Let the nonsense, false statements and FUD begin! If for some reason you still "don't get it" ask yourself this question: if QQQY is so bad, with NAV erosion and declining stock price: WHY THE F IS IT OUTPERFORMING QYLD? -
Hey wondering if you have custom protfolio calender vailable if not which videos do you recommend for begineers to build portfolio? I am overwhelmed and have 0 money in TFSAA and staart earning on it Thanks
This explaining Reverse Stock Split is good and normal is foolishness. I invested for total shares but I did realized that this reverse split was real till I used these ETFs that have constant NAV erosion. Learn to trade the product does not have such negative NAV, but positive NAV.
These funds may be fine for small amounts of capital allocated to alternative investments. In no way should anyone be dreaming about basing their retirement income off of them.
I plan on it, since I could live off $70,000 of QQQY, but then I will get into other investments after as back up, before then focusing on growth ETFs with tiny Dividends.
Why u didn't ask her what you can do to prevent this split and why u change system of the call strategy to prevent this. Very bad thanks god I sold 3 months ago 😆
The distributions are supposed to be paid out ONLY from the Premiums earned. The premiums get added to the NAV and then get paid out from the NAV. So the NAV price movements is simply because of the premiums getting added to it and then paid out (So if the NAV today is $20 and $1 premium gets added to it .. at distribution pay out, the NAV should return to $20) - So if the distribution is getting paid out from the $20 NAV, it shows that the premiums earned were LOW - High Yield dividend ETFS shouldnt thus have NAV erosion. Needs clarification...
NAV fluctuate daily from the option « game » they play each day selling puts on their indexes and the cash settlement they have to do at the end of each trading day. As I understand, premiums are one part of the NAV movement, another one is the settlements of the daily options played and I think they have a synthetic position on the index too? But I may be mixed with Yieldmax funds on the last one
i tried a billion times, but some are simply destined not to understand these funds. the premiums are very high. they are all paid out. the fund captures little of the nasdaq upside, but all the downside . in short, the premiums (all paid out) are way higher than the upside captured. look at QYLD , its 100% premiums and 0 upside.
Why don't they just pay whatever keeps nav stable....nobody wants to have to re put it to stay even...plus paying more than nav...makes u pay extra tax
I got rid of all the crazy funds and now hold mostly safe and consistent funds like EIT, HYLD, HDIV, HDIF, EQCL, ETSX, ESPX, and BMAX. You can't go wrong with these.
@@ransonhall4834 very good but some of us Canadians investors cannot put US listed stock in some or ours tax advantaged account because a 15% foreign income tax is deducted in our TFSA. Probably is case with all the Canadian listed funds he quotes
The amount of shares I have will reduce and price will go up. These are stock I would classify as dividend traps and don't have sustainable growth which is why they need to it.
@@6laka. I agree. They look good, but when you figure our your real effective return, it's about 2%. Glad I sold out this morning. It was my only loser investment.
No disrespect to anyone, but outside the word salad here a reverse split is repainting car that doesn’t run. Also this is splitting in the midst of a crazy 1 year run with the indexes. What happens if a 10% pullback or 20
I don't care how you put it you keep trying to make it seem like the fun isn't losing money on its trades, THAT is the reason the Nav is eroding. Nothing else it lost all of that value during a bull run for the Qs..They are making nad trades period. It is intellectually dishonest to keep trying to convince people that it doesn't matter. Do better.
A forward stock split reduces the price which increases the demand so more people can invest. NVDA did a 10:1 split. Now it's also easier to do a covered call, for example, on a $100 stock vs $1000 for the average person. Another goal of the forward split is further price appreciation. I totally get the yield vs total return, but future reverse splits are likely, not forward splits.
This explains why there was such a huge selloff in QQQY in July. It was headed back to a peak of about $0.25 below the peak from last month. I think a lot of people invested in it decided to bail out driving down the NAV even more. I'm glad to hear about the "T" versions for a fixed 20% target div yield which I think will be more appropriate to those who want an "income" type fund where they could live off the dividend. I'll be watching those closely over the next 6 months to evaluate if I want to invest in any of them.
This is not a closed-end fund. If there was a sell-off the shares outstanding get reduced, so the share price is not affected by people bailing. The only reason this went down is either the ex-date drop when they take the cash out of the NAV to pay the dividend OR they lost money on the sell-puts.
Other thing is. CONY , NVDY are paying higher then defiance and still holding nav and even msty or amzy. You have figure something to fix your problem and not blame div payment is high ok this is not a excuse to split etf. Thanks god I got out couple months ago and they will do split over and over and over and Blame high yield well not on amzy, nvdy, cony and so on
Even though some funds (cony, nvdy, Amzy) are maintaining the nav, that doesn't mean they will stay that way. They just haven't tanked yet due to momentum. I think many people are forgetting this. I may be wrong but this is how I see it.
