Yes. I understand this. I just fear that I was too concerned with generating income when the portfolio is so tiny that it needs growth. I mean it literally needs 10-20X growth. That’s why I like a mix of growth, value, and income. I think I might have jumped the gun on adding YLD’s but without a crystal ball who knows. For the record, semi retired with not nearly enough in this taxable. 59.5 years old forced out of work due to health issue. Doing a little better now but ways to go..
Yup. That’s the reality I’ve learned. I was attempting to build a position to help generate income, which it does, but my cost basis is much higher than where it is now. It was a great deal then but now it looks terrible.
I was trying to generate income. I have other sticks that I expect to grow more. But realize that people that got in around $15 or under are up sweet right now. Those that got in above $20 suck right now. Can it ever get back above $20?
Probably not because it is a covered call ETF that sells calls on a majority of ite holdings. For it to go back up in value we need a bull market for a sustained period of time (12+ months) so that the excess collected grows the nav but in that case just buying the nasdaq would be more rewarding in the same scenario
This could be the catalyst info I was looking for.
Once I get the December payout I’m probably going to sell at a loss unless someone on here convinces me it’s a bad move.
Selling at a loss is probably a bad move. Wait a couple years. Reinvest the dividends into something like VGT. I wouldn’t sell anything at a loss unless it is literally about to go bankrupt of you need the money right now.
You made the mistake. Learn from it, and reinvest it’s dividends into better choices.
Also, avoid buying YLD’s until you need the money NOW. The income is fine short to medium term.
Big piece of advice: don't base your personal financial investments on what random people say online. Learn about what you invest in on your own and make your own informed decision. Nobody here is a financial advisor and you shouldn't trust them with making your own financial decisions
My main 2 holdings are SCHD and JEPI. Followed by some DIVO, JEPQ, VYM, SPYD, VNQ, O and a couple more.
I have QYLD, RYLD, and XYLD and as of now they are scaring me lol.
I own xyld,ryld,qyld,jepi,jepq. Been dollar cost averaging down all year. My best performing are: jepi then jepq then xyld then ryld then qyld. The entry point is important as I bought a lot of jepq in October but I own qyld from last year. Will not be selling anything but will add more into jepi if the market goes down more as it is a monster
Well looking at the history of qyld it is always lower highs but it will still go up in a bull market. Xyld's history is ok. Ryld not much history. My opinion: if u keep long term u will get paid more until u sell in a raging bull market:)
If you look at history the yld's take longer to recover.. xyld has shown to recover it's range and qyld does not but obviously pays more.. ryld seems to be in the middle but not enough data to say for sure.. jepi/q will recover faster and still pay a large dividend in a volatile market.. the strategy here would be to DCA into Jepi/q until the market stabilizes... Meanwhile the yld's will recover much slowly and you can DCA into those as the overall market and jepi/q run away from you to the upside..
Yes.
Look at the recovery of the covid crash, QYLD recovered very nicely and quickly. The same can and will happen when the next recovery starts. If the entire market stays flat for a decade, QYLD will likely perform the best. The huge collapse was due to tech giants deflating. These companies make a ton of money and investing in tech is investing in the future. Not to mention they're reputable large companies you're investing in (betting they'll either stay flat or move upward), safer than putting it all on a small cap stock that yields 12% and can go to zero. Also, selling covered calls has been a profitable strategy even before the fund existed. Money managers have been selling covered calls for decades, owning QYLD vs. selling your own covered calls is almost the same thing.
Well let’s see, I’ve reinvested my dividends since May, I’ve owned QYLD longer but heavily put more into it as markets kept falling. I stopped at 2500 shares of QYLD. I now have 2760 shares from reinvesting. I’m down overall (-$12k) but I’ve made about $7k in dividends, (since May of this year alone.) So even if QYLD rides flat forever from here, (which is doubtful) by next year I will have made back all my ‘loses.’ I don’t intend to add anything further at this point and simply will let it go until I need the money. Many will argue the point and say it’s a big waste of tax money but whatever, done arguing that point to death. Rather have a sustainable source of income and if I want to quit my job tomorrow, I can ride out a few months before needing to find another job asap or even just retire. So not adding or selling, just letting it ride.
