I think if you're looking for growth this isn't it, but if you want income this seems the way to go! I'm looking at retiring early using qyld. All my eggs in one basket is the only thing that makes me nervous about it.
Obviously I’m not financial advisor or any professional, but I’m in same boat. Check ORC high dividend yield pay monthly price right now it’s dip 5 each stock pay 0.06 cent but if you compare QYLD vs orc 2 cent more with orc if you have 4 or 5 stock.
@@joseffigueroaguzman999 I’m in ORC rn bought 110 shares at 5.69 a while ago and I was super pissed about it dipping so low but my div reinvestments should straighten everything out in a year or so
I've looked at a lot of these NUSI seems to be the best one it has downside protection and some growth generating a 7.7% yield during the covid crash it only went down 12%.
Think of it this way. A retiree has $100k and wants income. In most dividend funds that would give them $3000 a yr. In QYLD or RYLD that would give them $11000 to $12000 a yr. That should be obvious. The retiree will never sell, just.collect the monthly.income.
If a retiree spends all the distribution from QYLD, they will eventually see their account go to $0 (if future performance of QYLD is anything like its past). They'd need to re-invest 40-60% of the distribution just to maintain their original investment. There are many months/years QYLD did not return a 12% dividend, by the way.
@@CalmerThanYouAre1 I just plugged the historical monthly numbers into a spreadsheet and you only need to reinvest 15.6% of your dividends to maintain your original investment.
Noticed that you returns are only based on a major bull run! If the markets go flat or decline qyld would outperform schd. Dividends get smashed in long term bear markets. Covered calls continue nomatter what. I don't mean extreme sell-offs just sideways to moderately declining markets. When interest rates rise margins get squeezed and dividends get clipped!
A lot of people reviewing QYLD seem to forget this, especially those numbnuts that don't include dividends re-invested. They'll compare VOO to QYLD and that's like comparing apples to wrenches. I like this video and have seen a few others related to QYLD and as far as people like me in the second camp that never actually ran the numbers. It's better to buy a growth stock (QQQ), then sell it 15 years from now and put THAT money toward QYLD than to start a small snowball and get it rolling. THAT BEING SAID, past performance doesn't dictate future earnings so the past few years don't matter going forward. I'll buy about 50 shares of QYLD over time, let it DRIP to about 100, then use the dividends to buy other stocks.
I believe most retail investors do not have a full grasp on the creative financing QYLD can produce. You can borrow leverage at 2.5% and QYLD returns about 11%. You can then use that income when seeking a mortgage. I've been doing it for awhile now and bought a condo this year
This income is for money now and if you never plan to sell it don’t matter if it don’t appreciate. … but this is.for older ppl or anyone close to retiring sooner than later .
There are many periods over QYLD's history when it didn't pay 11-12%. It frequently paid 7-9% in previous years. If you do a back test on Portfolio Visualizer you'll find that you'd have had to re-invest 40-60% of the distribution in order to "break even" and not lose any of your original investment, since the inception date of QYLD. The yield is an illusion. Investors are leaving a tremendous amount of potential gains on the table by getting enticed by the 12% yield they're seeing in 2020/2021. Be careful!
Even if it's in a taxable account the taxes will be deffered if the dividend remains 100% return on capital. In order to get enough return of capital to get your cost basis to Zero it would take 8.5 years. Then after that ordinary income tax. And then if you sell it would all be taxed at long term capital gains. Or you could reinvest the dividend keeping cost basis high and never get taxed at all. Then will it to your kids. Then the kids pay no tax on it because it's an inheritance.
@@CalmerThanYouAre1 one month of 9 cents. It has a track record going back to 2013. Also RYLD NUSI JEPI and DIVO. Price history on qyld $19 to 26 so fairly flat.
the fund has averaged right around 10% yearly since inception. If you build your own spreadsheet and calculate what this fund will do, it will surprise you. Don’t rely on articles to convince you based on certain time periods. Also, don’t rely on online calculators. I have discovered that several of them are actually not correctly performing the math. Even if the fund NAV slowly depreciates, it actually helps in accumulating more shares which leads to massive dividends. Don’t take my word for it, build your own spreadsheet. This is not a growth fund but it can be used to build wealth using a different approach to investing. In a flat or declining market like 2000-2015, this fund would outperform all growth funds. It’s a hedge against a growth drought. Can the explosive growth continue in all sectors, maybe, but I’m not putting all my eggs in that basket. I also don’t advocate for 100% investments into QYLD like funds.
QYLD has a distribution currently as ROI, huge difference in taxing. More so if the mindset is to have growth (in total return) of what the taxes would be if you sell SCHD to get the income from QYLD. The only honest way to test this would be to project that a 10k investment in QYLD that would fund a monthly purchase of SCHD. This way you get growth, but also the tax shelter (currently) of ROI, then see what the total return would be.
