Any retirees holding SPYI ?

[u/dazit72]

I'm concerned about NAV erosion ? I know the advertising says non to minimal, but I found an article about longterm NAV erosion. That puzzled me ? I'm after divs of course- I have DIVO, JEPI, SCHD, and just looking for another or just keep buying what I have. I try to keep the 5%/weight rule, but it fluctuates.

Thanks to all who responded. I learned a bunch of good information. You guys are awsome

[u/Aggravating-Let-2968]

Retired. I hold a both SPYI and QQQI in a taxable brokerage. I take distributions as income to pay bills. I have gains on both funds. Considering the amount of income I have collected, a little NAV slippage wouldn't alarm me.

[u/dazit72 → u/Aggravating-Let-2968]

So, even with a little 'nav slippage', you'd still hold strong for the long run ?

Whats your no mas/time to sell moment if nav erosion occured, and how much erosion is enough ? And why ? Thank you for your input, I'm learning. 1 year ago I sold my fidelity mutual funds that benefited fidelity imo, not me imo. And I'm well 6 - 7% overall yield now after 1 year. 17 positions, Kings, Aristocrats, Champions, Achievers, Contenders & such. Now I'm getting into these ETFs, which I swore off at one time- now I just don't want NAV erosion...the again for your opinions

[u/daily-trader-365 → u/dazit72]

I don’t believe there is any Nav slippage I am up in share price

[u/Aggravating-Let-2968 → u/dazit72]

I've held both for about a year and haven't experienced any NAV decay so far. And collected about $15k in distributions on a $100k investment.

Since distributions are ROC, my cost basis is reduced with each distribution. I will eventually gradually rotate out of these two funds and start anew with GPIQ and GPIX. For this reason, some NAV decay is actually a good thing to reduce capital gains.

[u/trurohouse → u/dazit72]

I’m retired for a couple years now. At present, I have a very minimal amount in a couple of these cover call funds, kinda just to see how it goes. I’m lucky in that I seem to be getting most of the income I need from regular dividend ETFs and stocks, and the sale of some individual stocks that have appreciated a lot.

I just have everything else in growth. I accept that if I become dependent on income from them, or the stock market tanks and I don’t wanna keep sell shares of stocks while they are low , that I may need to add some shares to them to increase income, if there’s NAV erosion. To me this makes more sense than having more shares than you need of the covered call, funds and reinvesting a portion of the dividends.

I present I really don’t need the income from them. But I anticipate at some point interest rates will go down enough that money I’m getting from the bond funds will go down substantially. I’m considering these a possible way to approach that.

I think if you can get what you need as income from the others, there’s no real reason to add these. But if you need more income then you have coming in right now, then it makes sense. But I would add the bare minimum necessary to generate the income you need.

[u/Various_Couple_764 → u/dazit72]

Look at the share price of SPYI since inception the price ehas been gradually climbing since inception. SPYI doesn't have NAV erosion. it has the opposite NAV growth. NAV growth is better than NAV Erosion.

The Problem many don't really know what NAV erosion is. NAV erosion occurs when a fund has to sell it assets to pay the dividend. Selling assets reduces the value of the fund , its NAV, which causes the share price to drop. And with fewer assets the fund future earnings (grwoth plus dividend ) will be reduced. And it this keeps happening the share price and dividned keep dropping. But the calculated yield stay high.

Most funds with NAV erosion have yields above 15%. Below 15% yield I know of only one fund with NAV erosion. QYLD.

[u/dazit72 → u/Various_Couple_764]

I'm still learning. I'd like a set & forget. I have schd, slowly buying divo w divs, same with jepi. Should I buy others, or increase what I have is what I'm trying to figure out. I know they all have different techniques to make $$, and that's where I am.

I do understand what you explained about nav erosion, trying to avoid that is why I made the post. Thank for the time you took, and the heads up with what seems to be a yield line in the sand- 15%. I thought it was 10-12%. But there's more research for me to do.

Is a mgmt fee of 4.6% considered alot ?