DAILY (0DTE) High-Yield Option Income! JEPY, QQQY, and more with Defiance CEO Sylvia Jablonski.

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#etfinvesting #incomeportfolio #optionincome
This is an interview with Sylvia Jablonski who is the CEO/CIO of Defiance ETFs. Defiance ETFs was the first to market with 0DTE option ETFs which are offering outsized monthly distributions.
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0:00 Intro
0:35 JEPY, QQQY, and IWMY
4:45 NAV Erosion
7:35 SPYT
9:34 QTUM
14:35 FIVG
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Опубликовано:

14 июл 2024

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Комментарии : 112

@jayboog5000 4 дня назад

My strategy with these mega dividend funds is only to buy enough to make $45-50 per month then I stop they seem to have NAV erosion to -20% and they are holding but the divs are going down too so this strategy removes emotions and promotes diversity in my portfolio, I also plan to buy the indexes directly with the dividends until my target date for using these dividends which is 3.5 years until then they are helping me buy more funds faster

@DC-gy1zw 23 дня назад

QDTE and XDTE I like those better.

@TotallyRegWhatelse 2 месяца назад

Awesome channel! 🎉 Like your intro of smaller investment companies and their (alternative) ETF's 😊

@wealthadventures 2 месяца назад

Thanks!

@george1353 Месяц назад

Useful video. Thanks a lot!

@wealthadventures Месяц назад

Welcome! Thanks for watching.

@louis20122 2 месяца назад

For some reasons, I like REITs ETFs like MORT and preferred ETFs like PFXF. If the market crashes, I can buy the shares for cheap since they push yields higher.

@striperkid 2 месяца назад

Informative video

@wealthadventures 2 месяца назад

Thanks.

@patrickchastain2489 2 месяца назад

You could theoretically build a portfolio around IWMY, QQQY, and JEPY, as long as you're willing to reinvest around 70% of your dividends to maintain the NAV.

@wealthadventures 2 месяца назад

Perhaps... but do you want to do that?

@patrickchastain2489 2 месяца назад

@wealthadventures Not really, but as long as you stick to reinvesting 70% to preserve the NAV, then you could keep the remaining 30% to do with what you wish. In terms of the dividend, you would keep per share (0.30 per share with the average of shares being $1, for example) sounds like a winner to me. The biggest mistake with these funds you can make is not reinvesting any of the dividends.

@KentuckyHillbilly Месяц назад

Taxes with Defiance etfs , will pretty much destroy you.. you'll end up losing money.

@patrickchastain2489 Месяц назад

@@KentuckyHillbilly Only if you are not taking a portion of your dividends and setting it aside for taxes.

@dandans9060 2 месяца назад

Thanks for the interview and your work on the channel. I have iwmy and the others as part of a “experiment” - from what I’m seeing and what I’m researching SPYI and FEPi are much better options. Nav erosion is wicked here and I’m going to pay taxes on basically getting my own money back if I’m not mistaken. I’m willing to wait until next 1099 to see what the ROC versus dividend is

@wealthadventures 2 месяца назад

Thanks. I still prefer some of the other more "traditional" covered call ETFs to these. JEPI/JEPQ/DIVO for example. SPYI and FEPI look good as well.

@cliffdariff74 2 месяца назад

Time we had an update from Defiance. Im reinvesting the high divs for the year here, see what happens.

@wealthadventures 2 месяца назад

Good luck Cliff!

@pd4938 2 месяца назад

Buy a put option while you own the fund to collect on both, drop in price and the dividend.

@freeagent.87 2 месяца назад

no volume on those options unfortunately

@wealthadventures 2 месяца назад

I like the thought but the options market is pretty darn efficient. Dividends/distributions are accounted for in the option price and, as freeagent mentioned, little volume.

@Sylvan_dB 2 месяца назад

I'm not comfortable with these funds, yet. I have small allocations to JEPI, JEPQ, SPYI and SVOL . These provide a little boost to my overall dividend income. Diversification... Or to put it differently, moderation. In everything.

@wealthadventures 2 месяца назад

Interesting funds but I'm just watching as well.

@dominiccastro6483 2 месяца назад

yieldmax etfs are waaaay better, the nav actually tracks the underlying price no NAV erosion. I dont know what yieldmax does differently but they're just better.

@bernardclements Месяц назад

Agreed 💯💯💯

@TradersTradingEdge 2 месяца назад

How can it make sense to invest in a product that erodes over time? One would need to make more money from the payout than he invest befor it's at zero ;-) ..are they go to Zero? A video where you explain the sense of such investments, and do the math would be helpful for many I think. Love your Channel, many thanks.