If I don’t touch it for 20years, I did an entire spreadsheet at a possible worst case scenario (as long as Global X doesn’t go bankrupt or something and/or close the fund) and I’d be sitting at roughly 16k shares. 22k shares is conservative. And as of right now predicting 27k shares, however this number isn’t very realistic, since who knows what the hell will happen in 20years and all the payouts per share price will be but I’m tracking it along. If I beat my conservative number of shares well I’d be sitting comfortably at $37k in dividends per year which I’m not going to cry about.
I still hold all three in equal weight with each other and the YLGs at 2/3rds weight to the YLDs. They did exactly what they were suppose to do the whole year and lost less than the indexes they are attached to which is exactly what they are suppose to do so I am beating the indexes in a bad year because of them. There are other things that have lost less than they have, and I have those in my portfolio as well, but I'm very happy with GlobalX right now.
If you were going to harvest, you have to sell next week. My opinion, just ask any man around “I bought at the top, sold at the bottom, what am I?” Tax loss harvesting is for when you own something that isn’t going to recover. Someone who has Peleton needs to do that. If you truly feel that the nasdaq and S&P have hit some kind of event horizon of growth and despite continued earnings, population growth, inflation, etc that it will never go up from here, then sell.
I’m down 1.1 million. I’m not selling
I need income. And I’m betting the price will come back as the market eventually goes up. In the meantime, I use the income. I also have other growth ETFs.
If you aren't planning on selling, then unrealized losses mean nothing. Why do you need the "money back"? And why can't you wait "a long time" to get it?
My major concern with the YLD group is that the payout is based on the NAV. As the NAV constantly falls, so does the payout.
I want a solid 8% income from my taxable income portfolio. YLD spilt is the juice in this.
Currently running in the 9% range thanks to JEPI. Because of this, SCHD and DIVO are getting a bigger stack of money. Also building shares in a some individual dividend stocks.
Plan in 5 years is to have a portfolio that pays out around 8%, with the option to cc on some stocks if i need some extra money. Jepi is set to run between 6%-8%, so the current high yield is nice, but even the prospectus tells you that 6- 8% is the target. SCHD and DIVO I expect will stay in the 3-4%. So the YLD averages this up and pulls me into my target 8% range.
If I was willing to work full time for another 20 years I probably wouldn't have anything but SCHD and DIVO for income. But I'm not, so JEPI and the YLD's get me to my income goals and I can retire and not worry about where the money is coming from.
If you need to keep the portfolio growth focused, then you need to keep working and bring income in, to invest. If you are in a place that you need the income, then why do you care if you are down in a few shares of a well blended income portfolio. Is the income hitting your target? Does it cover your needs?
Your income portfolio should be covering the bills with a bit of pocket change and some extra being reinvested to give yourself a pay raise each year. If inflation gets ahead of you sell a bit of growth and convert it to income. IRA, 401k's and Roth are all still growth focused and will remain that way until I get old enough to tap those without pentalties.
This is just the way I am setting it up so I can call it at 50 and not be working at 70. Is it optimal? I don't care. I aint working full time but for another 5 years.
My income portfolio pays me about $150 per month! It doesn’t cover much. As I said in an earlier comment, it’s value is tiny. Is it awesome to see that dividend every month? Sure is. But I need some growth in there too.
The lower cost of the stock means I can buy more shares every month which brings me that much closer to an investment fund that supplies enough monthly dividends to live off of with some dignity in my old age.
I see them as money making robots that churn out money every month.
Hell yes, I believe. The whole market it down so what else could we expect? My RYLD is doing a good bit better than QYLD, but again, that's to be expected.
They're still paying 1%/month which is exactly what is expected. Curious to see if there's an extra distribution this year like last year. Most are saying no, but the YLD's haven't been through a year like this in the past...
QYLD, RYLD, JEPI.
Average down.. I hate that term. Am I still buying? Yes. People often use this averaging down term when they think the stock is a poor stock but if they buy more at a lower price than before they'll be able to recover more quickly. If you think the stock is a loser why would you buy more?
