If you're looking for a way to generate passive income from your investments while keeping things simple, you might have heard about the new Covered Call ETFs. But how do they work, and are they really a game-changer? Let’s break it down! 👇

What Are Covered Call ETFs? 🤷‍♂️

A Covered Call ETF is a fund that invests in stocks but also sells call options on those stocks to generate extra income. Think of it as renting out your stocks in exchange for a premium. 📊💵

🔹 Example: Imagine you own an ETF that tracks the S&P 500. A covered call ETF does the same but also sells call options on those stocks. If the market goes up too much, you miss some gains, but in exchange, you get a steady income stream from the options premiums.

Why Investors Love Covered Call ETFs ❤️

✅ High Monthly Income – These ETFs generate consistent cash flow thanks to the premiums collected from selling options. Great for income-focused investors! 🤑

✅ Lower Volatility – Since these funds earn money even when the market moves sideways, they can be more stable than traditional ETFs. 📉➡️📈

✅ Works in Flat or Bear Markets – Even if stocks don’t go up, you’re still collecting income. This can soften the blow during downturns. 🛡️

The Downsides to Consider ⚠️

❌ Limited Upside – If the stock market rallies, you won’t capture all the gains because the call options cap your profits. 🚀✂️

❌ Not Ideal for Strong Bull Markets – If the market is booming, you might be better off with a regular growth ETF. 📈

❌ Dividends May Vary – While covered call ETFs offer high yields, income is not guaranteed and can fluctuate. 📊

Who Should Consider Covered Call ETFs? 🤔

✔️ Investors looking for steady income

✔️ Those who want to reduce market volatility 📉

✔️ People near retirement who prefer cash flow over growth 🏖️

Popular Covered Call ETFs 🏆

Here are some well-known ETFs in this space:

📌 JEPI (JPMorgan Equity Premium Income ETF) – A mix of blue-chip stocks & covered calls $JEPI

📌 QYLD (Global X Nasdaq 100 Covered Call ETF) – Focused on the Nasdaq 100 $QYLE (-1,07%)

📌 XYLD (Global X S&P 500 Covered Call ETF) – Applies the strategy to the S&P 500 $XYLD

Final Thoughts 💭

Covered Call ETFs aren’t for everyone, but they can be a powerful tool for those seeking income and stability. If you're okay with trading some upside for regular cash flow, they might be worth a look!

What do you think? Would you use a Covered Call ETF in your portfolio? 💬👇 add me as a friend to check out my portfolio 👥

#degiro
#etf
#coveredcall
#options
#smartinvesting
#sp500

HNY #getquin community!

2024 - a gift for returns overall.

2025 - focus on key ETF consolidations that overlapped across brokerage, IRA’s and 401K. Cashflow generators $QYLD , $VNQ (-0,52%) , $JEPI combined with institutional ETFs $VTI (-1,39%) , $QQQ and continuing to stockpile crypto will be my starting point.

cheers!

Alright folks, this is the end-of-year update on how my portfolio is doing at the dawn of 2024.

I will be looking at the goals set out at the beginning of the year (which was updated a couple of times throughout the year). I will also look at the dividend payouts for the last month of 2024 as well as going over the plans for next year.

As a reminder, these updated goal for 2024 are:

Total amount invested: 160-170k$ (initially 130k$)

Dividends/month: 500-600$ (initially 400k$)

1000 shares of $SCHD (before the split, 3000 shares after the split)

So, what is the situation on the last day of the year? Well, in short it seems like we've done alright. 😉

Total amount invested as of 2024-12-31:

>170k$ ✔️

Dividends/month:

>800$ (avg. as per last 7 month) ✔️

>600$ (avg. as per last 12 month) ✔️

3011 shares
of $SCHD as of 2024-12-31 ✔️

This earns us a check mark for each of the goals set out early in the year, which is just insane, especially due to moving the goal post multiple times throughout the year.

So, what happened dividend-wise in Dec. 2024?

Well, the short answer is we did well and reached a new high with 1281$ payout in a single month. This is despite me making a mistake in accidentally selling out of my $JEPI position, as my Trailing-Stop was triggered in mid Dec.

I did repurchase about one third of that position but decided to put more in $SCHD (in order to meet the above-mentioned target), as well as $O (+1,37%) , because I do think they will recover. This also allowed me to reach one 'unofficial goal' of more than 430 shares of Realty Income ($O (+1,37%) ), as this equates to 100$/month in net dividend payout. I do own 557 shares of $O (+1,37%) as of today, which is more than 130$/month net (or two new shares every month).

Let's now look at whats in store for 2025 and beyond.

I did just sell one of my properties and once the money comes in at the beginning of March 2025, I am planning to do one of two things.

