Way back in the early 1970's I knew an old timer, the only thing he invested in was Preferred Stocks, being a rookie I said what's that ? & why do you only buy that asset class ? he replied "cash flow ". His advice had a big impact on me, so from 1973 on that what I buy also. I have moved every thing over to ETF's & CEF's much more easy on me to keep up with.
AWESOME DOUG! Thank you so much for joining the Average Joe Investor community! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
I like the series format. If the dividends are significant enough to offset the loss of capital, could be ok. I don't like how they all look compared to the S&P, but growth isn't the priority with these. Will be watching these at least once more. THANKS!
Great video Joe, you are right, 25 minute video are too long, thanks for making this 2 segments. For my situation, I'd rather not see capital degradation, some growth with a dividend that's also growing (even if slowly) is more attractive. cheers,
@@AverageJoeInvestor I don't fit what's the problem of saving video and comming back later. It ain't 90s anymore where u nas to watch tv from start to end or u lost it forever. It's easier to have more in one place imo especially with time cuts where u can jump to part u want
Great video! How about reinvesting on the dips? Please analyze: 1. No monthly contributions, Not reinvesting dividends, Lump sum investment with dividends going into money market. 2. Same as 1. but buy on dips with money market funds. This will add another 5-10% to overall return.
AWESOME! Thank you so much for joining the Average Joe Investor community! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
One way to hold value of the Preferred ETF when market turns down is to sell calls against the position. Use the hedge to make cash profits against unrealized losses (or reduction in unrealized gains) to keep the capital value roughly same as original purchase while collecting the dividends. Have to be slightly more active but it's worth the effort.
This is great. Can you create an updated video comparing these same ETFs that include 2022 YTD and one that has the entire history of the ETF comparing them to S&P 500 and the Russel 2000? It's been a rough year and just curious how the results changed for the better or worse. Thank you, keep up the great content.
Good time series analysis on preferred ETFs. As a contrast, try looking at the same period for preferred CEFs. Flaherty & Crumrine has multiple preferred CEFs and they are considered as masters of preferred stock investing. Look at FFC, FLC, DFP and PFD. These CEFs are actively managed, but unlike preferred stock ETFs use leverage to I crease AUM and, therefore, distribution yields. Also, based on demand and underlying asset wuality, they have traded at an increasing premium over NAV;however, they are not prohibitively expensive, given their Sharpe Ratios and Alpha factors. The only fund with a prohibitively high premium is PFD. Looking forward to seeing the comparison.
Where I see value in these stocks is protection against a stock market crash. Granted in the long term, the market will catch back and be better, but for people looking at shorter term, very conservative investment (i.e. bank savings account/cd) these are much better.
GREAT POINT BOB! It also diversifies your cash flow. I personally am not concerned about market corrections, but others have different time frames and are in the distribution phase of life and it makes a big difference. THANK YOU for watching Bob and for leaving your $0.02 in the comments! 😎👍🏻
When I look at those preferred stocks I am thinking it is very good source to keep your money as emergency funds. Am I right? If I saved today amount of X for my 6 months expenses cover - according to your video, in period of time of 8 years I would still have access to nearly same amount of X. We can then split dividend from this fund and: 1. invest back a portion to cover inflation 2. invest rest in any other asset Please feel free to correct me if I am wrong
looked things up here in sweden and some EU laws from 2018 has made it impossible for us to buy any of theese ETFs so il pass on them. im interested in why you think Altria(MO) is a dividend stock to have in the portfolio? do they have a future in the tobacco industies?
Is the spreadsheet available in the Patreon? I might get into one of these but I need to study the spreadsheet better than I can do in the video. The combination of one with decent capital preservation, decent yield, and low expense ratio might be an option to replace a bond fun I currently own. We'll see. And FWIW, I sort of missed the music.
The background music Joe chooses is not distracting or annoying. it's background. Certain channels have great content, but too much noise so I avoid them or do a quick closed caption to get the gist. There's a significant connection between beat and brain function. Interestingly, research (a while ago) indicated that boys study better with background noise, girls do better with quiet. 4/4 time helps with memory retention (like Gregorian chant). Just a bit of trivia....