@Whiskydanger 2 месяца назад

The ability to do even basic research will keep your account from going to zero. Total return beats “nav erosion”. Good luck.

@JohnsFishTales 2 месяца назад

They artificially inflate the NAV by doing reverse stock splits. Same as they did with TSLY when it crashed. Perhaps Dave can weigh in on his thoughts to that approach.

@Sylvan_dB 2 месяца назад

Think of it less like an investment for future growth, than as a way to turn your assets into income to meet your expenses. Maybe these are a portion of your assets and you spend it down to $0 over 5-10 years similar to a term certain fixed annuity but with higher payout and higher risk. Alternatively maybe your allocation generates more income than you need, most of the time, so you reinvest the excess both to boost and to extend the life of the income it provides.

@SummitMan165 2 месяца назад

It’s pretty simple: if you want your account to maintain flat, or slightly up, with QQQY and is 2 sibling, just extract the equivalent of the net total return that the fund makes, and re-invest the rest. Let’s say distribution pace is 60% annual, but net total return is 20%, if you re invest 2/3 of your distributions into the fund (60%-20%=40%/60% =66%) you account VALUE will stay flat or slightly raise, and you’ll enjoy a 20% distribution rate for the long term.

@TradersTradingEdge 2 месяца назад

@@SummitMan165 Woah :-) Now that makes sense. Thanks very much to take the time to answer and help. Will educate myself in this investing style more. Best of wishes Frederic.

@passivedividendsoptions 2 месяца назад

Is nav erosion an issue, if you drip?

@wealthadventures 2 месяца назад

You will have more shares but the actual NAV is still dropping.

@fialee8ca132 2 месяца назад

I've owned IWMY for a few months... the payout is there, but NAV drops like a brick. It wasn't worth it for me.

@mom2collegekids26 2 месяца назад

Agree, so not buying more. But did you sell? Im just “not dripping” and putting the divs towards better positions

@HateDietPepsi 2 месяца назад

Basically the only way to properly trade these ETFs is to reinvest all distributions. If you do that, these ETF's claiming 40-60% annual returns will likely net you around 20%. Also, best to put these in a retirement account where the distributions are not taxes annually. For example, doing this with QQQY NAV dropped 4.5/share, distribution 6/share = 12.5% in 7 months. However, distributions are dropping, so in the end the annual gain will likely be 15% if you're lucky. Reinvesting dividends would most likely make 20%

@wealthadventures 2 месяца назад

Yes. These don't fit well for me so I'm not a buyer. I do like the makeup of their QTUM fund and I'll watch SPYT.

@fialee8ca132 2 месяца назад

@@HateDietPepsi It's not worth the NAV erosion, with zero appreciation oppty... FEPI prob has better overall net returns, with higher returns, less NAV risk, and a little upside oppy.

@fialee8ca132 2 месяца назад

@@mom2collegekids26 Sold my small position. Bought FEPI instead.

@jkmott59 2 месяца назад

Its occurred to me that all these dividend funds are a different class of investment, more like a loan. If you own this in a regular fund you will end up paying taxes on your own money since they can return capital as part of the dividend. If this is an IRA or 401k you wont pay taxes on divident The funds will asymptotically go to zero because of nav erosion, but if the return you get while its going down it can still be worthwhile.

@Sylvan_dB 2 месяца назад

If they classify the distribution as return of capital, even partially, then it isn't taxed until you sell. (RoC reduces your basis according to the U.S. tax code.)

@wealthadventures 2 месяца назад

They definitely belong in the alternative category. Hard for me to find a use in my portfolio for those 3.

@mikeconnell698 2 месяца назад

Sounds like funds they'd sell on Wolf Of Wallstreet

@loganfrick 2 месяца назад

Example at 12/28/23 QQQY - 26,790 shares @ $475,000 value $3.06 distributions/share = $81,977.40 distributed 26,790 shares now (4/20/24) worth $403,189 $485,166 so 2.14% increase in 4 months. NO!

@1rocknroy 2 месяца назад

These super high yield funds are like catnip. I have about $5k in about 20 of them. NAV erosion? Crazy. I invest good money into these for high yields but the capital erodes. This is crazy town but on fun street. I can't follow this ladies speech. If I understood covered calls or other options I probably would not use these NAV eroding vehicles, but since I don't I'll use these.

@philelmo 2 месяца назад

I really want to know how they plan to keep NAV stable while maintaining 20% payout on SPYT. That’s even more lucrative than SPYI

@wealthadventures 2 месяца назад

She made it sound like they would target 20% but adjust if needed to protect the NAV. Time will tell with it being so new.