Invest in another property (as I will be relocating to England)

Invest the money in the stock market (and maybe some more risky assets, like $BTC (-0,69%) )

A mixture of 1 and 2

There will also be a steadier stream of income (new job) that will be used to make further investments.

For those of you following me, probably know that I aim to have 50k$/ year generated from mainly two income streams. Now and in retirement those will mainly be dividend payouts and rental income. With the remaining two properties I generate about 2k$/month so that another 2k$ must be done via dividends. This is roughly 2.5 times what I generate now, meaning that my portfolio needs to increase by that factor (assuming the positions and their dividends remain the same). That points towards a portfolio of about 430k$.

I am very tempted to choose option 2 (from above), because then I'd be more than where I need to be portfolio-size-wise.

Any advice, please let me know. Keep in mind, for me safety wins. So please don't suggest putting everything in the latest meme-coin. 😉

This makes it slightly more difficult to put exact numbers on the 2025/2026/2027 plans, but roughly the following numbers should be achievable:

2025/2026/2027

Total Investment: 230/290/370k$

Dividend/month: 1100/1400/1700$

Anyways, that's all for now. Happy investing 📈, happy compounding💸!

Happy New Year everyone and may 2025 be good for you, your family and your portfolio.

#fire

#retirement

#financialfreedom

#dividends

#compoundeffect
#nextstop250k$

#1000dividendspermonth

Another milestone reached, and this one is HUUUGE! 💚💚💚

With the very unexpected dividend increase from my favorite dividend ETF $SCHD to 0.8241$/ share for the second quarter 2024, I've reached a 1000$/month in dividend payments for the first time ever. 💰 I couldn't be happier, especially since this portfolio is only 7 months old.

For those you read my recent posts and are aware of my goals for this year and beyond, but here is a quick reminder.

My initial goal for 2024 was to have about 400$/month, when I saw how things progressed, I updated that to 500$/month, but looking ahead we are expected to end up with more than 600$/month, which would simply be insane. 🤪

(For clarification I don't calculate that as TTM, but rather as the average of trailing 6 months, trailing 3 month, future 3 months, future 6 months. This is simply because I am still building my positions aggressively so that the trialing months significantly underrepresent the status quo. I am aware of the uncertainty of future dividend payouts, which is why they are approximated conservatively. )

At the moment the total value of the portfolio stands at just above 130k$ with the plan for >160k$ end of 2024

>270k$ end of 2025

>370k$ end of 2026

My overall goal is to consistently have 4k$/month at my disposal for retirement (ideally without dipping into the principal of the investment). About 2k$/month will be provided by rental income and thinking that I might be one third to the 2k$/month needed from dividend payouts by the end of the year gets me very giddy.

This is the list of all dividends for this month:

$AGNC (+0,2%) 37.32$

$EFC (+0%) 17.81$

$EPR (+0,92%) 19.10$

$MAIN (-0,54%) 21.36$

$MAIN (-0,54%) 26.70$ (special dividend)

$JEPI 112.04$

$JEPQ 94.89$

$SPYI 51.02$

$QQQI 25.56$

$O (+1,37%) 73.76$

$SPLG 44.34$

$SCHD 544.73$

________________

Total: 1068.63$

I am sure there will be people saying that judging from that list, the portfolio is too conservative... and I would somewhat agree with you, but my objective is to build mainly a dividend portfolio that will consistently help with my expenses in retirement.

That being said, I am planning on expanding my $SPLG position as well as adding $QQQM to the portfolio at some point in order to participate in some of the growth potential that technology and market leaders offer so don't judge me too harshly.😜

Happy investing 📈, happy compounding💸!

#fire
#retirement
#financialfreedom
#dividends
#compoundeffect #nextstop250k$

#1000dividendspermonth

DCA-ing into this little beauty, as I decided hold off on adding to $JEPI ...

Good decision? 🙄🤷

This will bring my monthly dividend payments for $SPYI to about 50$. 🙂

Happy investing, happy compounding!

Here is a questions for those who have a 3 fund portfolio (ETF), with the parts defined as Dividend, Cornerstone, Growth

I am using $SCHD , $SPLG and (planning on using) $QQQM , respectively for the three parts! I am trying to have the following split 50/25/25.

How do you deal with also buying cash-flow stocks/ETF (like $JEPI , $JEPQ , $SPYI (-0,98%) , $QQQI , $O (+1,37%) , $MAIN (-0,54%) etc.)?

If you are putting them in any of the existing parts, where do you put them? Dividend? Growth? Are you adjusting the splits or keep them the way they are?

If you are not adding them to the existing parts, will you adjust the split and add 10 or 20% (or whatever you chose) for these cash-flow securities?