I would be a lot further ahead by investing elsewhere. Right now, I've collected $5440.30 in dividends and my position is down $5119.466. So I've actually made $320.83. At least I didn't lose money, but certainly didn't make much. What's too good to be true usually is.
me too, I'm up about $800 but I've owned it since November of last year, would've made much more if I had the money invested somewhere else. I already sold and got out of this crap last week.
I must agree. This is happening to all ETFs that pay above the 15% yield. I think is why is suggested to 're-invest' as drip or else where anything above that yield to sustain your capital and grow it. See my comments on this post.
@@PassiveIncomeInvesting Well, I bought my first 100 shares of stock in 1985. I've been around the block a couple of times. Neither of you made sense to me and I'm not going down the rabbit hole hoping to make a profit. Every once in a while you need to get kicked to realize the error of my ways. I want 12-15% annually off of my investments. I wasn't getting that. If investing was a sure thing, everyone would be doing it.
The only thing I haven't figured out with this fund is what's the exit strategy? I'm not retiring for another 7 years and at the end of the 7 years I have no clue what my overall return is going to be with me doing drip
If you own a high income fund, your goal should be to earn income and not to achieve superior growth. If you want growth, buy a growth fund. High income funds earn you a combination of your original capital and the growth the fund achieves, but you do not know the proportions of the two. It's suited for people who want all their money back within a certain time frame such as if they foresee themselves dying in a few years. You keep the fund until it no longer meets your income goals. That's your exit strategy. Then you measure how much you put in versus how much you got out.
I'll explain my strategy: I invested $40,000 in IWMY. I will not invest anymore. What I will do is reinvest most of the dividends I get every month, for a few years, back into the IWMY fund. Keep in mind that I don't need my original 40,000 investment because I already have precious metals, two months of cash in my bank account, and about six months of vacation saved up from my job in case I become unemployed. I already have a pension because I am retired military, and I'm building another pension from my current job. I also have between $150,000 and $200,000 of growth stocks. My situation dictates that I don't need NAV stability of the IWMY fund. I just want extra income. When my IWMY dividend distributions get big enough, I will reinvest the dividends into other funds like SVOL, FEPI, or whatever I deem best. I'll drip 50% back into IWMY and 50% into the others. Keep in mind that all I have had to risk is a measly $40,000. For that, I dol not have an exit strategy. I only have a plan of diversification. Within a few years, my dividend distributions should be able to replace my W-2 employment income. I'll have income from IWMY, SVOL, FEPI, and whatever else I like. I'm 54 years old. I don't know your situation. I showed you my situation to hopefully help you build a plan. If you're young, absolutely do not underestimate the need for a second income in case you lose your job. So, you should have both growth stocks AND some income stocks. These Defiance funds and Yieldmax funds are a huge asset because they will feed you if you lose your job. We're very lucky to have them!
@@dkyrtata6688i don’t fully agree as if you check at annualized total return of QQQY since inception, with dividends re invested, you have like 20-24% TR that is mostly disconnected from the price appreciation of the index. I think it’s still a decent growth strategy. Show me any growth fund with a long term 15%+ average … Time will tell 🤷♂️🤷♂️
You don't have to worry about an exit strategy in 7 year's time. This fund is a naked put writing strategy and it will have blown up and taken your savings with it long before then. As of today the fund holds about $260m in treasuries and is short 128 Nasdaq options on futures underwater to the tune of $1.4m.
I sold out all my JEPY, QQQY, and IWMY. Being an income investor is about # of shares and how fast you can compound it. I switched to QDTE since I can drip weekly and compounds faster.
If, as she said, a reverse split doesn't mean anything bad or good, then why do it? If it didn't do anything or wasn't needed, they wouldn't do it. Kindergarten logic can tell you they are doing it for a reason so she's obviously lying to you. I've held defiance funds for a while. My QQQY 122 shares, Cost basis $2109 - Current Market Price $1708 - Dividends $617 -- Lost $401 in value for a total upside of $215 or 10.2% total return. Not a loss but definitely not great when my S&P price appreciated 40%. Hell, SCHD beats it by 2% YTD.
It’s stupid to pay out from capital amount to show more yield percentage. Showing higher yield attracts more investors. But once people come to know there is erosion of capital, they will stay away from such investment. I believe you sold your all qqqy position and bought qqqt, for more stable dividend and growth
its not stupid.... they are NOT paying out from the capital. they pay out all the premiums. this was explained several times. it only looks like they pay out the capital, but its not the case
the total return with the NAV dropping and the total return for the past 3 mths of dividends is zero. Look at YMAX bought @ 20.50. Now, the NAV is 18.50, and my net total return is zero. That's with the drip on!