@johnsmith-wt5dz 2 месяца назад

I still don't understand the end game with these funds. QQQY came out 6 months ago and is down 25%. If it performs the same way the next 6 month we are down 50% in a year. Sure we are getting 50% "distributions" but it seems like we are just taking money out of our left pocket and putting it into our right pocket. Am I missing something here?

@wealthadventures 2 месяца назад

I would say these are a bet on the option strategy. I'm not a buyer for these 3 and don't see how they would fit with my portfolio. They do have a positive total return at the moment but I could see that dwindle over time. I'll keep watching.

@louis20122 2 месяца назад

Invest in companies that actually make products that people need and collect dividends from those companies.

@wealthadventures 2 месяца назад

Stop it with this insane logic!

@JetDriver77 2 месяца назад

Usually, if there is a reverse split, the dividend doesn't change, correct?

@OneNOnlyHD 2 месяца назад

This is correct!

@JetDriver77 2 месяца назад

@OneNOnlyHD well then we don't have much to worry about then, do we?

@striperkid 2 месяца назад

@@JetDriver77you'll lose 1/2 the amount of shares you once held. I had 100 shares of TSLY before their reverse split. I now hold 50 shares so yes, you lose income when it does a reverse split.

@OneNOnlyHD 2 месяца назад

@@striperkid You actually dont lose income. If each share was paying .40cents before the split and then they do a 1 for 2 reverse split. Meaning for every 2 shares you had they're now worth 1. They pay you .80cents for your one share to make up for the 2 that was paying .40cents. So you dont lose income at all actually. The income lost in tsly is because telsa stock has been dropping which means less premiums. Which mean less dividend payouts.

@dandans9060 2 месяца назад

I experienced with this with TSLY , all stays the same basically - your new share count will match the distribution - I got rid of my tsly due to Tesla is doing so horrible not because of the split

@hennagaijin7856 2 месяца назад

Is there a point where Difiance JEPY and QQQY (Not overlying a stock, but an index) will stabilize? Jepy, for example, is only seven months old, and it has already fallen by 20%. This is a great experiment, but it's not looking good.

@Sylvan_dB 2 месяца назад

As she said, the point of some of their funds was NOT to stabilize and they won't. For investors who want stable or growing NAV they offer other funds but they will have significantly lower distribution yield. It's simply the way the strategy works.

@hennagaijin7856 2 месяца назад

@@Sylvan_dB Huge thanks for your answer. I guess they will let the NAV deplete to a certain point, at which a reverse split will be done. This should provide extra income for a few years. It takes about 1.75 years to recoup an investment in these funds which is actually good.

@Sylvan_dB 2 месяца назад

@@hennagaijin7856 Remember that as the NAV depletes the share price reduces and the income also goes down commensurately.

@wealthadventures 2 месяца назад

No. Not unless they change the strategy / distribution. It will continue to drop but have that huge distribution. Watch the total return to see how it is working.

@louis20122 2 месяца назад

Just invest in S&P 500 and NASDAQ 100 indexes and let them grow. Ignore these gimmick dividends ETFs. They take your money no matter how the ETFs do. The money they take is guarantee.

@wealthadventures 2 месяца назад

Hard to beat good quality index ETFs. Just need patience.

@don_senilo3313 21 день назад

Look at year to date chart, if since inception, we have a step down then forget about either of them. Thats all there is think about it, even if you drip. Nah not for me.

@jibberjabber-fm6pb 2 месяца назад

if your supposed to reinvest your dividends then they are not income etfs. they are the same as SPY etf but lower return. these defiance etfs are hanging in cuz we had a huge up market last 6 months. wait til we get a major downtrend and your capitol evaporates before your eyes. if i want income then i want a fund that atleast save my initial investment and give me some income. the only etf that has shown to do that is JEPI in my opinion.

@wealthadventures Месяц назад

I get it!

@adaptableeffort 20 дней назад

I don't think a lot of these people understand that negative NAV is not a bad thing. I've held these guys since inception and I am actually out performing QQQ because I DCA daily. The CEO has said multiple times this is an Enhanced income ETF so its gonna be different than other income ETFs. They've also said it's designed to DCA too. Before bashing this ETF, really make sure you know the math behind it...

@user-dw2iu8rz9s 2 месяца назад

You mean I can work hard and pay taxes, then invest in something and pay taxes again on my nav decay, and be left with shrinking income and something worth less? If I drip I can pay even more taxes? Do you have some land to sell me too along with JEPY, QQQY? I don't think anyone is holding this in their ROTH IRA for tax purposes.....Your face at the 5:25 mark is the one I make. when I accidentally open the door to someone selling me something LOL. Market had a bad week so for folks interested see if that bear market talking point was accurate. Anyway do appreciate you making the video Dave for information purposes. If SPYT holds nav then that may be worth it.

