$310,000 in JEPQ = $2900 a month$225,000 in JEPQ = $2110 a monthRent - $1500Utilities - $200Transportation - $300Insurance - $300Food - $300Misc - $200Wifi + phone = $60= $2860If with roommate - $750 = $2110Why do you need millions of dollars? $200-300k in JEPQ is enough to never have to work again. If you get cheaper rent or live with more roommates or stay with your parents you could retire with like $100k
seems easy because it's been a bull market since its existence. qqq would have returned more. i can assure you that in a bear market your simple model will look foolish.
>>62707669JEPQ outperformed QQQ during covid. It outperforms in flat or bear markets because you still get the covered calls divvies even when the market is flat/down. We are heading for that again.
>>62707672>lose 30% of your 300k>make 0.5% a month in dividendsGreat strategy
>>62707706These are just the dividends. The principle still grows. You aren't losing anything. You are gaining in both ways.
>>62707672I like JEPQ and technically you're correct dividend funds tend to be better in flat or bear markets BUT JEPQ would've got heemed in '22 if it existed. It's not bear market proof or even good in one
>>62708190>It's not bear market proof or even good in oneHow? JEPI's return is way worse than JEPQ because they removed the growth stocks from S&P for some reason and it still equaled/beat the index during 2022 even without ithttps://testfol.io/?s=gORWnNgIWKE
>>62708212they removed the growth stocks because theyre both more defensive funds. jepq doesnt even hold qqq exactly. i like the goldman funds better. i'd even do divo/qdvo over jeps
Best JEPQ alternatives for europoors? I cant buy them around here
>>62707655To make sure you won't get fucked in any situations you should always add 10% more and use that to reinvest.>>62708484JEQP / JPGP
Guys, I have one question about covered call etfs like JEPQ and JEPI. If more people invest in these types of etfs, wont that lead to too many covered calls on the market, leading to a smaller income due to the increased supply?
When you find some secret get rich quick thing like this its either a scam or will blowup in a downturn.
>>62709789It's not get rich quick. It underperforms growth ETFs by a lot it's just an easy safe to way get income
>>62707655Wait until you find out about the NEOS ETFs kek25% yield on BTCI35% yield on NEHI (Ethereum based)They have many more that aim for 12%-14% yieldI also like Kurv for their precious metal ETFs - KGLD, KSLV, KCOPDo not fall for the YieldMax crap, they all lose NAV hard and aren't worth it>>62709693These ETFs are tiny and won't make a dent.>>62709789You can do covered calls or even covered puts yourself. It is just easier to let professionals do it for you through an ETF. The large premium is because of the risk you're taking. Also, as >>62707669 said, you would make more money just holding QQQ instead of holding JEPQ or QQQI. Does that mean that holding the most basic ass boomer ETFs is a scam?
>>62707655that's only pre-tax income, and even if they somehow got 100% roc classification that would only work until your shares had distributed their cost basis, so like 5-10 years, and then you'd need to pay taxes again
>>62710000Damn
>>62709992Bros is this real? Because holy fuck I just moved across the country and took the first job I could get. I have $200k I could drop in BTCI and if this is true it would pay about the same as my demeaning wagie job.
>>62710092if you reinvest the dividends automatically you can just stack - i am stacking this while working another 5-10 years
personally i prefer jpiq, sell me on jepq instead? the wsj hates these "boomer candy" funds says u miss upside in boom markets but it's like yeah well suppose i want some cash flow to like actually live my life, yeah right
>>62709988Its not safe as one of you will find out and then make a post here crying that you lost 50 or 75%Safe investments pay 3.5% in the current year
>>62710158gpiq* my bag
>>62710092u moved across the country for a job that pays 60k? wat. i can see moving to sf for a 250k tech bro job or sth, but uh 60k is like median or something
>>62710161not really u see u are giving up possible gains so less risk gpiq is basically always going to pay 10% but if the market bubbles up 30% some year ur assed out
>>62710161these are actually the derivative funds that used to be exclusively for family offices and hnwis, but the regulations changed and now they can sell these kind of financial products to retail. the goal is capital preservation not gains, they're already loaded.
