Le tabernak de Diviend Guy. You kill it bruh. LOL
Thank you Adriano for your video on this guy. I have seen a few of his videos and yes he is from Quebec and his concept and approach is very different from yours. I’m glad that you politely called him out on this untruth. Happy holder of ENCL, HYLD and some Yieldmax and Defiance stocks. We know that some are not for steady income but to build our portfolio. One shoe doesn’t fit everyone. Thank you for what you do. 👍👍👍🇨🇦🇨🇦
Thank you so much for your channel. I keep learning a lot from you and you've given me the courage to change my own investment outlook. I don't do exactly everything that you present, but your approach is so reasonable and rational. It's already yielding actual dividends for me :)
I am no longer a passive income investor, but I have learned a lot from your channel. I actually started selling my own covered calls recently, which probably would never have happened if I didn't get the exposure from you "covering" the topic, the ETFs, and the interviews in many videos.
Sad thing is, there is so many garbage influencers in the TH-cam world, and what’s even more sad is, so many people get sucked on by these “scammers “.
Without having watched that video, I would venture to say he’s probably selling something too.
Thank you Adriano for keeping your transparency and standards for quality content very high.
Cheers
Covered Calls are one of the best things to happen to investing in my opinion.
Hi, I am 74 and close to 75! I use the covered call strategy and happy to make a 13,99% yield right now, even if Mr.Market is going up and down like a crasy dude! It gives me the opportunity to have cash on hands when I need it, when I decide to use it....Of course it takes some time to manage my portfolios, adding and trimming some etf, trying to keep the yield within a reasonable bracket and keeping the risk at a level I can afford. But in conclusion, it is the best way for me. I am always looking for new products, figuring out if it is good for me or not. That is the mean reason why I am following you on youtube....keep doing the research for us. 😁
merci mon ami!
Covered Call funds are all about cash flow, cold hard cash in your hand. I'm from North Carolina. I was a business owner for over 35 years & have commercial real estate so I understand cash flow. I have been investing in the markets since 1982 & it was always income focused. One of the first mutual funds I invested in was a Option Income fund from Kemper, that's right Option Income funds are not something created a few years ago. The fund was closed a few years after I was in it because of the manager was very shady. If I was going to invest in a pure dividend ETF I like PEY.
With you brother!!!
He's not alone doing this; many Canadian influencers are criticizing covered call ETFs while simultaneously recommending purchases like NVDA at its all-time high. For example, Financial Nirvana Mama compared the same stocks as the video you shared and made some rather questionable stock purchase suggestions recently..
The issue with not using covered calls is that most people lack the knowledge to buy stocks at reasonable valuations or understand technicals and also don't know when or how to sell them. While buying and holding "for life" can certainly be a strategy, covered calls provide a form of insurance under the form of monthly income that is crucial for people in certain life stages, such as those who are retired or semi-retired. I'm not retired but I do see the benefits of doing both strategies, and selling my own calls on stocks I own.
Great rebuttal! Glad I had time to watch today!!
I listen to your wisdom then translate it into funds availing Australia.
Challenging, but on point.
It’s all about cashflow and real pennies in our pockets ❤️
what worries me the most is that new investors just invest the way they are told rather than research investments for themselves there are many roads to where you want to go it is up each investor to choose the path that is right for them and not the influencers to say one way is the only way and another way is not the way to invest I watch these channels for fun and entertainment so I have seen many of these you showed in the video
Total return maximalists NEVER mention how you can retire 10-15 years earlier on CC ETF dividends.
Its disingenuous.
Sure you lag total return with CC ETFs.
BUT YOU CAN RETIRE EARLIER!!!!!!
Aren't ready to retire yet? DRIP your yield, so that it keeps up with the rest of the market. Its pretty simple.
For fellow Canadians, I would only recommend CC ETFs in RRSPs and TFSAs since its tax free gains. If you have CC ETFs in taxable accounts, thats a completely different story because the taxes REALLY stunt your growth.
