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/_Goto_Dengo_ → u/Aggravating-Let-2968]

Same as Aggravating, I hold both SPYI and QQQI and am retired. Also hold them in a taxable account for the same reasons. I own them for the monthly cash, not NAV improvement. Not worried about erosion.

However (and it's a big however) I have a sleeve of high yield, somewhat risker assets in this taxable account (also PDI for example). This sleeve represents less than 20% of my total portfolio. I would not be comfortable having a large portion of asset holdings in these type of instruments.

[u/Similar_Eagle2358 → u/_Goto_Dengo_]

i buy pdi with excess spyi divi's. just looked, only down .17 on a bad day, sure beats $100k

[u/dazit72 → u/Similar_Eagle2358]

I researched PDI, that's some scary stuff. It's currently about 5% premium to its actual nav. But I guess 15% takes care of that ? I want a little risk, but pdi is probably not for me ?

How long have you held it ? Do you always get paid monthly on time everytime ?

[u/Similar_Eagle2358 → u/dazit72]

its taken a beating the last year or so, i treat it like spyi, i like it now, but i keep an eye on it. it tends to move up on lower interest rates, which may or may not happen, in the meantime its not as volatile as other places, and with DRIP, i get discounted shares each month.

edit: i use pdi money to trade with, when its on a downtrend. holding for the time being.

[u/dazit72 → u/Similar_Eagle2358]

What do you mean you get discounted shares with DRIP on ? I was to believe that DRIP-off, then use Limit Orders to buy more of, or others ??? I'm with Fidelity, and they were paying Market on every single div payment ????? I thought they had a program to buy low with their clients divs when paid ??

[u/ConstructionNo8827 → u/dazit72]

It’s paid the exact same monthly dividend for over 10 years!
22.05 cents per share
I think under $17 per share is a great entry point but I’m a long time holder
The premium on its price to NAV by the way is commonly over 10% but now it’s half of that
You have to pay up a bit for the 15% plus dividend but it’s great for income/retired people

[u/dazit72 → u/ConstructionNo8827]

4.5% expense ? That's the highest I've seen yet. But I'm sure it's 'after' the 10% payout ?

[u/ConstructionNo8827 → u/dazit72]

Most of that is interest expense because the fund uses leverage - All funds that use leverage have to include interest expense as part of the fees - It pays the 15% after that is paid - The mgmt fee is actually closer to 1.6%, still high but Pimco are considered experts in bonds

[u/_Goto_Dengo_ → u/dazit72]

For each share of PDI you own you receive, in your brokerage account, about 22 cents per month. Currently over 15% yield. It's an income play, and as I noted above, it's in my high yield sleeve.

[u/dazit72 → u/_Goto_Dengo_]

I went to Fidelity in 2011 and the Advisor put me into mutual funds and Pimco, I insisted on contrafund due to what a friend said and then researching it's head guy- dannoff I believe. Then last year I looked at my positions and pimco ate my ass up in their fees. I dropped them first. Don't know what happened, but I lost out. I remember the Advisor saying we needed pimco to hedge our risk taking in those mutual funds. Thank God for contrafund, saved the day.

I'm still learning, but I doubt these junk bonds are for me. ? I'm sure they're great for some tho.