The payouts are too great to maintain nav. If splits keep happening, you won’t have enough shares to split one day. If they didn’t payout intrinsic value and hold back around 10% of extrinsic value, these funds would be a viable option. Maintaining nav should be a absolute objective
a company can 'reverse split indefinitely a stock/fund!' until it reached a level that the exchange will force it out as a 'De-listing' and goes into OTC status. I've seen/experience this with weed stocks in past few years. I just kept holding on for a turn around but a DE-listing occurred instead.
This is all true..the value of the investment does not change on the reverse-split, just the amount of shares we hold decrease. If we are collecting a set dividend on the amount of share we hold, then the reverse split decreases the amount of shares we hold and therefore the amount of dividend becomes less. And that is where I see an issue for myself. In past, I held on to shares after the reverse split, but received less dividend and the capital value continue to decline to an unrecoverable value or a total loss and further reverse splits. I am one to exit once a reverse split is mentioned or is applied. On the other hand, a forward-split for me hs more of an advantage since the value still does not change and the amount of shares increase and thus the amount of dividend. Further, the forward-split allows other to enter the set share at a lower cost and this drives the stock value higher and your capital as well.
the Distributions do NOT decrease with a reverse split, they will be adjusted in proportion (they will triple in this case) same with a forward split (a 10 for 1 for example would SHRINK the dividend by 10 times) this would not impact the distribution level or Yield just like it does not impact investment value
Will never figure out why people come to income oriented investments and bitch and complain because they don’t behave like growth oriented investments. Each financial instrument serves its own purpose and fits into portfolios differently. If this doesn’t fit your style then move along, don’t cry because it doesn’t act like a growth stock LOL
Did she give a straight answer on how many times a reverse split can happen. I was told elsewhere in another video that there isn't a limit, but the reason I asked was because the Split reduces the number of shares, and there has to be a minimum number of shares to be on the market. It definitely wouldn't be quick, taking 1,000,000,000 and dividing it by 4 each time, it would take a bit to be reduced to, say, 1,000,000 (about 5 Splits).
Is true.. there is no limits. your shares can dwindle lower if more investors don't step in and buy at the new price per share. .. see my comments on this post
@@PassiveIncomeInvesting Yes, Price YTD = -20.78% but Total YTD = 9,95% if you invest everything. Now the difficult part is how much to reinvest in to be certain to have a positive total return, I don't have the math formula for that! 🙄
This definitely cleared up some of my concerns with the original 3 high yielders from Defiance. My long-term plan is to have a 3 fund portfolio consisting of SPYT, QQQT, and IWMT with reinvesting 10% back into the funds and 20% set aside for taxes and emergencies. While it would be ideal to live off them, I still feel like you should put something back in. Inflation will never go completely away.
That’s the thing, your definitely going to see a much lower return now with only 1/3 the number of shares you’ll be lucky to get half the dividend you used to get.
@@1houracademy dividends COULD be 3x but it all depends on the index volatility that drive the premiums earned. Dividend PER SHARES will be based on a 3x factor vs before the split. Volatility was lower last couples of months but may go higher in the next months so the future split will have 0 incidence on the future dividends per share, but it will all in the future premiums earned and options profits.
SPYT is the only one worth having. If you have to always reinvest 85 percent in order to keep your position size the same then what is the point???? lol. Doesn’t work
its not a matter of "worth having or not" its a matter of finding the best fit for you. if you don't "get the point" of a fund, you don't understand it. and hence, you should not invest in it. Hopefully you understand SPYTs strategy?
there is no fooling. the fool is the one who does not understand the fund . the funds objectives and strategy are crystal clear. Yield is PART of the return
@@PassiveIncomeInvesting Of course it is , I don't think there's anyone that doesn't understand that simple concept . if total return is say 15% price deprecation plus yield then the headline 60% yield is just used to sell the fund for those hoping for a free lunch
@@PassiveIncomeInvesting why no logic? Isn’t it logical to want the original investment to at least remain the same if not increase. With most of these yieldmax ETFs, and I have four, the share price has seriously decreased. I don’t think anyone should have confidence they’ll recover. The reverse split temporarily hides that but I’ll bet the share price will continue to erode.
they can give out 50%, 75% 100% it would not make a difference to performance. you have the freedom to reinvest what you want, unlike QYLD where they reinvest half or most of it. id rather decide myself .
