Great interview Dave. I own both QQQI and SPYI. The tax efficiency of both are the cherry on top of the main course which is superior dividends when compared to JEPI and JEPQ.
SPYI and QQQI are better than many of the covered call funds out there due to the tax advantages and the fact that it isn't as erosive to NAV compared to funds that can be nearly 100% ROC some years like the QYLD, XYLD. JEPI/JEPQ are nearly 100% taxable, so less advantages there if you are living off of it.
I hold both SPYI and QQQI, both paid dividends on 5/24, and QQQI is now allowing to auto reinvest (so one less thing for me to do), shall see how they do long term.
Love QQQI. I just hope webull accurately tracks and reports my adjusted cost basis for return of capital. I'm a little nervous for tax season but otherwise very optimistic.
Good interview as usual. We have owned SPYI for sometime. If it drops below our number we will buy again. Haven't bought QQQI yet and waiting a few more weeks.
Hey Dave, that was really an interesting session with Troy, particularly those minutes he was talking about the biz and risks of market makers and how they hedge positions. 🎉 Well, your Q about *double digit single stock etf with option overlay* ... that was a walk-over for Troy 😊
I can’t afford QQQ yet, but I sell 7-13 DTE TQQQ CSP’s consistently. I carry shares of PSQ as a hedge. My portfolio made it to $20m total this year, I don’t want to own TQQQ and I was assigned fairly early about a year ago. So I don’t let them stay in the money very long. This last recent pullback, I was out as far as 145 DTE, but I rolled back in expiration and closer to the money as TQQQ price rose. And I made a few hundred on PSQ by selling a portion at what I thought was near the bottom of the pullback and then bought shares back later.
Love QQQI...as well as SPYI. I also love that NEOS only has a handful of funds...makes me think/hope they are focused on growing their core - meaning, they are focusing on what they are good at, getting better at that, and growing the funds both in terms of AUM but also in terms of credibility.
Hi Dave, I am a huge fan and religiously watch your video and you are the reason I started qqqi and started to see $10-$20 dividend month over month. I am loving this etf and wondering your recommendation on adding this to Roth IRA like 100 per year mixing with SCHD and jepq … your advise is valued by me and wonder if I continue to add 100 share per year for next 10 years ?
Hi. I think these are fine in small doses but I still prefer to build around "base" ETFs like SCHD, VOO, VGT, etc. Especially if you still have many years till retirement. They work well in a ROTH but I would pick a % and still focus primarily on growth until near retirement. Just my opinion!
Interesting to see how they sometime don’t sell calls against their entire portfolio to not miss on the upside. Also, selling spreads is interesting because the credit received is so mediocre that it wouldn’t be worth it. Dave, can you walk us through the issue with Nav which I don’t understand well. Does it mean that their distributions may exceed their holdings and the overall notional value of the fund?
There should not be an issue with the NAV but the concern is a whipsaw move. For example, the index plummets down 20% one month and back up 20% the next. If you just own the stock, no issue. If you sell a call, you get that gain month 1 but during month 2 you can "lock in the loss" with the call being sold limiting your gain. Make sense?
I will be buying more of these and some Fepi as well. Some math to get $100 in distributions: 171 shares or $8639 for QQQI 205 shares or $10,112 for SPYI 91.49* shares or $4985 for Fepi. I have not been buying much Jepi/Jepq lately I might sell them and put the proceeds into different funds and fepi's distribution varies each month. I look forward to Neo's future etfs oneday. I might be able to retire in 10-15 years. Not a fan of bitcoin, though I do like metals and dividends.
Dave, can you do one on gold ETF'S? specially if you would discuss the differences between IAU vs IAUM vs AAAU, vs GLD vs OUNZ. I am wondering why iShares would have 2 gold etfs with different expense ratios? IAU vs IAUM?
I do hold both of these etfs. But, what gives me a pause is that this fund house is relatively new. And I still do not always understand ROC with this, how can they do ROC and still claim to participate in market gains? ALSO, what will happen when S and P crashes? They might end up holding stocks at high prices and have to sell those covered calls for the price lower than they bought those index for!
Think of it as 2 things. 1) Basket of stocks that roll along with the S&P. 2) Options that get settled once a month. Sometimes the options provide income and sometimes they result in a loss. When they provide income, the S&P was flat, slightly up, or dropped. When they have a loss, the S&P had a good month and the stock basket grew. Does that help?
@@wealthadventures My broker is Alpaca (i am Non US investor) and this broker dont provide info like this. I will wait on 8937 form which should be posted in few days on NEOS site.