Like Adriano said: Pay attention to YOUR financial goals, not other peoples.
Good day Adrian - just to clarify - but isn't dividend investing the same as income investing etc. - You invest in dividends to earn income and prioritize earning income rather than growth or growth stocks etc.
nope. video coming soon on that
Ok being from Montreal and having found PII channel last summer, Im super happy to finally hear Adriano say those famous quebec curse words😆🤣
Happy to see that you made this video and provided your opinion.
Adrian, loved the opening expletives in French. Thanks for sharing information. Keep up the good work ! Salut mon ami!
I encourage covered calls for those that want to retire earlier. Just my 2 cents....VDY doesn't have tech. The TSX 60 does. So its an unfair comparison, and I would like to see a covered call vs non covered call totally return comparison over a longer time frame.
A lot of times I saw these investing success stories about how they invest something small then become big, I hope I could be one of them. But the truth is, all these strategies are BACKTESTED. Sure, if I could buy all the tech stocks in 2008 at their bottom now I would be a millionaire. How would I know the stock market grew for the next 10+ years? I'm just a regular 30 year old guy not a robot, I'm damn sure I don't know how to act if I'm in a financial crisis right now. The goal for me is not maximizing return, is to get financial freedom earlier. Covered calls are exactly the right type of investments for ME. So yea I don't think it's a scam
This guy sells subscriptions for 199 to 399 per year (I was a subscriber once). Adriano is very transparent and does not rely on subscriptions. A lot of traders do covered calls directly (myself included) so a covered call ETF is an actually a big convenience for those who know how it works.
I know this guy, it maybe fine for long term growth when young but for living now eh!!! Thanks for defending the strategy Adriano. You aren’t alone
The best thing for Covered Call ETFs is to generate cash flow without selling shares
also it is hard for the average investors to do options / cover calls on their own, why not let professionals handle it
if people need really "safe" investments they can do GICs, which is not too bad at the moment
From Quebec and wanna leave too... fed up of corrupt politicians on all three levels of government...😢
I am growing my QYLP (this is the UK ETF for QYLD) to £100,000 and reinvest the dividends. Then will grown XYLP (UK version of XYLD) to £100,000 and leave to reinvest Dividends. Then I will grow REITs etc. Once I get to £300,000 I will live off the dividends. My pension is a nice side part. I intend to be poor in my 80s and live off the state.
I did not expect the ''Esti d'caliss de tabarnak st-ciboire '' 🤣🤣
PII is why I sleep good at night 🤷♂
Make a plan and follow it.
Looking forward to that dividend strategy vs income strategy. I have 15-20 years left of solid revenu coming in and I was thinking of going the dividend startegy for my RRSP and starting to build a income strategy for my TFSA so when the time comes to retire, I can live off of the monthly divs from my TFSA and my RIFF will feed my TFSA.
Total return investors calculate returns based on buying low and selling high every time they trade. They have to do it constantly to capture the extra return. But that's impossible to do on a regular basis. CC dividends are cash in the bank without selling anything.
And you lose 80% of nav a year.
The main point is I have the money in my pocket every month, you can't foresee the future how is his performance when he need to sell during COVID to pay bills. If you still have a job you can have a lower dividend but who wants to work forever, I am not
First of all.. 😂 asti d'caliss de tabarnak de st-ciboire😂 j'ai failli re cracher mon café calvaire !😂
Didn't expect this that way ! Hahaha
Secondly, I follow Mike since a while, that's sad cause he is a smart guy, he know his stuff about stock picking. His strategy isn't bad either, BUT when he talks about CC ETF, I can't agree with him, of course, he is right on many points, but Adrian, you are right too ! And you bring others points on the table that is not base on numbers such as time and peace of mind.
However, I'm a hybrid investor because both strategies works and I can adjust base on my needs and time horizon..
Great Vidéo Adrian, always better to stay open mind... that's how a discovered CC etf 😎
i knew fellow Quebecers would enjoy it!