>>62710164I didn’t move for the job, due to life circumstances I made a big move (also just wanting a change in general) and took the first livable job I could find. I’m still looking for something better but the job market blows right now.
>>62710166>I found this magical investment that all the smart and rich people missedSure you did kid
>>62710280i just told u they didnt miss it, u were excluded from it because it was restricted to "accredited investors" aka rich people. they reformed the law in 2020 and made it accessible to retail.
>>62707655Is there hella tax drag in a brokerage account or is that inconsequential?Also, is this the best move when you’re close to retirement/entering retirement or what?
>>62710299its taxed like ordinary income so if u just got like 40k worth to live on not bad but if ur getting hella cash flow could be bad
>>62710092Yes, but again, you will probably underperform BTC itself in the long run. CC ETFs win in crab and bear markets, but they are capped on the upside. If you think BTC will eventually go to 500k and above, and you don't mind being a wagie for a decade or two, then you should invest directly in BTC. I personally spread my investments because I anticipate a weak cycle this time around. I doubt next ATH will be over 180k.>>62710299>>62710306It is taxed like dividends, it is not like "regular income" which has progressive taxation. Also, Americans can use DRIP to reinvest dividends without tax drag, a privilege that I don't get to enjoy.
How would these cc funds behave during hyperinflation, compared to bonds?
Bump
has anyone looked at CHPY...weekly div and positive YTD performance....
>>62712063Not good. Your $2900 a month won't be enough in the 2030s.
>>62709992>>62710092>>62710100>>62710639Why not go into more risk and get XBCI which is NEOS BTCI with leverage? My entire port is XBCI right now and I'm getting ~3%+ a month and with BTC. My idea is stacking for the next 3 years and then I'll start diversifying into other products.>>62714778CHPY has a lot of erosion but it's been mostly disguised because of how much semis have gone up. I wouldn't put money into it but if you think semis are still going to go up you can try it out.
>>62714829The principle grows 4-6% even if you take 100% of the dividend.
>>62707655How much do you have invested?
If my goal is high income, and I dont mind stunted growth, are covered call etfs a good choice in the long term? I know the upside is capped, but it still does go up during bull markets, right? It's just that it won't grow as much or as fast as normal index funds.And unlike bond etfs, rate cuts won't lead to lower income, right?
>>62707655Is there an equivalent that reinvests the dividends?
>>62707655Fascinating, I only knew a bit about dividends since I'm still pretty new to financial stuff.The assets I've bought since I began aren't all winners but more experienced people than me think the ones that are will really go places.
>>62715088Compare XBCI returns against BTCI with testfolio. They are basically the same unless you timed the bottom perfectly. XBCI isn't too different from CHPY in how it works.
Compared to JEPI and JEPQ, what do you guys think of BALI and BALQ (iShares premium income active etf)? It looks like they're the iShares equivalent to JEPI/JEPQ, right? Also, what about the Global X covered call etfs? I'm under the impression that theyre riskier than JEPI/JEPQ, am I correct?
Hello?
>>62707655dividendshilling is how we know you are browntell me, where do the dividend payments come from?
Well, it is under consideration.
>>62716930Its just retards who think they found a foolproof way to get rich . They will learn
Which do you think is better: JEPI+JEPQ or BALI+BALQ?
>>62716923Hello :)
>>62716930Dividends are the white man's investment in enterprise, and true investing. Everything else is speculation depending on the Greater Fool theory where you beg someone else to come along and buy your stock at a higher price like some groveling whore. Essentially your 'investing' is a higher form of gambling, and gambling is nigger-tier.
>>62717281Oh really? What if you get issued a dividend but your course tanks?
>>62717290I buy more because its on sale? Are you this naive to investing? This is 101 you buy a quality company that pays dividends to the owners, if the stock price goes down and your quality company is on sale, and nothing else as changed i must thank the market for the opportunity it just gave me. If your company goes down you just got your ass blown out like a puff and are bagholding harder than a granny waiting for the bus in Harlem. My entire port is up 200%+ since investing and my CoY is 21%. That would require a 67% correction to bring me back to zero capital losses. If that type of a correction occurs, we are looking at bigger issues than my dividends thats nearing societal collapse and supply chains breaking down.