If you've got more than 10 Years to wait in the market, you're better off in an Index ETF. If you're looking to live off the dividends you could use QYLD or others like JEPI...But you need to understand that a crash will give you almost all the downside and limited upside. You'll still collect that yield, but it will be 10-12% of your portfolio that is cut in half. So you should aim for 2X the yield you actually need. It should be noted that if the market slides for an extended period of time your yield will also go down as options premiums will reflect the smaller moves.
So here's a question of what would you do, I'm 37 married with one kid I work for the local natural gas comp and have a 401k there where they match 11.5% and I put in 15%, I make over 100k a year and my 401k is close to a mill have been adding to it since 22 when I started there, it's union and if I want would have the job for the rest of my life, I'm about to sell one of my rentals and gonna make over 250k with how house crazy the housing Market is in CT, I have my personal investment account with about 20 quality growth dividend portfolio, I want to take that 250k and just put it into jepi and qyld and just leave it alone and let it compound what would you do?
Your overall analysis of QYLD is spot on; however, I don't think your numbers are right when comparing the yield on cost. That Market Beat dividend calculator is way off. Your yield on cost with QYLD is going to be MUCH higher over 10 years than SCHD. However, that YOC is somewhat misleading since some of that yield came at the expense of capital depreciation. In pretty much every scenario and time period imaginable an investor would be better off living off the SCHD dividend and selling shares when necessary vs. simply living off the QYLD distribution while watching their capital erode over time.
How about the time period of 2000-2014 for the NASDAQ or 2000- 2013 for the SP500. That was a brutal growth period. Something like QYLD would have really blown away the growth funds during that decade+ of little movement.
Which web sites were you using the compare the funds in your video? You had a "day mode" web site with the funds overlaid on a chart and a "night mode" web page showing the total return near the end of the video. Is it the premium version of Seeking Alpha?
BOA expects 0% growth over next 10 years just announced. This is great for qyld because they it will outperform your growth etfs. People should take into consideration what the banks forecast like you u tubers
I think if you're looking for growth this isn't it, but if you want income this seems the way to go! I'm looking at retiring early using qyld. All my eggs in one basket is the only thing that makes me nervous about it.
Obviously I’m not financial advisor or any professional, but I’m in same boat.
Check ORC high dividend yield pay monthly price right now it’s dip 5 each stock pay 0.06 cent but if you compare QYLD vs orc 2 cent more with orc if you have 4 or 5 stock.
There are a few similar etfs that I know of. Could spread between them
Maybe QYLG?
@@joseffigueroaguzman999 I’m in ORC rn bought 110 shares at 5.69 a while ago and I was super pissed about it dipping so low but my div reinvestments should straighten everything out in a year or so
See I would invest $10,000 into this and use the dividend to invest into other companies
QYLD started in 2013
I've looked at a lot of these NUSI seems to be the best one it has downside protection and some growth generating a 7.7% yield during the covid crash it only went down 12%.
old comment iknow, and i like nusi, but nusi is TERRIBLE in sideways markets. great in flash crashes, though.
Think of it this way. A retiree has $100k and wants income. In most dividend funds that would give them $3000 a yr. In QYLD or RYLD that would give them $11000 to $12000 a yr. That should be obvious. The retiree will never sell, just.collect the monthly.income.
As stated, people in need of income today, qyld can be very appealing. It's just that the total returns lack for those wanting income in the future.
If a retiree spends all the distribution from QYLD, they will eventually see their account go to $0 (if future performance of QYLD is anything like its past). They'd need to re-invest 40-60% of the distribution just to maintain their original investment. There are many months/years QYLD did not return a 12% dividend, by the way.
@@CalmerThanYouAre1 I just plugged the historical monthly numbers into a spreadsheet and you only need to reinvest 15.6% of your dividends to maintain your original investment.
@@Kemo_Robby Hi Rob, what would that come to?
@@Vinny1USA sorry, I don’t understand what you’re asking. Can you be more specific?
Noticed that you returns are only based on a major bull run! If the markets go flat or decline qyld would outperform schd. Dividends get smashed in long term bear markets. Covered calls continue nomatter what. I don't mean extreme sell-offs just sideways to moderately declining markets. When interest rates rise margins get squeezed and dividends get clipped!
That's the importance of a low payout ratio, growing revenues, and a track record of dividend increases.
A lot of people reviewing QYLD seem to forget this, especially those numbnuts that don't include dividends re-invested. They'll compare VOO to QYLD and that's like comparing apples to wrenches.
I like this video and have seen a few others related to QYLD and as far as people like me in the second camp that never actually ran the numbers. It's better to buy a growth stock (QQQ), then sell it 15 years from now and put THAT money toward QYLD than to start a small snowball and get it rolling. THAT BEING SAID, past performance doesn't dictate future earnings so the past few years don't matter going forward.
I'll buy about 50 shares of QYLD over time, let it DRIP to about 100, then use the dividends to buy other stocks.
I believe most retail investors do not have a full grasp on the creative financing QYLD can produce. You can borrow leverage at 2.5% and QYLD returns about 11%. You can then use that income when seeking a mortgage. I've been doing it for awhile now and bought a condo this year
This income is for money now and if you never plan to sell it don’t matter if it don’t appreciate. … but this is.for older ppl or anyone close to retiring sooner than later .
