IDEAL High Yield Funds to “LIVE OFF” Forever! | U.S. & Canadian Stock Market
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- Опубликовано: 3 июн 2024
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00:00 "Idea" Funds to "live off"
02:40 U.S. Listed ETFs
13:47 Canadian Listed ETFs
MISSION:
Help everyday people to invest on their own, in order to create their own source of Passive Income to enhance their quality of life and reach Financial Independence
GOALS of this Channel:
1) To share my Personal Investing Journey & Strategy with the world. Everybody needs to make their own investing decisions. I am NOT against any style of investing and I will NEVER claim my Investing strategy is the “best”; its the best FOR ME
2) Educate you about Income Oriented Investing with a particular focus on Covered Call ETFs listed on the Canadian & U.S. Stock Markets
DISCLAIMER:
The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adriano Starinieri is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adriano is not responsible for investment actions taken by viewers.
#passiveincome #investing #dividendincome #financialfreedom #livingoffdividends #covered call #high yield #income
To live long term off the distributions of a fund without reinvesting anything, the most important thing is that the distribution increases in a manner that keeps up with or outpaces inflation. The trouble with the all in one funds is that they haven't been around long enough to show a history of long term distribution increases. Several of the Canadian all in one funds have had recent increases, but I'll be interested to see how they perform over the next 5-10 years.
Wrong although some are newer but there are many with long track records. SBC-18 years, DFN-20 years, EIT.un-27 years, etc. There are many funds with 5-10 years also.
@@gcanada3005 I was referring to the all in ones like HYLD, HDIF, HDIV, BMAX.
Live off should not mean spending 100% of dividend. Split the dividend into 2 parts: reinvestment at the rate of inflation and only then the part you can spend. You make 9% then reinvest 4% and spend 5%
you forgot about the tax you have to pay on the dividends - whats left once you pay that? you arent going to have 5% left over to spend..... at that point I would rather invest in some growth stocks that pay 2% dividends and just sell a few shares here and there as they grow, then you only pay tax on your capital gains... and if you invest in 15% funds and they drop over time you still end up paying income tax on your dividends at the same time as your $$$ is dropping..
@@twfinc6855 Taxes don't apply for distributions/dividends if the investments are in a TFSA but only for Canadian ETFs/stocks. If it's for US ETFs/stocks government will automatically retain 15%.
Woo - Hoo! A new video - you just made my Sunday evening...watching now! Thank you for all the great content!
Excellent work - thank you
Thanks for another video!
My forever funds are ENCL BKCL QQCL and BANK.
Can’t go wrong there!
Thanks Adrian! Much appreciated!
Thank you for your recommendations. Much appreciated!
Love BMAX, very stable and decent monthly income
My next purchase when it goes on sale
I also like CC with leverage... ENCL, QQCL, USCL.
Same 🙂
video coming soon on why i LOVE Leveraged CC Funds. You will enjoy it!
What I like about sector specific ETFs is that you can dollar-cost average by diverting new cash into the most beaten up sectors, thereby increasing yield on book value. Right now, that would be utilities, for example. With a diversified index ETF, new money invested goes into all sectors, even those that have appreciated significantly.
Gold producers are the most beaten up. GLCC is a good one to pick up. I prefer sector specifics as well.
@@jumbothompsonI’ll check that one out, thanks. Also, Hamilton just launched a gold covered call (AMAX on the TSX).
I have added ENCL when the price of oil was lower. BANK for financial was also good.
On my buy list is UMAX as utilities are currently low.
@@jumbothompson Yep I bought A LOT of GLCC last week because it's cheap. It's not rocket science, beaten ETF comes back eventually if the underlined titles are solid.
EMAX is a new one from Hamilton as well. The yield is not as high as ENCL, but you get exposure outside Canada. Also, HUTE is a covered call utilities (using leverage) with almost an 11% yield if you want exposure outside Canada. Good luck!@@mark-old-man-golf
QQQY looks to have a net annualized return of 19-20% over the 6 months of its life so far. It opened at $19.85 and is now at $16.34 and has paid out $5.30, so you need to only keep no more than 1/3 of that crazy 60+% payout and put the rest back in to keep the ~20 bucks you originally invested. 20% is still impressive, but I don't understand how the fund can sustain itself with the capital decay rate it has, and the question I have is, in a long term bear market does that decay rate get worse or stay about the same.