I once had a skunk 🦨 that made himself a home in my yard under a wood pile….as soon as I tried to remove him he turned his rear end towards me and aimd his secret weapon at my face …as soon as he did that I ran as fast as I could…this is what happened with these funds 😂😂😂
well its basically the same thing (Nasdaq100) but only the tech stocks. if tech stocks outperform, it will do better. if they slump, the opposite will be true
Still filling up my TFSA so I don't own those stocks as 15% foreign tax deduction is not worth it based on my CLM holdings in TFSA. Any chance Purpose YTSL reverse split in the future?
I own QQQY and JEPY. Sure, reverse split looks scary on the paper, but in reality very little will change. I just did a simulation on Excel post reverse split and the monthly distribution difference is only $80 lower after 5 years. So, virtually the same. People, just remember why you bought these high yield ETFs in the first place. Don't be a scaredy-cat and ignore the lies.
@@AK-gx4fh yup... thats what they market at people... 1 year sp down 31%! Who would hold this long term, managing every month a distribution so yur investment dont fall off a cliff. F that.
@kacesor1 You joking? Generally Defiance is more favored due to a more diverse portfolio, less maintenance, and depending on what is compared, more dividends. QQQY has much higher dividing than YMAX, for sure.
With reverse split number etf will be 1/3rd of holding and value will be three times of market value. I assumed that they will maintain their current distribution yield of 56%
Let the nonsense, false statements and FUD begin! If for some reason you still "don't get it" ask yourself this question: if QQQY is so bad, with NAV erosion and declining stock price: WHY THE F IS IT OUTPERFORMING QYLD? -
Hey wondering if you have custom protfolio calender vailable if not which videos do you recommend for begineers to build portfolio? I am overwhelmed and have 0 money in TFSAA and staart earning on it Thanks
So thats the standard now, to compare it with QYLD 😂…. Remember yours and Sylvia’s statement…. “QQQY has the same risks as that of underlying QQQ”…
This explaining Reverse Stock Split is good and normal is foolishness. I invested for total shares but I did realized that this reverse split was real till I used these ETFs that have constant NAV erosion. Learn to trade the product does not have such negative NAV, but positive NAV.
I prefer SPYT, it has more stability but lower yield. I'm looking up strategies to 3x my gains.
These funds may be fine for small amounts of capital allocated to alternative investments. In no way should anyone be dreaming about basing their retirement income off of them.
I plan on it, since I could live off $70,000 of QQQY, but then I will get into other investments after as back up, before then focusing on growth ETFs with tiny Dividends.
If someone sounds to good to be true, it probably is.
Why u didn't ask her what you can do to prevent this split and why u change system of the call strategy to prevent this. Very bad thanks god I sold 3 months ago 😆
This concept of investment eating itself is beyond understanding, esp when it’s failing to backfill gaps at least partially.
The distributions are supposed to be paid out ONLY from the Premiums earned. The premiums get added to the NAV and then get paid out from the NAV. So the NAV price movements is simply because of the premiums getting added to it and then paid out (So if the NAV today is $20 and $1 premium gets added to it .. at distribution pay out, the NAV should return to $20) - So if the distribution is getting paid out from the $20 NAV, it shows that the premiums earned were LOW - High Yield dividend ETFS shouldnt thus have NAV erosion. Needs clarification...
NAV fluctuate daily from the option « game » they play each day selling puts on their indexes and the cash settlement they have to do at the end of each trading day.
As I understand, premiums are one part of the NAV movement, another one is the settlements of the daily options played and I think they have a synthetic position on the index too?
But I may be mixed with Yieldmax funds on the last one
i tried a billion times, but some are simply destined not to understand these funds. the premiums are very high. they are all paid out. the fund captures little of the nasdaq upside, but all the downside . in short, the premiums (all paid out) are way higher than the upside captured. look at QYLD , its 100% premiums and 0 upside.
Selling for more stable returns.
I am selling out of QQQY and JEPY... moving the proceeds to sustainable NAV funds
Same
Why don't they just pay whatever keeps nav stable....nobody wants to have to re put it to stay even...plus paying more than nav...makes u pay extra tax
I got rid of all the crazy funds and now hold mostly safe and consistent funds like EIT, HYLD, HDIV, HDIF, EQCL, ETSX, ESPX, and BMAX. You can't go wrong with these.
what do you think about JEPI, JEPQ, SPYI, QQQI, SVOL?
@@ransonhall4834 very good but some of us Canadians investors cannot put US listed stock in some or ours tax advantaged account because a 15% foreign income tax is deducted in our TFSA. Probably is case with all the Canadian listed funds he quotes
@ransonhall4834 those are perfectly fine and I have little bit of them in my USD RRSP.
Whats your take on CNCL and USCL? Just curious.
