MISINFORMATION! *Armchair Income* had an interview with the SPYI fund manager to answer why the ROC. Long story short, there are two kinds of ROC. A ROC that reduces the Net Asset Value, which destroys your investment, and there is a ROC that is an accounting loophole that does not reduce NAV but does provide tax efficiency. As long as the NAV does not decrease with ROC, it is not the bad kind of ROC. Plus, SPYI uses Regulation 1256 (IIRC) Options contracts, which are taxed as both long term capital gains and short term capital gains, providing tax efficiency.
can you please link it on a reply, thanks. what i understand is if you look at SPYI as a high yield savings account and want to use it for retirement - that's a great thing no? hence low on tax. but look at it for what it is, not for growth. just income of close to 12% of your principal. do i have it correct?
Correct, 1256 tax.etfs options are taxed very differently from stock options. She did a decent job with her research though on the rest of this video. The click bait picture with Charlie munger bothers me though.
well phrased. exactly. what you will make in another not so tax friendly fund will make up for what you get in SPYI some "snake oil" sales by ms. maple leaf here.
FANTASTIC explanation of the difference between At The Money vs. Out Of The Money options! SPYI has been doing very well for me as I move toward retirement in Thailand.
Acquiring a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $160K for some time now, but my major challenge is not knowing the best entry and exit strategies. I would greatly appreciate any suggestions.
Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession are only possible under the supervision of a professional or trusted advisor.
It is six months since this post, and the SPYI NAV hasn't depleted, which I would have expected if dividends were 90+% ROC. Have they changed their operations? Has your opinion changed? I'm rolling over a 401(k) and am looking for a combination of income ETFs. I'm a subscriber and I enjoy you videos. Thanks!
Incredibe to do a video about return of capital on SPYI and not really understand what you are saying. If SPYI were truly just returning the investors money, then the etf share price would just keep going down. They are returing capital , not RETURNING PRINCIPAL. This is a very tax efficient method that is used by others, EPD( enterprises partners) has been doing it for years.
The return of capital, the way NEOS uses, is NOT a return of "your own money". Losses can be carried forward and harvested via reclassification of the premium as return of capital. Thus, as long as one keeps the shares, the tax paid each year because of the distributions is lessened. The time to pay the tax is when one decides to sell the position. At that stage it is LONG term capital gain. Also, buying an out of the money call does not happen all the time. It depends on their model which tries to capture up markets, when this action is favorable.
yes, so if you are not ever selling your shares, but not reinvesting the dividends either- but using the distributed dividend income - what is the tax on that? appreciate your feedback
As I understand things….Every time SPYI sends you ROC, it is NOT a return of your investment, that does not decrease. What their ROC does is reduce your adjusted cost basis. By reducing your cost basis, you are increasing the eventual long term capital gain tax when and if you sell. LT Cap gain is taxed at a lower rate than dividends…
There's a misunderstanding of ROC here. Saying "just giving you your money back" isn't correct. The better way to understand it would be to say "it is distributing unrealized capital gains". This can be seen by tracking the NAV. If I have a fund with $10 NAV and truly give you $0.5 of "your own money" back, the NAV would drop to $9.50. You can see from the fund's NAV that this isn't the case. That said, the option strategy is more complicated than just selling covered calls, which could lead to a more variable performance profile.
I agree with your comment about ROC. This is NOT destructive ROC. It is a distribution of funds that results from the closed out option premiums. The realized cash either goes back to the cash balance of the fund, or distributed to share holders.
Isn’t the NAV protected only as long as the inflow of new money outpaces the outflow? Kinda like a Ponzi scheme? Serious question! If the new investors stopped tomorrow, what happens to the NAV?
I sold JEPI a few weeks ago. Implied volatility on options has come down dramatically in the past year, so the income generated from selling calls is reduced. That is reflected in the lower dividend payment JEPI is now paying which means the yield is not what it used to be. Just look at a chart of the VIX index and you will how much option prices have dropped. The only way option become more expensive and generate higher dividends for JEPI is if the stock market drops . And if the market drops, you won't want to be long JEPI.
Yeah, the JEPI dividends seem to be dropping from month to month. Any similar ETFs you would suggest to look into that keep their dividend as promissed?
Return of capital also lowers your cost basis. So when you sell it, depending on how long you held it and how much capital has been returned to you, a huge portion of the sale could be taxable capital gains.
yes! what i understand is if you look at SPYI as a high yield savings account and want to use it for retirement - that's a great thing no? hence low on tax. but look at it for what it is, not for growth. just income of close to 12% of your principal. do i have it correct?
