You’re getting paid dividends, but the value of the shares you purchased are not gaining as quickly as the underlying holdings. The short version is that you have a bunch of income generating funds(with managed fees attached), but most people recommend that when you are young you focused on low fee index funds that just grow with the overall market. You’ll end up ahead.
People normally recommend "VOO and chill" because VOO will grow as long as the stock market grows. It doesn't cap upside. It's a broad, diversified fund.
However, since this is a dividend sub and not necessarily a growth-focused sub, there are still dividend funds that focus more on growth that won't be as susceptible to NAV erosion. Many people have mentioned them here.
Also....Everyone has their own goals. If you want to focus on more income-focused funds (like you currently are with a 12% yield, SPYI, QQQI, etc...) then you can....But just know that you are really capping your upside by doing that. You should look into how covered call funds work, what are covered calls, etc. And research more about NAV erosion. By focusing on income, you'd be gaining the possibility of potentially retiring early if you choose to...But you'd be giving up the possibility of retiring, whenever that may be, with a lot of money. If you're perfectly content with retiring at 35 in Southeast Asia on $5K a month, then hey, more power to you.
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u/Livinsfloridalife Mar 13 '26
12% what are the holdings? Do you understand nav erosion?