100% on cc etfs is insaneGo 50/50 VOO and JEPQSo yes a 600k retirement will get you by comfortably even in a bear market
>>62717324100% JEPQ reinvest the dividends into TQQQ/SOXL on the dips is the actual smart play
>>62717324Thoughts on VT (Vanguard Total World Stock ETF) instead of VOO?
>>62716050Yes to all>>62716064Look up DRIP if you are American.>>62716930The company can either buyback shares or pay dividends when it has nowhere to invest their excess money anymore, or they are still left over with excess after investing and paying bonuses. Why not pay dividends? What if the stock is overpriced and I don't want them to do buybacks? I want them to pay me cash so I can invest elsewhere, even if it means I will get tax dragged.Covered call ETFs are a different story. They just trade with covered calls and pay you the money they make from it. It is a well paying business that beats the market during crab and bear movements.
I don't get CC ETFs. They underperform the underlying index, so if you want a monthly income, why not just invest in QQQ and sell shares equivalent to the 10% JEPQ would sell out as dividends? That way you get the same monthly income and still more growth of the underlying index.QQQ is up 24% YTDJEPQ is up 17% YTD (including 10% dividends)So if you were all in QQQ and sold shares worth 10% of this year's gains as a substitute for your monthly JEPQ dividends, you'd be left with a growth of 14% in QQQ vs 7% in JEPQ. Literally double the growth. What exactly am I missing here?
>>62707655It’s a NEET fund which means it’s designed for retired people past 65. It’s completely fucking embarrassing to be living with a roommate at 50 making $36,000 a year with a $10 a day budget for food because you NEETed it the past 20 years. You do some shit like that you’re going to end up killing yourself and leaving behind a loaf of Wonderbread as your only possession. If you have a job it’s a terrible investment. Income funds only work if you have no income and you pay the lowest taxes possible on the income they pay out. I’ve made over $700k in W-2 income this year my taxes on income are fucking outrageous. What the fuck do I need a fund that pays out half my dividends every month to Israel for? I want vehicles I can shove pre-tax money into, post-tax money that I can withdraw without paying taxes, or if that’s not possible, something that I can keep money locked up in and eventually pay a lower tax rate on the gains. If you’re retired or retiring soon at like 55+ then JEPQ is great because you have downside protection, income, and appreciation which protects your income against inflation. But retiring young with $100k in JEPQ is a very stupid idea. >>62718001When the market is down instead of absolutely ripping then the covered call strategy protects the unit price. JEPQ’s target demographic that they market the fund to is someone 55+ with no income who is retired with $1-5 million that they want to “put in the market”, make nice monthly income against, never see it depreciate by more than 10% in a calendar year, then die and leave that $1-5 million to their kids, maybe with even a little bit of growth on top. If that’s not you then you probably shouldn’t buy the fund.
>>62718065One thing I’ll add, JEPQ/JEPI actually is a fantastic instrument to hold over a shorter time horizon if you’re explicitly expecting a crab market and you are too lazy to construct an options strategy for a crab market/options scare you. You could be an extremely profitable trader just only ever trading long qqq/short qqq/JEPQ and timing the bull/bear/crab correctly. Lazy but much more profitable than buy and hold.
>>62718065Does the iShares cc etf (BALI/BALQ) also offer downside protection? Does it work like JEPI/JEPQ?
>>62718090Dog I’m just not going to hold something called BALLQ so I’m not even going to look into it
>>62710092>get 60k in divvies>lose 84k in NAVImagine being outperformed by holding cash.
>>62718090Anyone?
>>62707655If you just sold cash secured puts yourself would it be easier to just skip the days that trump plans to say something stupid and aim for a cash heavy account?
>>62718065It's good if you want to retire young and don't have high income. I live with my parents working part time minimum wage and throw my money into JEPQ so the taxes don't matter. In like 5 years I'll probably be making my $2k a month to pay my bills. Why wouldn't I put my money in NEET funds?