You got this one totally wrong . The roc is a deliberate stragedy to save investors tax. Compare total returns which is all that really matters. Using portfolio visualizer…Spyi has a greater total return than jepi. You need to correct this video or delete it or do a follow up as it is 100% incorrect.
Always a good vídeo Victoria, but ROC is not what you said and it does not represent a bad thing like that. In fact, it is a good thing as such a tax steategy a little more complicated but happens to benefit the investors.
what i understand is if you look at SPYI as a high yield savings account and want to use it for retirement - that's a great thing no? hence low on tax. but look at it for what it is, not for growth. just income of close to 12% of your principal. do i have it correct?
Eight months later now and for the last 3 quarters, the dividend has been maintained by SPYI, without "return of capital". Also, the tax advantage method they are using, is related to the options they sell vs the ELNs that JEPI uses. Might be time for a review video of this comparison. - And maybe add in ISPY, which is another S&P 500 based buy write ETF, that uses daily call options vs monthly call options.
Perfect. I was in the process of trying to decide on JEPI or NUSI when I came across your video. Now I'm going to watch your SVOL video. I think I'll put your research to the test. I'll keep my eye out for when you revisit this strategy. Outstanding.
SPYI is more of an income strategy. Take its dividends out the equation its return is slim. Talking a few points. But ideal for someone who wants income during retirement. As it will deliver more.
exactly - what i understand is if you look at SPYI as a high yield savings account and want to use it for retirement - that's a great thing no? hence low on tax. but look at it for what it is, not for growth. just income of close to 12% of your principal. do i have it correct?
@@KingPriyom Not a HYSA, as there is chance your principal would diminish some due to market conditions. A HYSA will always keep your principal intact. But +12% return is nice. Looking at some information. 1M invested in SPYi would've yielded 73k so far in income up to Aug. QQQi would've gotten you 87k. But the downside.. SPYI growth is less than 5%, QQQI is less than 1% YTD on charts. None of these beat out their underlying index.
I’m here June 28/2024. SPYI is up 2.16 percent year over year and has consistently paid a dividend over 10 percent. If you want passive income and exposure to the S&P 500 this is a good stock in my opinion.
what i understand is if you look at SPYI as a high yield savings account and want to use it for retirement - that's a great thing no? hence low on tax. but look at it for what it is, not for growth. just income of close to 12% of your principal. do i have it correct?
Although, as soon as SPYI’s price appreciates your initial investment, then it’s not really your own money given back. Which is goes back to their tax efficient strategy 😮
thanks so much for clearly explaining the difference btw in the money and out of the money cc funds! now i know why my Jepi has clearly outperformed my QYLD and RYLD holdings over the past 2 years!
around minute 11 you start referring to the funds as "this fund and that fund" all the back and forth is very confusing and i don't know which you are referring. I love your content and it is VERY useful. I just wish you kept with the fund name more instead of "so one fund is doing this" say "so jepi does this and spyi does that". i love your channel!
You're correct... SPYI did have a huge allocation of return of capital for Q3 & Q4 in 2022. However, according to Fidelity's Distribution and Expenses Calendar, SPYI's allocation in Q1, Q2, & Q3 of 2023 was 100% Dividends! NO return of capital. Am I missing something?
That is not true. SPYI's monthly income from January 2023 through May 2023 was approx. 50% Return of Capital each month. Beginning in June 2023, the monthly dividend was exclusively dividend income each month. The fact that any given month in the future could be a return of capital month has me no longer interested in this ETF.
@@ViktoriyaMedia Victoria, thank you for your kind reply. I'll look forward to it. While I'm at it may I say that your presentations are really great at every level. Two things differentiate you: (1) you 'seem' to be presenting right out of your head and own understanding...(2) your personality is magnetic and draws us in certainly more than any other investment commentator. Keep up the good work.
Viktoriya: you need to take another look at SPYI as dividends for this and the past three quarters have returned no capital. How does that change your analysis?
What’s your comparison on jepq and qqqi? I really enjoyed this, you broke it down, peeled off layers. I want to add these in my Ira accounts, which are the best from your opinion?
You seemed to have skipped one of the most important items for income investors, the dividend. JEPI is currently paying 6.35% , which isn't bad per say, but significantly lower that everyone has come to expect from JEPI. It's decreased it's dividend payout for 7 of the last 8 months. All the other information is great, but not mentioning this is surprising.
At this point of the cycle I would research option collared indexes(ETF) long put financed by selling out of the money call spreads…capture dividends. The position would look like owning a call with a dividend yield.