Being in my early 60's I like the income part of Covered Call ETFs. They should definitely be part of an investing portfolio but not the total portfolio (maybe that's what our Canadian friend should have said). Thanks for your analysis Adriano, and I do own some of the CC ETFs in your portfolio but also looking forward to your Income ETFs comparison.
For the other geniuses out there this is your lesson for the day no charge it’s completely free …there are two types of investing return on capital and return of capital…return on capital you would invest in a diversified portfolio dividends growth ect … return of capital is 60/40 portfolio 60% stocks 40% bonds…this means you want to preserve your capital and minimize your risk…which do you think the ultra rich do …have a good day …
YES!!! 100% Agree! 5:03 you exactly nailed it! I still get "promo offers" from "Dividend stocks rock" because a blogger affiliated himself with them. "Dividend Income for Life" -- maybe they should call it "Dividend Income for the *After-life* " Lol. I'm glad to hear that stuff rankles you too -- My portfolio was yeilding
Thanks for sharing! Cheers 🥂
those who understand these funds stay away from them.
I'm fine with CC ETFs, Most only use 30-50%, or less, for Covered Calls. Higher Yield from CC ETFs.
Hearing you saying tabarnak made my day! ahahah
I'm in my mid 40s. I don't have 30 years to wait for growth. CC ETFs all the way. Once I get to a good income, then I can invest some in growth.
Drip all of it
Dude sounds dam arrogant! Bought a new Corolla hybrid this month with my covered call etf dividend savings. Feeling really scammed 😂 by all that lovely cash. Il'l stick with covered call PII thanks!
nice! drive safe
Thanks guys!
Aren't both of them talking about investors who want to set it and forget it.....
Growth guys are paying in for 30 years to retire lol
Thanks for the video...simple and objective analysis on your channel shows that the "Dividend Guy" is wrong/misleading/adds to the B.S. around CC funds. Sad, but the community can do something different/better!
Appreciate all you do!
Can't wait to retire early thanks to the covered call income strategy. Also, when the market is dropping like a rock (today) I don't have the same stress as a pure growth investor. Thank you Adrian for everything you do 😎
His methodology has had some spectacular disasters in the past year or so.
I prefer the Covered Call etf’s because I know I’m getting paid every month. I used to hold XIU and it lingered with poor performance. To each their own.
you should respond to safeguard wealth managment video in which he said its a bad retirement strategy
Adrian - please explain this - my "book value to current value" shows a gain of 1.73%.
But my "total returns" on the performance page says I've made 7.8% total returns.
What's the real truth?
Your "book value to current value" is what you call your "return" (not "total return".) In this case, the "current value" does not include the distributions that were paid out to you each month. Your "total return" adds the distributions to the "current value" which explains why your total return is higher than your return
Hey Adriano, I'm new to investing and been loving learning from your content. Question:
Just like companies can cut their dividend at any time, is there greater "risk" with CC since your capital has now eroded and now lost the divided you were initially relying on?
Your capital has not *eroded* !! Not usually anyways -- watch his videos, particularly the one on "NAV erosion?". Remember, the NAV of any fund is simply the share price(s) of the fund's holdings in aggregate -- it will fluctuate along with the share price of the shares it holds. That is *not* erosion -- that's prices fluctuating, as they will always do.
every investment has pros and cons,
how is the water problem in Panama?
i drink beer mostly , and its cheap here
@@PassiveIncomeInvesting 🤣🤣
Is there a hidden agenda...a campaign even to keep retail investors poor by discrediting Covered Call ETFs? I agree they don't rise as much, but the income they produce, and even more so, the shares they repurchase by reinvesting dividends can't be denied.
the only agenda for that video was clicks
@@PassiveIncomeInvesting Sums it up, lol.
great vid
Covered Calls for life!
Im from province of Quebec and we are not all clowns like him.
The main problem that people have is NAV depletion
Yeah, because many people think that the distributions that are paid out should be free money that magically comes from somewhere else other than the fund.
But if paid out "correctly," the fund pays what it earns leaving its NAV intact. In any case, when the fund declines with the market, they blame it on the distributions.