>>62719447Based I was dollar cost averaging into VT, but the goal is always to neet so why not just stick to the one fund that allows it and not worry about tax rebalancing
>>62719494It's also like if you buy SPY/QQQ and the market crashes 50% now your 200k is 100k and you literally can't sell it to pay for your bills because you're selling a loss and losing your principle. If you buy a CC fund it's going to drop much less and you're still going to get dividends
>>62717980>etf>buybacksmy brown nigga in ganesh they are diluting shares on your ass at the expense of future price appreciation
yeah don't know what all the "six figure hell" bitching is about
>>62707669>>62707655is true?
>>62709992basedmost YieldMax is crap but some are useful in a <10% or so sleeve to cover margin/loan interest, like NVDY and MSTY/CONY lately. I practically lived off MSTY through the last bull but if you hold in a bear you are fucked. Ofc total return is always best to measure but if you do goblin level investing with rotating personal loans and margin, the mega high yielders serve a purpose, but always in a small sleeve alongside the major index positions.
>>62707655So, uh, you can just sell calls/puts yourself and get 2.5% of your invested capital per month. Meaning 34% or so APY.
For people in Europe, what are the best covered call etfs in your opinion?
>>62718065>When the market is down instead of absolutely ripping then the covered call strategy protects the unit price.I'm not seeing it. Just compare the most recent real crash we had from april last year. The Nasdaq went down a cliff and so did JEPQ. The only difference is that in a couple month's time, the QQQ recovered and hit a new ATH and has been hitting new ATHs ever since, whereis JEPQ is still lower today than it was in january 2025. JEPQ still hasn't recovered its 2025 ATH over 1 and a half years later.>>62720476We have those same JPMorgan CC ETFs here in Europe. The UCITS version of the Nasdaq CC ETF has the ticker JEQP.
If I'm a NEET looking for something to buy and hold forever which will generate good income, what is the best choice, Covered Call ETF's or High Yield Corporate Bond ETF's?My problem with Corporate Bonds is that once the Strait of Hormuz is fully reopened again, Central Banks will cut interest rates and the yields will go down, right?Also, it it a good time to start investing now, or should I wait? On one hand, once the Strait is finally reopened, it might trigger a bull run, so maybe I should buy now; on the other hand, I feel I should wait until OpenAI's IPO, as it might pop the AI bubble and cause a market crash. The perfect sequence of events would be OpenAI's IPO happening first, and then the Strait reopening permanently (a crash followed by a bull run), but unfortunately the opposite might happen...
???
>>62721450https://testfol.io/?s=3jTy8mETWK2Whenever QQQ crashes it goes to the same amount as JEPQ and in long periods of flat/down JEPQ will be higher. QQQ can be better I guess if you're selling it when it has a big boost but that's timing the market and for someone who wants to live off their investments you're taking a huge risk.The main benefit of JEPQ is dividends during periods of flat/down markets where someone living off their income would not be able to sell QQQ
Even though getting the income is fun dont you just get fucked on taxes even if you are dripping
>>62720197What the fuck are you talking about? Learn to read you underdeveloped brown ape.>>62720227I guess so. The closest thing I got to YieldMax-like ETF is USOY. Made some good money from all the volatility of the past 6 months.>>62720266Yeah, go ahead and do just that and let me know how it went next year.
at least in the us, jepq dividends aren't qualified, which means you pay twice the tax rate. id rather put my money in a stable growth fund and take 2-3% dividends, with a flat 15 percent tax. but i guess if you're desperate for temporary dividends then go for it.
>>62707655it is better to have capital gains than dividends because you control the timing. also JEPQ gets its juicy dividend from selling future gains so you get killed by inflation - $200k is nowhere near enough.it is a product your grandma would buy, it is not meant for young people.
>>62710100option a: get dividends, pay tax, reinvest remainderoption b: just hold underlyingb simply outperforms. dividend reinvestment is meant for VOO not for income ETFs. pic rel.>>62718101this
I heard JEPI/JEPQ use ELNs instead of covered calls. I have no idea what ELNs are, are they risky?
