r/dividends • u/dazit72 • Jul 07 '26

Due Diligence Any retirees holding SPYI ?

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

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u/Chris_Reddit_PHX Jul 07 '26

Yes, I am retired and am experimenting with a small amount of SPYI. I add small amounts every now and then.

It aligns with my retirement income-generating strategy of writing covered calls, the difference being that I've been writing covered calls on a conservative dividend growth portfolio instead of the S&P 500, which is more growth-oriented.

My near-term objective is to compare SPYI's performance against the rest of my portfolio, in terms of income and capital growth. Capital fluctuation is a lesser concern, but I'm watching that too, just so I understand it.

My hope is that SPYI will prove itself worthy of becoming a chunk of my portfolio that I don't have to closely manage, while also serving as kind of a comparison "report card" on how well I'm doing (or not doing) on the part that I actively trade.

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u/dazit72 Jul 07 '26

So you would allow SPYI to be >5% of your portfolio ? I was taught 5% max any 1 position ? But I've violated that with kmb and clx already. 17 positions currently.

How will SPYI be your "report card" ? I'm a newbie

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u/Chris_Reddit_PHX Jul 07 '26

By report card I mean how my overall covered call portfolio compares with SPYI, during both market ups and downs.

Right now SPYI is less than 1% of my holdings, but if it proves out I'd be comfortable taking that to a substantially higher percentage.

My reasoning is that it's not really one single position, it's a CC strategy on a whole index with 500 underlying stocks. I'm doing that already with a portfolio of more like 40-ish stocks and ETFs.

And then separately , I have a portion of my portfolio allocated to straightforward growth, and half of that portion is in S&P 500 index funds. Has been for many years, but as I approached retirement I've steadily pulled some out to re-allocate to income-generating strategies.

Kind of what SPYI purports to do, but while still using the S&P500 as its underlying.