That all might get more complicated since I am planning on only having these cash-flow securities for the next 1-2 years and then wean off and only keep a true 3 fund portfolio.

What do you think? I cannot be the only one thinking about this, right?!

Dear fellow investors,

This month I will reach another milestone in my investment journey, breaking 800$ in monthly dividend payments for the very first time. I couldn't be more excited....

Wooohooo 💲💲💲

This is due to receiving payouts for the following assets:

641 x $SCHD

281 x $O (+1,37%)

311 x $JEPI

211 x $JEPQ

179 x $SPLG

89 x $MAIN (-0,54%) (two payouts this month!)

137 x $EFC (+0%)

67 x $EPR (+0,92%)

67 x $SPYI

13 x $QQQI

Looking ahead, it seems like September might be my first 1k$ dividend month 🤪🤪🤪.

Fingers crossed 🤞🤞🤞

For those among you who follow my story, know that I just started (again) in Dec 2023 and already had to upgrade my goals to 150k$ invested and average dividends of >500$/month. Both goals are within reach and very likely to be achieved before 2024 comes to an end.

I am very happy with sticking to the plan (DCA-ing into a selected few ETFs and stocks) in hopes for #fire (Financial Independence Retire Early).🔥🔥🔥

I am planning on making some adjustments to the portfolio over the next couple of weeks and months and hopefully later this summer I will share my whole portfolio with more information about my investment strategy as well as the (as of recent) popular Sankey diagram of monthly money flow here on getquin for scrutiny and further constructive feedback. So stay tunes for that.

The list of updated key take-aways are as follows:

1. Select your ETFs and stick with them

- Core:

$SPLG (alternatives are $SPY (-1,26%) and $VOO (-1,28%) ), chosen because of slightly lower expense ratio and lower prices (hope for more inflow), trading volume is not a concern as this was bought for the looooong "buy and hold"

- Dividend 💸:

$SCHD (alternatives are $VIG (-0,7%) and $VYM (-0,5%) ), chosen because seemed undervalued at the time of purchase, great dividend and decent dividend growth

- Growth 📈:

Still not chosen, open to suggestions

I maintain that it will probably be $QQQM (alternatives are $VGT (-2,25%) , $SCHG , $SPGP , $DGRW , $VUG (-1,75%) )

- REITs 🏠:

Not yet chosen, as here I am not even sure any longer if I actually want to invest in REIT ETFs or not just keep my exposure to the few REITS I already own ($O (+1,37%) , $VICI (+2,65%) , $MAIN (-0,54%) , $EPR (+0,92%) , $EPRT (+0,53%) ...)

If I decide to venture into this field, it will probably be $SCHH (alternatives are $XLRE and $VNQ (-0,52%) )

- Misc 🗠:

$O (+1,37%) The Monthly Dividend Stock

$JEPI / $JEPQ for monthly dividends in the covered call space

$SPYI / $QQQI to potentially replace $JEPI and $JEPQ

$VICI (+2,65%) / $MAIN (-0,54%) for additional monthly dividends in the REIT / finance space

I might also entertain the idea of investing in some individual stocks like $AMZN (-2,39%) . $NVDA (-3,63%) , $MSFT (-1,57%) , but that will depend on the constitution of the growth ETF I will buy.

2. Learn 🎓

Educate yourself and don't simply "trust" Youtubers. Read investment books (e.g. 'The Intelligent Investor' by Ben Graham, 'The Little Book Of Common Sense Investing' by John C. Bogle, 'Patient Capital' by Victoria Ivashina and Josh Lerner) and listen to many different voices in the investment arena. Be curious, but cautious... If it says: "100% win rate guaranteed!", it's probably best to stay away from it.

3. Don't try to time the market ⌚️

As one youtuber says: "Time in the market beats timing the market." I am sure we are all guilty of trying to buy at the best price on a particular day/week... If you are in for the long haul, it doesn't matter. DCA (Dollar Cost Averaging) for the win. 🏆

4. ETF over stock picking

Of course you can have huge winners if you pick individual stocks and if you have some insights that allow you to buy before the hype, great, I am very happy for you. Who wouldn't want to have invested in $KO (+2,3%) , $TSLA (-4,32%) , $AMZN (-2,39%) , $GOOG (-2,32%) or $NVDA (-3,63%) in their early days?! But that doesn't happen very often. If you invest in solid ETFs covering a wide array of markets, you will do just fine (especially with a long investment horizon). I have certainly tried to "pick' some stocks that looked promising for their upward potential, but only two have given me solid returns ($NEP (-1,84%) and $CFLT (-5,23%) ), whereas so far there are many losers (e.g. $IONQ , $OTLK , $SACH , $EPR (+0,92%) ).