@@wealthadventures Both, honestly! I know the basics of reading the stats on an ETF, but not enough to determine if its worth investing in over other funds.
Not an options expert so i know upside can be limited with out of market covered calls but the losses that are paired with gains for roc are created how? Thanx
Is this correct unlesss paired with a loss for roc? Option premiums received by the covered call ETF are considered short-term capital gains and are taxed as ordinary income. This means that the income generated by the ETF is taxed at the investor's marginal tax rate.
Think of it as 2 different trades. They own stocks which they do not sell so no tax consequence. They sell options which sometimes create income but sometimes result in a loss. This option loss is more often the result when the market is trending higher. These option losses can be passed along despite the gains in the stocks.
Just depends on the user in my opinion. Best not to pay taxes so if you don't need the income, tax deferred would be best. However, if you want the income now it could be in a taxable account and the use of ROC should be a benefit to shelter some of the distribution.
@@wealthadventures Thanks for your response. I'm in my late 60s now but still working. Do any of these hybrid, covered call, option selling, sci-fi, new-fangled, income ETFs return less capital than others? Return of capital just bugs me. I'd like to be awarded a dividend without the sacrifice of digging into the value of my position. I heard a guy who kinda does what you do---sing the praises of DIVO. As far as I know, 2/3 of DIVO's dividend is ROC. I'll check out your other covered call ETF videos. Some of these instruments might be better tuned than others. I'm starting to see why older investors like bonds. Keeping up with this stuff and the market's volatility causes premature aging.
@@wealthadventures yes you're so right. Been following you for a while you're doing a good job. A lot of uneasiness out there in the buying stock world. As far as this ETF I will buy some of this and see how it goes for 6 months through the summer. My wife and I already own quite a bit Exxon and Epd, ENB. By all metrics we should be experiencing a 10 to 20% drop this summer and I think oil will hold.
@wealthadventures Most peoples first reactions are like yours. But very few pay attention to how quick the 'recovery' is. It may go down, but it never stays there.
@wealthadventures Most people are focused/scared on 'get wild quality' and miss how it can 'get better quality' after the storm has passed . Think about this. It may go down but it never stays there
@wealthadventures All you need to know about ZIVB is in this article: How Does Volatility Shares’ -1X Medium Term ZIVB Work? August 27, 2023 by Vance Harwood
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Great interview Dave. I own both QQQI and SPYI. The tax efficiency of both are the cherry on top of the main course which is superior dividends when compared to JEPI and JEPQ.
Thanks. I think they are good options for anyone looking at these types of funds.
😊
I am invested in both SPYI and QQQI. Happy with both of them!
SPYI and QQQI are better than many of the covered call funds out there due to the tax advantages and the fact that it isn't as erosive to NAV compared to funds that can be nearly 100% ROC some years like the QYLD, XYLD. JEPI/JEPQ are nearly 100% taxable, so less advantages there if you are living off of it.
FEPI (well, no long history) and TUGN (at least since 2 yrs) aren't bad either with view on both trend for NAV and distributions.
@@TotallyRegWhatelse Definitely. I wouldn't put alot of capital in them, but FEPI has been a good return for a 1-2% portfolio allocation.
@@paladinfinancial 1% of a portfolio could be 100 grands... 🥳
I hold both SPYI and QQQI, both paid dividends on 5/24, and QQQI is now allowing to auto reinvest (so one less thing for me to do), shall see how they do long term.
Good luck!
Love your video. QQQI & SPYI 2 of my largest holdings.
Thanks!
Love QQQI. I just hope webull accurately tracks and reports my adjusted cost basis for return of capital. I'm a little nervous for tax season but otherwise very optimistic.
I think they will get it correct. You can check the statement. I did with mine at Fidelity and found the info.
does anybody know if Schwab adjusts the cost basis for return of capital?
Great interview 👍🏼. Interesting to learn about when and how the option spread would come into play.
Glad you enjoyed it!
Good interview as usual. We have owned SPYI for sometime. If it drops below our number we will buy again. Haven't bought QQQI yet and waiting a few more weeks.
Thanks! Good luck with it Jim.
Making nice income and appreciation on SPYI, working on QQQI now, but FEPI came out too so…lol
I keep seeing FEPI being brought up. Nice distributions but I would expect extra volatility.
I am retiring in part because of SPYI and QQQI. Once I hit my share count goals on them and I finish out a few more, I will be ready.
Nice! Almost there right?
@@wealthadventures Yes, I can do it now but I am trying to get the dividends up over 15k a month before I pull the trigger. Less than a year away. :)
So have so much faith on these people, hope they wont fail u and u dont end up on the streets if they blow this etf out for some reason....
