1Mon·

Income portfolio Weighting CC-ETFs

Dear community,

Due to circumstances in my job, I am now able to invest EUR 1200 per month in my income portfolio.

Unfortunately, I am at an impasse with my ideas and somehow need fresh input.

About me: Through individual shares (e.g. $O (-0.39%) , $MAIN (-0.58%) , $KO (-0.37%) , $HAUTO (+0.81%) , $PEY (+1.41%) etc.) I currently receive an average monthly net dividend of EUR 206.

My investment objective is to build up passive cash flow. I am currently investing this independently in other assets or buying individual shares. If everything goes well, I would reduce my job in the future (5-10 years) thanks to the dividends.

My interest is a hybrid strategy (approx. 60% in dividend ETFs with (hopefully) growth and 40% in covered calls).

After much deliberation, I have now arrived at the following weighting:

$VHYL (+0.03%) - 25% - 300,-

$FGEQ (+0.75%) - 5% - 60,-

$DEM (+0.11%) - 10% - 120,-

$TDIV (+0.07%) - 20% - 240,-

$JEGP (-0.38%) - 20% - 240,-

$JEPI - 10% - 120,-

$QYLE (+0.6%) - 10% - 120,-

I don't like the $FGEQ (+0.75%) (dividend growth is not really good) and the $QYLE (+0.6%) (poor performance). What do you think of the weighting? I would be more than grateful for any ideas, suggestions etc. Muchas gracias.

19 Comments

Yieldrology@Yield-Ahead

1Mon

Well then. If $FGEQ bothers you (it would bother me too) and $QYLE too (I would never invest in it), then get out. Boring alternative: $VWRL. Fits perfectly with your market cap div ETF $VHYL

Note on CC ETFs: I like them too, but we are only at the very beginning in Europe. We'll be getting rows and rows of new ETFs in the next few years, for sure. Are you patient enough to wait for better products?

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View all 4 further answers

felipe estupendo@felipeestupendo

1Mon

Dividends always make my eyes light up. I hold these dividend-paying ETFs alongside my shares:

$EGV1
$JEGP
$VHYL
$TDIV
$E903
$SPY5

But adding such ETFs is the right choice. Buy, leave, forget, collect dividends. All right, buy some more too. 🙃 The $JEGP even pays monthly!!!

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Eugene H.@RealMrKrabs

1Mon

Thanks for the ideas my good man!

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felipe estupendo@felipeestupendo

1Mon

@RealMrKrabs above all, take a look at the current amount of the dividend for the monthly $JEGP

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sagt@konfuszius

1Mon

40% CC would be too much for me and the fragmentation into 3 ETFs is also somehow unnecessary. I would just take 20% JEGP and be done with it.
If it's "just your income portfolio" and you have the real diversification elsewhere, you can also weight niche products like DEMD and TDIV higher, i.e. 20% and 30% to make the 100 full.
I would also remove VHYL and FGEQ and put the 30% into $WINC instead, if it is suitable for fulfilling the objective of these positions. I think the strategies implemented by VHYL and FGEQ are both suboptimal.

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Yieldrology@Yield-Ahead

1Mon

@DoppelSchlechtMinus I have a different opinion. Especially in an income portfolio, I find diversification among CC-ETFs makes total sense from a certain portfolio size. Different issuers = different management = different option strategies = different results.
different results. If one strategy doesn't work well, you have fallback levels.

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sagt@konfuszius

1Mon

@Yield-Ahead Yes, I don't want to contradict you there, but not with regard to the 3 mentioned. Before I take a second one from JPM or the synthetic Global X thing, I'd rather just build up the JEGP and, as you wrote in the other comment, wait and see if any interesting alternatives come onto the European market.

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Biski@Biski

1Mon

For emerging markets is better $SEDY

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sagt@konfuszius

1Mon

@Biski based on what criteria?

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Biski@Biski

1Mon

@DoppelSchlechtMinus dividend yield 2% versus 7%

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Eugene H.@RealMrKrabs

1Mon

@Biski $DEM has a yield of 5.1% atm. But you're right, the $SEDY has better distributions

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Fortunus@Quiny

1Mon

I follow a similar strategy. I have personally replaced the CC ETFs with $WINC. This has performed much better, at least so far.

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Solitair@Solitair

1Mon

I'll throw <security:n/a:IE000MMRLY96> into the ring. It has recovered almost completely from liberation day.
By the way: I recommend the YouTube channel Passive Income Investor on this topic. There you can see what's going on in the sector. But unfortunately not here. You have to get a broker with whom you can trade foreign securities without EU approval.

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Yieldrology@Yield-Ahead

1Mon

@Solitair You're right, not with us, but probably with us in the future. I think many more CC ETFs will be introduced in Europe in the next few years. JPM, Yieldmax and Rex Shares are already there. More will follow

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Eugene H.@RealMrKrabs

1Mon

@Solitair Thanks for the tip! I've already watched the first videos, unfortunately 90% of the ETFs mentioned are not tradable here 🙄😅

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