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Olli
@Olli68
5D·

CC-ETFs only again when I am retired

Today I sold my $WINC (+0.51%) sold my position today and put it back into a classic ETF. CC ETFs are not for me yet. But it was worth a try.

05.01
Invesco FTSE All World ETF CHF PfHdg logo
Invesco FTSE All World ETF CHF PfHdg
Bought at CHF 7.777
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16 Comments
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Beleggen M.@fund_whisperer_1682
5D
Why why why, $WINC so far have a good run right?
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Olli@Olli68
5D
@fund_whisperer_1682 Not good enough.
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AI sagt@GoDividend
5D
I think you can only draw a conclusion after a much longer holding period. -> my two remain
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Olli@Olli68
5D
@GoDividend Yes, I will also continue to monitor. But as I don't need the distributions yet, I will continue to focus on performance for the time being.
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Thomas@Thomas_1963
5D
I also burned my fingers badly on it.
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Olli@Olli68
5D
@Thomas_1963 I have already gone out with a plus through additional purchases. But at the moment, distributions are not so important to me. Performance is more important.
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Alex@nitroxx
5D
My test year is not over yet
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Olli@Olli68
5D
@nitroxx It is certainly the best CC ETF. I will certainly get back into it at retirement age if I still need regular distributions.
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TotallyLost@TotallyLost
5D
@Olli68 Why not simply sell shares?
Is the psychological hurdle too great?
CC-ETFs are actually always worse over long periods and retirement is a long period.

In general, I can't think of many reasons to buy such products.
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Olli@Olli68
5D
@TotallyLost The distributions are relatively constant and secure. I don't have many shares anyway. I have the majority in funds and ETFs.
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Alex@nitroxx
5D
@TotallyLost Depending on the broker, you pay each time and I actually find the automatic distribution in dividends more convenient than selling a share piece by piece
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TotallyLost@TotallyLost
5D
@Olli68 What makes you think that distributions are safe and stable?
They fall in bear markets along with the underlying and a little more because fewer people buy calls.

And then they don't recover after a crash either. Take a look at $PBP.

This is the oldest CC-ETF I know and then compare it with its reference $SPY

Explained in detail here:
https://www.youtube.com/watch?v=K3sYY3T7V8k



@nitroxx Your broker can't charge that much in fees to make it worthwhile 😉.
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Olli@Olli68
5D
@TotallyLost I wrote "relatively safe". And I am also aware that the performance is below average compared to normal global ETFs. That's why I wrote that I can imagine using it for retirement if distributions are more important to me than performance.
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TotallyLost@TotallyLost
5D
@Olli68 Why are distributions in old age more important than total returns?
Money is fungible and CC-ETFs do not have less risk just because they pay out dividends.
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TotallyLost@TotallyLost
5D
@Olli68 Oh yes, and there are current studies on how to invest money in old age...

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4590406

CC strategies are not mentioned there, probably for good reason.
😅

Have a look, it's really interesting if you don't want to read it yourself, current chatbots are good at summarizing it.
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Olli@Olli68
5D
@TotallyLost I'll take a look at it. 👍
But my pension is already relatively planned. The CC ETF would only take up 5-10% of it anyway.
Thanks anyway 👍
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