Ramin, You're totally right about the most rational and efficient choice in terms of return being an accumulation fund. But, there's something to be said about human psychology and what keeps people motivated. I think you'd agree that regardless of income OR accumulation, the most important thing is investing consistently and long term. I think some people benefit from the psychological boost of income, rather than accumulation. It's an emotional thing to be sure, and less rational. But I guarantee there are investors out there who would be more successful buying an income fund simply because the psychological boost keeps them motivated long term. The same people might get bored with accumulation and end up selling too early. I think this point is sometimes missed and underappreciated. (Edit: typo)
Hi @loopdigga86 I agree, it's more important to invest, even if you focus on income, than not investing at all. I do take great pleasure in the dividend payments from QYLP popping up in my ISA 8-) Thanks, Ramin.
Ive been using dividends for reinvesting, so because of that I always have extra money to buy and dollar cost average. And even if I ever needed the money to actually SPEND its also an option without me selling my holdings possibly at a loss, which I always hate. Dividends incetivize me to hold on when the asset has been down for a long time, and since Im reinvesting I can take the dividends from a depressed fund and disperse them while DCAing onto others in a diversified portfolio. Edit. Typos.
Snap , dividends give an opportunitie to buy funds/stocks when they appear to be cheap & with out having to raise capital via new money and/sell of existing positions
Excellent overview as always. Apologies if I missed this, but IMO one advantage of income funds over growth only, is that they add diversification to a portfolio. If say growth funds (based on tech / comms companies) take a big hit, then having some exposure to income funds (based on energy, utilities etc) might help to ease the pain. This is my logic and why I have some income funds in my SIPP, although my core is growth-based.
Hi @stevegeek that's an interesting perspective, and I think it's true to a certain extent. If you have both a capital-gain and income focussed strategies alongside one another you're more diversified than being in either strategy alone. But historically I think a focus on total return has proved best. Thanks, Ramin
Might actually be the best vid on high yield investments to date! I am hoping we (UK) investors will eventually get access to the covered call ETF's that allow for some growth, like QQQX or QYLG. Lower yields, but it would be nice for UK investors to have a choice!
At 1:40 Ramin talks about accumulation funds and capital gains tax. Be careful with this. For tax purposes outside an ISA, your income generated within the accumulation fund, even though it's not paid to you as income, is still taxed as income. In other words, when an accumulation fund rises in price, some of that gain is treated as income and subject to income tax, and some is capital gain. If you're lucky your broker will give you a good tax statement that separates the two apart, but they might not.
Have held Vanguard High-Yld bond fund for a number of years with no problems; well, there was a glitch in the 2020 Covid year but then the Fed stepped in and bought high-yield. Current yld is 6.26%, and 51% of the bonds are rated BB with another 31% rated B and a 5% position in US govt securities. So, I'm okay with it. I also own Intermediate UST fund and the Intermediate Corporate Bond fund, with of course lower yields. Stocks, I bought some BP and Canadian Natural Resources yielding 5.77% and 4.38% respectively. Kind of interesting to manage it all.
Hi @josepha9313 thanks for sharing that. If you hold forever the return on high yield does look relatively attractive now compared with, say, US equity. But personally I'd hold out for a bit (or a lot!) more credit spread. Thanks, Ramin.
Excellent overview as always 👍I just cracked my 2nd million in my dividend portfolio this last week. Almost 2 years now I started investing with the help of a finance manager who trades for me.
@@MetalAnimeGames I created my own with qylp and reinvesting the divis, Ramin did it in a past video, Qylp is best when it spikes down in a panic I think...
I’m all in on growth stocks in just sipp but I have considered in the next 25 years when I’m 57, whether I should start allocating towards dividends. I’m uneasy with 4% rule as it doesn’t work when there’s a bear market that year or if there’s high levels of market volatility.
Hi @Abdul_Rahman86 there are rules (Guyton-Klinger etc.) to deal with volatility of investments in retirement but the problem with a focus on income is that you forgo some capital gain and you tilt (and concentrate in) some risky sectors and countries. Thanks, Ramin.
I’m just regurgitating what I’ve seen in other videos, but I think you’re meant to rely on cash savings in the times that there is a bear market. Could be 1-5 years worth of living expenses.