Owning the underlying will outperform in total return almost every single time so unless it is a fund like BLOX that sell puts or put credit spreads instead of capping upside selling calls then I don't see any reason to own JEPQ over QQQ or any similar fund. You can also sell for LTCG with no dividends so unless they target 100% RoC like NEOS you will still leave out gains. The only NEOS fund I own rn is IYRI because of the way REITs are taxed. Anything else I want exposure to I can just outright own the underlying and sell my own options against it with defined risk according to my preference: https://totalrealreturns.com/s/BTCI,BLOX,IBIT,MSTR,MSTY
>>62724623See>>62722643
>>62724352It depends on how much leverage is implied in the ELN. They are essentially modeling a call spread, where you're buying a long call, and then selling short a call to generate the yield, so your loss is limited to the cost of the long option but your gain is limited to the premium of the short call.
>>62723390>Yeah, go ahead and do just that and let me know how it went next year.There's little risk to it compared to buying and holding stock. Worst case scenario you get assigned to hold a stock that tanked in price, just like a stock you can hold can tank in price.
>>62717929I hold VT in my 401k that is a 5% match, so I put 5% of my salary in that and then all other investments in dividends. I am not planning on moving or selling it until I retire, and I dont know who will be on top in 35 years. I dont know why more people dont do this.
In Europe, these are the available covered call etfs:JEPI, JEPQ, and a global version of themA global version of BALI/BALQ called WINCThe Global X etfs2 or 3 tiny Rex Shares etfsSome yieldmax etfsOne UBS SP500 etfThe yieldmax are obviously garbage, but what do you think about the others? For example, are the Global X etfs good? Are the Rex shares etfs good?
...Bump?
>>62726547it should be the other way around. for buy and hold the things that generate distributions should be held in 401k and things that don't you hold in your brokerage account. look up basic tax efficiency.>>62726780what is your goal? how old are you? for a zoomer or millennial it doesn't make sense to get income-generating ETFs.
>>62727453>what is your goal?I'm disabled (wheelchair) in my early 40s, I dont have a stable income but I have some savings and I'd like to have an extra income.
These ETFs, they generate money with covered calls, but what about their holdings' dividends? I'm assuming they reinvest them? Or do they distribute them alongside with the covered calls income?
B-bump???
Indeed, why baghold accumulative funds for decades when you can get delicious high income every month?
>>62728836These funds are a melting ice cube. The covered calls turn sideways and bull markets into income instead of capital gains, so when you lose money in bears you didn't have gains to evaporate off before hitting what you put in, and you can never recover without pivoting out of the covered call etf.
>>62728101I think you are better off just getting a regular ETF and then selling to generate income. after a year it will be long term capital gains. just ask AI to simulate it:>if I put $300k in JEPQ vs QQQM and my goal is to get $3000 income a month, am I better off getting JEPQ distributions or QQQM sales/dividends? simulate last five years and take tax effects and growth in account. assume no other income. make a table.the answer is that with JEPQ you end up paying income tax and with QQQM you don't (long term capital gains are taxed at 0% below $48,350 taxable income).Gemini says that after 5 years you'd have ~$275,000 - $315,000 in JEPQ and ~$340,000 - $390,000 in QQQM.there is a sequence of returns risk (QQQM has greater drawdowns than JEPQ) but you can choose a different index. but there is simply no point paying income tax if you can have 0% capital gains instead.
>>62729023(cont)the bigger issue is that you want to withdraw 12% a year ($36k out of $300k). you generally can't get those returns - people typically target 3% or 4% as a safe withdrawal rate. so there is a high risk that at one point you will run out with either strategy.also when selling QQQM make sure to sell proper tax lots (you want one year holding period)
bump
capitalerosion
>>62707655What's the catch?
>>62731461Covered calls consistently underperform the underlying over long term
Does line never go up, or does it go up, but slower than the underlying asset?
>>62731521You are selling the upside for income basically
>>62731521The latter.GPIQ has better yearly NAV growth (+12% vs +7%) but slightly worse div yield (9.8% vs 11%.)