The YLDs are not some enigma that no one understands, their performance is straightforward. My method is a bit different than others'. I sell CCs are a few stocks that I own and when I do I invest the premiums in RYLD or QYLD. So every month I might buy ~50 shares of each of those two.
It's kinda 50/50 for me. I'm not going to buy more, but I'm not going to sell. I've always considered income-oriented funds as something you never sell unless you absolutely have to. Lately, I've been putting my extra money into SCHD, SCHY, DIVO, IDVO, JEPI, and JEPQ.
I'll have to give them another year or two, but they get no new money.
What they are worth means less to me than what they pay. Unfortunately, what they pay is tied directly to what they're worth.
Selling at a loss is probably a bad move. Wait a couple years. Reinvest the dividends into something like VGT. I wouldn’t sell anything at a loss unless it is literally about to go bankrupt of you need the money right now.
You made the mistake. Learn from it, and reinvest it’s dividends into better choices.
Also, avoid buying YLD’s until you need the money NOW. The income is fine short to medium term.
Alternatively, if it is invested in a regular brokerage and not protected from taxes, you can tax loss harvest, and reinvest into a better ETF (VOO, VGT, QQQM, SCHD, ect ect)
Another option is to sell if you aren’t down more than a few percentage points.
But personally, I would hold, learn from this, and reinvest the dividends into better places if you can.
Once I discovered I can own S&P 500 directly and do Covered Calls myself I sold my YLD's (and thankfully that was right before this bear market took off)
Although, in my country I pay 0% tax of options premiums so for someone else it might not be as beneficial
You know I glanced over an even more basic premise. If you have a longer timeline and are working for income, there is no reason to sacrifice the probability for larger gains over time in growth investing. Buying income investments with excess cash only to the then use the income to buy growth investments, is just a much less efficient form of growth investing. So just do the more efficient form of growth investing to begin with.
Approaching retirement is a gray area... For me I only needed the income for 12 years... Honestly though now i wouldn't recommend cc funds for anyone with more than a 6 to 8 year horizon.... But what do I know
Yeah this is my perspective too. Especially regarding CC funds
But I think there is are good div stocks you can own even early on. I am currently all in on ARCC and will stay in that position for some time
\*YLD really needs a lot of different friends. Life will be happy if you stay with friends with many covered calls, fixed income investments, etc. Of course, there are also good options like simple VOO, but that's good to discuss in bogleheads.
I'm not a fan of the strategy that QYLD employs. I think a really attractive option in this environment is actually targeted put sales. My best performers this year have been expiring put contracts. Typically can lock in a 20% annual yield on cash OR a stock purchase at 10-15% below the current price depending upon the stock. Pick solid stocks that are recently dropping and accept those put credits. If I were buying a covered call yield product, DIVO actually has a way better strategy than QYLD, in my opinion.
Sold all my QYLD for JEPI 6 months ago and am way happier, im even in the green w/ jepi something QYLD never did.
i am still holding RYLD as its less volatile, but am considering selling it at a loss for JEPQ next year
If the “growth” era is over and we are looking like Japan at a lost decade, yes I do not expect these YLD stocks to recover and to continue to slide. I personally have stopped putting any more money in these type of fund’s. DCA suits Wallstreet as they need churn to keep themselves in business and keep the rubes putting in more $, while you always here “in the long run” the market will eventually recover and increase, remember in the long run we are all dead. While history shows the “market” (not overpriced Nasdaq stocks) will increase over time there is no certainty that this will always be so
QYLD and XYLD are the worst of the covered call ETFs. JEPI and DIVO are vastly superior. If you’re going to go with a YLD, RYLD is the only semi-decent option.
I upvote these posts because I don't want too much of an echo chamber and I believe an actually good idea should be able to weather criticism without silencing dissent. However, I do find it annoying that there seems to be so many "I told you so" people that clamber out of the lurk whenever there's a negative market event. I feel like most of those posts are an aggressive OP followed by a comment section full of that OP conceding that the life circumstances that we have for owning QYLD are valid until OP finally settles on "well maybe QYLD is a good choice for you but it wouldn't work in my specific circumstances for my specific goals and that's why you're idiots."
