How Does Kurv Deliver Higher Total Returns? (13% Yield)
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- Опубликовано: 28 май 2024
- KURV Founder and CEO, Howard Chan, joins me to discuss their high yielding ETFs. Funds including GOOP (based on GOOGL) and TSLP (based on TSLA), are generating double digit yields. We discuss the strategy, the risks, and how these funds compare to Yieldmax funds including TSLY. If you like dividend investing, I hope you enjoy this discussion of KURV ETFs. For Timestamps, scroll down to the bottom of this Description...
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Timestamps:
00:00 Preview
00:22 I thought KURV was a Yieldmax copycat
00:50 Total return of GOOP from KURV is higher than GOOY from Yieldmax; Will that continue?
2:47 KURV in a nutshell
3:34 Is the Tesla fund, TSLP, the most popular one?
4:05 Why does KURV's GOOP ETF yield less than Yieldmax's GOOY ETF?
7:23 Why are the KURV monthly distributions more consistent than Yieldmax's?
8:40 Why does KURV use a synthetic option strategy?
9:59 When would KURV switch to owning the underlying stock?
11:05 Breakdown of the distributions
12:07 NAV Erosion
12:33 The downside risk of KURV ETFs
13:30 KURV's TSLP ETF versus Tesla stock (TSLA)
14:02 What happens to GOOP if Google stock drops 20%?
16:20 3 Scenarios in which covered calls do best
18:13 What did you learn from backtesting KURV ETFs?
19:35 What is the best way to place orders for new/small ETFs like this?
20:28 Will KURV ETFs generally appreciate if the underlying stocks are trending up?
22:08 Why do KURV ETFs perform similar to Yieldmax ETFs if the underlying stocks falls?
23:29 Taxes, including KURV's distribution of Return of Capital
27:00 KURV Fees
27:33 Why do you use NEOS as a sub-advisor and what do they do?
30:10 Why did you leave Pimco to found KURV?
33:00 What is the KURV pipeline for future ETFs?
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Хобби
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You deserve 100k subscribers, your interviews are always so interesting. Thanks for not only asking direct questions, but also for being a good listener, picking up on details and being flexible in the way you conduct the interviews.
I really appreciate your feedback. Interviewing is harder than it looks but I'm working on improving with each one. Only 85k subs to go and that 100k is a done deal ;)
Very thought-provoking, high value, interview. It certainly is going to propel me into a deep dive of Kurv and their family of funds. I've avoided the single-stock ETFs to this point, but could see myself toe-dipping into MSFY, GOOP, or AMZP.
Thanks for the channel!
I have a similar view. I discounted single stock income funds but after talking to Howard, I'm open to them. However, the concentration risk is still there so I'd want to allocate accordingly.
Need that kurv basket etf
Agreed!
You do such an amazing job on your channel!! What a fantastic interview!!
Thanks for being one of the first to watch it!
This was a very good interview. The Kurv CEO well articulated a lot of this and helped lay it out in a way that was easy to visualize. Thanks for this!
Glad you enjoyed it!
Good interview. I think Kurv has a solid approach, but my largest concern is simply the financial and operational viability of the individual ETF's. They do not have significant AUM according to publicly available data. They did file for a Yield Premium Technology Select (fund-of-funds essentially per the SEC filing) that I think would be a great option for enhanced income with focused NAV considerations. That would be of greatest interest to me in terms of their offerings (potential in this case). Other recent filings were a Short Maturity ETF and a Tax Optimized Large Cap ETF. Like other firms, they have many more filings that have not yet come to market, but those 3 are the most recent public filings.
Nice detective work...yes, you described their pipeline. It's too early for me for the reasons you gave, however, I thought it was interesting to learn about their strategy.
Based on his choice of words, I inferred that one of the ETFs was going to be a bond ETF, so the Short Maturity ETF will probably be something like that. I'm interested in what the final version of the Tax Optimized Large Cap ETF will turn out to be.
Great interview, and he's a great ceo/spokesman for the company.
He was great to interview. I hope they release more ETFs that I'm interested in because I'd like to interview him again.
Thank you for your professionalism and quality content.
Much appreciated! I'm glad you enjoyed it.
This is a very good interview. I learned some things from Howard Chan with the help of a good interviewer with great questions. I took a hit from investing in TSLY and learned a hard lesson. I am interested in YMAX and may look into how to play Kurv ETFs but I am very reluctant to invest into a single stock hi-yield option ETF, again.
Important to understand the concentration risk of any single stock fund. Glad you found it an informative interview!