@dwaynecunningham2164 I had them before but then I switched to EQCL which has USCC and CNCC.
So now I'm going to own 66% less shares, and the NAV will still continue to disappear at a rapid rate? No thanks, I'm out.
Just what people said from day 1. Yeilds this big just don't work
@@caseyjones3839 they lure you in with the big Yields, but take most of that back with the share price decline.
Hey, it’s the captain of the Titanic. Nice job getting her on.
Lol!!!!
The amount of shares I have will reduce and price will go up. These are stock I would classify as dividend traps and don't have sustainable growth which is why they need to it.
It’s okay that u don’t understand what they’re for then 😂
@@6laka. I agree. They look good, but when you figure our your real effective return, it's about 2%. Glad I sold out this morning. It was my only loser investment.
I prefer SPYT. I’ll take more stability, lower yield any day.
No disrespect to anyone, but outside the word salad here a reverse split is repainting car that doesn’t run. Also this is splitting in the midst of a crazy 1 year run with the indexes. What happens if a 10% pullback or 20
You lose all you investment eventually. Just watch how Adrian keeps selling a few each month before they go to nothing.
Did they even mention tres shutting down?
I don't care how you put it you keep trying to make it seem like the fun isn't losing money on its trades, THAT is the reason the Nav is eroding. Nothing else it lost all of that value during a bull run for the Qs..They are making nad trades
period. It is intellectually dishonest to keep trying to convince people that it doesn't matter. Do better.
A forward stock split reduces the price which increases the demand so more people can invest. NVDA did a 10:1 split. Now it's also easier to do a covered call, for example, on a $100 stock vs $1000 for the average person. Another goal of the forward split is further price appreciation. I totally get the yield vs total return, but future reverse splits are likely, not forward splits.
I totally agree. I mention same on my post here.
future reverse splits are inevitable if they keep paying out all the income of the fund, which she confirmed they will
This explains why there was such a huge selloff in QQQY in July. It was headed back to a peak of about $0.25 below the peak from last month. I think a lot of people invested in it decided to bail out driving down the NAV even more.
I'm glad to hear about the "T" versions for a fixed 20% target div yield which I think will be more appropriate to those who want an "income" type fund where they could live off the dividend. I'll be watching those closely over the next 6 months to evaluate if I want to invest in any of them.
This is not a closed-end fund. If there was a sell-off the shares outstanding get reduced, so the share price is not affected by people bailing. The only reason this went down is either the ex-date drop when they take the cash out of the NAV to pay the dividend OR they lost money on the sell-puts.
if you have 1 share they cash you out thats all I needed to know. You pretty such have to keep buying to hold your position
Other thing is. CONY , NVDY are paying higher then defiance and still holding nav and even msty or amzy. You have figure something to fix your problem and not blame div payment is high ok this is not a excuse to split etf. Thanks god I got out couple months ago and they will do split over and over and over and Blame high yield well not on amzy, nvdy, cony and so on
Even though some funds (cony, nvdy, Amzy) are maintaining the nav, that doesn't mean they will stay that way. They just haven't tanked yet due to momentum. I think many people are forgetting this. I may be wrong but this is how I see it.
Why would you expect an index to outperform a single ticker short term?
Sold out
I recently started investing in USOY, it's holding the NAV pretty well so far. Sold out of all of my IWMY, Thanks great video!
I would be a lot further ahead by investing elsewhere. Right now, I've collected $5440.30 in dividends and my position is down $5119.466. So I've actually made $320.83. At least I didn't lose money, but certainly didn't make much. What's too good to be true usually is.
me too, I'm up about $800 but I've owned it since November of last year, would've made much more if I had the money invested somewhere else. I already sold and got out of this crap last week.
😂
I must agree. This is happening to all ETFs that pay above the 15% yield. I think is why is suggested to 're-invest' as drip or else where anything above that yield to sustain your capital and grow it. See my comments on this post.
its really not a matter of "too good to be true" its silly to think that. understand the fund and the strategy will solve all your problems
@@PassiveIncomeInvesting Well, I bought my first 100 shares of stock in 1985. I've been around the block a couple of times. Neither of you made sense to me and I'm not going down the rabbit hole hoping to make a profit. Every once in a while you need to get kicked to realize the error of my ways. I want 12-15% annually off of my investments. I wasn't getting that. If investing was a sure thing, everyone would be doing it.
Excellent interview! Always a pleasure to have Sylvia on your channel !
Ignoring one giant elephant in the room when it comes to NAV erosion. TAXES!