Like ur content, but this isn’t the full picture. For those looking to hold the fund long term, return of capital allows the shareholder of the fund to defer taxes, perhaps indefinitely, while collecting income. As long as returns are tracking the S&P 500, I don’t see an issue here at all. The problem would occur if the funds total return was lagging the market.
If you have a podcast let me know what it is. Would definitely be awesome if you had one. I love RUclips but could also listen at work since I can’t watch every video immediately like I’d like
You have to Be missing something here because I've owned this thing for over a year.And i'm up in appreciation as well as collecting a handsome dividend. Not to mention look at the chart it's above Jepi
Love this personally for my roth i been going tsly oark gonna start getting into nvdy from researching some other videos and jepi and jepq from watching youre videos. Then make enough where i can take the dividends buy schd and dgro for brokerage and use the rest keep the flow going.
I love your videos. Very informative. Please consider boosting and isolating your voice. I've got you at full volume and it's still hard to hear. If you're using FCPX for editing, try adding voice isolation and compressor to your audio. Shoot for -4 to -6 for your voice. Just a thought. Great content, keep it up, and thanks for the heads up on SPYI. Adding more JEPI. :)
It would be great if you could show the ticker symbols with a plane background and pause for a second so folks could take a screenshot. And go back and do their own research later.
I think this topic needs to be revisited. Garrett Paolella (Portfolio Manager for NEOS) just did an interview which addresses concerns and corrects statements made in this video. ruclips.net/video/7BJGk5zlWmM/видео.html
Excellent analysis and good points about the eating into the premiums… for me personally, I don’t want to own an ETF that buys options no matter what, and I know that firsthand b/c I sell options on my own individual stocks and it’s much better imo then using credit spread strategies.
Yes and that’s not a bad thing, especially considering this fund has lower fees than most CEF. Return of capital allows tax deferral, perhaps indefinitely, while collecting income.
Every week, it's a "the only ETF you'll ever need" video with a fake tweet clickbait thumbnail (for that alone, she's begging for a cease and desist). She lacks credibility, which is why I strongly recommend that anyone who watches her videos perform additional due diligence, rather than accepting her content as the end all and be all.
while Jepi has a great dividend, i bought it in april 2022. the etf is down 11% as of August 28, 2023. while the dividends have mitigated the loss, readers should know there is substantial risk. nevertheless i have no intention of selling. otherwise thanks for your cogent discussion.
Ah she stumbled upon the armchair investors video and learned about the return of capital for spyi. It is good that she is correcting this now, however it is yet another misinformation she has spoken in a video, remember all this is for "entertainment purposes not real investment advice" seek out someone properly trained so you do not fall for these mistakes.
I think you're right. Armchair Income made a follow up video about ROC: ruclips.net/video/sYgtTXMDthM/видео.htmlsi=PT4WzMslsM5HQGF7. ROC is a confusing issue!
Someone like this is going to begin pumping more and more content to make their own income, not produce high quality informative content. Look at this video, 95% of it is just her talking, less images and video, less explanation.
I take it you don’t enjoy her videos. Personally, I don’t take everything she says and run out to buy whatever she is promoting, but I like that she highlights certain products to give a direction for research. Being semi-new at this but not trusting of financial advisers, I find her videos excellent.
Wouldn't it be better in the long run just to own SPY. Instead of getting some upside and waiting on dividends. Your growth on SPY would be higher, and you could sell shares.
This was a real informative video, Viktoryia! Thanks for clearly explaining the difference between the 2 investments. In one of your videos you shared your strategy of investing in both JEPI and JEPQ, but initially I was thinking why didn't you just invest in SPYI? But after you explained the return "of"capital, I know to stay way from SPYI. Have you done any analysis on CRF or CLM before?