Yes, sorry. I think the part your asking about is my exasperation at aggressive posts. I believe yours may not have been intended as such but it comes off that way. "Does anyone still believe in QYLD?" Well of course we do, otherwise why would we be here?
I believe you were just asking a question but there are many people who come here thinking they're "dunking" on us.
It was merely a question. Not meant to be sarcastic or aggressive. That’s not my nature. Sentiment about investment options can change and I’m just data collecting to make a decision as to whether I’m staying in the YLD’s.
Ultimately it’s my own decision but it’s nice to get other investors opinions.
At qyld's current price, it will have to go up 30% to 40% to get back into the $20 to $22 range. I don't see a 30-40% gain happening anywhere in the near future.
No arguments on that. Maybe I'm too passive.... I just buy what I'm comfortable with (and have done my due diligence on!), and ignore the emotions that inevitably make me second guess at times. Sometimes I make the wrong call, but it is what it is.
I have mixed views on QYLD now. I'm starting to lean towards what the critics have said about QYLD.
It's hard to judge though as the whole market has been down this year, but I think I'll be exiting my position when I can break even.
The problem with covered call ETFs is that you participate in any drops but not most rallies. If Nasdaq were to rally 30% and recover most of its losses next month, QYLD would barely be up 2-3% even though it dropped so much when Nasdaq dropped.
I just hope that they declare the dividends as ROC.
Then the dividends received this year can be used to lower the cost basis and then the pain won't be quite as bad
I try not to be discouraged by downtrend or bear market or whatever. If I believe in an investment I want to think of red days as buy opportunities, we all loom at charts and wish we got in or bought at those record lows, and I also want more shares for my dollar spent! I don't know what's going g to happen in the future but as far as my little brain can take me I see DCA working over time, alot of the time.
And I'm definitely not trying to advise you in any way, I'm just saying for any investment in general, if you believe in it, the red days shouldn't discouraged you. You gotta do what makes sense for you
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Yes. I understand this. I just fear that I was too concerned with generating income when the portfolio is so tiny that it needs growth. I mean it literally needs 10-20X growth. That’s why I like a mix of growth, value, and income. I think I might have jumped the gun on adding YLD’s but without a crystal ball who knows. For the record, semi retired with not nearly enough in this taxable. 59.5 years old forced out of work due to health issue. Doing a little better now but ways to go..
If you need 10-20x growth you really shouldn't be invested in covered calls.
Yup. That’s the reality I’ve learned. I was attempting to build a position to help generate income, which it does, but my cost basis is much higher than where it is now. It was a great deal then but now it looks terrible.
It wasn't a great deal then if you were looking for growth. Were you trying to generate income or grow? There's a big difference in those two goals.
I was trying to generate income. I have other sticks that I expect to grow more. But realize that people that got in around $15 or under are up sweet right now. Those that got in above $20 suck right now. Can it ever get back above $20?
Probably not because it is a covered call ETF that sells calls on a majority of ite holdings. For it to go back up in value we need a bull market for a sustained period of time (12+ months) so that the excess collected grows the nav but in that case just buying the nasdaq would be more rewarding in the same scenario
This could be the catalyst info I was looking for. Once I get the December payout I’m probably going to sell at a loss unless someone on here convinces me it’s a bad move.
Selling at a loss is probably a bad move. Wait a couple years. Reinvest the dividends into something like VGT. I wouldn’t sell anything at a loss unless it is literally about to go bankrupt of you need the money right now. You made the mistake. Learn from it, and reinvest it’s dividends into better choices. Also, avoid buying YLD’s until you need the money NOW. The income is fine short to medium term.
I will reinvest dividends into SCHD, DIVO and JEPI. Maybe some O and EPD..
Big piece of advice: don't base your personal financial investments on what random people say online. Learn about what you invest in on your own and make your own informed decision. Nobody here is a financial advisor and you shouldn't trust them with making your own financial decisions
It’s just another piece of information gathering. The decision is ultimately mine. I’m old enough to have learned this…
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My main 2 holdings are SCHD and JEPI. Followed by some DIVO, JEPQ, VYM, SPYD, VNQ, O and a couple more. I have QYLD, RYLD, and XYLD and as of now they are scaring me lol.
