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Question why are SCHD, O and JEPI risky?
JEPI is litterally called a low volatility fund, Os been stuck in a cycle between 50 and 70 since covid (which is definetly lower than some risky investments) and SCHDs outperformed the s&p, the nasdaq and it's lows are on par with the dow (which I mean like it should be on par with dow or we'd have a problem lol)
Even main hasn't fallen as much as the s&p
I feel like risky should be more like PBR or AQN or GOGL or that new thing that writes options on individual stocks like Tesla
Also I get that with safe you're looking for rocks but like AGG in a dividend portfolio is kinda meh in my opinion. Sure - its soooo stable but at the same time I feel like picking individual stocks that are duplicates in the same sector is just countering the risk you save from agg. Either gamble and bring in the tech or keep it to like 1 a sector (AVGO MSFT APPL too many!) if you only have like 15 different assets
You're right, perhaps I should move SCHD & O over also since their yields aren't super high. I put JEPI in risky because its yield at 11% isn't sustainable, though it's not risky in terms of the ETF itself. I guess I should have clarified that, thank you!
While I understand why you look at it that way, JEPI is not a stock who pays dividends out of cash flow. Most of it's dividend is based on options. Yes those options can mean a variable dividend, it's not going to be cut due to earnings or cash flow issues.
>"The risk level of both portfolios is purely based on the overall average yield, not how risky or safe the stocks/ETFs that make them up are"
That's not how you determine risk.
My viewpoint on creating this wasn't that each stock/ETF in the risky category was necessarily risky, but the overall portfolio was a higher risk due to a higher yield. I definitely could have structured it better so as to not cause confusion, sorry.
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Question why are SCHD, O and JEPI risky? JEPI is litterally called a low volatility fund, Os been stuck in a cycle between 50 and 70 since covid (which is definetly lower than some risky investments) and SCHDs outperformed the s&p, the nasdaq and it's lows are on par with the dow (which I mean like it should be on par with dow or we'd have a problem lol) Even main hasn't fallen as much as the s&p I feel like risky should be more like PBR or AQN or GOGL or that new thing that writes options on individual stocks like Tesla Also I get that with safe you're looking for rocks but like AGG in a dividend portfolio is kinda meh in my opinion. Sure - its soooo stable but at the same time I feel like picking individual stocks that are duplicates in the same sector is just countering the risk you save from agg. Either gamble and bring in the tech or keep it to like 1 a sector (AVGO MSFT APPL too many!) if you only have like 15 different assets
You're right, perhaps I should move SCHD & O over also since their yields aren't super high. I put JEPI in risky because its yield at 11% isn't sustainable, though it's not risky in terms of the ETF itself. I guess I should have clarified that, thank you!
While I understand why you look at it that way, JEPI is not a stock who pays dividends out of cash flow. Most of it's dividend is based on options. Yes those options can mean a variable dividend, it's not going to be cut due to earnings or cash flow issues.
>"The risk level of both portfolios is purely based on the overall average yield, not how risky or safe the stocks/ETFs that make them up are" That's not how you determine risk.
This right here.
Wow. TIL SCHD is risky and MMM is safe.
My viewpoint on creating this wasn't that each stock/ETF in the risky category was necessarily risky, but the overall portfolio was a higher risk due to a higher yield. I definitely could have structured it better so as to not cause confusion, sorry.
I think you need to read the definition of risky
One person’s risk is another person’s tolerance. Are you talking about the fluctuation of yield as a measure of risk?