This seems to not be an accurate assessment of SPYI from how it works with taxation. Technically, at first, the money paid back in dividends is the investors own money, but only until the cost basis paid for the shares of SPYI are given back. After the cost basis is given back to the investor, the dividends all become taxable earnings. When the cost basis is being paid back to the investor, the dividends are replacing the cost basis in the shares owned. So, the fund is actually generating a double digit return, but the tax is deferred because the dividends earned replace the cost basis funds used to buy the shares. It would be concerning over time, if the price of the shares fell as the dividends were paid out. Then, it would simply be paying back the investor with one’s own money. If the share price goes up, or even stays the same, it shows that the dividends paid out (the investor’s own money) are being replaced by the dividend earnings. This is the tax deferment. The tax will not be incurred until the shares are sold. It is the same with a stock that has gained appreciation. The appreciation is not taxed until the shares are sold. This tax deferment is designed for retired people drawing income. It is a way to have income while it is also earning a return, but the return isn’t taxed until the cost basis has all been paid out, or the shares sold. It is a way for a retired person to avoid taxation for as much as a decade or more, depending on the rate of payout. If it is designed right, the retired person may not be taxed for much of their retirement years. SPYI works like MLPs (Master Limited Partnerships). I own shares in the MLP: MMP, and have been happy with the tax deferment setup that is very similar to SPYI. MMP has gone up 27% in appreciation in the year I have owned it. Plus, it is paying out about 8% in dividends that are tax deferred. Right now, I’m not paying any tax on the appreciation or the dividends. I will start paying tax on the dividends when the cost basis to buy the shares is all given back to me. An advantage of this tax deferment is I may be retired and in a lower tax bracket when I have to start paying tax on the dividends once the cost basis is paid back to me. SPYI is a relatively new fund. So it’s long term performance can’t be determined yet, but it has a similar tax structure to MLPs, which can be a very good thing, depending upon your age and circumstances. This video is misleading in that it doesn’t seem to understand how the tax deferment works in SPYI. SPYI is not a bad fund just because it initially pays back the investor’s own money in dividends. It is intentionally designed this way to provide a tax deferment and income, until the investor is retired and in a lower tax bracket before being taxed.
These are now not as good of asset plays as the return on capital is low. My personal pick is to choose a growth index fund for the long term portion of your portfolio and then have the income focus be a 5% yielding treasury account or TIPS or what not. TLTW or HYGW are interesting speculative plays and have been in the green this year and are possibly a good strategy for when interest rates increase due to the increased volatility in bonds due to interest rate hikes. More research is needed but these may be better tools for when interest rates increase due to increased volatility. The irony is that these were created and spun out typically at the best time. Good rule of thumb is to buy what ETFs they are closing and sell the ETFs that they open up. That is always key.
![KSI - Dirty [Official Visualiser]](http://i.ytimg.com/vi/VoDh1h1dPUE/mqdefault.jpg)
MISINFORMATION! *Armchair Income* had an interview with the SPYI fund manager to answer why the ROC. Long story short, there are two kinds of ROC. A ROC that reduces the Net Asset Value, which destroys your investment, and there is a ROC that is an accounting loophole that does not reduce NAV but does provide tax efficiency. As long as the NAV does not decrease with ROC, it is not the bad kind of ROC. Plus, SPYI uses Regulation 1256 (IIRC) Options contracts, which are taxed as both long term capital gains and short term capital gains, providing tax efficiency.
Just saw an interview with the SPYI fund manager, Garrett, on Armchair Income. He goes over Return of Capital in detail.
Where that interview
@@mjsmcd On the Armchair Income channel. Garrett’s face is on the thumbnail.
can you please link it on a reply, thanks. what i understand is if you look at SPYI as a high yield savings account and want to use it for retirement - that's a great thing no? hence low on tax. but look at it for what it is, not for growth. just income of close to 12% of your principal. do i have it correct?
SPYI is retirement gold if you just look at it as a it as a super high savings account
SPYI's return of capital is merely a nuanced tax advantage and not an actual return of the investor's principal.
Correct….roc is a deliberate positive strategy
Correct, 1256 tax.etfs options are taxed very differently from stock options. She did a decent job with her research though on the rest of this video. The click bait picture with Charlie munger bothers me though.
well phrased. exactly. what you will make in another not so tax friendly fund will make up for what you get in SPYI
some "snake oil" sales by ms. maple leaf here.
The ROC is not the return of your investment; it is a tax treatment,. The fund earns its dividend.
FANTASTIC explanation of the difference between At The Money vs. Out Of The Money options! SPYI has been doing very well for me as I move toward retirement in Thailand.
Acquiring a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $160K for some time now, but my major challenge is not knowing the best entry and exit strategies. I would greatly appreciate any suggestions.
Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession are only possible under the supervision of a professional or trusted advisor.
😂😂😂😂😂😂 still scamming youtubers with FAKE NAMES of investors? 😅😅😅😅😅😅
@@nuraahmadumar8937I'm sure you have tbe PERFECT person for us??? 😅😅😅😅😅😅😅 scammer
Read 1,000 to 1,000,000 by D.B Collins. Shows how to use 1k and produces like 8 million in 17 years with TQQQ
It is six months since this post, and the SPYI NAV hasn't depleted, which I would have expected if dividends were 90+% ROC.
Have they changed their operations? Has your opinion changed?
I'm rolling over a 401(k) and am looking for a combination of income ETFs.
I'm a subscriber and I enjoy you videos. Thanks!