>>62708391>i like the goldman funds betterwhat would these be?thanks in advance.
What do you think of Rex Shares's covered call ETF's?
>>62731691Gpiq and gpix for the nasdaq and the s and pNta but I also prefer these funds because they have the lowest differential from the underlying, meaning you are trading less total return for income than the other optionsI would only go up the scale if you have to hit a certain income and be cognizant that it’s getting more expensive for you to do so
>>62731461The costs of these types of ETFs are1. Capped upside if price soars2. The management is making like 30% per year and pocketing the difference, you could sell the options yourself if you're fine with the risk.It's something to buy if you believe the market will crab or if you need the dividends for something.
Are yieldmax, global x, and rex shares just return of capital?
>>62734073They are riskmaxxing returnofcapitalmaxxing retardnewbmaxxing etfs like everything in this thread as yall will eventually find out
>>62734073they can sometimes outperform the underlying in specific cases but outside of that the only use is goblin maxxing margin strategies as a small allocationROC isn't known until eoy, it can save you a lot on taxes on some of the fundsNEOS and Tapp Alpha are better but still underperform the underlying but just a little
Being a bagholding cuck VS being a JEPI chad earning income every month
>>62734444JEPI has done worse than SGOV lol
>>62734474Which one has the highest yield?
>>62735281If you have yield but your nav erodes you're going to run out of money
>>62735301If I'm not intending to sell, is JEPI that much worse compared to bonds?
>>62735313When it drops -55% like it did in 2008 you will get fucked cause upside is capped on covered calls and on JEPI it's even worse because they took out the big growth stocks of the SPY. Not only will you lose your principle they will lower the dividend.
>>62733794thanks fren
Would the iShares equivalent (BALI) be better than JEPI? It seems to have better grow and similar income.
In a trad 401k/IRA you pay full income taxes regardless so I would just stack non qualified funds there like Reits and BDCs if you don't have space in Roth accounts. There's no tax for swapping funds though so you should just keep these in growth index funds until close to retirement.In Roth accounts its similar you can just freely swap from growth funds to these income funds near retirement. Once you hit the age limit for Roth accounts I plan to just start yield maxxing there.In taxable accounts these income funds have tax drag which means it's usually still better to eat the long term tax after retirement to switch from growth to income funds. Spread it out over a few years for tax avoidance maxxing.Either way, the underperformance against the indexes means no one should consider these covered call funds unless you are retiring in 5 years or less. And I would only buy the ROC funds during those 5 years, the others should just wait until after retiring.
>Return of CapitalAm I missing something or is it just you giving your money to the fund and they just pay you back with the same money you gave them while also accidentally losing some along the way? What kind of investment is this??
>>62737013From what I understand by reading this thread, good cc funds will generate income while the underlying asset grows a tiny bit (but that growth is much smaller than if you had invested in a normal index fund).
>>62737013return of capital is taxed less
>>62735318you can just sell JEPI if a 20% crash happens, throw it all into VOO and ride it on the way back up.
>>62707655K
>>62737816Did cc funds exist back in 2008? If yes, how hard did they fall, and what was the dividend yield during the crash?
Is this better than bond etfs?
"You can create your own dividend by selling"Except if your down, youll lose money if you sell.Congratulations, you just invented negative dividends.If you want to retire early and stop being a wagie, I think JEPI and JEPQ (or similar funds) will be part of it.
Ay yo SHIIIIIIIIIT HOLD UP! Dis thread finna be sent to the shadow realm on page 10, but we said NAH, we good!
>>62741982This is probably the only thread giving good finantial advice.
Is there a global version of JEPI?
>the cripple schizo STILL keeps bumping the thread with questions that could be instantly answered by typing them in the address bar
>>62737811Or you can just hold onto your cash and not be taxed at all?
Lets keep this thread alive ! ! ! ! :)
ETFs for permacrabs, I guess.
A lot of people lkke JEPQ but neglect JEPI. I do a 50/50 split between the two (not my whole portfolio obviously but they ge the same amount of funds
>>62751333I'm drumk sorry
I'm amazed this thread is still up.