Thanks Ramin! Excellent educational video! Not sure if you have covered it in this video or other resources, the could you elaborate more on the covered call income fund in terms of the pros and cons. Because it seemed like it has a very good value proposition for steady income with upside trade offs. I guess it's how much upside one trading off to security in terms of steady stream or income. An extension of this will be, does this strategy result in a better or worsr total return? Ie, does the total yield come at a cost of the capital depreciation which will result in a lower total return compared to buying the index tracker?
Hi @jasonkee100 I did a video about these strategies previously "Investing Strategy for Sideways Markets" ruclips.net/video/fLwq6OQutbI/видео.htmlsi=PE8seiLGk2G-C6Y- and the long-term effect for the S&P 500 was underperformance compared to just buying the index with a cheap fund. Giving up all that upside is a cost! Thanks, Ramin.
This may be a stupid question but im brand new to investing! With dividend investments, we earn interest and are paid dividends but if the price of the stock goes up and we sell the stock do we also make a profit there too? Thanks
Hi @fredatlas4396 the risk-free rate might come down but the spread is likely to widen from these lows (that's a guess by the way!). But at the moment I don't think the all-in yield (risk free + credit spread) is attractive and I'm willing to be patient to pile in to high yield bond funds. Thanks, Ramin.
Income funds should only be bought by those seeking income. And if you are a UK retiree you should be choosing CTY as a major part of your income portfolio, else you will spend the rest of your rapidly diminishing life on YT determining asset allocations etc. The current yield also determines your safe withdrawal rate. If base rates fall rapidly in the next couple of years as expected, those holding money market funds will be stuffed and left with low yielding investments. This is my single fund retirement buy and hold equivalent to Ramins global index strategy during the accumulation phase, albeit in a UK not global fund.
Hi @elephantandcastle838 City of London Investment Trust (CTY) looks good if you consider the nominal dividend growth rate since 1977 (7.9%) but in real terms the dividend has increased far less (3.1%) over the same period. In real terms the dividend paid out by the fund today is the same as it was in 2008 i.e. it has matched inflation over the last 16 years but with a global equity fund you would expect to beat inflation by around 5% per year. So I think ignoring capital gain is a mistake - it's really total return that matters. Thanks, Ramin.
The deccumulation phase is certainly an interesting topic. Everyone has their own situation, but I would prefer the certainty of income, rather than trying to time the market or unnecessarily being exposed to sequencing risk. 2008 was certainly an interesting year - a global index fund would have returned minus 19% over that year GBP (minus 41% USD). I think that the ensuing heart attack would then have cemented my place as the richest man in the graveyard! Loving your content though as always, much respect ❤
Is that correct , in the slide you showed on real estate funds , aren’t the top ones etf’s that track an index and the bottom one investment trusts that a manager buying and managing the properties, in a specific sector , for example in the case of supermarkets reit or renewable wind in the case of greencoat uk wind. Tr property is also an investment trust however it buys other property companies ( it does have a small allocation of physical property too)
Hi @rajibear77 you're right the listed funds at the top buy real estate companies e.g. iShares MSCI Target UK Real Estate (UKRE) buys companies like Segro and Land Securities. But as you suggest the lines are sometimes blurred as real estate funds can do both i.e. buy commercial property directly or invest in other companies that do so. Thanks, Ramin.
@MikePhillips-pl6ov goes for any UK pension wrapper Mike whether SIPP or workplace DC pension. Sounded like this video was aimed at US investors so just worth mentioning. It made me double check anyway! 😆
If you look at your MLPP high dividend ETF then it has been outperformed by the S&P500 over the past 10 yrs and because it is a synthetic ETF you will also have introduced counterparty risk into your portfolio.
Way I looked at it was using higher dividend funds ETF's stocks etc. alongside equity accumulation index funds allows you to be much more fully invested since you don't need to keep such a big cash reserve as if you are just in accumulation funds and reliant on the ups and downs of the stockmarket as to whether you can take capital gains as income or not . Albeit that was before interest rates went up and at the moment with your cash reserve in money market funds @5% and the rest in accumulating index funds/etfs is not so different to the way I went in 2019 using higher yield stuff for income ( coz money market funds were paying practicaly zero).
If you use bonds, you end up with the end date issue and that is not relevant for stocks. A stock paying 8% can have a share price fluctuate but there is no end date to share ownership. You also pay zero for this. Also you have known versus unknown risk, as in a dividend can be known but a stock appreciation cannot. I have just piled into higher dividend paying stocks depressed by the recent falls and we'll see.