This video with the SPYI fund manager explains it ruclips.net/video/8xykeGA5eJU/видео.htmlsi=zQsgDdrGWLDV5e2c
Incredibe to do a video about return of capital on SPYI and not really understand what you are saying. If SPYI were truly just returning the investors money, then the etf share price would just keep going down. They are returing capital , not RETURNING PRINCIPAL. This is a very tax efficient method that is used by others, EPD( enterprises partners) has been doing it for years.
The return of capital, the way NEOS uses, is NOT a return of "your own money". Losses can be carried forward and harvested via reclassification of the premium as return of capital. Thus, as long as one keeps the shares, the tax paid each year because of the distributions is lessened. The time to pay the tax is when one decides to sell the position. At that stage it is LONG term capital gain.
Also, buying an out of the money call does not happen all the time. It depends on their model which tries to capture up markets, when this action is favorable.
yes, so if you are not ever selling your shares, but not reinvesting the dividends either- but using the distributed dividend income - what is the tax on that? appreciate your feedback
As I understand things….Every time SPYI sends you ROC, it is NOT a return of your investment, that does not decrease. What their ROC does is reduce your adjusted cost basis. By reducing your cost basis, you are increasing the eventual long term capital gain tax when and if you sell. LT Cap gain is taxed at a lower rate than dividends…
There's a misunderstanding of ROC here. Saying "just giving you your money back" isn't correct. The better way to understand it would be to say "it is distributing unrealized capital gains". This can be seen by tracking the NAV. If I have a fund with $10 NAV and truly give you $0.5 of "your own money" back, the NAV would drop to $9.50. You can see from the fund's NAV that this isn't the case. That said, the option strategy is more complicated than just selling covered calls, which could lead to a more variable performance profile.
I agree with your comment about ROC. This is NOT destructive ROC. It is a distribution of funds that results from the closed out option premiums. The realized cash either goes back to the cash balance of the fund, or distributed to share holders.
Isn’t the NAV protected only as long as the inflow of new money outpaces the outflow? Kinda like a Ponzi scheme? Serious question! If the new investors stopped tomorrow, what happens to the NAV?
Incredible job on the research on this one!!! 😃
I sold JEPI a few weeks ago. Implied volatility on options has come down dramatically in the past year, so the income generated from selling calls is reduced. That is reflected in the lower dividend payment JEPI is now paying which means the yield is not what it used to be. Just look at a chart of the VIX index and you will how much option prices have dropped. The only way option become more expensive and generate higher dividends for JEPI is if the stock market drops . And if the market drops, you won't want to be long JEPI.
Yeah, the JEPI dividends seem to be dropping from month to month. Any similar ETFs you would suggest to look into that keep their dividend as promissed?
Inverse volatility problem mate..
This holds true for every covered call ETF
Return of capital also lowers your cost basis. So when you sell it, depending on how long you held it and how much capital has been returned to you, a huge portion of the sale could be taxable capital gains.
yes! what i understand is if you look at SPYI as a high yield savings account and want to use it for retirement - that's a great thing no? hence low on tax. but look at it for what it is, not for growth. just income of close to 12% of your principal. do i have it correct?
You got this one totally wrong . The roc is a deliberate stragedy to save investors tax. Compare total returns which is all that really matters. Using portfolio visualizer…Spyi has a greater total return than jepi. You need to correct this video or delete it or do a follow up as it is 100% incorrect.
Always a good vídeo Victoria, but ROC is not what you said and it does not represent a bad thing like that. In fact, it is a good thing as such a tax steategy a little more complicated but happens to benefit the investors.
what i understand is if you look at SPYI as a high yield savings account and want to use it for retirement - that's a great thing no? hence low on tax. but look at it for what it is, not for growth. just income of close to 12% of your principal. do i have it correct?
I just enjoy watching you talk. You are lovely!!
That is very kind, thank you! :')
Eight months later now and for the last 3 quarters, the dividend has been maintained by SPYI, without "return of capital". Also, the tax advantage method they are using, is related to the options they sell vs the ELNs that JEPI uses. Might be time for a review video of this comparison. - And maybe add in ISPY, which is another S&P 500 based buy write ETF, that uses daily call options vs monthly call options.
Perfect. I was in the process of trying to decide on JEPI or NUSI when I came across your video. Now I'm going to watch your SVOL video. I think I'll put your research to the test. I'll keep my eye out for when you revisit this strategy. Outstanding.
Soooo, SPYI is a now a hard NO after being a solid Buy as per your last SPYI video???
Exactly she screwed up the first time reviewing SPYI.
SPYI is more of an income strategy. Take its dividends out the equation its return is slim. Talking a few points. But ideal for someone who wants income during retirement. As it will deliver more.
exactly - what i understand is if you look at SPYI as a high yield savings account and want to use it for retirement - that's a great thing no? hence low on tax. but look at it for what it is, not for growth. just income of close to 12% of your principal. do i have it correct?