After closely reviewing the actual returns for Defiance funds, they aren’t worth the risk, in my opinion. I’m not buying more of them. Better choices out there.
@@joannapatterson4625Yes a put write strategy is basically a commitment to catch falling knives and they do very poorly in a long term falling market. I've moved a LOT into bonds now that they pay well, esp SPAY. Also gold yield, HGY. It's been paying 6-7 points and still goes up 2/3 of the spot price. My portfolio pays about 7-8 points, and I draw 6, so there's a bit of inflation indexing and the fund is sustainable indefinitely.
Thanks Adriano! Great format - very informative
If I was to start a portfolio to live on, as a canadian, I would go for
BANK.TO 10,80%
BASE.TO 7,96%
ENCL.TO 7,66%
HDIF.TO 11,37%
HDIV.TO 12,42%
HYLD.TO 15,98%
QQCL.TO 11,14%
USCL.TO 22,68% that would give me a yield of around 12%.....and a good diversified one! 😁
Looks good, but your 12% is variable as we've seen with HYLD, all of these ETFs have possibility of decreasing divs/income in down market.
My steady eddies are JEPQ, PDI, GOF and SPYI. 100,000 in each will give you like 5000 a month and they have capitol growth too.
Great video
One of your best video to date! Yeah out of breath!
While not everything holds true forever, Keeping is simple is the key…. On another channel i was seeing how the growth/index etfs are outpacing all covered call etfs with dividends counted in…. It feels like we are getting monthly income but when compared with growth etfs, it was an eye openner
Lots a great stuff packed in here for investors. WOW what a time it would be to stumble upon this stuff for the first time. The last couple of years have spoiled us with options, hopefully it doesn’t stop.
its crazy. competition = good = capitalism
I enjoy your videos i find new securities to add to my wheel all the time.
I have my core positions which i seed with income...i use their divis to buy a lot of the mentioned ones.
For me the dates they pay and keeping the wheel turning is crucial. Direct seeding is from my income from workplace...indirectly funding infinite gains.
I got burned so bad in 2022. I sold a rental home I owned and brilliantly thought I'd invest in the market instead right at the end of 2021! GENIUS! Well the one fund I owned that stayed rock solid even through the market crash/recession of 2022 was DIVO. It was the only fund that actually barely moved my account. JEPI was fairly solid as well.
Very good 👍
great video
BTW if we are us residents does the Canadian government take with holding taxes or they just let us oay what we owe here in the USA?
Educating us even while you're road tripping! Thank you! 🙏
i recorded a big backlog before i left!
Question off topic.I am a questrade user and i opened a Margin account that uses my TFSA as leveraged.I would like to know a bit more how to uses it and how the taxes will apply to it. borrowing fees are around 11-12% according to the website.
Been waiting for this video, thanks! Not sure if you covered it but why does HDIV HYLD have such a high MER, like 2.4% when reading the ETF facts. That’s even more than mutual funds
I continue to appreciate your hard work and diligence. I was wondering, why did HTAE not make you list of Canadian choices. Over 9% yield AND capital appreciation that I haven't found in any other ETF ??? Many Thanks !!!
like i explained at the beginning, i left out sector specific funds :)
Sorry, I realized that later.
Adriano have you considered QQCC? Horizon ETF + 20.53% on price 1 yr , as of today it’s paying a 11.06% monthly distribution. It tracks the Nasdaq 100. Only thing I don’t like is the volume, which is low.
Another informative video! Thanks!
FFN is coming back with dividends now, I think they have around 26% dividend yield at the moment. Lets hope it stays like that for a while.
Would be great to see the math behind lower yielding, diversified vs your current RRSP approach
I think in general I do not consider it a dividend if it is capital...it's hard for me to tell how much of a dividend in these ETFs is 'capital' and how much is actual 'profit'
EXELENT!!👍🏼
Can you go over how Canadian taxes for retirees work in relationship to investing in the leveraged and non leveraged ETF'S?
There are no special tax rules for leveraged ETFs. You pay tax on the capital gains you earn.. A 25% leveraged ETF will grow or shrink 25% more or less than the corresponding non-leveraged version.
There are no taxes in your RRSP/RRIF until you de-register the money out. At that point the withdrawn amount is taxed as regular income not capital gains.