Dumbest thing you can do comparing EQQQ to QYLP, it’s like comparing SP500 to XAUUSD, they’re two completely different things, the only problem with income funds is people buying them are people who don’t need them at the age of 20 and people who dive into investment they don’t understand. Beside US QYLD is different completely from UK version of QYLD/QYLP
@@TomsPersonalFinance I know.. 🤦♂️ that’s a shame really, 20yr olds missing out on literally DECADES of growth of 6-7%++ just by investing in boring, simple one world etf like VWRP or FWRG but no matter how many time or videos you do.. 🤷♂️🤷♂️ guess what happens
@TomsPersonalFinance I use mine as a tax advantaged strategy. Take the dividend from s and s isa to my sip that gives me 20 percent top up from the government then gives 20 percent tax relief on tax return. I use this to then by growth funds in my ii sipp account.
I bought a small amount of QYLP in April just to see how it performs as I am planning to retire soon so experimenting around income. I've reinvested 4 monthly dividends so far and am down 5% in total. Not a great result so not sure I will be including this in my income strategy when I retire next year!
So you’re saying that you haven’t had been neither DCAing or having a bigger lump sum dropped, haven’t been invested in it for more than few months not to say years and you’re bitching about being 5% down while I’m 4.3% up in total? Even though I’m in it for waaaay shorter period of time, yup… that’s your typical retail investor, jump in on the investment he knows shit about and then bitch about
@@MATIvmr wow. Overly aggressive reply. I am not saying I've made a final judgement yet but there are other considerations apart from yield, as Ramin rightly pointed out.
@@jont96686 Have QYLP myself, and it can be dangerous if you pay too much for it. You can find a lot of us based investors on some of the subreddits who bought QYLD at COVID bubble heights and the fund doesn't really have as much opportunity to recover from price declines, so entry price seems especially critical for Qylp? Jp Morgan has some covered call ETFs that have some growth potential which might be worth looking at?
@@jont96686 If you're planning a drawdown, why not just take a lump sum once a year from the total returns, growth and dividends together. Stay in Acc class funds or etfs and you could put a few yrs into cash in case markets plummet, use the cash until your portfolio recovers
I am also in QYLP, it had a recent dip which I thought was a good buying oportunity so I lowered my average. BUT, it is a tiny part of the portfolio I want to learn more about this kind of fund. Not an expert here but not something to buy when retiring soon I'd say...
Interesting video, Ramin. I find that JP Morgan Global Growth & Income offers great income (~4% yield) without sacrificing total retuen. It has still outperformed a standard global fund by quite a large margin. Of course, actively managed and manager risk, etc. But worth looking into 😊
@anthonybrown4874 tbf the management fee is actually cheaper than a lot of the options discussed in this video. But I do agree, always got to consider costs and other risks 👍
I wonder how these big companies like JP Morgan operate internally. One of my best long term investments (held for over a decade) has been their Natural Resources fund. There has to be a lot of cross over between that and Growth & Income. p.s. Of course Natural Resources might plummet if someone suddenly brings out a Mister Fusion unit but I think that is unlikely.
You peeps need to read papers by Robert D. Arnott. I like him a lot, but I'm a skeptic. If you need to write a paper that Value Investing with dividends is not dead - well then, it 'probably' is dead imho. Inflation figures don't include Food or Energy - wtf? Why would anyone buy bonds, value index funds or value stocks even with 8% dividends that don't appreciate at all over 5 years when you can buy gold ETF's or 4.8% CD's and speculate on the top Tech 20 stocks that are really driving the market - news flash - they are all on the US stock exchanges......or just own CAT and CMI.
@mmabagain Yes, true. I completely understand the use they have for some people. As Ramin said in the video though, a lot of people forget about total returns and focus on high dividends when they really shouldn't be.
@@TomsPersonalFinance Qylp is a tool in our toolkit. You use the right tool for the job. Some people are willing to sacrifice the superior future returns in favour of an immediate and generous yield. Not every year does QQQ or VOO deliver exactly 10-15% exactly for people to sell down their equity.
@@melvinp1324 Your prepping for the end of the world with blockchain? Like come on man, if the world goes to shit youre going to need gold, silver and tins of baked beans. No one outside of crypto really cares about crypto.