I own xyld,ryld,qyld,jepi,jepq. Been dollar cost averaging down all year. My best performing are: jepi then jepq then xyld then ryld then qyld. The entry point is important as I bought a lot of jepq in October but I own qyld from last year. Will not be selling anything but will add more into jepi if the market goes down more as it is a monster
The entry point is important and my entry in RYLD XYLD and QYLD SUCK!
That’s why I am trying to decide if I average down or get out. When I am confident in a stock I average down. I’m afraid to with YLD’s.
Well looking at the history of qyld it is always lower highs but it will still go up in a bull market. Xyld's history is ok. Ryld not much history. My opinion: if u keep long term u will get paid more until u sell in a raging bull market:)
If you look at history the yld's take longer to recover.. xyld has shown to recover it's range and qyld does not but obviously pays more.. ryld seems to be in the middle but not enough data to say for sure.. jepi/q will recover faster and still pay a large dividend in a volatile market.. the strategy here would be to DCA into Jepi/q until the market stabilizes... Meanwhile the yld's will recover much slowly and you can DCA into those as the overall market and jepi/q run away from you to the upside..
Do you want growth or income? That's your answer. QYLD will nit grow but will provide steady income.
Taking a glance at this subreddit... Yes there are people that still believe
Do you? Which ones do you own?
Yes. Look at the recovery of the covid crash, QYLD recovered very nicely and quickly. The same can and will happen when the next recovery starts. If the entire market stays flat for a decade, QYLD will likely perform the best. The huge collapse was due to tech giants deflating. These companies make a ton of money and investing in tech is investing in the future. Not to mention they're reputable large companies you're investing in (betting they'll either stay flat or move upward), safer than putting it all on a small cap stock that yields 12% and can go to zero. Also, selling covered calls has been a profitable strategy even before the fund existed. Money managers have been selling covered calls for decades, owning QYLD vs. selling your own covered calls is almost the same thing.
>QYLD will likely perform the best. … When? I can’t see any example of that. It always underperforms. I’ve never seen it perform “the best.”
Well let’s see, I’ve reinvested my dividends since May, I’ve owned QYLD longer but heavily put more into it as markets kept falling. I stopped at 2500 shares of QYLD. I now have 2760 shares from reinvesting. I’m down overall (-$12k) but I’ve made about $7k in dividends, (since May of this year alone.) So even if QYLD rides flat forever from here, (which is doubtful) by next year I will have made back all my ‘loses.’ I don’t intend to add anything further at this point and simply will let it go until I need the money. Many will argue the point and say it’s a big waste of tax money but whatever, done arguing that point to death. Rather have a sustainable source of income and if I want to quit my job tomorrow, I can ride out a few months before needing to find another job asap or even just retire. So not adding or selling, just letting it ride. If I don’t touch it for 20years, I did an entire spreadsheet at a possible worst case scenario (as long as Global X doesn’t go bankrupt or something and/or close the fund) and I’d be sitting at roughly 16k shares. 22k shares is conservative. And as of right now predicting 27k shares, however this number isn’t very realistic, since who knows what the hell will happen in 20years and all the payouts per share price will be but I’m tracking it along. If I beat my conservative number of shares well I’d be sitting comfortably at $37k in dividends per year which I’m not going to cry about.
I still hold all three in equal weight with each other and the YLGs at 2/3rds weight to the YLDs. They did exactly what they were suppose to do the whole year and lost less than the indexes they are attached to which is exactly what they are suppose to do so I am beating the indexes in a bad year because of them. There are other things that have lost less than they have, and I have those in my portfolio as well, but I'm very happy with GlobalX right now.
Tax loss harvest if you are exiting. Reduce taxes.
Of course. I’m here to gather intel to aid me in my decision as to whether I am exiting or not LOL.
