1Wk·

CC ETF

And once again, the dividends from the $SPYI arrived on time. For me, this is the "best" covered calls ETF. As far as I know, however, it is not authorized in the EU. Which one do you have in your portfolio or do you stay away from covered calls ETFs?

22.08

SPY

Other NEOS S&P 500 High Income ETF

Received Dividends at $0.518

7 Comments

TotallyLost@TotallyLost

1Wk

If then I would take $JEGP, the approach of taking low-vol shares is probably best for a CC strategy in the long term.

However, you should ask yourself why you want to hold something like this for the long term.

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Yieldrology@Yield-Ahead

1Wk

@TotallyLost Now I'm curious. I am deliberately betting on $JEGP because of its low volatility portfolio. The point is to protect the NAV in the long term so that distributions can be kept constant. Practically nobody talks about it here at GQ.

But why do you think that a Low Vola CC ETF delivers the best results in the long term?

And why wouldn't you want to hold it for the long term? Doesn't it essentially depend on the dose in the overall portfolio context? I like high-yield investments that offer me targeted reinvestment opportunities, but I certainly don't like them too heavily weighted.

I'm curious to hear your view.

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TotallyLost@TotallyLost

1Wk

@Yield-Ahead The question is, what function does it fulfill in the portfolio?

If you want predictable distributions and low volatility, then investment grade corporate bonds are probably the better choice.

If you are investing for the long term, then you probably don't want a product that caps your profits.

These CC ETFs live in a state between stocks and bonds.

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Yieldrology@Yield-Ahead

1Wk

I like your reference to bonds and the hybrid position of CC ETFs. However, I wouldn't want to have bonds in my portfolio under any circumstances. Only high-yield bonds would be high-dividend enough for me. But they have their very own, sometimes equity-like, risk profile.

I feel much more comfortable with high-dividend equity ETFs, understand them better and dose them appropriately in my portfolio. That makes a lot of sense to me.

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TotallyLost@TotallyLost

1Wk

@Yield-Ahead if you feel more comfortable with it, I can understand that, but why not for the long-term investment?
$TDIV and $GGRP

With CC-ETFs, a lower performance is virtually guaranteed because you take every crash with you, but not a recovery that is too fast.

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Yieldrology@Yield-Ahead

1Wk

But that's what I have. $VWRL $EQQD and my favorite dividend ETF $LDEG are in the portfolio and ensure (dividend) growth. And that brings us back to the dose. A pinch of CC gives me a different characteristic than the uncapped rest.

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Peter@Beeferking76

1Wk

$SPYI $QQQI $IWMI $BTCI $IYRI $IAUI
I got them all from SQ
And also $GPIX and $GPIQ
I am a distribution junkie

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