Hi @bigbountybar1 unfortunately the fees on almost all UK investment trusts is very high but 1.27% for SUPR is very high indeed as you say. I don't know how I'd get exposure to this very specialised sector without paying such high fees, however. Thanks, Ramin
Ramin, You're totally right about the most rational and efficient choice in terms of return being an accumulation fund. But, there's something to be said about human psychology and what keeps people motivated. I think you'd agree that regardless of income OR accumulation, the most important thing is investing consistently and long term. I think some people benefit from the psychological boost of income, rather than accumulation. It's an emotional thing to be sure, and less rational. But I guarantee there are investors out there who would be more successful buying an income fund simply because the psychological boost keeps them motivated long term. The same people might get bored with accumulation and end up selling too early. I think this point is sometimes missed and underappreciated. (Edit: typo)
Hi @loopdigga86 I agree, it's more important to invest, even if you focus on income, than not investing at all. I do take great pleasure in the dividend payments from QYLP popping up in my ISA 8-) Thanks, Ramin.
Ive been using dividends for reinvesting, so because of that I always have extra money to buy and dollar cost average. And even if I ever needed the money to actually SPEND its also an option without me selling my holdings possibly at a loss, which I always hate. Dividends incetivize me to hold on when the asset has been down for a long time, and since Im reinvesting I can take the dividends from a depressed fund and disperse them while DCAing onto others in a diversified portfolio.
Edit. Typos.
Snap , dividends give an opportunitie to buy funds/stocks when they appear to be cheap & with out having to raise capital via new money and/sell of existing positions
Excellent overview as always. Apologies if I missed this, but IMO one advantage of income funds over growth only, is that they add diversification to a portfolio. If say growth funds (based on tech / comms companies) take a big hit, then having some exposure to income funds (based on energy, utilities etc) might help to ease the pain. This is my logic and why I have some income funds in my SIPP, although my core is growth-based.
Hi @stevegeek that's an interesting perspective, and I think it's true to a certain extent. If you have both a capital-gain and income focussed strategies alongside one another you're more diversified than being in either strategy alone. But historically I think a focus on total return has proved best. Thanks, Ramin
Might actually be the best vid on high yield investments to date!
I am hoping we (UK) investors will eventually get access to the covered call ETF's that allow for some growth, like QQQX or QYLG.
Lower yields, but it would be nice for UK investors to have a choice!
At 1:40 Ramin talks about accumulation funds and capital gains tax. Be careful with this. For tax purposes outside an ISA, your income generated within the accumulation fund, even though it's not paid to you as income, is still taxed as income. In other words, when an accumulation fund rises in price, some of that gain is treated as income and subject to income tax, and some is capital gain. If you're lucky your broker will give you a good tax statement that separates the two apart, but they might not.
Have held Vanguard High-Yld bond fund for a number of years with no problems; well, there was a glitch in the 2020 Covid year but then the Fed stepped in and bought high-yield. Current yld is 6.26%, and 51% of the bonds are rated BB with another 31% rated B and a 5% position in US govt securities. So, I'm okay with it. I also own Intermediate UST fund and the Intermediate Corporate Bond fund, with of course lower yields. Stocks, I bought some BP and Canadian Natural Resources yielding 5.77% and 4.38% respectively. Kind of interesting to manage it all.
Hi @josepha9313 thanks for sharing that. If you hold forever the return on high yield does look relatively attractive now compared with, say, US equity. But personally I'd hold out for a bit (or a lot!) more credit spread. Thanks, Ramin.
Excellent overview as always 👍I just cracked my 2nd million in my dividend portfolio this last week. Almost 2 years now I started investing with the help of a finance manager who trades for me.
Thanks again @DeusZechiel
I agree with you. How did you get to your second million? I've lump sum I need to invest in stocks.
Oh! Thank you, with the help of my FM, Emmennet Jaccque Barrett. Research her.
That's fantastic! I work with same lady, Emmennet Jaccque Barrett. Met her at a finance seminar in Albany, Georgia.
Vanguard etf vhyl distr. That's what I use. It grows and it gives me 3.5%.do you think it's a good investment? Not in retirement
It won't be optimal compared to growth oriented funds. It would probably be better long term to hold something like vwrp or vaftgag, or even vuag
@@blumousey i have both of these 50-50😊 i need the security of the income, just in case of thinks gose wrong
@@mrbobolos what you're saying doesn't make sense, what do you mean 'go wrong'?
