Defiance QQQY Reverse Split FOLLOW UP - Reviewing Member Comments

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  • Опубликовано: 2 янв 2025

Комментарии • 83

  • @vincentblais
    @vincentblais 5 месяцев назад +9

    Sold my shares! I want more upside and sustainable NAV. The mechanic of these funds is quite simple. My issue is with the advertising of crazy yields that may simply mislead the average investors.

  • @mikerobins5573
    @mikerobins5573 5 месяцев назад +14

    Sylvia probably asked him to make this video to help stop the bleeding, everyone wants out and is selling this fund. They advertise the high Yield, but don't advertise the small total return. If the Nasdaq takes a big hit, your small return might even get wiped.

    • @Beastmods-rv3jh
      @Beastmods-rv3jh 5 месяцев назад +5

      Huge selloff on this fund last week.

    • @gallantar8331
      @gallantar8331 5 месяцев назад +1

      @@Beastmods-rv3jh I sold mine even before the reverse split announcement

    • @PassiveIncomeInvesting
      @PassiveIncomeInvesting  5 месяцев назад +5

      She didn’t ask me to do anything . I asked her if she was willing to discuss the news .

    • @lt9398
      @lt9398 4 месяца назад +1

      I have never seen a NAV erosion like this and then on top of it a reverse split and then an unstable market. These funds can go broke. I am not saying they will but you can potentially lose your investment. I held on but then they NAV even eroded after the reverse split.

  • @nicoleb6867
    @nicoleb6867 4 месяца назад +1

    Thanks for the explanation! I'm staying the course despite the split :)

  • @henryhonda8408
    @henryhonda8408 5 месяцев назад +10

    I wish you would have shown an example when the Nasdaq was down 1.5% or more. That would be extremely interesting to see how those funds would do in that scenario. I was disappointed you didn't show a big down day example. Last week there were some huge down days to show that.

    • @dominiquetheeasyminimalist
      @dominiquetheeasyminimalist 5 месяцев назад

      Watch The Average Joe for data with examples

    • @gallantar8331
      @gallantar8331 5 месяцев назад

      When the Nasdaq takes a big hit, this one will take a steep dive.

  • @Whitetiger127
    @Whitetiger127 5 месяцев назад

    Thanks for your comments & explanation. I am honored to be the highlight on (2) comment reviews. Prior to the split, I did swap from QQQY to QQQT. And did the same with JEPY to SPYT. I just really do not like any 'splits' called by fund managers. It just sends the signal that the investment direction on their part has changes. Although the fundamentals may not (value, shares, distribution yield etc). Something still changed. Otherwise, why bother calling a split (as another investor comment on the original posting). BUT that is just my thought, my liking. Still, I kept my original QQQY & JEPY on my phone app and adjusted the split accordantly (as you have shown others here), just to see what happens over the next few distributions and how this will play out. Thanks Again Adriano...Jose😉

    • @PassiveIncomeInvesting
      @PassiveIncomeInvesting  4 месяца назад

      sorry to disagree. a reverse split sends no signal. its only in peoples head. nothing changed...you know its true because you yourself cannot say "what changed" . the reason for the split was explained . P.S. SPYT and QQQT will probably have to do one eventually. all high yields funds will . they wont have a a choice. its not because anything changes. its because they distribute a lot of income, which decreases the NAV and stock price over time. they do it to "artificially" prop up the price. like changing a 5$ bill for 5 loonies. again, nothing changes

  • @patrickbelanger6253
    @patrickbelanger6253 5 месяцев назад +6

    First! IWMY is my favorite ETF from Defiance, and help me with my passive income goal. QQQY as well.

    • @dancrowley-2023
      @dancrowley-2023 5 месяцев назад +2

      Dividends are usually paid out from decaying navs

    • @mikerobins5573
      @mikerobins5573 5 месяцев назад +1

      The NAV has dropped 36% in one year, won't be long before another reverse split, and you'll lose another 50% or even another 66% of whatever shares you have left.

    • @patrickbelanger6253
      @patrickbelanger6253 5 месяцев назад +1

      I care about the ROI, not the nav

    • @stevenpaul3886
      @stevenpaul3886 4 месяца назад

      @@mikerobins5573 your shares a compounded every month

  • @dvee1983
    @dvee1983 5 месяцев назад +1

    Great video to help pound the ideas into our heads. I am trying to build a portfolio using all of the "high" paying etfs. Probably everything above 15%. I am up to 200K per year. Still nervous but spreading it out to get some of everything makes me feel better. The whole "eggs in one basket" worry keeps me that way I guess. Just one guys thoughts.

