Love your content! ETFs yielder pays! I have a considerably large position on SCHD is about 35% of my Roth IRA SPDR S&P 500 value Tilt ETF is about 31% of my Roth. The rest is covered call ETFs for all 4 US market indexes, international, extra concentration with sector ETFs with energy, health care, utilities, WTI futures and general commodity futures ETFs. these allocations balance out my portfolio.
Balance is key! SCHD had some great news recently too. I need to build out my portfolio with more of it! I love the ETFs we have seen coming onto the market and I hope they continue to push new ones out!
Hi Jacob I am so big on individual stocks and it has worked well for me, but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. I'm impressed with your collections How effective is your EFTs approach returns on the long run with this lot?
In my opinion You've picked a solid lineup of funds! Each of these ETFs has a strong reputation and targets different, offering a good mix for various investment goals.
All I am going to say is. Yes definitely possible. Way back I bought an Oil ETN from a bank during the DJT election crash. During the Covid crisis when oil prices went kaput the ETN went for a massive -90% share price from $34 to $3.50 but I took an immediate loan of 90k at 2.7% PA interest put in some of my own cash and bought the shit out of it while everyone panic sold. Within 18months I paid back the loan in full along with 30% dividend reinvestment until it hit my average. Sold off recently to diversify the portfolio abit with a 700% total share price and dividend gain in 5 years. I know it seems crazy but things like this are definitely possible as long as you don't panic and remain level headed. Did I have sleepless nights thinking the ETN would fold ye I did but have faith in the process.
Thats wild for the ETN! Insane returns though. I wish we still had those 2% loans! Very risky but I'm glad it worked out well for you. Thanks for sharing that! I hope this fund performs well for us all.
The thing with the weekly dividend is no online calculator can calculate the real gain if you constantly drip... Let us say you invest 10k (or 222 shares). The first week you will get paid $66, you can already buy another share so now you are making money on 223 shares... The week after another share so 224 to a point where you could buy several shares each weeks... But no online calculator count calculate that so let us say this ETF remain stable, you will get more than the 40% advertised yield.
That's a very good point. I didn't consider that with the drip calculator! I guess you could add the dividends and the price appreciation yourself but that would take a lot of time and math. Thank you for pointing that out!
@@SpencerInvests yeah but this is why to me is way too good to be true... I guess I will just put 10k and bet on it lasting at least a year and be super aggressive.
@joantonio6331 It's one idea. I'm planning on watching it over time and seeing how it performs compared to SPY itself! I think it has crazy potential but I don't want to allocate too much capital to it yet!
40% is calculated based off the latest dividend distribution annualized 10% is calculated based on the dividends paid to date divided by stock price (ETF has been around for less than a year so makes sense) Your rough calc is essentially averaging the yield to date and annualizing. For a more accurate result, I would have recommended dividing the $4.32 by the 16 periods and annualizing the $0.27 average dividend at $14.04. This yields ~33% with an average round share price of $42. I would also say that is a conservative estimate given there are some outliers in this dataset that may have resulted from the fund's managers getting their footing in the early days of the fund, as the dividend has been consistently higher for the last several weeks.
My understanding is that they DO NOT own shares... it is a synthetic position derived by purchasing a long dated call and selling the covered call on it. That is also why your yield calculation is off... the option delta is likely throwing you off...
Yes they do not own shares, just long positions usually a year or so out! I just did a deep dive. It's very interesting how this changes the price appreciation. I don't see how that would impact my yield calculation?
They DO NOT OWN the underlying”stock”. They sell calls on the index on the back of deep in the money .SPX positions. Index trades are 100% cash transactions. Something like QQQI owns the stock and sells index calls. This is a 100% synthetic options strategy.
From march 7th until now my actual percent return per year has been 31.27%, my personal prediction is around 20% per year average in the future but that is based entirely on my opinion so it's probably not accurate.
@@SpencerInvests So far I've been using most of it on other investments to even out the % of my account but I've been putting some back in each month to watch it grow.
That's what I love to do as well. These types of investments get me pumped! I hope the trend in the market continues and we can see this thing do well.