Hi Jay, See my other post here an YM vs Kurv, specifically for TSLY vs TSLP. Spoiler: about the same.
I own several YM ETF's and they are doing well. NVDY, AMZY and FBY.
Could be worse, you could have owned TSLA direct. :-/
Really like this series of interviews. Keep up with the great work.
That's great to hear (I mean read). I'm glad you like it!
Thank you sir. Kurv seems to be doing it right
Early days but they're off to a good start!
Excellent interview as usual, thank you!
Thanks for your feedback. Glad you liked it :)
Thank you for this interview 🙏
Thanks for watching and taking the time to comment.
Great channel & great interview!
Much appreciated!
Great interview questions and the detailed responses from KURV were excellent. My opinion of their funds after hearing how and why they make their decisions really improved from this interview. I'm currently still allocating the aggressive portion of my portfolio into Yieldmax funds, but Kurv looks to have some really solid retirement style funds. Look forward to seeing more from them.
Thanks for your feedback. There was more to KURV than I anticipated.
VIIKING - Can you talk more about your YieldMax experience? It appears their strategy is to erode principle in the name of increasing shares. I'm interested in buying into either YMAX or AMDY (I think AMD has a great future) but I don't want my principle to disappear.
@@SomeUserNameBlahBlah Creative username. :) I own about 10 of the yieldmax funds including AMD & YMAX. From my experience only the funds with very volatile underlying stocks erode principle, because the covered call strategy can only capture some of the upside when their value goes up. The Defiance funds are the best example of this (QQQY, IWMY or yieldmax TSLY, CONY, etc). Defiance are the hardest hit with principle loss because they do daily calls (caps it daily), the yieldmax do weekly calls (caps it weekly), and Kurv, or standard CC funds generally have a smoother growth as they do monthly calls. You can also see that the distribution yields are highest on the daily, and lowest on the monthly. If you don't want your principle to disappear, then you have to pick an underlying stock that always goes up or stays the same... good luck! The income return on a perfect fund like this will be really low because there is no risk. Yieldmax or any CC ETF fund makes money with volatility. My suggestion is pick AMD or an stable underlying fund you believe in, and just let the returns come in. Even if your principle drops a bit because of a bad market or earnings, you'll still be ahead on total return (distributions + principle). For myself, right now my AMD is down 7% from my purchase price, but my total return is positive 3% with the distributions. I could sell tomorrow and still be ahead of what I invested. As AMD goes up which I believe it will, then my principle will return and in the meantime distributions keep coming in each month and increasing my total return %. (Not a financial advisor blahblah :))
Great interview.....thank you so much.
Glad you enjoyed it!
Great interview
Thanks! Glad you enjoyed it :)
GR8 interview mate 👍👍👍
Thanks for the encouragement!
Thanks for the excellent video
You're most welcome :)
Excellent discussion regarding return of capital, thank you. 👍🏼
Glad you liked it!
Thank you very much for one more brilliant video !
Glad you enjoyed it!
Great video. Very informative. Thank you.
Glad you enjoyed it!
Very informative. Will be watching closely.
Glad it was helpful!
Woohoo! Great to see you sir!
Thank you kindly :)
Interesting, Great video.
Glad you enjoyed it
Great interview and I appreciate the education on new and interesting offerings!
Thanks! Glad you found it useful.
Good information ❤
Glad you liked it :)
Thanks for another in depth interview. I would definitely consider buying a Kurv fund of funds.
It's early days but I'm open to the concept...
Great interview Thanks. Might add some of these to my Armchair income.
Glad you enjoyed the interview :)
I really appreciate the work you put into your channel's content! This is another awesome interview! Thank you!
Glad you enjoy it. Comments like this make it worth the effort that goes into making these videos :)
Studied every word......GREAT.......as ALWAYS !!!!!!
Thanks for being one of the first to watch it. You must have the notifications bell turned on :)
Thanks! Great to hear from him. I feel like these are kind of in a block box so it is nice to understand how they work.
Glad you found it helpful!
I appreciate the calm, but straight to the point/firm questions and discussion, but not browbeating and trying to get “gotcha”’s. Always such good interviews and I’m learning so much more about investing.
I’ve always been skeptical of income ETF’s, but it seems that some have some actual safety! Not full-proof but somewhat of a foundation.
Thanks for your feedback and words of encouragement. Interviewing is harder than it looks but I enjoy it and want to continue to work on getting better at it. Income ETFs aren't for everybody but in some situations, regular cash flow has value, especially when the market is crashing!