@@blumouseyhe’s a newbie he doesn’t understand…..
@@mrbobolos Which etfs are you holding, did you mean Vuag & Vwrp
Does pensioncraft channel share any Pies on Trading 212?
Would love to see this too! C'mon Ramin,please share your long term and short term portfolios.
@@MetalAnimeGames I created my own with qylp and reinvesting the divis, Ramin did it in a past video, Qylp is best when it spikes down in a panic I think...
I do agree that High-Yield needs to compensate investors a bit more, given US money market yields near 5.25-5.50%.
Hi @josepha9313 I agree - the spreads don't seem large enough given the slight weakening in the US economy. Thanks, Ramin.
I’m all in on growth stocks in just sipp
but I have considered in the next 25 years when I’m 57, whether I should start allocating towards dividends.
I’m uneasy with 4% rule as it doesn’t work when there’s a bear market that year or if there’s high levels of market volatility.
Hi @Abdul_Rahman86 there are rules (Guyton-Klinger etc.) to deal with volatility of investments in retirement but the problem with a focus on income is that you forgo some capital gain and you tilt (and concentrate in) some risky sectors and countries. Thanks, Ramin.
@@Abdul_Rahman86 Do growth stocks in sipp and income generating investments in isa
I’m just regurgitating what I’ve seen in other videos, but I think you’re meant to rely on cash savings in the times that there is a bear market. Could be 1-5 years worth of living expenses.
Thanks Ramin! Excellent educational video! Not sure if you have covered it in this video or other resources, the could you elaborate more on the covered call income fund in terms of the pros and cons. Because it seemed like it has a very good value proposition for steady income with upside trade offs. I guess it's how much upside one trading off to security in terms of steady stream or income.
An extension of this will be, does this strategy result in a better or worsr total return? Ie, does the total yield come at a cost of the capital depreciation which will result in a lower total return compared to buying the index tracker?
Hi @jasonkee100 I did a video about these strategies previously "Investing Strategy for Sideways Markets" ruclips.net/video/fLwq6OQutbI/видео.htmlsi=PE8seiLGk2G-C6Y- and the long-term effect for the S&P 500 was underperformance compared to just buying the index with a cheap fund. Giving up all that upside is a cost! Thanks, Ramin.
This may be a stupid question but im brand new to investing! With dividend investments, we earn interest and are paid dividends but if the price of the stock goes up and we sell the stock do we also make a profit there too? Thanks
Hi @maxsymons3572 that's right total return = capital gain (buy low sell high) + income (dividends) Thanks, Ramin
Isn't there a risk if you wait the yields might come down on bonds. Not sure what is this credit spread, how does that affect things
Hi @fredatlas4396 the risk-free rate might come down but the spread is likely to widen from these lows (that's a guess by the way!). But at the moment I don't think the all-in yield (risk free + credit spread) is attractive and I'm willing to be patient to pile in to high yield bond funds. Thanks, Ramin.
Very helpful overview. Thank you!
Glad it was helpful! @surelywoo
Income funds should only be bought by those seeking income. And if you are a UK retiree you should be choosing CTY as a major part of your income portfolio, else you will spend the rest of your rapidly diminishing life on YT determining asset allocations etc. The current yield also determines your safe withdrawal rate. If base rates fall rapidly in the next couple of years as expected, those holding money market funds will be stuffed and left with low yielding investments. This is my single fund retirement buy and hold equivalent to Ramins global index strategy during the accumulation phase, albeit in a UK not global fund.
Hi @elephantandcastle838 City of London Investment Trust (CTY) looks good if you consider the nominal dividend growth rate since 1977 (7.9%) but in real terms the dividend has increased far less (3.1%) over the same period. In real terms the dividend paid out by the fund today is the same as it was in 2008 i.e. it has matched inflation over the last 16 years but with a global equity fund you would expect to beat inflation by around 5% per year. So I think ignoring capital gain is a mistake - it's really total return that matters. Thanks, Ramin.