Do these etfs pay out qualified dividends or ordinary income? I might buy one or two of these, probably PFXF. Eventually can you do a video on global x newest two income etfs: Qrmi and Xrmi?
The dividends aren't good enough on these preferred stocks to justify such poor capital return. In fact unless I missed it their growth is so poor it doesn't even look like they track well with inflation... SCHD would be better; great dividends great growth
True Michael, and I love SCHD myself and its in my portfolio. The only difference is SCHD will drop in a market correction and has a lower dividend yield. It depends on your current goals for sure. THANK YOU for watching Michael and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor And seven months later things have changed drastically. Preferred ETFs might be a better choice right now? So much volatility everywhere.
GREAT QUESTION JAMIE. Expense ratios affect the NAV of any investment and open-ended funds always track the NAV very closely so Yes, the expense ratios are accounted for in the data. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Way back in the early 1970's I knew an old timer, the only thing he invested in was Preferred Stocks, being a rookie I said what's that ? & why do you only buy that asset class ? he replied "cash flow ". His advice had a big impact on me, so from 1973 on that what I buy also. I have moved every thing over to ETF's & CEF's much more easy on me to keep up with.
Well done. PFXF with .40 expense ratio and PFFD with .23 bps is interesting. I own PFFD.. I have owned PFXF in the past.
I subscribed. I've been doing a mix index ETFs and dividend investing. I enjoy your insight to investing.
AWESOME DOUG! Thank you so much for joining the Average Joe Investor community! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
I like the series format. If the dividends are significant enough to offset the loss of capital, could be ok. I don't like how they all look compared to the S&P, but growth isn't the priority with these. Will be watching these at least once more. THANKS!
GREAT FEEDBACK! Thank you for weighing in. 😎
Great video Joe, you are right, 25 minute video are too long, thanks for making this 2 segments. For my situation, I'd rather not see capital degradation, some growth with a dividend that's also growing (even if slowly) is more attractive. cheers,
so u cant just stop it and watch it anytime later? what about he does 25 videos of 1 minute?
THANK YOU so much for that feedback Eric! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
LOL Bart, but why stop there? How about 50 30 second videos, haha. THANK YOU for watching and leaving your $0.02 in the comments. =)
@@AverageJoeInvestor I don't fit what's the problem of saving video and comming back later. It ain't 90s anymore where u nas to watch tv from start to end or u lost it forever. It's easier to have more in one place imo especially with time cuts where u can jump to part u want
Great video!
How about reinvesting on the dips? Please analyze: 1. No monthly contributions, Not reinvesting dividends, Lump sum investment with dividends going into money market. 2. Same as 1. but buy on dips with money market funds. This will add another 5-10% to overall return.
Thank you Joe for including the lump sum investment...I need to see this for my needs...
You bet Thomas! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Love the series. Also, I appreciate the details in your video.
You bet! THANK YOU for watching and for leaving your $0.02 in the comments!
I subscribed. Great content joe, you’re doing a great job. Greetings from Brazil 🇧🇷
AWESOME! Thank you so much for joining the Average Joe Investor community! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
Thanks for all the hard work. Loved that you split it into two videos. Won't be adding any to my portfolio at this time.
THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
One way to hold value of the Preferred ETF when market turns down is to sell calls against the position. Use the hedge to make cash profits against unrealized losses (or reduction in unrealized gains) to keep the capital value roughly same as original purchase while collecting the dividends. Have to be slightly more active but it's worth the effort.
This is great. Can you create an updated video comparing these same ETFs that include 2022 YTD and one that has the entire history of the ETF comparing them to S&P 500 and the Russel 2000? It's been a rough year and just curious how the results changed for the better or worse. Thank you, keep up the great content.
I would love hear your opinion of BST and UTG as dividend investments. Thanks.
I actually already filmed BST/BSTZ and its coming out Friday. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor Thank you! Looking forward to it.
@@AverageJoeInvestor I prefer cefs over etfs for generating income. Will you be covering cefs now? I would be very interested in that!
Which one would you pick?