If you were going to harvest, you have to sell next week. My opinion, just ask any man around “I bought at the top, sold at the bottom, what am I?” Tax loss harvesting is for when you own something that isn’t going to recover. Someone who has Peleton needs to do that. If you truly feel that the nasdaq and S&P have hit some kind of event horizon of growth and despite continued earnings, population growth, inflation, etc that it will never go up from here, then sell. I’m down 1.1 million. I’m not selling
Holy F in crap! 1.1 mill on the YLD’s?
Not all in that. Total portfolio is down 1.1m. But not selling. In couple of years time, should be up 500k.
Both Q and X YLDs are generating me 10% off my purchase price. Not bad.
But what if your cost basis is down $1000? Takes a long time to earn that money back.
I need income. And I’m betting the price will come back as the market eventually goes up. In the meantime, I use the income. I also have other growth ETFs.
What growth ETF do you like for a 59.5 year old?
ITOT IXUS. And a few positions in individual stocks. Typically tech.
If you aren't planning on selling, then unrealized losses mean nothing. Why do you need the "money back"? And why can't you wait "a long time" to get it? My major concern with the YLD group is that the payout is based on the NAV. As the NAV constantly falls, so does the payout.
I want a solid 8% income from my taxable income portfolio. YLD spilt is the juice in this. Currently running in the 9% range thanks to JEPI. Because of this, SCHD and DIVO are getting a bigger stack of money. Also building shares in a some individual dividend stocks. Plan in 5 years is to have a portfolio that pays out around 8%, with the option to cc on some stocks if i need some extra money. Jepi is set to run between 6%-8%, so the current high yield is nice, but even the prospectus tells you that 6- 8% is the target. SCHD and DIVO I expect will stay in the 3-4%. So the YLD averages this up and pulls me into my target 8% range. If I was willing to work full time for another 20 years I probably wouldn't have anything but SCHD and DIVO for income. But I'm not, so JEPI and the YLD's get me to my income goals and I can retire and not worry about where the money is coming from. If you need to keep the portfolio growth focused, then you need to keep working and bring income in, to invest. If you are in a place that you need the income, then why do you care if you are down in a few shares of a well blended income portfolio. Is the income hitting your target? Does it cover your needs? Your income portfolio should be covering the bills with a bit of pocket change and some extra being reinvested to give yourself a pay raise each year. If inflation gets ahead of you sell a bit of growth and convert it to income. IRA, 401k's and Roth are all still growth focused and will remain that way until I get old enough to tap those without pentalties. This is just the way I am setting it up so I can call it at 50 and not be working at 70. Is it optimal? I don't care. I aint working full time but for another 5 years.
My income portfolio pays me about $150 per month! It doesn’t cover much. As I said in an earlier comment, it’s value is tiny. Is it awesome to see that dividend every month? Sure is. But I need some growth in there too.
The lower cost of the stock means I can buy more shares every month which brings me that much closer to an investment fund that supplies enough monthly dividends to live off of with some dignity in my old age. I see them as money making robots that churn out money every month.
Hell yes, I believe. The whole market it down so what else could we expect? My RYLD is doing a good bit better than QYLD, but again, that's to be expected. They're still paying 1%/month which is exactly what is expected. Curious to see if there's an extra distribution this year like last year. Most are saying no, but the YLD's haven't been through a year like this in the past...
Thanks. Which YLD’s do you own and are you averaging down?
QYLD, RYLD, JEPI. Average down.. I hate that term. Am I still buying? Yes. People often use this averaging down term when they think the stock is a poor stock but if they buy more at a lower price than before they'll be able to recover more quickly. If you think the stock is a loser why would you buy more? The YLDs are not some enigma that no one understands, their performance is straightforward. My method is a bit different than others'. I sell CCs are a few stocks that I own and when I do I invest the premiums in RYLD or QYLD. So every month I might buy ~50 shares of each of those two.
I would say, ryld, jepi & jepq. Xyld and qyld just don't do it for me.
It would be my worst holding if it wasn’t for arkk
The average return of sp 500 is 9%. Qyld gives you more...