How about saying the stock is tanking????? Just don't give out more than what NAV is😊
The only thing I haven't figured out with this fund is what's the exit strategy? I'm not retiring for another 7 years and at the end of the 7 years I have no clue what my overall return is going to be with me doing drip
You've got 7 years to do the math buddy
If you own a high income fund, your goal should be to earn income and not to achieve superior growth. If you want growth, buy a growth fund.
High income funds earn you a combination of your original capital and the growth the fund achieves, but you do not know the proportions of the two. It's suited for people who want all their money back within a certain time frame such as if they foresee themselves dying in a few years.
You keep the fund until it no longer meets your income goals. That's your exit strategy. Then you measure how much you put in versus how much you got out.
I'll explain my strategy: I invested $40,000 in IWMY. I will not invest anymore. What I will do is reinvest most of the dividends I get every month, for a few years, back into the IWMY fund. Keep in mind that I don't need my original 40,000 investment because I already have precious metals, two months of cash in my bank account, and about six months of vacation saved up from my job in case I become unemployed. I already have a pension because I am retired military, and I'm building another pension from my current job. I also have between $150,000 and $200,000 of growth stocks. My situation dictates that I don't need NAV stability of the IWMY fund. I just want extra income. When my IWMY dividend distributions get big enough, I will reinvest the dividends into other funds like SVOL, FEPI, or whatever I deem best. I'll drip 50% back into IWMY and 50% into the others. Keep in mind that all I have had to risk is a measly $40,000. For that, I dol not have an exit strategy. I only have a plan of diversification. Within a few years, my dividend distributions should be able to replace my W-2 employment income. I'll have income from IWMY, SVOL, FEPI, and whatever else I like. I'm 54 years old. I don't know your situation. I showed you my situation to hopefully help you build a plan. If you're young, absolutely do not underestimate the need for a second income in case you lose your job. So, you should have both growth stocks AND some income stocks. These Defiance funds and Yieldmax funds are a huge asset because they will feed you if you lose your job. We're very lucky to have them!
@@dkyrtata6688i don’t fully agree as if you check at annualized total return of QQQY since inception, with dividends re invested, you have like 20-24% TR that is mostly disconnected from the price appreciation of the index. I think it’s still a decent growth strategy. Show me any growth fund with a long term 15%+ average …
Time will tell 🤷♂️🤷♂️
You don't have to worry about an exit strategy in 7 year's time. This fund is a naked put writing strategy and it will have blown up and taken your savings with it long before then. As of today the fund holds about $260m in treasuries and is short 128 Nasdaq options on futures underwater to the tune of $1.4m.
I sold out all my JEPY, QQQY, and IWMY. Being an income investor is about # of shares and how fast you can compound it. I switched to QDTE since I can drip weekly and compounds faster.
Who asked them to pay 70% 80%…. Which anyway is reducing too with the reducing Nav…. Should option income make for distributions or Nav deduction?
If, as she said, a reverse split doesn't mean anything bad or good, then why do it? If it didn't do anything or wasn't needed, they wouldn't do it. Kindergarten logic can tell you they are doing it for a reason so she's obviously lying to you. I've held defiance funds for a while. My QQQY 122 shares, Cost basis $2109 - Current Market Price $1708 - Dividends $617 -- Lost $401 in value for a total upside of $215 or 10.2% total return. Not a loss but definitely not great when my S&P price appreciated 40%. Hell, SCHD beats it by 2% YTD.
These high Yield funds, use the High Yield to sell the product, but in the end you'd be much better off investing elsewhere.
It’s stupid to pay out from capital amount to show more yield percentage. Showing higher yield attracts more investors. But once people come to know there is erosion of capital, they will stay away from such investment. I believe you sold your all qqqy position and bought qqqt, for more stable dividend and growth
its not stupid.... they are NOT paying out from the capital. they pay out all the premiums. this was explained several times. it only looks like they pay out the capital, but its not the case
@@PassiveIncomeInvesting
If they are paying out of premium earned then why capital is eroding !
the total return with the NAV dropping and the total return for the past 3 mths of dividends is zero.
Look at YMAX bought @ 20.50. Now, the NAV is 18.50, and my net total return is zero. That's with the drip on!
Zero returns of these….my friend thats a much better position to be in….
@@gagarwal Not sure I'm understanding what your saying?
No comment from Adrian
QQQY is beating QQQM in the last 3 months. that should really tell you a lot. . can you figure it out?
The payouts are too great to maintain nav. If splits keep happening, you won’t have enough shares to split one day. If they didn’t payout intrinsic value and hold back around 10% of extrinsic value, these funds would be a viable option. Maintaining nav should be a absolute objective
I don't fully agree...you can't reverse split indefinitely a stock/fund!