The deccumulation phase is certainly an interesting topic. Everyone has their own situation, but I would prefer the certainty of income, rather than trying to time the market or unnecessarily being exposed to sequencing risk. 2008 was certainly an interesting year - a global index fund would have returned minus 19% over that year GBP (minus 41% USD). I think that the ensuing heart attack would then have cemented my place as the richest man in the graveyard! Loving your content though as always, much respect ❤
Is that correct , in the slide you showed on real estate funds , aren’t the top ones etf’s that track an index and the bottom one investment trusts that a manager buying and managing the properties, in a specific sector , for example in the case of supermarkets reit or renewable wind in the case of greencoat uk wind. Tr property is also an investment trust however it buys other property companies ( it does have a small allocation of physical property too)
Hi @rajibear77 you're right the listed funds at the top buy real estate companies e.g. iShares MSCI Target UK Real Estate (UKRE) buys companies like Segro and Land Securities. But as you suggest the lines are sometimes blurred as real estate funds can do both i.e. buy commercial property directly or invest in other companies that do so. Thanks, Ramin.
Absolutely great video. Just splendid
Glad you think so @ClaudiaKuzounetsova
I do agree to that, excellent overview as always.
Glad you enjoyed it @PhelipCaouette
No capital gains tax is payable in the UK for funds within pensions it's worth pointing out.
He mentioned SIPPs at the start, or do you mean company invested pensions where the employee gets a choice of funds to invest?
@MikePhillips-pl6ov goes for any UK pension wrapper Mike whether SIPP or workplace DC pension. Sounded like this video was aimed at US investors so just worth mentioning. It made me double check anyway! 😆
MBS ETFs can also be a good option or even an allocation to covered bonds for their cash-like allocation
If you look at your MLPP high dividend ETF then it has been outperformed by the S&P500 over the past 10 yrs and because it is a synthetic ETF you will also have introduced counterparty risk into your portfolio.
Way I looked at it was using higher dividend funds ETF's stocks etc. alongside equity accumulation index funds allows you to be much more fully invested since you don't need to keep such a big cash reserve as if you are just in accumulation funds and reliant on the ups and downs of the stockmarket as to whether you can take capital gains as income or not . Albeit that was before interest rates went up and at the moment with your cash reserve in money market funds @5% and the rest in accumulating index funds/etfs is not so different to the way I went in 2019 using higher yield stuff for income ( coz money market funds were paying practicaly zero).
Brilliant, thanks Ramin !
Glad you enjoyed it @rafaelf6994
Can you please do a video when there is a shake out in the high yield market?
If you use bonds, you end up with the end date issue and that is not relevant for stocks. A stock paying 8% can have a share price fluctuate but there is no end date to share ownership. You also pay zero for this.
Also you have known versus unknown risk, as in a dividend can be known but a stock appreciation cannot.
I have just piled into higher dividend paying stocks depressed by the recent falls and we'll see.
I just love this. Thanks
You are so welcome @robduncan7454
👍👍
Alright
I'm QYLP all day.
Love this video
So pleased you enjoyed it @slabbygabby
Dumbest thing you can do comparing EQQQ to QYLP, it’s like comparing SP500 to XAUUSD, they’re two completely different things, the only problem with income funds is people buying them are people who don’t need them at the age of 20 and people who dive into investment they don’t understand. Beside US QYLD is different completely from UK version of QYLD/QYLP
@MATIvmr The problem is I think vast majority of QYLP investors fall into your categories of not needing/understanding it
@@TomsPersonalFinance I know.. 🤦♂️ that’s a shame really, 20yr olds missing out on literally DECADES of growth of 6-7%++ just by investing in boring, simple one world etf like VWRP or FWRG but no matter how many time or videos you do.. 🤷♂️🤷♂️ guess what happens
@@TomsPersonalFinance I agree on that with you Tomsky
@@MATIvmr All the best :)
@TomsPersonalFinance I use mine as a tax advantaged strategy. Take the dividend from s and s isa to my sip that gives me 20 percent top up from the government then gives 20 percent tax relief on tax return. I use this to then by growth funds in my ii sipp account.
I bought a small amount of QYLP in April just to see how it performs as I am planning to retire soon so experimenting around income. I've reinvested 4 monthly dividends so far and am down 5% in total. Not a great result so not sure I will be including this in my income strategy when I retire next year!