Hello, I love your content . I am in the process of selling my business and follow the same path as you. Now after watching this video I think there is a question that you never ask these types of funds that it us an important one. All this covered call etf use T-bills as colateral for the cover call strategy and they add part of the yield from the t-bills to the total return. I want to know when the fed starts cutting interest rates and the t-bill yields start dropping. How will that affect this funds yields. Anyway keep it up man and thanks for the info
It’s a good point. The answer is that yields will come down as inflation comes down. Net purchasing power won’t change much. In other words, the yield relative to inflation is more important than the absolute yield. For KURV specifically, if rates get low enough they will switch from T Bills and synthetic positions, to holding the underlying stock.
Great content as always! I have generally stayed away from single stock ETFs but shall continue to research some of these considering their objective to keep income consistent.
Thanks for your feedback. There's no denying the concentration risk but when a basket fund comes along it will attract more investors.
@@armchairincomechannel I would like your thoughts on the fee. I know Howard mentioned the .99% is standard for something like this but JPM (fair enough has massive pricing power as Garrett mentioned in another video) has JEPI/JEPQ at .35% and even SPYI / QQQI are at .68%, .99% for KURV when you have a single stock ETF seems a bit high as he is not managing a basket of anything but I am learning more about this type of investment and appreciate the input.
Very informative and enjoyable to watch, thank you for sharing! Interesting to learn about the PIMCO connection, they are arguably the gold standard for bond investing.
Glad you enjoyed it. I'm a Pimco fan, and usually hold at least 1 of their funds.
Great interview! Their strategy seems very well thought out with adequate consideration given to mitigating the weaknesses of covered call funds. The hints given at their future products sound great too, I am hoping for something like the Vanguard Wellesley Fund with a bit more juice from covered calls. Something with a focus on downside protection but with income would be great for retirement accounts.
Thanks for your feedback. The downside protection isn't popular yet, but I agree that there's a market for that.
Thanks, these SSF covered call funds aren't in my area of interest but it's great to hear them out. Interesting they sort of partner with NEOS.
Glad it was helpful!
Another informative interview! You ask probing questions that help us understand the strategy. I’m not a single stock CC fund investor but I’m always happy to add to my knowledge. Thanks!
Thanks for your feedback. I have a similar approach. I prefer funds but it's still interesting to learn about funds like this.
Excellent interview !! But man I had ads running during your clip… But totally worth it. I’ll have a closer look at Kurds funds when they’ll have a wrap up ETF !
I signed up for RUclips Premium....no ads!! Also, you can download shows for plane trips etc. I'll be interested in the wrap ETF too.
@@armchairincomechannel Premium is on my wish list also … did it cut all the ads between, before, during and the end of the clips you watched? Meaning no ads AT ALL??
Thanks for another great interview. Something I am curious if you could add to these reviews is how NAV is preserved. You usually talk to it but if there is any way to show that performance it would be a help to me. When I get closer to retirement, I want to invest in some of these funds and a key goal will be to collect dividends but not lose the principal. If funds have a goal such as that and proof over time, I would be willing to invest. Or, if they can give guidance such as with this fund you can collect 10% dividends and reinvest anything over will ensure you preserve the capital. KURV appears to be a fund that is intentional at preserving NAV, so I appreciate that. Keep up the great work!
Thanks for your feedback. There are a lot of moving parts to NAV so its difficult to analyze. You can absolutely lose principal with (almost any fund, including) this fund because if the underlying stock falls in value, so does the fund. I'll take your suggestions into consideration going forward.
Impressive discussion with Howard, and it has solidified my decision to switch from the other guys. Your research linking the Simplified and NEOS guys is really impressive. I hold few funds from all three managers
Thanks for your feedback. I'm just happy that other people are interested in income investing too!
Thank you kindly for this interview. I love the Kurv vest! Do they have a swag shop online?
LOL! I haven't seen a merch shop but you may have hit on an untapped revenue stream for them :)
I’d prefer a share or more of their IPO, or a vest, size XL, for making the suggestion. I’m sure Shopify would be an excellent host?
Glad to see more attention paid to a balance of yield and price appreciation. As a retiree using funds for income some of the NAV erosion funds scare the crap out of me.
I agree. If there was NAV erosion I would not have wanted to do the interview!
Superb interview. I have enough exposure to Microsoft/Apple already, and Tesla/Netflix aren't as solid in my opinion.. but I might be interested in adding AMZP to my portfolio.
Thanks for your feedback. I feel like everybody on planet earth with more than $5 invested owns some Apple somewhere! It's early for me but I'll keep an eye on Kurv.
another great video and interview, thank you for sharing and bringing important information to dividend investors. Also, reading the comments here by your viewers and your replies are very helpful.