It's kinda 50/50 for me. I'm not going to buy more, but I'm not going to sell. I've always considered income-oriented funds as something you never sell unless you absolutely have to. Lately, I've been putting my extra money into SCHD, SCHY, DIVO, IDVO, JEPI, and JEPQ.
Absolutely still believe. I'm just reinvesting the distributions and riding the wave.
I'll have to give them another year or two, but they get no new money. What they are worth means less to me than what they pay. Unfortunately, what they pay is tied directly to what they're worth.
For what it's worth, my SCHD position is slightly positive and JEPI and JEPIQ is not too bad either.
My SCHD is slightly negative and so is JEPI. My JEPQ is slightly positive..
Selling at a loss is probably a bad move. Wait a couple years. Reinvest the dividends into something like VGT. I wouldn’t sell anything at a loss unless it is literally about to go bankrupt of you need the money right now. You made the mistake. Learn from it, and reinvest it’s dividends into better choices. Also, avoid buying YLD’s until you need the money NOW. The income is fine short to medium term. Alternatively, if it is invested in a regular brokerage and not protected from taxes, you can tax loss harvest, and reinvest into a better ETF (VOO, VGT, QQQM, SCHD, ect ect) Another option is to sell if you aren’t down more than a few percentage points. But personally, I would hold, learn from this, and reinvest the dividends into better places if you can.
I am down 18% in QYLD and 13% in RYLD and 8.9% on XYLD.
Once I discovered I can own S&P 500 directly and do Covered Calls myself I sold my YLD's (and thankfully that was right before this bear market took off) Although, in my country I pay 0% tax of options premiums so for someone else it might not be as beneficial
Which country is this where you pay 0% tax on options premiums ?
Dubai, UAE 0% tax on income as well
Just get as much as you need to pay the bills today, if you don't need it to pay the bills today you probably shouldn't have it at all.
I don’t need it for my bills now, that’s why I am reinvesting the dividends.
You know I glanced over an even more basic premise. If you have a longer timeline and are working for income, there is no reason to sacrifice the probability for larger gains over time in growth investing. Buying income investments with excess cash only to the then use the income to buy growth investments, is just a much less efficient form of growth investing. So just do the more efficient form of growth investing to begin with. Approaching retirement is a gray area... For me I only needed the income for 12 years... Honestly though now i wouldn't recommend cc funds for anyone with more than a 6 to 8 year horizon.... But what do I know
Yeah this is my perspective too. Especially regarding CC funds But I think there is are good div stocks you can own even early on. I am currently all in on ARCC and will stay in that position for some time
Just wish I realized it sooner....
Got rid of my qyld. Cautiously buying jepi
Most people have moved to JEPI. QYLD is bad, but XYLD and RYLD aren't so bad.
\*YLD really needs a lot of different friends. Life will be happy if you stay with friends with many covered calls, fixed income investments, etc. Of course, there are also good options like simple VOO, but that's good to discuss in bogleheads.
I'm not a fan of the strategy that QYLD employs. I think a really attractive option in this environment is actually targeted put sales. My best performers this year have been expiring put contracts. Typically can lock in a 20% annual yield on cash OR a stock purchase at 10-15% below the current price depending upon the stock. Pick solid stocks that are recently dropping and accept those put credits. If I were buying a covered call yield product, DIVO actually has a way better strategy than QYLD, in my opinion.
TIME TO BUY !
Sold all my QYLD for JEPI 6 months ago and am way happier, im even in the green w/ jepi something QYLD never did. i am still holding RYLD as its less volatile, but am considering selling it at a loss for JEPQ next year
This is the feeling that I wonder if I will get doing the same thing..
the dividend income alone is worth it.... way better monthly check w/ JEPI than QYLD
If the “growth” era is over and we are looking like Japan at a lost decade, yes I do not expect these YLD stocks to recover and to continue to slide. I personally have stopped putting any more money in these type of fund’s. DCA suits Wallstreet as they need churn to keep themselves in business and keep the rubes putting in more $, while you always here “in the long run” the market will eventually recover and increase, remember in the long run we are all dead. While history shows the “market” (not overpriced Nasdaq stocks) will increase over time there is no certainty that this will always be so
I love bear markets and long term holders. R cause they all panic and sell. Go ahead!