Thanks
I was wondering Adriano, why mention the BMO fund of funds Zwqt instead of a proven fund by BMO as well ZPAY? Personaly, I find ZPAY more atractive. Thanks!
Do you already have a video that talks about entry points and when to buy these funds? NAV prem/disc, 30 day, 60 day, 1 year trend, etc. Thanks
ASAP. always . This is Investing (long term)
Hi, It would be interesting to know how much of your capital is going down if you get 5%, 10%, 15% yield... If someone has an idea of how to evaluate that, it would be appreciated. 😁
depends on many things.... its not something you can answer in black/white. but again: Dividends ARE PART of your Capital. are they not?
Yes, the complicated part is trying to formulate the question so that ChatGPT or any other AI program could give me the Python code without errors....It is real fun to play with that sort of computations, even if it does anything to lower the risk involved in a portfolio... 😁@@PassiveIncomeInvesting
Adrian, Just had a thought. Are Hamilton or Harvest or anyone planning a high yield CC etf with world exposure? There are a few etfs and mutual funds that do that but none to my knowledge doing a CC or leveraged strategy. Ultimate Diversification.
Love your videos bro :)
What about PDIV? It's at 12% yield and the share price has remained stable over time (between $9-$11) and it's rather diversified too.
does PDIV has CC and leverage?
The Canadian section was too fast and didn't have enough comparison between similar funds. For example, I want 8-12% income with the highest total return in that percentage. Lower isn't guaranteed higher Total Return.
what's the distribution rate on ISPY? this month
YES!
which ones also focus on ai stocks?
Great Content! thanks so much, but question how far out of Retirement should you move into these types of funds? personal choice i guess
You guessed right
ENCC could give a bit of spicy in a live off dividend portfolio, that extra boost to keep up with inflation
I purchased ENCL for extra dividends and of course moves more than ENCC.
What do you mean by non leveraged covered call etf versus leveraged
ones that use leverage vs ones that don't
If you could only choose one U.S and Canadian fund, which would it be?
USCL
SVOL and BMAX if you want stable funds/dividends.
However I would choose more than 2 funds.😂
@@mark-old-man-golf SVOL is a good choice. I personally like SPYI. What other two funds would you chose?
EIT.UN , BANK and UMAX.
I also like ENCL but I bought that at a lower price when oil was around $70.
i cannot answer this question because there is no situation that ever exists where you "have" to chose only 1. :)
I have 31.5% QQQI, 31.5% SPYI, 19% SVOL, 9% FRA and 9% AVK. I'm thinking about adding some FEPI
Do you have them in a ROTH or taxable account?
@@OverseerPrime reg Ira and Roth ira
Fepi😊
My entire portfolio is 80% USCL and 20% CNCL.
Have you done a video to show how US Cover Call dividend income (say U$4K per month before 15% WT which is recoverable) has been taxed from CRA, assuming there is no other income? I understand there complex hidden rule but a generalise demonstration would be useful.
So hold forever is also ideal for 100% extraction. This is for people who are already retired. What about for those who are building their portfolio and want to speed up compounding? Is 50% YTSL suicidal considering we are in bull market?
Tesla is beaten down and i believe tesla will go up again.in that case capital
Appreciation would be nice as well as 20% dividend!! I am adding ytsl dips
Slow and steady will win the race.
I also own YTSL but it is a very small portion of my portfolio (too much risk). Great dividend but currently I’m down 25 +%. Best way for me to own Tesla.
@@DaStockAnalyst YTSL has CC so capital appreciation will be slow I guess, Purpose just cut div to .3, not sure if they'll increase again to .4 if price goes up.
@@efullname thanks.added ytsl at the dip
❤❤❤
How is VDY not mentioned?
FTN is another good asset to hold
All these covered call funds coming out makes me think if the call premiums are gonna reduce in the future, which could reduce the distributions, no?
why?
@@PassiveIncomeInvesting With the volume of call selling increasing with all these covered call etfs, we also need an increasing amount of call buyers to keep the premiums same, other wise the call premiums could reduce imo.
@@PassiveIncomeInvesting With the increase in the volume of call selling with all these etfs, we would need an equal amount of call buying to keep the premiums constant, or the premiums could drop imo.