>>62737816JEPI doesn't shit the bed like other ETFs do, it's holdings are defensive consumer staples. If the market sees a downturn JEPI will see some decline but the covered calls will actually pay more as the market declines.JEPQ on the other hand is strait fucked in a downturn with all those shitty tech holdings.
>>62735318JEPI was founded in 2020...
>>62751894JEPIX the mutual fund version was founded in 2018 and it dropped almost exactly the same as SPY and never captured the upside you can the huge difference in returns.https://testfol.io/?s=kVg3R5UJOg8
Long term something like VOO should be "safer" than QQQ right, I suppose both are going to be heavily weighted just due to how the market is formatted though
>>62751711>I'm amazed this thread is still up.Me too. This thread is an actual debate about a certain type of investing and not your typical crypto nonsense that is most of /biz/
>>62752455Does this include the dividends or not?
>>62752869Yes without the dividends it's even worse so if you were living off the income you would go negativehttps://testfol.io/?s=jqx4oUSp6OE
>>62752474Your thinking about it wrong imoIf you are like 20 even if we have some bizzaro decade where tech underperformed it will still be the better choice by the time you retire. The risk off period is gonna be like 5 years before you retire because you don’t want a crash to happen and delay your plans 3 years waiting for the recovery
For income, will covered call etfs be better than bond etfs, if the government decides to do "financial repression"?
>>62753416this. risk on while you are young.
Who the fuck keeps necrobumping this thread
I guess covered call funds can be good for a 65 or 70 year old who is retiring. Or maybe a high yield corporate bonds fund could be better?
>>62751711You are a mentally ill cripple. Of course it is still up, you keep bumping it with inane questions.
>>62756815But this is such an interesting product!
>>62758591Not really. Jepi and jepq are among the worst of the cover call products. There's basically no chance of them recovering after a severe downturn. And in general, the idea of cover calls on the broad market indexes is a little silly. Even the most efficient are basically just like auto-selling the underlying. Where cover calls make more sense is on alternate assets or sectors that don't follow the broad market. You can easily figure out when to sell the broad market or just auto-sell your stock, but alternate assets that don't follow the broad market can be more of a pain to keep track of, and that's where cover call funds can make more sense.
>>62758841>Even the most efficient are basically just like auto-selling the underlyingDoes that mean that in the long term the nav will just go to zero, as they run out of underlying to sell?
In Europe, there's a covered call etf, called iShares World Equity High Income, which has over 10% dividend yield, and the NAV actually goes up over time. What's the catch?
>>62761440market downturn
>>62761510It recovered from last year's tariffs crash. Not as quickly as normal etfs, but it did.
>>62761440could be tax treatment, could be a lower total return compared to the underlying, could be both, could be neither. American cc ETFs are starting to distribute more return of capital since that only always cost basis until cost basis goes down to 0. until that point it's fully tax free
>>62762034Oh, so basically, in the long term, their NAV will be zero, is that what you mean? Or am I misunderstanding?
>>62707655$DGS.TO is better, it averages a 15-17% yield.
>>62754696hmmm ive been all in on Voo for a while hovering at 18% total return, honestly just thought "cant complain" and moved on
>>62762982Is that a Canadian fund? Unfortunately I dont think I can invest in it...
look up FYEE its a quarterly paying CC ETF just like JEPI but with an expense ratio of 0.28% which is less then any other CC ETF i have been able to find. yield is 8.2% annually.
Do you guys know what an "autocallable" is? Can someone explain what it is? I found some new etfs that are based on "autocallable" stuff.
>>62707655Go read the tax implications and realize that QQQI is a better deal. Go on, faggit.
After reading more about this, some people say that JEPI/JEPG uses "equity linked notes" instead of covered calls. Is this true? If yes, compared to covered calls, what are the pros and cons of equity linked notes?
OP FOR THE LOVE OF FUCKING GOD LET THIS GOD DAMN THREAD DIE ALREADY
Please, can someone explain the pros and cons of "autocallable" products and also of "equity linked notes"?