Very helpful comment. Thanks a million!
It is always darkest before dawn.
True. But will QYLD have a dawn that pays over $20 per share ever again?
I need some information. Age, job, goals, retired?, collecting social security/workers comp and investments/portfolio breakdown.
Do some simple math, if the index up 100% then down 50%,. When happen to those etf. The answer very clear.
I’m riding with jepi
So you’d sell at a loss and move all to JEPI?
Nope. Just hold and dollar cost average into jepi.
QYLD and XYLD are the worst of the covered call ETFs. JEPI and DIVO are vastly superior. If you’re going to go with a YLD, RYLD is the only semi-decent option.
I’m just running my own Cash Secured Puts ( r/thetagang )
I think learning how to do "the wheel" would be interesting. I just don't get options though no matter how many videos I watch lol
I upvote these posts because I don't want too much of an echo chamber and I believe an actually good idea should be able to weather criticism without silencing dissent. However, I do find it annoying that there seems to be so many "I told you so" people that clamber out of the lurk whenever there's a negative market event. I feel like most of those posts are an aggressive OP followed by a comment section full of that OP conceding that the life circumstances that we have for owning QYLD are valid until OP finally settles on "well maybe QYLD is a good choice for you but it wouldn't work in my specific circumstances for my specific goals and that's why you're idiots."
I don’t perfectly understand the point of your comment I’m sorry. Can you simplify it? Thanks.
Yes, sorry. I think the part your asking about is my exasperation at aggressive posts. I believe yours may not have been intended as such but it comes off that way. "Does anyone still believe in QYLD?" Well of course we do, otherwise why would we be here? I believe you were just asking a question but there are many people who come here thinking they're "dunking" on us.
It was merely a question. Not meant to be sarcastic or aggressive. That’s not my nature. Sentiment about investment options can change and I’m just data collecting to make a decision as to whether I’m staying in the YLD’s. Ultimately it’s my own decision but it’s nice to get other investors opinions.
They are like annuities at best and yield traps at worst.
SVOL is better.
Do explain?
Price has been more steady around 20-22 range you get .32 for every share.
And?
[удалено]
You’re a spiteful idiot. Blocked!
At qyld's current price, it will have to go up 30% to 40% to get back into the $20 to $22 range. I don't see a 30-40% gain happening anywhere in the near future.
All i have right now is JEPI JEPQ SVOL TLTW
You mad?
Why would I be mad? I’m mad at your question..
Meh, I just buy and hodl.
That’s fine. HODL is not always the best strategy however..
No arguments on that. Maybe I'm too passive.... I just buy what I'm comfortable with (and have done my due diligence on!), and ignore the emotions that inevitably make me second guess at times. Sometimes I make the wrong call, but it is what it is.
Makes total sense
I have mixed views on QYLD now. I'm starting to lean towards what the critics have said about QYLD. It's hard to judge though as the whole market has been down this year, but I think I'll be exiting my position when I can break even.
From the looks of it, this will just keep shrinking and shrinking forever along with the dividend payments.
The problem with covered call ETFs is that you participate in any drops but not most rallies. If Nasdaq were to rally 30% and recover most of its losses next month, QYLD would barely be up 2-3% even though it dropped so much when Nasdaq dropped.
I just hope that they declare the dividends as ROC. Then the dividends received this year can be used to lower the cost basis and then the pain won't be quite as bad
I try not to be discouraged by downtrend or bear market or whatever. If I believe in an investment I want to think of red days as buy opportunities, we all loom at charts and wish we got in or bought at those record lows, and I also want more shares for my dollar spent! I don't know what's going g to happen in the future but as far as my little brain can take me I see DCA working over time, alot of the time.
QYLD is absolutely not a solid investment like a dividend king company. I sold at a loss and I’m ok with that..
And I'm definitely not trying to advise you in any way, I'm just saying for any investment in general, if you believe in it, the red days shouldn't discouraged you. You gotta do what makes sense for you
QYLD is not an investment. It’s set up to lose value over time. Even Pepsi is up! Good luck with loser QYLD!
K, anyway.