@wealthadventures 2 месяца назад

Those 3 certainly fall in the alternative bucket and I'm struggling to find a good use case. SPYT could be interesting and QTUM looks pretty good.

@user-dw2iu8rz9s 2 месяца назад

@@wealthadventures Yep QTUM looks ok. I use to hold something called METV which I dumped because it has underperformed. If you look at FEPI - which I know is an income ETF that sells options, they actually have the best holdings of an ETF I have seen for tech and is equally weighted which I like. They just took a big hit after this weeks trading but that is the only high yielder I've been buying for income that I like. I'm not sold on any of the 0DTE. FEPI and QQQI/SPYI are my only high income ones at this point but only buying QQI and SPYI on dips. There is just so much crap out there in the high yield space in my opinion.... Thanks for the video! I think you have the best well rounded channel for retail investors.

@hansschotterradler3772 2 месяца назад

You said at 0:47, "they are basically taking your money..." 😂

@wealthadventures 2 месяца назад

Well they all do that! Lol.

@peaceful4you408 Месяц назад

I couldn’t help but notice how much that red blister on her upper lip looks insane!!

@BtcJJ Месяц назад

Really wish I would’ve found this a lot sooner, got blinded by the div percentages. This thing will never get close to its nav selling in the money. Very expensive mistake on my part😢

@mom2collegekids26 2 месяца назад

Very unhappy with Defiance and YieldMax. Yes, divs are high, but erosion is greater! How can this be a good idea??

@wealthadventures 2 месяца назад

It is hard for me to find a use case with these 3. I will watch TOTAL return over the next year and see how it holds up in different markets.

@Whiskydanger 2 месяца назад

They pay a loan back fast and give you the freedom to use the distribution however you like. Only reason that im in these.

@halbouma6720 Месяц назад

You only want to hold onto these funds when the underlying stock is rising or possibly neutral. They sell puts to pay for the call spread - so if the stock drops hard like TSLA has been doing - TLSY will have major NAV erosion from the uncapped put losses. Whereas NVDY and MSFO have had NAV gains because the underlying stock keeps rising. Like if TSLA has finally hit a bottom, now would be the time to get into TSLY - although you'd lose out on some of the capital gains in TSLA when it goes up.

@tbonesteak75 2 месяца назад

Reinvest the payout and at a 56% payout rate the investment pays for itself in less than a year. Rule of 72. in this instance is 56% divided by 72 is .7777

@tbonesteak75 2 месяца назад

Oops made a mistake. Only slept 5 hours last night. At a 56% payout rate the investment pays for itself in little over a year. Rule of 72 again in this instance 72 divided by56 is 1.22. Sorry!

@wealthadventures 2 месяца назад

I would just look at total return.

@DP52001 2 месяца назад

First comment! I’m so proud of me! 😊 Joking of course…love your videos…

@wealthadventures 2 месяца назад

Well done! You are an early riser. Thanks again for following along.

@bikeonthetrack 2 месяца назад

The other option is to buy microsoft that pays 30 cents every quarter in divdwnds 😂😂😂😂. Ps microsoft is like 400 per share

@wealthadventures 2 месяца назад

You can buy a partial share of MSFT which is up 931% over the last 10 years.

@louis20122 2 месяца назад

These so called money management companies have found ways to make money from investors/suckers.

@604nation 2 месяца назад

Too much NAV erosion

@HateDietPepsi 2 месяца назад

There are only a few ETFS that pay high income without NAV erosion. People harping on huge incomes often ignore the fact that a lot of the income is not a dividend, but a distribution. Distributions typically take the money you have in the ETF and incrementally give it back to you. So a lot of these ETFs act a lot like an annuity.

@fialee8ca132 2 месяца назад

Honestly, if I saw this interview before buying IWMY, I would never buy. For a CEO, she speaks very informally (she prob said "like" "you know" 40 times)... and why she looks like living in a studio apartment? She does not project confidence or knowledge of the industry or technology. Wow... why does she pronounce Nvidia... Nah-vidia.... it's En-vidia? Has she watched any tech keynote or real tech industry analyst? She has to be a front for someone.

@wealthadventures 2 месяца назад

She is bright. She knows her subject matter. It was a casual interview.

@fialee8ca132 2 месяца назад

@@wealthadventures She is bright enough to get people to buy her etf... but I'm not sold it'll be around in two years (or with out a reverse split or two). There is no long term sustainable future for these funds... she says its for certain investors, maybe lemmings and dodos.