QYLD is for income not growth. Tax free savings 11 to 12% if you own in a Roth ira.
There are many periods over QYLD's history when it didn't pay 11-12%. It frequently paid 7-9% in previous years. If you do a back test on Portfolio Visualizer you'll find that you'd have had to re-invest 40-60% of the distribution in order to "break even" and not lose any of your original investment, since the inception date of QYLD.
The yield is an illusion. Investors are leaving a tremendous amount of potential gains on the table by getting enticed by the 12% yield they're seeing in 2020/2021. Be careful!
Even if it's in a taxable account the taxes will be deffered if the dividend remains 100% return on capital. In order to get enough return of capital to get your cost basis to Zero it would take 8.5 years. Then after that ordinary income tax. And then if you sell it would all be taxed at long term capital gains. Or you could reinvest the dividend keeping cost basis high and never get taxed at all. Then will it to your kids. Then the kids pay no tax on it because it's an inheritance.
@@CalmerThanYouAre1 one month of 9 cents. It has a track record going back to 2013. Also RYLD NUSI JEPI and DIVO. Price history on qyld $19 to 26 so fairly flat.
the fund has averaged right around 10% yearly since inception. If you build your own spreadsheet and calculate what this fund will do, it will surprise you. Don’t rely on articles to convince you based on certain time periods. Also, don’t rely on online calculators. I have discovered that several of them are actually not correctly performing the math. Even if the fund NAV slowly depreciates, it actually helps in accumulating more shares which leads to massive dividends. Don’t take my word for it, build your own spreadsheet. This is not a growth fund but it can be used to build wealth using a different approach to investing. In a flat or declining market like 2000-2015, this fund would outperform all growth funds. It’s a hedge against a growth drought. Can the explosive growth continue in all sectors, maybe, but I’m not putting all my eggs in that basket. I also don’t advocate for 100% investments into QYLD like funds.
QYLD has a distribution currently as ROI, huge difference in taxing. More so if the mindset is to have growth (in total return) of what the taxes would be if you sell SCHD to get the income from QYLD.
The only honest way to test this would be to project that a 10k investment in QYLD that would fund a monthly purchase of SCHD.
This way you get growth, but also the tax shelter (currently) of ROI, then see what the total return would be.
If you've got more than 10 Years to wait in the market, you're better off in an Index ETF. If you're looking to live off the dividends you could use QYLD or others like JEPI...But you need to understand that a crash will give you almost all the downside and limited upside. You'll still collect that yield, but it will be 10-12% of your portfolio that is cut in half. So you should aim for 2X the yield you actually need.
It should be noted that if the market slides for an extended period of time your yield will also go down as options premiums will reflect the smaller moves.
I am confused at what the writer of the quoted article meant by "negative cash flow" if the portfolio goes up. That is not how call options work.
So here's a question of what would you do, I'm 37 married with one kid I work for the local natural gas comp and have a 401k there where they match 11.5% and I put in 15%, I make over 100k a year and my 401k is close to a mill have been adding to it since 22 when I started there, it's union and if I want would have the job for the rest of my life, I'm about to sell one of my rentals and gonna make over 250k with how house crazy the housing Market is in CT, I have my personal investment account with about 20 quality growth dividend portfolio, I want to take that 250k and just put it into jepi and qyld and just leave it alone and let it compound what would you do?
What was the website you used for total return calculations around 5min into the video
I'm not sure, but I know Stock Charts' free "perfchart" shows total returns.
Your overall analysis of QYLD is spot on; however, I don't think your numbers are right when comparing the yield on cost. That Market Beat dividend calculator is way off. Your yield on cost with QYLD is going to be MUCH higher over 10 years than SCHD. However, that YOC is somewhat misleading since some of that yield came at the expense of capital depreciation. In pretty much every scenario and time period imaginable an investor would be better off living off the SCHD dividend and selling shares when necessary vs. simply living off the QYLD distribution while watching their capital erode over time.
How about the time period of 2000-2014 for the NASDAQ or 2000- 2013 for the SP500. That was a brutal growth period. Something like QYLD would have really blown away the growth funds during that decade+ of little movement.
Makes more than a savings account
It is an ETF, not a closed-end fund, as you said on the video.
Which web sites were you using the compare the funds in your video? You had a "day mode" web site with the funds overlaid on a chart and a "night mode" web page showing the total return near the end of the video. Is it the premium version of Seeking Alpha?
“ETF total return calculator” and Google finance for the chart overlays.
very helpful, thank you
Glad it was helpful!
Even if it's flat (which it hasn't been since inception) you're still losing money due to normal inflation.
0:04 this is not Close End Fund
A little bit of misinformation in this video but he tried
BOA expects 0% growth over next 10 years just announced. This is great for qyld because they it will outperform your growth etfs. People should take into consideration what the banks forecast like you u tubers