17H·

What do you think?

What do you guys think of these ETFs? I'm going to invest 200€ in them tomorrow. The dividend is huge. $CHPY (-0,9 %)

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11 Commentaires

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I’d like to be a know-it-all for a moment 😇 Stop talking about dividends when it comes to covered call ETFs. These are distributions on just about anything that can be called income—option premiums and swap income, among other things, are the main sources. These payments aren’t an indicator of the quality of genuine corporate earnings and, at such high levels, can actually erode equity. This is an options product, not an income product. You can buy these shares, but you should keep a close eye on them and pull the plug in time.
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@Dividendenopi You’re right, of course. They’re not dividends—they’re distributions. If these were really earnings from ongoing, regular operations, such high distribution percentages could probably only be achieved through drug and arms trafficking, protection rackets, or prostitution 😅.
All of this is generated through options. At least, that’s how it’s sold… but you never know… maybe it really does come from drug and arms trafficking after all. 🧨💥😉
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@NichtRelevant I don't really want to know, as long as the money keeps coming in... 🤫🤭😇 Joking aside, dividends often give the impression of potential underlying value and, perhaps, the sustainability of the investment. Dividend-paying stocks are a nice tool—especially for income-oriented investors—for generating regular, often monthly, cash flow, and it’s a good idea to include them as part of a diversified portfolio. I do it myself, too. But it’s not for a long-term savings plan or even a “buy and hold forever” strategy. Dividends always sound so harmless in this context, but we’re actually dealing with a very risky investment product here.
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A highly concentrated sector bet using CC. That wouldn't be for me—in my case, it doesn't represent a further step toward diversification.

And I took a quick look at your positions and think that, in your case, it could introduce more risk to your portfolio, make it less diversified, and, last but not least, result in performance costs.
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@aktienliebe77 already posted a brief comment about this article today. But I also find ETFextrem quite interesting. There are various English-language videos about this ETF on YouTube.
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@NichtRelevant I think it would be a good addition to my portfolio since I invest with a focus on growth and dividends. However, I wouldn't make it a core holding right away.
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@stock_sleuth_lmtmj Absolutely. As a component—it's too risky as a core investment.
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@NichtRelevant This just goes to show me again that my post was a waste of time 🫣
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@Aktienliebe77 No, that wasn't for nothing. I think that was the very first post on GQ about that report. I find the ETF really, really exciting—but I wouldn't add it to my portfolio with a 60% weighting right now and build it up as a core holding.
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@Aktienliebe77 You've got to give it a try 😅 and don't just give up after the third post. Keep posting whenever there's something interesting 👊
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Wow, 200 euros!!
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