So you’re saying that you haven’t had been neither DCAing or having a bigger lump sum dropped, haven’t been invested in it for more than few months not to say years and you’re bitching about being 5% down while I’m 4.3% up in total? Even though I’m in it for waaaay shorter period of time, yup… that’s your typical retail investor, jump in on the investment he knows shit about and then bitch about
@@MATIvmr wow. Overly aggressive reply. I am not saying I've made a final judgement yet but there are other considerations apart from yield, as Ramin rightly pointed out.
@@jont96686 Have QYLP myself, and it can be dangerous if you pay too much for it. You can find a lot of us based investors on some of the subreddits who bought QYLD at COVID bubble heights and the fund doesn't really have as much opportunity to recover from price declines, so entry price seems especially critical for Qylp?
Jp Morgan has some covered call ETFs that have some growth potential which might be worth looking at?
@@jont96686 If you're planning a drawdown, why not just take a lump sum once a year from the total returns, growth and dividends together. Stay in Acc class funds or etfs and you could put a few yrs into cash in case markets plummet, use the cash until your portfolio recovers
I am also in QYLP, it had a recent dip which I thought was a good buying oportunity so I lowered my average. BUT, it is a tiny part of the portfolio I want to learn more about this kind of fund. Not an expert here but not something to buy when retiring soon I'd say...
Ačiū!
Thank you @MasterCo124 that’s very much appreciated! Ramin
Interesting video, Ramin. I find that JP Morgan Global Growth & Income offers great income (~4% yield) without sacrificing total retuen. It has still outperformed a standard global fund by quite a large margin.
Of course, actively managed and manager risk, etc. But worth looking into 😊
TER too rich for my taste Tom but st least it's value is steady away riding over time.
@anthonybrown4874 That's fair enough, Anthony. Performance net of fees is great, but yes got to consider all aspects!
@anthonybrown4874 tbf the management fee is actually cheaper than a lot of the options discussed in this video. But I do agree, always got to consider costs and other risks 👍
I wonder how these big companies like JP Morgan operate internally. One of my best long term investments (held for over a decade) has been their Natural Resources fund. There has to be a lot of cross over between that and Growth & Income.
p.s. Of course Natural Resources might plummet if someone suddenly brings out a Mister Fusion unit but I think that is unlikely.
You peeps need to read papers by Robert D. Arnott. I like him a lot, but I'm a skeptic. If you need to write a paper that Value Investing with dividends is not dead - well then, it 'probably' is dead imho. Inflation figures don't include Food or Energy - wtf? Why would anyone buy bonds, value index funds or value stocks even with 8% dividends that don't appreciate at all over 5 years when you can buy gold ETF's or 4.8% CD's and speculate on the top Tech 20 stocks that are really driving the market - news flash - they are all on the US stock exchanges......or just own CAT and CMI.
JEPI JEPQ
For the uk?
Best Index Funds for horrifically underperforming the market over the long term 😉
I tried looking for ticker symbol for the only one with a reasonable fee it came up as invesco with 0.49% well above my max cost limit.
Alright mr I know everyone’s personal situation
@MATIvmr Not sure why you've taken my comment so badly, Mateusz. Where did I state they aren't suitable for anyone?
@mmabagain Yes, true. I completely understand the use they have for some people. As Ramin said in the video though, a lot of people forget about total returns and focus on high dividends when they really shouldn't be.
@@TomsPersonalFinance Qylp is a tool in our toolkit. You use the right tool for the job. Some people are willing to sacrifice the superior future returns in favour of an immediate and generous yield.
Not every year does QQQ or VOO deliver exactly 10-15% exactly for people to sell down their equity.
Kind of annoying how 99% of ETFs are income distributing
That is not true
The majority of the my ETF holdings are Accumulating share class
are you not worried on the great reset ? where the whole economy is crashed ?
@@mmabagain i would be - as the new economy is blockchain - therefore anything rolling on the dollar is Kaput
@@melvinp1324 Your prepping for the end of the world with blockchain?
Like come on man, if the world goes to shit youre going to need gold, silver and tins of baked beans. No one outside of crypto really cares about crypto.
@@melvinp1324 Please show some references on this for us to read.
You didn't mention the enormous fees from SUPR!!!!
Hi @bigbountybar1 unfortunately the fees on almost all UK investment trusts is very high but 1.27% for SUPR is very high indeed as you say. I don't know how I'd get exposure to this very specialised sector without paying such high fees, however. Thanks, Ramin
JEPI JEPQ