That being said, I am not against holding individual stocks and I am sure that the likes of $NVDA (-3,63%) , $MSFT (-1,57%) , and $AMZN (-2,39%) will continue to deliver amazing returns, but these are also top of the list in weighted S&P500 or Nasdaq ETFs... ($SPLG , $VOO (-1,28%) or $QQQM , $SPGP etc.). Just saying!😉

5. Tailored investing

We are all different and our your time horizon, risk appetite, age, income and other factors most likely vary massively. My life, 47yo, being single without kids, being in a somewhat safe and well-paid job, having paid off properties that generate a decent income stream, wanting to retire in 3-5 years and not needing much is very different to someone who just starts their investment career and/or have a family or are already retired or or or.

Make a plan of what you want the investment to do for you and work towards it. In my case, I want to achieve #fire (Financial Independence Retire Early) as soon as possible, being able to live off dividends entirely. I recon I will need about 50k/ year (lots of safety built in). So building a strong dividend portfolio is my main goal. Sprinkle in some growth opportunities and we have a party. 🥳

Let me know what your goals are and how you plan to achieve those. Also if you have some input on which other ETFs and/or stocks to pick, I am all ears 👂👂.

This is probably the last time I'm adding to $JEPQ (20 shares this time). Just in time for the ex dividend date... 🙂

This brings me up to 211 shares for $JEPQ and 311 shares of $JEPI , which means just below 200$/month in dividends. At the moment I am planning on keeping those, but adding to $SPYI and $QQQI instead for the yummy monthly inflow of cash dividends.

Any opinions about this move?

I reached 100k$ invested on 2024-03-15 which was one of the milestones for 2024 (the new one is now 150k$).

Also March was very good to me with dividend payouts exceeding 600$ for the month, which made me revise my initial goal of 400$/month (avg.) by the end of 2024 up to >500$/month. 💲💲💲

Since this account is very new (Dec. 2023), I am very happy with sticking to the plan (so far) in hopes for #fire (Financial Independence Retire Early).🔥🔥🔥

Key take-aways so far are as follows:

1. Select your ETFs and stick with them

- Core:

$SPLG (alternatives are $SPY (-1,26%) and $VOO (-1,28%) ), chosen because of slightly lower expense ratio and lower prices (hope for more inflow), trading volume is not a concern as this was bought for looooong

- Dividend 💸:

$SCHD (alternatives are $VIG (-0,7%) and $VYM (-0,5%) ), chosen because seemed undervalued at the time of purchase, great dividend

- Growth 📈:

Not yet chosen, open to suggestions

Will probably be $QQQM (alternatives are $VGT (-2,25%) , $SCHG , $SPGP , $DGRW , $VUG (-1,75%) )

- REITs 🏠:

Not yet chosen, open to suggestions

Will probably be $SCHH (alternatives are $XLRE and $VNQ (-0,52%) )

- Misc 🗠:

$O (+1,37%) The Monthly Dividend Stock

$JEPI / $JEPQ for monthly dividends in the covered call space

$VICI (+2,65%) / $MAIN (-0,54%) for additional monthly dividends in the REIT space

2. Learn 🎓

Educate yourself and don't simply "trust" Youtubers. Read investment books, listen to many different voices in the investment arena. Be curious, but cautious... If it says: "100% win rate guaranteed!", it's probably best to stay away from it.

3. Don't try to time the market

As one youtuber says: "Time in the market beats timing the market." I am sure we are all guilty of trying to buy at the best price on a particular day/week... If you are in for the long haul, it doesn't matter.

4. ETF over stock picking

Of course you can have huge winners if you pick individual stocks and if you have some insights that allow you to buy before the hype, great, I am very happy for you. But that doesn't happen very often. If you invest in solid ETFs covering a wide array of markets, you will do just fine.

5. Tailored investing

We are all different and our your time horizon, risk appetite, age, income and other factors most likely vary massively. My life, 47yo, being single without kids, being in a somewhat safe and well-paid job, having paid off properties that generate a decent income stream, wanting to retire in 3-5 years and not needing much is very different to someone who just starts their investment career and/or have a family or are already retired or or or.

Make a plan of what you want the investment to do for you and work towards it. In my case, I want to achieve #fire (Financial Independence Retire Early) as soon as possible, being able to live off dividends entirely. I recon I will need about 50k/ year (lots of safety built in). So building a strong dividend portfolio is my main goal. Sprinkle in some growth opportunities and we have a party. 🥳

Let me know what your goals are and how you plan to achieve those. Also if you have some input on which other ETFs and/or stocks to pick, I am all ears.