    • @PassiveIncomeInvesting
      @PassiveIncomeInvesting  4 месяца назад

      just remember that the income should be considered PART of the total return. total return will always be the true indicator of a fund. not stock charts. remember that and you will be fine.

  • @kevbutler81
    @kevbutler81 4 месяца назад

    Very well explained

  • @jameslinc
    @jameslinc 5 месяцев назад +5

    I'm still on the fence with these high yield funds. The way that I see them working well is if you buy them and use the large distributions to buy more shares quicker( drip or other funds could be anything you choose). Front loading your compounding effect. Once you have had 100% of your investment returned, you then have a free income generator. As long as the high distributions continue they could be a great long term hold imho.

    • @Martmi29
      @Martmi29 5 месяцев назад

      The best way I have found to use these types of funds is to buy a fixed amount, then harvest the income until the fund is down by 60% or even 80% and buy 5x the shares. At 80% drawdown, it would cost the same dollar amount for 5x the shares as it did to open the original position. Except by then the fund will have paid for a huge chunk of your cost basis, but you'll be increasing the dividend amount. In the meantime use the dividends to buy other funds elsewhere. But the total return needs to be positive even if the NAV is down for it to work, and it's better to have a bunch of different funds doing this simultaneously rather than having a huge position in just one.

    • @Whitetiger127
      @Whitetiger127 4 месяца назад

      @@Martmi29 you may be better to drip so you acquire the div payments and with no commission while you wait.

    • @Martmi29
      @Martmi29 4 месяца назад

      @@Whitetiger127 No because if I drip, I am increasing the weight of these funds while it continually goes down. Instead I would rather drip the dividends into other funds, then once these are down by 80%, I'll buy 5x the shares using dividends from the other funds to shore it up. If these funds never make it to 80% drawdown, then I'll only add enough to keep it's weight the same in my portfolio as it grows.

    • @PassiveIncomeInvesting
      @PassiveIncomeInvesting  4 месяца назад

      don't overthinking them, focus on the returns. compare them to similar funds. understand each funds strategy. chose the one you like best. the rest is just noise

  • @joloui2035
    @joloui2035 5 месяцев назад +22

    U explain correctly how these investments work, what u miss is what people consider a good investment that pays distributions:) People dont want to deal with , or see reverse splis on their investment! People dont want to see their capital go down and down and down over time! People dont want to deal with calculating how much distributions to put back in so the initial investment doesnt crash over some years... For most people this doesnt make a good investment! AT the very least people want the initial investment to stay stable over time. Selling an investment on bases it pays an incredible distribution when u have to deal with all that is for most people disappointing,

    • @LiquidHydroxide
      @LiquidHydroxide 5 месяцев назад +3

      People not wanting to see it doesn’t make it bad. It also shows that there is even more potential in these etfs because simple minded people misunderstand them. This leaves opportunity for people who accurately understand them.

    • @joloui2035
      @joloui2035 5 месяцев назад +2

      @@LiquidHydroxide u are correct, if people want to put up with all that i mentioned, let them buy them.

    • @LiquidHydroxide
      @LiquidHydroxide 5 месяцев назад

      @@joloui2035 I’ve never seen so many people rushing to sell out of a fund that has a significant, positive return.

    • @edbrandt8972
      @edbrandt8972 5 месяцев назад

      I agree. You have to manage your portfolio and pay attention to how much you need to reinvest.​@@LiquidHydroxide

    • @dkyrtata6688
      @dkyrtata6688 5 месяцев назад +4

      People who don't want to see or deal with all that stuff should not be investing in these types of funds. They are doing so because they are enticed by the large distributions that they mistakenly think is free money while expecting to achieve the same level of growth as the underlying index.
      They are thinking like growth investors while ignoring the fact that this channel is geared toward income investors whose focus is to maximize income rather than growth. Anybody investing in these funds should understand what they are buying and how the funds work to produce income. They should also know that they must calculate their total return themselves by adding their distributions to the market value of the fund.
      At the end of the day, the distributions are not free money; they came out of the NAV (which is made up of many components such as stock appreciation/depreciation, dividend income, options income, and original capital).