@@rhoelg That isn't even rational. Fear based living isn't wisdom. It is paralyzing and costs you.
Great interview. QQQI/SPYI are part of my core holdings.
Nice Mike! Good luck with the investment.
Great video! I own both ETFs and I can’t wait for their next Russell 2000 fund to come out.
Hey Dave, that was really an interesting session with Troy, particularly those minutes he was talking about the biz and risks of market makers and how they hedge positions. 🎉 Well, your Q about *double digit single stock etf with option overlay* ... that was a walk-over for Troy 😊
Appreciate it! Thanks.
I just put the 4 NEOS funds on my watch list. Did not know about them until this video.
Nice interview. I’m rooting for these guys. I have SPYI and will likely add QQQI eventually. The Bitcoin fund has my attention now as well!
Thanks! Troy and the rest at NEOS seem to be doing a great job.
I just placed a lump sum on QQQ and QQQY. looking out for USOY
I can’t afford QQQ yet, but I sell 7-13 DTE TQQQ CSP’s consistently. I carry shares of PSQ as a hedge. My portfolio made it to $20m total this year, I don’t want to own TQQQ and I was assigned fairly early about a year ago. So I don’t let them stay in the money very long. This last recent pullback, I was out as far as 145 DTE, but I rolled back in expiration and closer to the money as TQQQ price rose. And I made a few hundred on PSQ by selling a portion at what I thought was near the bottom of the pullback and then bought shares back later.
Congrats! are you a pro, whats your cash flow like?
No I'm not, Hannah Susan Jennings is behind my growth, look her up or make proper research for one who is suitable with your goals.
Hannah is a wonderful trader, Im happy seeing this recommendation, she looked more beautiful in person when I saw her in New York.
Can’t afford QQQ with a $20 million account? 🥴
Been purchasing both qqqi and spyi. Need many more shares.
Great interview! Thank you for providing this information and insight.
Glad you enjoyed it and thanks for watching!
maybe they could do an SCHDI. (I know that is not realistic since there are no index options for SCHD, but hey, I can dream).
That’s actually a great idea
You can always do your own SCHDI. I have a video on it! But I realize many don't want to deal with the options.
You can sell calls on SCHD
Love QQQI...as well as SPYI. I also love that NEOS only has a handful of funds...makes me think/hope they are focused on growing their core - meaning, they are focusing on what they are good at, getting better at that, and growing the funds both in terms of AUM but also in terms of credibility.
Yes. Nice and steady. They also provide sub-advisory services for some other ETF companies and help them with their option trades. That says a lot.
Hi Dave, I am a huge fan and religiously watch your video and you are the reason I started qqqi and started to see $10-$20 dividend month over month. I am loving this etf and wondering your recommendation on adding this to Roth IRA like 100 per year mixing with SCHD and jepq … your advise is valued by me and wonder if I continue to add 100 share per year for next 10 years ?
Hi. I think these are fine in small doses but I still prefer to build around "base" ETFs like SCHD, VOO, VGT, etc. Especially if you still have many years till retirement. They work well in a ROTH but I would pick a % and still focus primarily on growth until near retirement. Just my opinion!
Roth is perfect
@@wealthadventures Thank , I agree keeping it for 10% in roth is what i would do at least i can see annual return around 9 % worst .
Great interview
Thanks!
QQQI/SPYI are my two biggest holdings behind FEPI
Great interview! I already own QQQI and am interested in BNDI. Have you thought about doing a video on this NEOS ETF?
Great interview! Thanks
Thanks!
Interesting to see how they sometime don’t sell calls against their entire portfolio to not miss on the upside. Also, selling spreads is interesting because the credit received is so mediocre that it wouldn’t be worth it. Dave, can you walk us through the issue with Nav which I don’t understand well. Does it mean that their distributions may exceed their holdings and the overall notional value of the fund?
There should not be an issue with the NAV but the concern is a whipsaw move. For example, the index plummets down 20% one month and back up 20% the next. If you just own the stock, no issue. If you sell a call, you get that gain month 1 but during month 2 you can "lock in the loss" with the call being sold limiting your gain. Make sense?
@@wealthadventures yep. Your videos are always highly informative. Thank you for sharing.
I will be buying more of these and some Fepi as well. Some math to get $100 in distributions:
171 shares or $8639 for QQQI
205 shares or $10,112 for SPYI
91.49* shares or $4985 for Fepi.
I have not been buying much Jepi/Jepq lately I might sell them and put the proceeds into different funds and fepi's distribution varies each month. I look forward to Neo's future etfs oneday. I might be able to retire in 10-15 years. Not a fan of bitcoin, though I do like metals and dividends.