@@SpencerInvests Hello, sorry I haven't been checking on my account. I've been reinvesting it in other funds with each rolling into other funds (I have a list that are bought each week, and it's been going great)
This guy is more insane than that ETF. For it to pay that much it needs to keep attracking investors. At least one of these types of ETF's has gone bust. I have several of these but only a small percentage of my account to be safe
Personally, I think that rather than say, putting $5 a day into investments, as some videos suggest, using QDTE weekly dividends to invest in lower yielding ETF's like SCHD. SCHD on it's own has a very modest dividend of under 4%, but, if you don't actually put your own money into SCHD, rather use the dividends from QDTE, then theoretically, your dividends are unlimited percentage wise, since you didn't put a dime into it
Yes I love doing this! It's a very smart way to build a portfolio of stocks you like without using your own capital. Especially if there are stocks you're not 100% sure on, you can add some money and see how it does!
@@SpencerInvests What do you make of the claims that Warren Buffett is keeping 180 billion in cash, allegedly because a crash is coming, and he wants to scoop up great stocks for pennies on the Dollar? And, is it then wise to buy into a sliding market at this time?
I think the rich like to keep cash on hand all the time! If I had billions to trade I'd definitely keep some in 0 risk investments. All in all, we may see some pull backs, but I'm not sure a crash is coming. Election will play a big role in this, but interest rates dropping should really help the economy get back on track! Those are my thoughts at least
Still trying to wrap my head around the math for these high high yields. Like assume you keep them for 12 months and lose 45% nav, does your high yields with taxes out weigh that possible errosion?
This is hard for me as well. I'm sure it varies from fund to fund, but for the CONY fund which I own, it's positive by about 20%. I reinvested the dividends but the nav erosion really hurts the return
I noticed the share price drop same amount as dividend that i get on ex dividend date, why is that? I thought they use call premium to pay us. So why it is still dropping?
I believe it is the premium they pay with, maybe it's coincidental that the price drop was the same as the dividend. I know the underlying fund has dropped recently but is now rebounding. Hopefully we can see that in QDTE's price appreciation!
I'm grateful for this. I have not given the buyback rate enough thought. This is absurd. With some excellent capital allocation master classes on exhibit, could you kindly tell me the most popular successful investment approach for a novice?
if the circumstances are correct. But now, more powerful forces are involved. We're venturing into uncharted territory. These things are also cunning. I believe that significant manipulation lies ahead. And with both Musk and Trump vowing to destroy the short sellers, this is practically a surefire way to make people laugh.
We will be set for life if we get the proper investment advice from a financial planner. I made $100,000 from trading last month, and I'm overjoyed about it.
I'm still learning from you, friend. I truly enjoy how the advisor was used. What's the cause of it? Sincere inquiry because I'd like to trade but require the appropriate approach?
Curious what would happen IF, they keep talking about stock exchange going to 24/7 trading which would eliminate after hours/premarket. If that were to happen, how would it affect a fund like this? Good or Bad?
From my opinion it wouldn't make too significant of a difference. I don't think having more trading hours would make it go up or down, but it would be cool!
this fund will have a high attrition factor, meaning it will lose value over the course of time. giving false expectations for on a fixed price is unrealistic. most ppl will end up losing money with this
I think giving any price prediction would be unrealistic. NAV erosion is a high probably, but if they can keep up the yield while profiting from after hours trading, they can remain positive. I don't think most will lose money, but it all blends on the market! Hopefully people make money! Thanks for your comment 👍
@@SpencerInvests agreed! Throughout my investment history (coming up on 25 years or so), dividends can be a great income asset. Erosion does play a huge part though. Once you get to the point where the dividends have paid for the stock... you're playing with the house's money.
@nicolaskesington449 I've seen another comment about that! Thanks for bringing it to my attention. I did say ODTE meaning "zero days to expiration" but may have made a mistake. Thanks for letting me know!
@ASD4life I've seen tsly perform pretty sideways this year. I do like it for this next run up of the EVs! This one pays those wekyl dividends which is amazing. Is UTLY your favorite yieldmax fund?
@@SpencerInvests it pays weekly sure but your paying more to own 1 share. Yield max is all about how much can make with the capital you have. Every week sounds nice but in reality you’re paying a premium. I own NVDY 400 shares and TSLY 300 shares. MSTR CONY. AMDY ABOUT 700 share between those 3. And ULTY 300 shares Compounding every month
I do agree you're paying a premium, but the cool thing with weekly dividends is you can compound 4x a month rather than at the end of the month. If you had a ton of capital invested that would make a pretty substantial difference. The YieldMax funds are simply running in this market! I love owning both. I think they have different strengths and weaknesses for sure. I'll check out ULTY soon!