Exactly
a company can 'reverse split indefinitely a stock/fund!' until it reached a level that the exchange will force it out as a 'De-listing' and goes into OTC status. I've seen/experience this with weed stocks in past few years. I just kept holding on for a turn around but a DE-listing occurred instead.
This is all true..the value of the investment does not change on the reverse-split, just the amount of shares we hold decrease. If we are collecting a set dividend on the amount of share we hold, then the reverse split decreases the amount of shares we hold and therefore the amount of dividend becomes less. And that is where I see an issue for myself. In past, I held on to shares after the reverse split, but received less dividend and the capital value continue to decline to an unrecoverable value or a total loss and further reverse splits. I am one to exit once a reverse split is mentioned or is applied. On the other hand, a forward-split for me hs more of an advantage since the value still does not change and the amount of shares increase and thus the amount of dividend. Further, the forward-split allows other to enter the set share at a lower cost and this drives the stock value higher and your capital as well.
the Distributions do NOT decrease with a reverse split, they will be adjusted in proportion (they will triple in this case) same with a forward split (a 10 for 1 for example would SHRINK the dividend by 10 times) this would not impact the distribution level or Yield just like it does not impact investment value
So many have been misled…
Way too many
Will never figure out why people come to income oriented investments and bitch and complain because they don’t behave like growth oriented investments. Each financial instrument serves its own purpose and fits into portfolios differently. If this doesn’t fit your style then move along, don’t cry because it doesn’t act like a growth stock LOL
Did she give a straight answer on how many times a reverse split can happen. I was told elsewhere in another video that there isn't a limit, but the reason I asked was because the Split reduces the number of shares, and there has to be a minimum number of shares to be on the market.
It definitely wouldn't be quick, taking 1,000,000,000 and dividing it by 4 each time, it would take a bit to be reduced to, say, 1,000,000 (about 5 Splits).
Is true.. there is no limits. your shares can dwindle lower if more investors don't step in and buy at the new price per share. .. see my comments on this post
Really appreciate this clarification.
Thank you very much for the great vid
This is crashing 30% in 1 year in a market that’s a bull run
then why is the total return positive?
@@PassiveIncomeInvesting Yes, Price YTD = -20.78% but Total YTD = 9,95% if you invest everything. Now the difficult part is how much to reinvest in to be certain to have a positive total return, I don't have the math formula for that! 🙄
This definitely cleared up some of my concerns with the original 3 high yielders from Defiance. My long-term plan is to have a 3 fund portfolio consisting of SPYT, QQQT, and IWMT with reinvesting 10% back into the funds and 20% set aside for taxes and emergencies. While it would be ideal to live off them, I still feel like you should put something back in. Inflation will never go completely away.
Great interview Adriano & Sylvia
its an uphill battle with mud , thorns and people shooting at you from all sides. as you know my friend... lol Normandy all over again
So you end up with one third the shares? Do they triple the payout per share?
Ya right
That’s the thing, your definitely going to see a much lower return now with only 1/3 the number of shares you’ll be lucky to get half the dividend you used to get.
@@1houracademy dividends COULD be 3x but it all depends on the index volatility that drive the premiums earned.
Dividend PER SHARES will be based on a 3x factor vs before the split. Volatility was lower last couples of months but may go higher in the next months so the future split will have 0 incidence on the future dividends per share, but it will all in the future premiums earned and options profits.
With ETFs, the NAV is the NAV, the ETF price will almost always be centered around the NAV, even with big sell offs (or purchases)
Great explanation to better understand
Unless the CC fund uses an OTM strategy, I don't buy.
Very informative video, dude.
🤑🤑😎 Thank you Adrian, With my next distribution I will be buying more QQQY :)
So if my 30 shares just went to 10, does my dividend payment triple? Or did my income just take a cut?
Pay cut
It triples. You lose nothing
less shares, less div pay-cut. See my comments on this post
SPYT is the only one worth having. If you have to always reinvest 85 percent in order to keep your position size the same then what is the point???? lol. Doesn’t work
its not a matter of "worth having or not" its a matter of finding the best fit for you. if you don't "get the point" of a fund, you don't understand it. and hence, you should not invest in it. Hopefully you understand SPYTs strategy?
as an example ,,, if total return is 15% what's the point of fooling myself with a 60% yield ?
there is no fooling. the fool is the one who does not understand the fund . the funds objectives and strategy are crystal clear. Yield is PART of the return
@@PassiveIncomeInvesting Of course it is , I don't think there's anyone that doesn't understand that simple concept . if total return is say 15% price deprecation plus yield then the headline 60% yield is just used to sell the fund for those hoping for a free lunch
@@davidanderson7460 A lot of marketing behind this fund to sell it, but in the end, you'd be better off investing in other funds.