Nice. Good luck!
Great interview!
Thanks!
Dave, can you do one on gold ETF'S? specially if you would discuss the differences between IAU vs IAUM vs AAAU, vs GLD vs OUNZ. I am wondering why iShares would have 2 gold etfs with different expense ratios? IAU vs IAUM?
I will take a look but not my best area.
I do hold both of these etfs. But, what gives me a pause is that this fund house is relatively new. And I still do not always understand ROC with this, how can they do ROC and still claim to participate in market gains? ALSO, what will happen when S and P crashes? They might end up holding stocks at high prices and have to sell those covered calls for the price lower than they bought those index for!
Think of it as 2 things. 1) Basket of stocks that roll along with the S&P. 2) Options that get settled once a month. Sometimes the options provide income and sometimes they result in a loss. When they provide income, the S&P was flat, slightly up, or dropped. When they have a loss, the S&P had a good month and the stock basket grew. Does that help?
Where i can find information what % of distribution from 2023 year was ROC?. On their site there is no infomartion.
I think they were about 60%
@@eljuancho2 He said in video. I looked on their page i find there 8937 form from 31.5.23. i hope that this form will be pulished in a few days
Need to check your tax form from your brokerage.
@@wealthadventures My broker is Alpaca (i am Non US investor) and this broker dont provide info like this. I will wait on 8937 form which should be posted in few days on NEOS site.
Do you have any book recommendations on learning all the language and math that goes along with understanding the stock market?
Are you looking for a book on valuation of a stock or just stock market basics?
@@wealthadventures Both, honestly! I know the basics of reading the stats on an ETF, but not enough to determine if its worth investing in over other funds.
Not an options expert so i know upside can be limited with out of market covered calls but the losses that are paired with gains for roc are created how? Thanx
Is this correct unlesss paired with a loss for roc? Option premiums received by the covered call ETF are considered short-term capital gains and are taxed as ordinary income. This means that the income generated by the ETF is taxed at the investor's marginal tax rate.
Think of it as 2 different trades. They own stocks which they do not sell so no tax consequence. They sell options which sometimes create income but sometimes result in a loss. This option loss is more often the result when the market is trending higher. These option losses can be passed along despite the gains in the stocks.
So these ETFs are recommended to be placed in taxable accounts?
Just depends on the user in my opinion. Best not to pay taxes so if you don't need the income, tax deferred would be best. However, if you want the income now it could be in a taxable account and the use of ROC should be a benefit to shelter some of the distribution.
@@wealthadventures Thanks for your response. I'm in my late 60s now but still working. Do any of these hybrid, covered call, option selling, sci-fi, new-fangled, income ETFs return less capital than others? Return of capital just bugs me. I'd like to be awarded a dividend without the sacrifice of digging into the value of my position. I heard a guy who kinda does what you do---sing the praises of DIVO. As far as I know, 2/3 of DIVO's dividend is ROC. I'll check out your other covered call ETF videos. Some of these instruments might be better tuned than others. I'm starting to see why older investors like bonds. Keeping up with this stuff and the market's volatility causes premature aging.
Any opinions on these oil ETFs like USOY
I will take a look and add it to my growing list! They come from everywhere.
@@wealthadventures yes you're so right. Been following you for a while you're doing a good job. A lot of uneasiness out there in the buying stock world. As far as this ETF I will buy some of this and see how it goes for 6 months through the summer. My wife and I already own quite a bit Exxon and Epd, ENB. By all metrics we should be experiencing a 10 to 20% drop this summer and I think oil will hold.
I wonder if ROCs that make costs go to zero then what? Reverse split or retire the fund? 😆
I'll stick with JP Morgan, thanks for the video though.
ZIVB has 26% dividend yield
I will take a look but be careful with those. That can get wild quick!
@wealthadventures
Most peoples first reactions are like yours.
But very few pay attention to how quick the 'recovery' is. It may go down, but it never stays there.
@wealthadventures
Most people are focused/scared on 'get wild quality' and miss how it can 'get better quality' after the storm has passed .
Think about this.
It may go down but it never stays there
@wealthadventures
All you need to know about ZIVB is in this article:
How Does Volatility Shares’ -1X Medium Term ZIVB Work? August 27, 2023 by Vance Harwood
All you need to know about ZIVB is in this article: " How Does Volatility Shares’ -1X Medium Term ZIVB Work? "
August 27, 2023 by Vance Harwood
ISPY/IQQQ are better than SPYI/QQQI
I will be checking them out.