4Mon·

CC-ETFs only again when I am retired

Today I sold my $WINC (+0%) 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

Bought at CHF 7.777

17 Comments

ETFBAAS@etfbaas

4Mon

Why why why, $WINC so far have a good run right?

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Olli@Olli68

4Mon

@fund_whisperer_1682 Not good enough.

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AI sagt@GoDividend

4Mon

I think you can only draw a conclusion after a much longer holding period. -> my two remain

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Olli@Olli68

4Mon

@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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A@nitroxx

4Mon

My test year is not over yet

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Olli@Olli68

4Mon

@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

4Mon

@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

4Mon

@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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A@nitroxx

4Mon

@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

4Mon

@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

4Mon

@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

4Mon

@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

4Mon

@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

4Mon

@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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Johnny B.@JBatelli

3Mon

@TotallyLost ohh very interesting study. My parents are currently working on their pension portfolio. I can use this as a good argument for a high proportion of equities. But for my parents, psychologically it probably needs to be 10% CC ETF for cash flow and 10% call money and 10% iBonds for security. But still more equity allocation than the typical "100-age=equity allocation"

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Thomas@Thomas_1963

4Mon

I also burned my fingers badly on it.

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Olli@Olli68

4Mon

@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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