  • @hongkong128
    @hongkong128 5 месяцев назад +3

    I think the fund hold short-term U.S. Treasury securities as collateral in connection with the Fund’s options strategy and to generate income. So if only premium payout as a monthly dividend, the NAV should not be changed. Anyways, it would be best if they can deduct the loss before to pay the monthly dividend.

    • @Martmi29
      @Martmi29 5 месяцев назад +1

      When they make premium, it gets added to the NAV and it goes up, so if they pay it out, it will go down by the same amount.

    • @thatoneguy4646
      @thatoneguy4646 3 месяца назад

      ​@@Martmi29that's what I don't understand. People say it goes down to the same amount, but always goes 1-2% below the previous payout...

    • @Martmi29
      @Martmi29 3 месяца назад

      @@thatoneguy4646 Then that means they are paying more money than they made or, the net assets are going down elsewhere by more than they made in premium.

  • @Beastmods-rv3jh
    @Beastmods-rv3jh 5 месяцев назад +5

    You gotta think to yourself, would Warren Buffet ever invest in QQQY . . the answer is: not in a million years.

  • @everclearboy
    @everclearboy 4 месяца назад

    I enjoyed your video and appreciate your explanation of these ETFs. I have read prospectus for a few of these and still I struggle to understand the strategy and impact of the share dilution? With Yieldmax ETFs especially, I see the number of outstanding shares growing massively on green days and after good dividend payout announcements? Is there a target number of shares that they wish to reach? Will this ever stop? I understand that the upside is capped, but doesn't the share dilution lower the upside cap from where it would be without it? Any help to better understand the growing number of outstanding shares and the effect on total return would be appreciated. Thanks.

    • @PassiveIncomeInvesting
      @PassiveIncomeInvesting  4 месяца назад

      It’s an etf bud , shares are created with supply and demand . # shares is unimportant

  • @the_ikiru
    @the_ikiru 5 месяцев назад

    23:59 I don't think a single day stock price captures changes to the NAV. Over time it should roughly match, but in a single day, there could be a few cents difference between stock price and NAV.

  • @roatanbob
    @roatanbob 5 месяцев назад +8

    For the visual learners, perhaps you could demonstrate an actual example. You may get more people getting it, and less comments.

    • @ricknash3055
      @ricknash3055 5 месяцев назад +3

      Maybe take the QQQs and run them thru a total return calculator with DRIP.. One thing you quickly learn is that total return is dependent upon when you bought.

    • @thatoneguy4646
      @thatoneguy4646 3 месяца назад

      I second this...

  • @alcormier417
    @alcormier417 5 месяцев назад +1

    Thank you

  • @wenwang9156
    @wenwang9156 5 месяцев назад +1

    I sold mine before the split as I was worrying about the price and anxious on how much dividend will be every month and how much to reinvest. I like to collect all dividends in my portfolio and buy more shares of the ETFs that are down. I just find I have to keep buying more of QQQY, but it’s still keeping going down. In the end I did profit from it. So I wouldn’t say it’s a bad investment. Just think it’s a bit of work to keep up with it.

    • @PassiveIncomeInvesting
      @PassiveIncomeInvesting  4 месяца назад

      well yes, Manually reinvesting is more work. but your anxiety is misplaced IMO . look at the returns instead of the stock price solves everything - every time

  • @multimedialearning7110
    @multimedialearning7110 5 месяцев назад +1

    Thank you!!

  • @enonknives5449
    @enonknives5449 5 месяцев назад

    If total return is the same, then it really doesn't matter if the NAV goes down by a little or a lot. The only problem with a large NAV drop is that it forces the investor to actively manage their portfolio to maintain a base from which to create income -- either reinvesting dividends or investing in other assets. That makes it less "passive" if passive is what you want from an investment. The only advantage I can see in a rapidly falling NAV is if you want to intentionally create capital loses to offset capital gains elsewhere. I haven't heard anyone mention this as an opportunity.

  • @dwaynecunningham2164
    @dwaynecunningham2164 5 месяцев назад

    Great video, amigo. Never owned those specific ETFs but learned a lot. Do you have a video that explains NAV in detail?

