Great interview with fund manager Sylvia! I took a very small position in QQQY a few months ago and I just really understand the concept with the reinvesting part. As for NAV stability, maybe you and Defiance may promote a ballpark range of % of distribution needed to maintain NAV or grow it with inflation so a investor looking for income to live off to spend the rest. My maths says it would be around 65-70 % re investing in QQQY and spend the rest. This would means a net « spendable » yield of 15-18% witch is very good and investors should see NAV maintained or growing with time.
Thank you so much, Joe, for doing the interview and posting! I'm reassured that Sylvia is woke to NAV erosion, isn't ruling out a reverse split, and still points out that TR is trouncing QQQ (by almost 800 bps since inception!).
This was a very information video and I'm looking forward to the new Defiance ETFs for targeting income while keeping the NAV more stable. I'll be following these for 6 months after they start to see how they are working out and then decide if I want to include them in my portfolio (I already have JEPY & QQQY).
Just to clarify for the people that don’t know …when Tsly did a reverse split the divide went from 40 cents a shares to 80 cents a share …when a reverse split happens the dividend amount stays the same….
QQQY… factoring in NAV erosion I’m up 11%. The NAV erosion is the reason I stopped my DRIP. that being said those funds are earning more than if sitting in a high interest savings account so I’m satisfied for now. I just hope we can see some appreciation
income fund most likely a reverse split not a bad thing as long as it keeps paying income which it should. Since last October I am down $4000 in share price but up in $8000 in distribution
These is a great example your down $4000 on the balance and up $8000 on distribution…if you reinvested 50% of your dividends your balance would have stayed the same and you would have been up $4000 on your investment…thanks for your input
The big mystery is this, which you haven't [As far as I know.] explained amongst your excellent vids : On the current pace of QQQY's downward price trajectory it will go to zero in about 18 months time [Fall 2025]. What happens then, since it is primarily an income ETF?
QQQY is showing clear NAV decline. With QQQ going up up up, and QQQY with lower highs and lower lows, it will soon need to reverse split to say listed on the exchnge.
Total return is 9%. Qqq is 18%. Realized gain vs unrealized gain. If you want growth get qqq. If you want income, get qqqy. If you want a mix go half and half. They are different.
10:00 was a huge dodge. Asked a direct question of "are you stuck selling bullish puts, or are you able to sell out of the money" and she ran a mile around it. Raised a good point on the increased premium in the process, but did not give a yes or no answer to a clearly yes or no question.
This is a good point …there is an answer to this question… recently Tsly dropped 50% below $9 …yeildmax did a reverse split that means if you had 100 shares you now have 50 shares …this is a problem eventually with future reverse splits you will end up with 0 shares … solution reinvest 50% of your dividends return your Tsly in this example back to 100 share … in the future if there is a reverse split you will have 50 share …then rinse and repeat…this is my personal plan and not financial advice
@@claudiosousa6871 I only buy a small portion of TSLY 300 shares and no more until it is down 50% from my book cost, then I will buy 5x the number shares 1500. This will bring you back within 10% drawdown. That's the rule I follow for all funds; 50% down, buy 5x the shares. Spread that across many funds, I have no portfolio erosion thus far. Sure some may be down a little, but others are up, some pay more, some pay less, overall pretty consistent. TSLY is only a small % of my whole portfolio so 50% down is not a big deal, all the other funds in my portfolio can shore up that TSLY drawdown if it gets to 50% drawdown. TSLA turns around in a bull market TSLY will appreciate to each weekly sell-call strike and the dividend will grow when they roll up synthetics. Reverse split doesn't matter. What matters is the dollar value of your holding. TSLY dividend is based on their NAV, not share count. Reverse split doesn't change their NAV just their outstanding shares and share price. You won't have zero shares unless the fund literally goes to zero as in no money in the fund.
Good points …chances of Tsly going to zero is extremely low …but future reverse split cut your shares in half that a fact …your 1000 shares get cut in half to 500 … reinvesting 50% of your dividends will stabilize the price and increase your monthly dividend…
I have tried reinvesting to top it off to the original balance and cash the rest. It worked for 3mo, and then it didn't. Now I'm trying bi-monthly where I buy on the 1st when drops and sells at the end of the following month when the stock usually it is at highest for the month and buy again on the 1st. My goal is a short-term cash to pay off a loan without losing too much balance. What are your thoughts?
You know there is money to be had in buying and selling calls and puts. If you can't do it yourself companies like Defiance do it for you. Right now JEPI and SVOL are my favorites. Defiance seem to new and not stable yet
my goal is to have $15000 a month on pace doing that reinvest $10000 back into it and every month give me a raise. $10000 / $21 a share =476 new shares * that by say .50 cents payout that's $238 added per month end of the year that's $2856 a month added to my $15000 a month total $17856 a month . I am not new to dividend snowball investing it's fun and i have cash flow in down markets and up markets .
Reinvesting 50% of your dividends will stabilize nav erosion in case of a reverse split in the future and possibly increase your monthly income…these funds are completely new with no history…it remains to be seen overtime how they perform…
The QQQ keeps going up but this fund keeps on going down. What would happen when the QQQ goes down? Will investor ever get their money back or is it just a slow drip and then sell for capital gains harvest?
Cant believe she said these funds are performing well on the total return basis lol… 3-5% return is good? Might as well just own the bonds lol I guess i should just expect to lose all my capital in return of income that will generate cash until i sell my positions at a loss but if the cash keeps coming in why would anyone sell idk 🤷🏻♂️
What she describes in around the 18 minutes is just pure BS. When the price/ which likes to hide and call it the NAV goes down, they will reverse stock split. Meaning if they do a 1/4 split if you own 100 shares after the split you own 25. THen she says the person will still get the dividend. BUT NOW its for 25 shares NOT 100. How much per month? That depends on of course the volatility of the underlying PUT. Again this is an INCOME fund, that WILL go down in value. This is why she keeps harping reinvest the dividend. BUT if you do that just own QQQ. As you are NOT getting use of the income. She is selling a bunch of hooey.
I agree that the reverse splits and NAV erosion in this scenario is a concern for sure. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
She can say what she wants. Unfortunately, I would argue that MOST of the people buying this, look at it as a way to have better returns than owning QQQ. IT is not. Their website does describe what they are doing. Current income, is the primary focus, and secondarily and NOT as good as owning QQQ on its own it will track somewhat the QQQ index. I
Definitely not BETTER than QQQ but perhaps a way for certain investors to generate income vs. trying to sell shares. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