@@dkyrtata6688 100% -- Sad, but oh so true.... some people just don't want to understand...
My covered calls etfs will start paying for a part of my rent starting this summer.
The last 10 years? Perhaps.. However if you could go back and invest between 1967 and 1977 would you be all in on growth or value? Does today feel like 2005 or 1975? But it doesnt matter, ust go all in on Bitcoin cause to the moon etc etc
Great video…this is not the only guy with confirmation byes that drinks is own kool aid these people are delusional it’s my way or the highway…little do they know we don’t give a sshhtt …high yield investors want income and reinvest dividends for more income also any other genius that reads these comments we also invest in dividend growth…what percentage is all up to you it’s your portfolio you decide how it’s designed…
Spyi gives a consistant 12% yeald plus growth without ever having to sell a single share. Fepi so far is even higher. But let me buy your goofy book.
Salut moi aussi j'aimerais quitter le Qc de merde. Je suis bien heureux pour toi.
tu peux le faire!
« So happy I left » you said. Talking bad about Quebec because you disagree on things is small man. I travelled a lot around the world and even lived a couples of months in Panama and Quebec is a great place to live. I hope you will feel sorry the day you’ll come back.
I would rather live today off dividends, when I have health and kness working then 60 plus and can't even have sex
Oy! I'm 67 and layin all kindsa pipe.
He is looking for viewers 🤣
The other guy?
i want to hear the story sir... why you leave????? lol
I like your work a great deal but I feel your mocking Quebecers with your swearng jingle is quite out of bounds.
I am subscribed to his channel but I don't agree with his opinion on covered calls.
Who should care about your opinion when you didn't bother to explain why you disagree!
@@valveman12 I disagree because some people need the covered call strategy to retire early. I do see his point that non covered calls give better total returns in general. I do a mix of both types of investing.
"Covered Call ETFs are a SCAM" guy posted a new video to answer this video. He admits to using incorrect language and such to describe CC ETFs. I think we all know he does not like CC ETFs. Anyway, kudos to you Adriano for your channel having the impact that it does!!!
NOT liking them is 100% fine. its calling them a scam that is not right. im glad to know he rectified it
Jonas hit the nail on the Head!
Metaphorically, you have read the first chapter of an entire book, and painted Mike Heroux with a very broad brush. The irony is that based on this one video of his, you have attempted to discredit his entire platform at DSR, which is investing in dividend growers, at all points in your investment journey. On his site he recommends portfolios for growth or income, or a mix of the two, in both the US and Canadian markets. But you wouldn’t know this, because your confirmation bias of this man is based on one video you find disingenuous and misleading. I remain a fan of DSR and many others do too. I ask your other followers to check out some of Mike’s other videos and see if they pass muster.
you have the guts to tell me i have "confirmation bias"?! when this guy says covered call ETFs are a scam??!! That is even worse than confirmation bias its stupidity . I say Growth investing, Dividend Investing and Income Investing are all great options and work well long term. please don't compare me to this clown
❤
ohh tu parle francais! jetais sur tu etais 100% anglophone tu parle bien englais =)
i am anglophone but if you lived in QC you have no choice to know French
@@PassiveIncomeInvesting true tabarnak :)
un quebecois en plus haha criss yesser
Asti colis tabarnak de saint ciboire ! Molson dry poutine
@@PassiveIncomeInvesting 😂😂
I don't think this dude knows the definition of scam. Might need to work on his English a bit more.
at first i thought he was joking... but yeah he does not know what a scam it
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Gloria Robinson
why are all ur videos long and not straight to the point
After you realize that you can retire early and you do not need $1Million portfolio, and you can accomplish this by using the covered call strategy, that moment is priceless.
These "Influencers" always use scare tactics: Sell Now, or Dump this Now, or It's a Scam. 😂
Adrian, your portfolio unveil video every month is all the proof I need to know that PII strategy works.
Thanks Adrian for showing us a funny video!
welcome my friend!