@akaspencerdunbar honestly..the higher yielding funds would produce a higher portfolio value and higher dividend yield. SoCal Stevo did a video on this
@Livingondividends I think they would produce more income, but be much more subject to volatility. Now that we've seen this pull back, I'm curious how all of these ETFs will perform!
@akaspencerdunbar it is good.. but for now you'd get over 600 with MSTY so I'm gonna use higher yields to build the portfolio, then go to these lower kinds when I have big chunks to invest.
@markhoffman1310 that's a good point I should have done that instead! Next video I'll correct that. That may be why my yield was lower than theirs! Thanks Mark
@@ChuckDavis360 nice! Thank you. I may need to start doing that. I love how robinhood notifies you about dividends. That would be sweet to see every week!
@@SpencerInvestsI use Robinhood as my extra cash account & debit card account when I am low on cash. If the market is open I can sell some stock and use the cash on my Robinhood debit card. If the market is closed, I can sell my Bitcoin, Etherium, Chainlink 24/7 and have cash. Love your videos.👍
I recently tried to get the robinhood credit card and it's hard to get! They offer 3% cash back on everything. Would be super nice getting those returns and investing them. That's a really smart way to do it with crypto too! I never thought about that. Thanks so much Chuck! Happy to have you here!
@@SpencerInvests 🙂👍👏👌 I don't have a Robinhood Credit Card. But I do have a Robinhood debit card and a Cash app debit card. I don't use credit cards much anymore. Keep the videos coming 🙂
I don't think I'm hiding anything. I can't determine the NAV erosion because it's not some number they hide in the fact sheet. It's what happens depending on how the option contracts work. Now we haven't seen bad NAV erosion yet and the fund is down due to the stock market taking a hit. If I saw significant NAV erosion I would certainly call it out, but I won't do that until the evidence is there. Thanks for your comments!
@@SpencerInvests What I meant by Hiding is not mentioning that enough and focus only on Dividends those who are new might get sucked in due to the hype !
I'm sure it's a mess lol I would guess they all count as short term gains and are taxed higher at the end of the year. I use a roth account so it's tax free!
@MB031 the only thing I could think of is if the NAV continues to decline and it loses investors money. Then a big sell off could push people elsewhere. Hopefully that doesn't happen though! Only time will tell.
@@SpencerInvests But isn't this strategy going to work even in bear market? When r nasdaq drops, the QDTE NAV probably drops as well, but it bounces back as soon as nsdq does.Or does this strategy work only in bull market?!
This strategy is very interesting. It's unique for sure, if the NAV goes down during a bear market, the dividends will shrink and the price will drop. It's going to follow the NAS 100. I think the bonus would be buying it once the NAv drops and you can gain the price appreciation with the shares from the after ours and pre market trading. It's definitely not immune to a bear market. They are very new funds still; high risk in my opinion!
I don't know if I'd agree the fund would end, but I think it would take a hit. I'd hope it would continue to trade with a higher yield, maybe something around 8-10 percent. I think the SOFI weekly dividend funds stopped trading because the yields were so low thar investors didn't think it was worth holding. Bear market would be very telling though!
Honestly, this situation makes me uneasy, especially with the uncertainty around the economy in 2024. With the possibility of not just a recession but something more severe, I'm unsure about my $130K investment strategy. I'm considering shifting focus to the best ETFs for 2024, but it's hard to know which ones are best given the volatility.
I agree. Even with great opportunities, we should proceed cautiously. Seeking market analysis or advice from certified market strategists is important.
Absolutely, having a solid plan is crucial. My portfolio has doubled since early last year. My financial advisor and I are working towards a seven-figure goal, though it might take until Q3 2024.
What I have learned from my experience and the testimonials of others... Unless your are an Expert or some sort of braniac, the market is more likely to do what you don't think it will do in the short term. One of the key reasons.. most investors are thinking just like you. The market moguls are working against us.
@@kenpachizaraki8509 I don't but odds are not good! I think there will be others and one day some fund manager will find the best balance of dividend that does not eat into the NAV to make it's overly high set dividends promised and come up with a fund that has high divided with growth and sideways to up appreciation.
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