Call premiums would reduce with increasing call selling
You think so when the options market volume is just growing all the time ? 80% since 2019 now .
Perfect video for someone who is about to retire or has retired. Thanks for the pep talk, coach! Now i need to watch it again with paper and pen to take notes. 😀
Any time!
Can 0:16 0:17 0:17
Totally off topic …yieldmax fund Tsly just had a reverse stock split if you had 100 shares you now only have 50 everything else stays the same … one way to fix this is to reinvest half your dividend back into Tsly …In time you will hopefully increase your shares back to 100 in case the fund does a reverse split in the future…this will work with any high yield instrument reinvest half your dividend back into the fund… hope this helps
The real passive income is the RUclips channel revenue 😂
And suckers to pay for his services and memberships.
Wrong! That's not passive income that's A LOT of work! 🤦♀️🤦♀️🤦♀️
anyone find it crazy that both QMAX and TXF are outperforming QQQ and thats NOT EVEN INCLUDING DIVIDENDS
These are not the funds in your own portfolio on your website (The US market funds).
Can you please make a video on DNP which is around for 37 years now. Has seen many market cycles and only down around 13%. Yield is around 8%
I see lots of youtubers hyping VFV?
Also...how about a video on what you'd invest in if you were 18 yo?
As a Growth Investor its fantastic look into Adrians video on Growth Investing
If you live in a 0 tax country, US dividends makes no sense. You pay 30% withholding tax. From Canada that goes down to 15%. Whereas capital growth stocks you pay 0 from the US and 35+ from Canada. So growth choose US, Dividends choose Canada.
Great format US first Canada next.
hehe you must be American!
no QYLD no XYLD and no RYLD mentioned understandable why but funny these funds were all the rage just a few years ago
They were the rage for income ONLY, not growth
Where were the covered call ETFs years ago???? Something sounds fishy if theses are suddenly appearing by the dozens every week.😮
What ? The options market volume has risen like 80% over the past 4 years , how is that fishy ?
Covered calls are great for those looking at how badly utility and reit etfs have performed with our current higher interest rate environment.
@@AmeriGlobalbut where were these high yielders 5 years ago?
@@cliffdariff74 5 years ago covered call etf funds DIVO and QYLD were around along with utility and reit etfs. Had an investor bought into DIVO and QYLD their total returns would be higher now than VNQ, MORT, VPU, or XLU.
,à
Forever lol you sold all your forever funds many times
It can be smart to trade within these funds keeping your core holdings, sell some profits when you have big gains, average down on the ones you hold that are undervalued, he's said that before
Things change, and better opportunities present themselves. I buy and hold in the sense that once I sell a fund, I reinvest it in another fund. I never pull it out of my trading account.
He makes money from those suckers to pay for his services and memberships. Let them live and learn.
Remember CLM… the core position 😂
New information allows you to make better decisions... the asset you pick today doesn't mean you'll have it tomorrow. I'm sure you've done that before, unless you're perfect and I highly doubt it.
Your videos are too long, pick your forever etfs available to the Canadian market and just give an update.
I wish you can do an interview in future with Kathleen peddicord
Famous retire overseas expert who I believe is based in Panama.
Are you aware of any ETFs that utilize option strategies for super supercharged returns but it’s all reinvested rather than paid out in a dividend? (Dividends are very high taxes.)
Thanks for the video Adrian! Much appreciated for doing the work and bringing these info to us. I agree that these are all good funds to hold forever or long term ( some people seem to take the word forever too literally). I am doing exactly like you said, majority is in these diversified funds with a few sector specific funds. Life is good.
indeed it is ....when you're free
DIVO, PAPI, BALI, JEPI, GPIX, SPYI, ISPY, QQQI, SVOL, HIGH, AGGH, Canada: HYLD, HDIV, BMAX, EQCL, USCL, CNCL, EIT.UN, HDIF, ZWQT, ESPX, QQCL, HPYT, LPAY, GDV
My forever portfolio -
1. HYLD
2. Hmax
3. GDV
4. USCL
5. HDIV
6. HDIF
7. SVOL
8. FTN (GOT IN AT $8)
9. EIT.UN
Looks good !
@@PassiveIncomeInvestingAdriano - I've always wondered this - why would anyone buy the underlying funds, if HYLD exists? What happens to HYLD, if people dont buy (or sell off) the underlying funds?