I had 5 shares so why was I only given 1 back shouldn’t I have gotten a fractional share or money back that seems like a 5-1 split
The reverse split seems like a sleight of hand trick to mask the erosion of share price.
but if it does not impact the nav, how can that be ?? (see how your statement has no logic?)
@@PassiveIncomeInvesting why no logic? Isn’t it logical to want the original investment to at least remain the same if not increase. With most of these yieldmax ETFs, and I have four, the share price has seriously decreased. I don’t think anyone should have confidence they’ll recover. The reverse split temporarily hides that but I’ll bet the share price will continue to erode.
Please cover more about QDTE, XDTE and coming soon RDTE. Really happy with Q and X so far
Very happy with QDTE so far
I love QQQY and hold it in my RRSP but i wish they would keep 5 or 10 % for less erosion .
they can give out 50%, 75% 100% it would not make a difference to performance. you have the freedom to reinvest what you want, unlike QYLD where they reinvest half or most of it. id rather decide myself .
I once had a skunk 🦨 that made himself a home in my yard under a wood pile….as soon as I tried to remove him he turned his rear end towards me and aimd his secret weapon at my face …as soon as he did that I ran as fast as I could…this is what happened with these funds 😂😂😂
shouldnt covered call etfs do well when the underlying asset goes down in price since they sell calls?
yes, you can clearly see that they are down less than the index during a bad day.
Is this only available is U.S. dollar on the U.S stock market ? So this would be best for a Canadian in a RRSP ?
Correct only in the rrsp
What is the effective date of the split?
August 1st
@@doctorkizzo1773 got out last week, thanks man
Even in terms of total return the QQQY from Evolve is performing better than this one. So I sold this and bought that.
well its basically the same thing (Nasdaq100) but only the tech stocks. if tech stocks outperform, it will do better. if they slump, the opposite will be true
Any ETA for the IWMT and will target yield be 20% like SPYT or closer to 30+% given increased volatility with the R2K?
It's really simple. If you don't understand how these etf's work, don't invest in them or expect something from them that they don't offer.
hallelujah!
Great video! Have u ask her what would be the black swan effect that would've wipe out the funds? and do they have a mechanism to protect? Thx.
The split is just to delay the inevitable. Lower and lower they go.
Still filling up my TFSA so I don't own those stocks as 15% foreign tax deduction is not worth it based on my CLM holdings in TFSA. Any chance Purpose YTSL reverse split in the future?
no, YTSL performs really well, unlike this QQQY garbage.
How can you do a partial reinvestment of the distributions for these etfs without paying a brokerage commission? DRIPs invest 100% of proceeds.
many brokerages have no commissions to buy.
I own QQQY and JEPY. Sure, reverse split looks scary on the paper, but in reality very little will change. I just did a simulation on Excel post reverse split and the monthly distribution difference is only $80 lower after 5 years. So, virtually the same. People, just remember why you bought these high yield ETFs in the first place. Don't be a scaredy-cat and ignore the lies.
Finally! thank you!
NOTHING changes really ..
Will the distribution go 3x up because of this split? Correct or incorrect?
yes
Whar happens when you have a odd number of shares, say like you have 4 shares it reverses to 1 and a 1/3 rd ????
the 1/3 is paid to you in cash
left overs paid in cash
Why did they not start at $50 they water to get retail investors In that’s why they started at $20
qqqy lost 31% of its intresic value in 1 year, but u have a huge yield, just put back a huge part of that yield in and u will be fine:)
Exactly I don't get how people don't understand this
not everyone is smart :)
@@PassiveIncomeInvesting indeed haha
People do not understand that.. they think youll have 60% a year as ROI..
@@AK-gx4fh yup... thats what they market at people... 1 year sp down 31%! Who would hold this long term, managing every month a distribution so yur investment dont fall off a cliff. F that.
Yieldmax is better
@kacesor1 You joking? Generally Defiance is more favored due to a more diverse portfolio, less maintenance, and depending on what is compared, more dividends. QQQY has much higher dividing than YMAX, for sure.
10 - 15, with dividend growth, and NO capital erosion. Otherwise thanks no thanks
Just listened review - all is good. We are on second week vacation in Boquete, Panama. What a great country.
Always thought RS resulted in a sell off
These funds are only good in a tax sheltered account
With reverse split number etf will be 1/3rd of holding and value will be three times of market value. I assumed that they will maintain their current distribution yield of 56%
the yield will not change. the distributions will triple
Why did you guys do this?
"Um because we have to in order to keep the fund going."
Why?
"Um because the price is going to 0."
don't quit your day job... comedy is not your thing