Thanks for your feedback. Also...good to know somebody is reading comments other than their own :)
I lost a lot on NAV on 2 well known ETFs on 2021 and have been to afraid to come back into them since, yes the monthly dividend payments where good however the NAV after 6 months destroyed that and much more!
NAV erosion is an important factor to consider. After that loss I expect you'll be much more cautious about which ETFs you buy.
@@armchairincomechannell Certainly am, you do great work on yt I appreciate all your content.
Great work with this very informative interview
I would like to see a fund of fund or something like ymag from the guys of kurv
It might well be their most popular fund when it comes out.
Thanks for the interesting idea! i'm thinking of finding a small place in my investments for one (maybe a couple) of these funds. I'd like to see them come out with a fund of funds too
I think the fund of funds will be a hit! Thanks for watching.
KURV seems to be a different version of NEOS... yet the trading is done by NEOS - so is KURV really a separate company or a marketing arm of NEOS
They both focus on option strategies but they're quite different. The KURV team has a background in fixed income and actively manages the treasuries...something we didn't get time to discuss. Also, NEOS is focused on index funds while KURV is focused on individual stock funds. They're 2 completely separate companies with separate teams on opposite sides of the country.
Hi, does kurv ETFs generate K-1 tax document or 1099 brokerage? I think it was mentioned 1099 in the video, wanted to confirm. Can these funds be held in IRA? Was not able to find answer to this on kurv website. Thanks for the content.
Kurv does not issue K-1 forms. Those are generally for master limited partnerships, not ETFs. I can't give tax advice but Kurv's funds are ETFs so they're similar to the thousands of other ETFs.
Whats the best ETF for a beginner.
Nice work ❤🎉😊
Thanks! If you have a long time line...VOO. It's the S&P 500.
@@armchairincomechannel
But VOO has low dividend ! .
I wanna buy somting Around 13% dividend,
I gave QQQi in my wach list
THANK YOU HOWARD , this was VERY informative, now if you could just allow fractional shares, we all could jump in faster😂
Glad you liked it. Fractional is becoming more popular each year!
@armchairincomechannel Also you of course for putting this together, thank you too
I've found myself wondering why funds like these don't use something with greater yield as underlying base. If it was SVOL instead of Treasuries, wouldn't that juice the yield at least another 10%. Its not as if they aren't in a Risky business to begin with.
It would boost the yield but the risk would go from high to higher. Some investors might like that.
I wouldn't be interested until a fund of funds. Too much can happen to an individual stock. That's why I own a bit of YMAX.
Important to appreciate the concentration risk; great point!
should do a review on GPIQ and GPIX i heard both ETF are better than JEPQ and JEPI
Thanks for the suggestion. They're quite new so there isn't much data to review, but I'll take a look.
@@armchairincomechannel thanks, what interested me about those ETF i'd like to see how much % are they holding and how much % are they using for calls. ie jepq 80% hold and 20% call.
Interesting but I'd be waiting for a combined ETF from them as subgke stock for me is too unsettling.
Yes, there's concentration risk for a single stock ETF.
Wouldn’t you get huge nav decay If the underlying whiplashes. You sell a call at 105(buying shares at 100) $1 premium. it goes down to 90$ within expiry and then you write more calls at 95. Then it goes up to 105 before expiry exercising the calls you sold. Then you write more calls at 110 but you have less capital and write less contracts. Couldn’t a choppy sideways market like in the lost decade (where the s&p moved sideways for 10 years in the 80s) just kill the fund? You’d end up with less and less shares until the fund failed. the underlying being very choppy for long durations is the main downside I see with this fund
Yes, there is potential for NAV decay as discussed in the interview. It depends on the path of the recovery. Calls are written monthly and often sharp declines recover within a month. However, there are recovery paths that would be erosive. A sideways market would actually be good for a covered call fund, if it wasn't too volatile. It would produce income without erosion, while the underlying doesn't make a substantial move. Their back testing doesn't show the fund "failing", but only time will tell. It's too early for me to invest as I'd like to see more data history.
No index ETF ? - or, all encompassing etf?
Not yet, it's new.
It's all Rocket Science to me.
If you're not a rocket scientist then that makes this quite difficult...
No one can predict a black swan event. Imagine how many trillionares there would be.... I love kurv etf, but the expense % is too much
But that expense ratio is average - or maybe not. It gives me pause too.
0.99% is relatively high but that's what Yieldmax is charging and they're making a fortune. If larger players that don't need to make a profit for a while enter the scene, that number will drop.
Tesla - terrible long term
I'll just say....I don't hold TSLA.