@@KingPriyom Not a HYSA, as there is chance your principal would diminish some due to market conditions. A HYSA will always keep your principal intact. But +12% return is nice. Looking at some information. 1M invested in SPYi would've yielded 73k so far in income up to Aug. QQQi would've gotten you 87k. But the downside.. SPYI growth is less than 5%, QQQI is less than 1% YTD on charts. None of these beat out their underlying index.
I’m here June 28/2024. SPYI is up 2.16 percent year over year and has consistently paid a dividend over 10 percent. If you want passive income and exposure to the S&P 500 this is a good stock in my opinion.
what i understand is if you look at SPYI as a high yield savings account and want to use it for retirement - that's a great thing no? hence low on tax. but look at it for what it is, not for growth. just income of close to 12% of your principal. do i have it correct?
@@KingPriyom I’m just a sucker for dividends and I wanted exposure to the S&P 500.
@@Ian-of9oi and I want highest safest dividend yield possible long term through entire market cycles for early retirement
Although, as soon as SPYI’s price appreciates your initial investment, then it’s not really your own money given back. Which is goes back to their tax efficient strategy 😮
nice shirt Viktoriya :)
thanks so much for clearly explaining the difference btw in the money and out of the money cc funds! now i know why my Jepi has clearly outperformed my QYLD and RYLD holdings over the past 2 years!
around minute 11 you start referring to the funds as "this fund and that fund" all the back and forth is very confusing and i don't know which you are referring. I love your content and it is VERY useful. I just wish you kept with the fund name more instead of "so one fund is doing this" say "so jepi does this and spyi does that". i love your channel!
Awesome video.. what app is use to capture screenshot and then move and zoom in and highlight it?
You're correct... SPYI did have a huge allocation of return of capital for Q3 & Q4 in 2022.
However, according to Fidelity's Distribution and Expenses Calendar, SPYI's allocation in Q1, Q2, & Q3 of 2023 was 100% Dividends! NO return of capital. Am I missing something?
I see the same thing on my Fidelity, no ROC at all for 2023
That is not true. SPYI's monthly income from January 2023 through May 2023 was approx. 50% Return of Capital each month. Beginning in June 2023, the monthly dividend was exclusively dividend income each month. The fact that any given month in the future could be a return of capital month has me no longer interested in this ETF.
Wow! You saved my life again! Viktoriya
So can you share with us your top 3 to 5 favorite Dividend Income ETFs? AND doing that about quarterly would help us a lot.
Absolutely! Working on it! 😊
@@ViktoriyaMedia Victoria, thank you for your kind reply. I'll look forward to it. While I'm at it may I say that your presentations are really great at every level. Two things differentiate you: (1) you 'seem' to be presenting right out of your head and own understanding...(2) your personality is magnetic and draws us in certainly more than any other investment commentator. Keep up the good work.
Thanks ! You saved me some money. Do one on Yield Max ETF.
Thank you. Brilliant! What covered call etf do you suggest? I have JEPI already and QYLD and RYLD seem rubbish. Is JEPI the best?
I personally prefer JEPI, the OTM Call strategy is a lot more beneficial in the long run
Can you do a comparison video on SPYI and ISPY please? I can’t decide which one to choose
Viktoriya: you need to take another look at SPYI as dividends for this and the past three quarters have returned no capital. How does that change your analysis?
Can you please do an update on neos. Spyi and qqqi.
Thank you for hearing my request and uploaded video about it 🌹
What’s your comparison on jepq and qqqi? I really enjoyed this, you broke it down, peeled off layers. I want to add these in my Ira accounts, which are the best from your opinion?
You had me at “the most common question I’ve been asked”💯
Good analysis....you are certainly making it easier to understand why Jepi and Jepq are the top CC etfs. Thanks
You seemed to have skipped one of the most important items for income investors, the dividend. JEPI is currently paying 6.35% , which isn't bad per say, but significantly lower that everyone has come to expect from JEPI. It's decreased it's dividend payout for 7 of the last 8 months. All the other information is great, but not mentioning this is surprising.
That's only because the VIX goes down in the summer typically. It's on it way back up. Nothing surprising.
It's 7.96% now.
THANK YOU!!! Such valuable information. Love this channel.
Another great analysis Viktoriya. Keep up the great work!
Thanks bruh
Hey can you do a video telling us who all of the funds are who are are doing the return of capital ploy?
I don't have access to JEPI in my retirement portfolio. Is there a Vanguard version f JEPI? How does VYM compare to JEPI?
