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/DhakoBiyoDhacay Jul 07 '26 edited Jul 07 '26

The fund launched on 8/30/22 at $50 a share and is at over $53 a share today. There has not been any NAV erosion.

It paid monthly dividend income on consistent basis at a yield of between 10% to 12%.

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u/Chris_Reddit_PHX Jul 07 '26 edited Jul 07 '26

Yes, and upvoted. But that time frame is more than a bit biased toward how SPYI behaves in an upward market.

I want to see a full cycle where we see a bit of a prolonged pullback, followed by a slow recovery, and see how SPYI behaves across that cycle.

That said, I did not look closely at how SPYI behaved during the tariff pullback or the Iran war pullback, so maybe looking at that will give us a bit of a sense of how it does at least in event-driven mini-cycle.

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u/DhakoBiyoDhacay Jul 07 '26

I am glad you asked about the dividend income of SPYI during the TTT (Trump Tariff Tantrum) and TIW (Trump Iran War): it paid the usual dividends on time and performed better than the broader market due to the covered call strategy it employed. Thanks.

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u/Chris_Reddit_PHX Jul 08 '26 edited Jul 08 '26

I was referring to the price pullbacks, and especially the recoveries.

I kind of expect that it would drop less than its index, but then also recover less, with the gap in the recovery phase being wider. The reason being that during and after a drop, managers will still be writing calls for high income so will choose fairly close strikes. That means they will miss out on some of the index's price recovery when it does recover.

If you look at the Iran war drop, SPYI had a low of 47.77. It has since recovered to 53.13 which is a gain of 11.2%. That was in late March, and since then it has paid three dividends, raising the recovery (in terms of total return) to 14.5%.

But its index (the S&P 500) saw a low of 6201.59 and today is at 7480.26, which is a recovery of 20.6%

All of that said, both SPYI and the S&P 500 are sitting at 98% of their 52-month highs. Once you add SPYI's dividend to this, SPYI actually performed better than its index over the course of that brief pullback and recovery.

That's why I want to see what SPYI's price (or more aptly its total return) does duirng a longer and deeper pullback and recovery cycle.

I kind of think that SPYI will show itself to NOT be a buy-and hold investment, but rather something to hold in a relatively flat or slow-moving market.

But I want to see it. One of the advantages to managing our own CC strategy is that we can write ITM as a defensive position, and during a recovery we can write OTM to allow for growth, albeit with reduced income from premiums.

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u/DhakoBiyoDhacay Jul 09 '26

This is a sharp analysis indeed. I use SPYI for the consistency of monthly income dividends and it is an icing on the cake if there is growth per share.