1Mo·

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 (-1,42 %) , $MAIN (-4,69 %) , $KO (+0,18 %) , $HAUTO (-0,74 %) , $PEY (-4,62 %) 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 (-2,37 %) - 25% - 300,-

$FGEQ (-2,87 %) - 5% - 60,-

$DEM (-3,03 %) - 10% - 120,-

$TDIV (-1,89 %) - 20% - 240,-

$JEGP (-2,16 %) - 20% - 240,-

$JEPI - 10% - 120,-

$QYLE (-1,88 %) - 10% - 120,-

I don't like the $FGEQ (-2,87 %) (dividend growth is not really good) and the $QYLE (-1,88 %) (poor performance). What do you think of the weighting? I would be more than grateful for any ideas, suggestions etc. Muchas gracias.

19 Commentaires

Yieldrology@Yield-Ahead

1Mo

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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Eugene H.@RealMrKrabs

1Mo

@Yield-Ahead VWRL is not an alternative as we are only talking about the income portfolio here. $QYLE and instead 5% more each in JEPI and JEGP ? thanks for your answer 🙏🏼

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Yieldrology@Yield-Ahead

1Mo

@RealMrKrabs $VWRL is actually always an alternative, especially if you would otherwise pick Fidelity, but of course I know what you mean. Do you already have JEPI and JEPG? Then what about $JEPQ if you want NASDAQ?

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AI sagt@GoDividend

1Mo

@Yield-Ahead who, by the way, has already collected 2 billion

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Michael@equity_enthusiast_149

1Mo

@Yield-Ahead I hope we will soon get some that only grant 50% options on a world index in order to collect 4-5% and still achieve good growth

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felipe estupendo@felipeestupendo

1Mo

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

1Mo

Thanks for the ideas my good man!

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felipe estupendo@felipeestupendo

1Mo

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

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Nacktdachs@DoppelSchlechtMinus

1Mo

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

1Mo

@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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Nacktdachs@DoppelSchlechtMinus

1Mo

@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

1Mo

For emerging markets is better $SEDY

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Nacktdachs@DoppelSchlechtMinus

1Mo

@Biski based on what criteria?

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Biski@Biski

1Mo

@DoppelSchlechtMinus dividend yield 2% versus 7%

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Eugene H.@RealMrKrabs

1Mo

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

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Fortunus@Quiny

1Mo

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

1Mo

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

1Mo

@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

1Mo

@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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