How about some videos on how to do puts, calls, covered calls etc
Thanks, where can I find this info on SPYI info. Related to ROC
At this point of the cycle I would research option collared indexes(ETF) long put financed by selling out of the money call spreads…capture dividends. The position would look like owning a call with a dividend yield.
Are these new covered call etf’s a safe investment vs a traditional etf?
Good information, thanks
Spyi sells calls against spx index does it not for 1256 tax benefits?
Like ur content, but this isn’t the full picture. For those looking to hold the fund long term, return of capital allows the shareholder of the fund to defer taxes, perhaps indefinitely, while collecting income. As long as returns are tracking the S&P 500, I don’t see an issue here at all. The problem would occur if the funds total return was lagging the market.
Except if you're holding that fund and what happened in 2008 happens again. You're screwed.
Have you considered adding chapter titles?
Very helpful, thank you!
nice report, keep it up.
Where is the link to the video on equity linked notes?
If you have a podcast let me know what it is. Would definitely be awesome if you had one. I love RUclips but could also listen at work since I can’t watch every video immediately like I’d like
How does one find the return of capital vs return on capital?
Can you do a video on XYLG & QYLG
Excellent explanation. and excellent presentation.
That was helpful. thank you
You have to
Be missing something here because I've owned this thing for over a year.And i'm up in appreciation as well as collecting a handsome dividend. Not to mention look at the chart it's above Jepi
Is it possible and safe to do it oneself?
Love this personally for my roth i been going tsly oark gonna start getting into nvdy from researching some other videos and jepi and jepq from watching youre videos. Then make enough where i can take the dividends buy schd and dgro for brokerage and use the rest keep the flow going.
I love your videos. Very informative.
Please consider boosting and isolating your voice. I've got you at full volume and it's still hard to hear. If you're using FCPX for editing, try adding voice isolation and compressor to your audio. Shoot for -4 to -6 for your voice. Just a thought.
Great content, keep it up, and thanks for the heads up on SPYI. Adding more JEPI. :)
It would be great if you could show the ticker symbols with a plane background and pause for a second so folks could take a screenshot.
And go back and do their own research later.
TSLY! #1 60% YIELD!
ISPY is a new ETF which uses daily options. It looks promising.
Thank you 😊
Great information thank you
I think this topic needs to be revisited. Garrett Paolella (Portfolio Manager for NEOS) just did an interview which addresses concerns and corrects statements made in this video. ruclips.net/video/7BJGk5zlWmM/видео.html
Thanks for the video, now I know.
You make videos of things I search on google. Great work
"SPYI is returning your own money" does not seem to be correct statement. Please correct me, if I am wrong.
Would love to have you join me for a dividend talk on my series Masters of the Market... Take a look and let me know!
Excellent analysis and good points about the eating into the premiums… for me personally, I don’t want to own an ETF that buys options no matter what, and I know that firsthand b/c I sell options on my own individual stocks and it’s much better imo then using credit spread strategies.
It’s a bummer that multiple people have told you about the incorrect info you have in this video, but you haven’t taken this video down.
This means or suggests that SPYI acts like CEFs. Hmmmm.
Yes and that’s not a bad thing, especially considering this fund has lower fees than most CEF. Return of capital allows tax deferral, perhaps indefinitely, while collecting income.
Good point. CEF fees are nothing to sneeze at!
Fabulous! Thank you for all the research that went into this video. I feel like i really learned something.
Pretty lady you are confusing me. I thought DGRW was the only one I would ever need.
Every week, it's a "the only ETF you'll ever need" video with a fake tweet clickbait thumbnail (for that alone, she's begging for a cease and desist). She lacks credibility, which is why I strongly recommend that anyone who watches her videos perform additional due diligence, rather than accepting her content as the end all and be all.
Well will you pay $50 and be exposed to just under 300 million or pay $55 and have exposure to over 28billion
I’m pretty confident that you don’t know the tax benefits ROC distributions.
Great research
Good information as always.❤
Excellent information, thanks!
Thank you! Glad it was helpful! 😊
Excellent analysis!
I liked spyi until you said the buy 10% OTM call options in addition to writing 5% OTM call options.
Thanks
while Jepi has a great dividend, i bought it in april 2022. the etf is down 11% as of August 28, 2023. while the dividends have mitigated the loss, readers should know there is substantial risk. nevertheless i have no intention of selling. otherwise thanks for your cogent discussion.
6:50 You said other than Roth IRA.