BST & UTG are great funds to own!
Good time series analysis on preferred ETFs.
As a contrast, try looking at the same period for preferred CEFs. Flaherty & Crumrine has multiple preferred CEFs and they are considered as masters of preferred stock investing. Look at FFC, FLC, DFP and PFD. These CEFs are actively managed, but unlike preferred stock ETFs use leverage to I crease AUM and, therefore, distribution yields.
Also, based on demand and underlying asset wuality, they have traded at an increasing premium over NAV;however, they are not prohibitively expensive, given their Sharpe Ratios and Alpha factors. The only fund with a prohibitively high premium is PFD.
Looking forward to seeing the comparison.
Where I see value in these stocks is protection against a stock market crash. Granted in the long term, the market will catch back and be better, but for people looking at shorter term, very conservative investment (i.e. bank savings account/cd) these are much better.
GREAT POINT BOB! It also diversifies your cash flow. I personally am not concerned about market corrections, but others have different time frames and are in the distribution phase of life and it makes a big difference. THANK YOU for watching Bob and for leaving your $0.02 in the comments! 😎👍🏻
When I look at those preferred stocks I am thinking it is very good source to keep your money as emergency funds.
Am I right? If I saved today amount of X for my 6 months expenses cover - according to your video, in period of time of 8 years I would still have access to nearly same amount of X.
We can then split dividend from this fund and:
1. invest back a portion to cover inflation
2. invest rest in any other asset
Please feel free to correct me if I am wrong
Great video as always . I apologize if you talked about it in the past but what do you think about orc?
looked things up here in sweden and some EU laws from 2018 has made it impossible for us to buy any of theese ETFs so il pass on them. im interested in why you think Altria(MO) is a dividend stock to have in the portfolio? do they have a future in the tobacco industies?
Is the spreadsheet available in the Patreon? I might get into one of these but I need to study the spreadsheet better than I can do in the video. The combination of one with decent capital preservation, decent yield, and low expense ratio might be an option to replace a bond fun I currently own. We'll see. And FWIW, I sort of missed the music.
Coming Today - I got backed up.
The background music Joe chooses is not distracting or annoying. it's background. Certain channels have great content, but too much noise so I avoid them or do a quick closed caption to get the gist. There's a significant connection between beat and brain function. Interestingly, research (a while ago) indicated that boys study better with background noise, girls do better with quiet. 4/4 time helps with memory retention (like Gregorian chant). Just a bit of trivia....
You forgot to compare it to the average joe quality dividend portfolio
Touché Brandon. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Please notice that not reinvesting dividends beats dollar cost averaging when investing with a lump sum.
I only buy Vangaurd funds for the lower expenses
I can appreciate the concern about the expense ratios. THANK YOU for watching William and for leaving your $0.02 in the comments! 😎👍🏻
Should have added CEF CCD, which would have crushed all of these over 3 & 5 year periods, at the time this was done.
I was looking at PGF as a possibility. What are your thoughts?
Do these etfs pay out qualified dividends or ordinary income? I might buy one or two of these, probably PFXF.
Eventually can you do a video on global x newest two income etfs: Qrmi and Xrmi?
The dividends aren't good enough on these preferred stocks to justify such poor capital return. In fact unless I missed it their growth is so poor it doesn't even look like they track well with inflation... SCHD would be better; great dividends great growth
True Michael, and I love SCHD myself and its in my portfolio. The only difference is SCHD will drop in a market correction and has a lower dividend yield. It depends on your current goals for sure. THANK YOU for watching Michael and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor And seven months later things have changed drastically. Preferred ETFs might be a better choice right now? So much volatility everywhere.
If the Fed raises rates, do preferred ETFs have higher yields?
Do you incorporate the expense ratios into any of your calculations?
GREAT QUESTION JAMIE. Expense ratios affect the NAV of any investment and open-ended funds always track the NAV very closely so Yes, the expense ratios are accounted for in the data. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Expense ratios look pretty high? 🤔😳
That's true Mike. They are certainly higher than I am used to. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Spy looks like it always a winner
5731 Bernice Ford