  • @fernandodoria8717
    @fernandodoria8717 5 месяцев назад +1

    Well said Adriano!

  • @eddiedelzer8823
    @eddiedelzer8823 5 месяцев назад +1

    Heads up QQQY, IWMY and JEPY split cost me $114.00 in fees $38 .00 each. E-Trade IRA charges this fee anytime they have to change anything about a stock or ETF. TSLY got the same fee $38.00 HEADS Up it might be best to sell before all splits or move your IRA. Any ideas on a better place to move my IRA? The ETF needs to space out the splits and not do 3 at once. JEPY was at $15.00 why split that fund now, it's hard to trust or invest in their funds.

  • @davidanderson7460
    @davidanderson7460 5 месяцев назад +1

    All based on adjusted prices I bought at 54.00 , I've received 10 dividends around 2.50 each so 25.00 and it's now at 38.27 so I'm up 9.00+- on 54.00 about 16%

  • @lt9398
    @lt9398 4 месяца назад +1

    sold all Defiance watched all my savings erode NAV hemorrhage bought Roundhill paying weekly dividends.

    • @PassiveIncomeInvesting
      @PassiveIncomeInvesting  4 месяца назад +1

      do you know that QQQY is actually beating QDTE slightly as of now? another case of "not understanding" and only looking at charts . classic mistake

    • @lt9398
      @lt9398 4 месяца назад +1

      @@PassiveIncomeInvesting I hear you. I have invested in many monthly ETFs and had more stable NAV. The first rule is to not lose money. Treasury ETFs are more stable and pay monthly dividends. I have an oil fund for years that pays monthly dividends and I loved Defiance until the NAV dwindled and they did a reverse split. I sold out and bought into Roundhill and FEPI.

  • @Greatenergy720
    @Greatenergy720 5 месяцев назад

    What is the end all be all result for a long term investor that reinvest in the funds?

  • @stevenpaul3886
    @stevenpaul3886 4 месяца назад

    FYI you got that backwards QQQY will move less then QQQT as QQQT will try to capture more growth then QQQY. QQQY is much better for a RothIRA then QQQT. So, ur explanation as to knowing how ur positions move and why is not correct nor is your explanation as to ur position change from QQQY into QQQT.

    • @PassiveIncomeInvesting
      @PassiveIncomeInvesting  4 месяца назад +1

      QQQY will do better during a flat, down, or slightly up day because there is little to no upside to capture on that day + QQQY generates a lot of Premium Daily.
      QQQT generates less premiums , but captures more upside on a day when there is upside.
      So my point is that during heavy volatility or down days QQQY will always outperform QQQT and of course QQQ. Hopefully that's clear

    • @stevenpaul3886
      @stevenpaul3886 4 месяца назад

      @@PassiveIncomeInvestingwhat’s really throwing me off is the erosion of the NAV and the reverse stock splits. It seems more like a Ponzi scheme.

    • @stevenpaul3886
      @stevenpaul3886 4 месяца назад

      @@PassiveIncomeInvesting I own QQQY and it did much better Friday then QQQT on the upside…🤷🏼

  • @Xzoltar
    @Xzoltar 5 месяцев назад

    I use QQQY in an account I invest only once per year. So the income I receive from QQQY let me buy share of other stock I want when the price goes down. I will miss thoses opportunities if I could only buy at the end of the year when I invest in that account

  • @jinbridgey
    @jinbridgey 5 месяцев назад +5

    I sold my stocks

  • @HalfCrazy-dv1sp
    @HalfCrazy-dv1sp 5 месяцев назад

    People have the choice and chance to do whatever they want with the pay out I take 25% paid out to me and invest it in the underlying etf or stock and reinvest the remaining 75% back into the covered call etf

  • @miguelaresgoiti
    @miguelaresgoiti 5 месяцев назад

    Fantastic video and explanation!

  • @xrayeyes2023
    @xrayeyes2023 5 месяцев назад

    The problem for me with these 3 is low average volume traded.

  • @edbrandt8972
    @edbrandt8972 5 месяцев назад +3

    You and Average Joe channel both know how to explain how these put write ETFs work. Thanks

  • @scsu300
    @scsu300 5 месяцев назад

    The PRIOR...PREVIOUS dividends will triple...Nothing in the future will happen....TSLY is a great example to look at for a reverse split.