You should of said "non-taxable accouts, like a Roth IRA or a Roth 401K". 😉❤
Ah she stumbled upon the armchair investors video and learned about the return of capital for spyi. It is good that she is correcting this now, however it is yet another misinformation she has spoken in a video, remember all this is for "entertainment purposes not real investment advice" seek out someone properly trained so you do not fall for these mistakes.
I think you're right. Armchair Income made a follow up video about ROC: ruclips.net/video/sYgtTXMDthM/видео.htmlsi=PT4WzMslsM5HQGF7. ROC is a confusing issue!
Someone like this is going to begin pumping more and more content to make their own income, not produce high quality informative content. Look at this video, 95% of it is just her talking, less images and video, less explanation.
Defined-Actress receiving information from an advertising or investment firm who employs her?
Agreed, recommending SPYI without understanding that over 90% of the dividend is really ROC and that they make no profit is unforgivable.
I take it you don’t enjoy her videos. Personally, I don’t take everything she says and run out to buy whatever she is promoting, but I like that she highlights certain products to give a direction for research. Being semi-new at this but not trusting of financial advisers, I find her videos excellent.
Wouldn't it be better in the long run just to own SPY. Instead of getting some upside and waiting on dividends. Your growth on SPY would be higher, and you could sell shares.
Gr8 information. Thank U 4 the comparisons. This was a huge help...
This was a real informative video, Viktoryia! Thanks for clearly explaining the difference between the 2 investments. In one of your videos you shared your strategy of investing in both JEPI and JEPQ, but initially I was thinking why didn't you just invest in SPYI? But after you explained the return "of"capital, I know to stay way from SPYI. Have you done any analysis on CRF or CLM before?
This seems to not be an accurate assessment of SPYI from how it works with taxation.
Technically, at first, the money paid back in dividends is the investors own money, but only until the cost basis paid for the shares of SPYI are given back. After the cost basis is given back to the investor, the dividends all become taxable earnings.
When the cost basis is being paid back to the investor, the dividends are replacing the cost basis in the shares owned. So, the fund is actually generating a double digit return, but the tax is deferred because the dividends earned replace the cost basis funds used to buy the shares.
It would be concerning over time, if the price of the shares fell as the dividends were paid out. Then, it would simply be paying back the investor with one’s own money. If the share price goes up, or even stays the same, it shows that the dividends paid out (the investor’s own money) are being replaced by the dividend earnings.
This is the tax deferment. The tax will not be incurred until the shares are sold. It is the same with a stock that has gained appreciation. The appreciation is not taxed until the shares are sold.
This tax deferment is designed for retired people drawing income. It is a way to have income while it is also earning a return, but the return isn’t taxed until the cost basis has all been paid out, or the shares sold.
It is a way for a retired person to avoid taxation for as much as a decade or more, depending on the rate of payout. If it is designed right, the retired person may not be taxed for much of their retirement years.
SPYI works like MLPs (Master Limited Partnerships). I own shares in the MLP: MMP, and have been happy with the tax deferment setup that is very similar to SPYI. MMP has gone up 27% in appreciation in the year I have owned it. Plus, it is paying out about 8% in dividends that are tax deferred. Right now, I’m not paying any tax on the appreciation or the dividends. I will start paying tax on the dividends when the cost basis to buy the shares is all given back to me.
An advantage of this tax deferment is I may be retired and in a lower tax bracket when I have to start paying tax on the dividends once the cost basis is paid back to me.
SPYI is a relatively new fund. So it’s long term performance can’t be determined yet, but it has a similar tax structure to MLPs, which can be a very good thing, depending upon your age and circumstances.
This video is misleading in that it doesn’t seem to understand how the tax deferment works in SPYI. SPYI is not a bad fund just because it initially pays back the investor’s own money in dividends. It is intentionally designed this way to provide a tax deferment and income, until the investor is retired and in a lower tax bracket before being taxed.
These are now not as good of asset plays as the return on capital is low. My personal pick is to choose a growth index fund for the long term portion of your portfolio and then have the income focus be a 5% yielding treasury account or TIPS or what not. TLTW or HYGW are interesting speculative plays and have been in the green this year and are possibly a good strategy for when interest rates increase due to the increased volatility in bonds due to interest rate hikes. More research is needed but these may be better tools for when interest rates increase due to increased volatility. The irony is that these were created and spun out typically at the best time. Good rule of thumb is to buy what ETFs they are closing and sell the ETFs that they open up. That is always key.
YT channel Passive Income Investing: SPYI ETF: Q&A w/ NEOS Troy Cates | Covered Call Strategy & Taxes (ROC - Return of Capital)
My diviDends get eaten up every month by the tanking value.😢
Thanks for this info!!!
If you were to select TOP 5 ETFs, what will they be?
Love your work Viktoriya!